Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) Contributions 19. Commitments and Contingencies 258 Any loss estimates are inherently subjective, based on currently available information, and are subject to management’ s  judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and  unpredictability surrounding the outcome of legal proceedings, actual results may dif fer materially from any amounts that have  been accrued. In the course of our regular review of pending legal matters, we determine whether it is reasonably possible that a  potential loss relating to a legal proceeding may have a material impact on our liquidity , results of operations or financial  condition. If we determine such a loss is reasonably possible, we disclose information relating to any such potential loss,  including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly and annual basis, we  review relevant information with respect to legal loss contingencies and update our accruals, disclosures and estimates of  reasonably possible losses or range of losses based on such reviews.  We are often unable to estimate the possible loss or range  of loss until developments in such matters have provided suf ficient information to support an assessment of the range of  possible loss, such as quantification of a damage demand from plaintif fs, discovery from other parties and investigation of  factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations.  In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we  disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount  accrued, if any. We are routinely involved in a number of legal actions and proceedings.  The outcome of legal proceedings is often  uncertain. Legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that  could require significant expenditures or have other ef fects on our business. In accordance with applicable accounting standards  and guidance, we establish accruals for a legal proceeding only when we determine both that it is probable that a loss has been  incurred and the amount of the loss is reasonably estimable.  We accrue the amount that represents our best estimate of the  probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our  judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely , we accrue the minimum  amount of the range.  We expect to contribute nominal amounts to Radian Group’ s and EFSG’s other postretirement benefit plans in 2013. Due  to the nature of the Postretirement  Welfare Plan, no increase is assumed in our obligation due to any increases in the per -capita  cost of covered healthcare benefits. The deferred compensation plan amounts are not funded and are not segregated from our general assets.  Accordingly,  participants in each plan are general unsecured creditors of Radian Group with respect to the amounts due under the plans.  The  amount recorded as deferred compensation expense for the years ended  December 31, 2012, 2011 and 2010 was immaterial to  our financial statements. Legal Proceedings