Radian Group Inc. Schedule II—Financial Information of Registrant Statements of Cash Flows Parent Company Only Year Ended December 31,  (In thousands) 2012 2011 2010 Cash flows from operating activities: Net (loss) income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (451,468) $ 302,150 $ (1,805,867) Adjustments to reconcile net (loss) income to net cash (used in)  provided by operating activities: Net gains on other investments. . . . . . . . . . . . . . . . . . . . . . . . . . (1,821) (24,603) (61,120) Gain on the repurchase of long-term debt. . . . . . . . . . . . . . . . . (16,175) — (2,496) Equity in undistributed net loss (income) of subsidiaries and affiliates (1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505,267 (495,954) 2,049,175 (Decrease) increase in federal income taxes  . . . . . . . . . . . . . . . . (7,145) 49,396 (274,778) Change in other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 895 13,384 35,797 Change in accounts payable and accrued expenses. . . . . . . . . . 25,336 90,895 (20,711) Net cash provided by (used in) operating activities. . . . . . . . . . . . . . . . . 54,889 (64,732) (80,000) Cash flows from investing activities: Sales/redemptions of fixed-maturity investments available for sale . — — 4,083 Sales/redemptions of trading securities. . . . . . . . . . . . . . . . . . . . . . . 153,992 151,840 57,989 Purchases of trading securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) (32,825) (455,724) Sales (purchases) of short-term investments, net . . . . . . . . . . . . . . . . 41,042 156,665 (230,392) Sales (purchases) of other invested assets, net . . . . . . . . . . . . . . . . . . 8,709 — (25,000) Purchases of property and equipment, net. . . . . . . . . . . . . . . . . . . . . (1,124) (523) (1,367) Capital contributions to subsidiaries and af filiates (1) . . . . . . . . . . . (100,384) (50,587) (423,146) Capital distributions from subsidiaries and af filiates. . . . . . . . . . . . . — — 268,530 Net cash provided by (used) in investing activities. . . . . . . . . . . . . . . . . 102,232 224,570 (805,027) Cash flows from financing activities: Dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,335) (1,330) (1,202) Issuance of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 391,310 Redemption of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (153,261) (160,000) (29,348) Proceeds from issuance of common stock . . . . . . . . . . . . . . . . . . . . . — — 525,887 Net cash (used in) provided by financing activities. . . . . . . . . . . . . . . . . (154,596) (161,330) 886,647 Increase (decrease) in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,525 (1,492) 1,620 Cash, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453 1,945 325 Cash, end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,978 $ 453 $ 1,945 _______________________ (1)  See Note A. F-4 See Supplemental Notes.