SUBSEQUENT EVENTS In January 2002, the Company sold $220 million of Senior Convertible Debentures. Approximately $125 million of the proceeds from the offering was used to increase capital at Radian Asset Assurance. The remainder will be used for general corporate purposes. The debentures bear interest at the rate of 2.25% per year and interest is payable semi-annually on January 1 and July 1, beginning July 1, 2002. The Company will also pay contingent interest on specified semi-annual periods, if the sale price  of its common stock for a specified period of time is less than  60% of the conversion price. The debentures are convertible,  at the purchaser’s option, into shares of common stock at prices and on dates specified in the offering. At that time, the shares become common shares for the purposes of calculating earnings per share. The Company may redeem all or some of the debentures on or after January 1, 2005. In February 2002, the Company closed on a $50 million Senior Revolving Credit Facility. The facility is unsecured and expires in one year. The facility will be used for working capital and general corporate purposes. The facility bears interest on any amounts drawn at either the Borrower’s Base rate as defined in the agreement, or at a rate above LIBOR based on certain debt to capital ratios. In March 2002, the Company made a $20 million investment in Primus Guaranty, Ltd, a Bermuda holding company and parent company to Primus Financial Products, Inc. (“Primus”), a Triple A rated company that provides credit risk protection to derivatives dealers and credit portfolio managers on individual investment-grade entities. In connection with the capitalization and Triple A rating of Primus, Radian Re has provided Primus with an excess of loss insurance policy. The Company intends to account for the Primus investment under the equity method of accounting. > 25 December 31, 2000  Mortgage Mortgage Financial (in thousands) Insurance Services Guaranty Consolidated  Net premiums written $ 544,272 $ 544,272  Net premiums earned $ 520,871 $ 520,871  Net investment income 82,946 82,946  Other income 7,438 7,438  Total revenues 611,255 611,255 Provision  for losses 154,326 154,326  Policy acquisition  costs 51,471 51,471  Other operating  expenses 57,167 57,167  Total expenses 262,964 262,964 Net gains 4,179 4,179  Pretax income 352,470 352,470  Income tax provision 103,532 103,532  Net income $ 248,938 $ 248,938 Total assets $2,272,811 $2,272,811  Deferred policy acquisition  costs 70,049 70,049  Reserve for losses 390,021 390,021  Unearned  premiums 77,241 77,241  December 31, 1999 Mortgage Mortgage Financial (in thousands) Insurance Services Guaranty Consolidated  Net premiums written $ 451,817 $ 451,817  Net premiums earned $ 472,635 $ 472,635  Net investment income 67,259 67,259  Other income 11,349 11,349  Total revenues 551,243 551,243 Provision  for losses 174,143 174,143  Policy acquisition  costs 58,777 58,777  Other operating  expenses 62,659 62,659  Merger expenses 37,766 37,766  Total expenses 333,345 333,345 Net gains 1,568 1,568  Pretax income 219,466 219,466  Income tax provision 71,328 71,328  Net income $ 148,138 $ 148,138 Total assets $1,776,712 $1,776,712  Deferred policy acquisition  costs 61,680 61,680  Reserve for losses 335,584 335,584  Unearned  premiums 54,925 54,925