| Abstract: | The mortgage insurance industry continues to face significant challenges during 2009, to the extent that many mortgage insurers have reported losses exceeding our expectations. We believe that the macroeconomic environment may be having an increasingly negative impact on the prime mortgage insurance books, suggesting an elongation of the loss cycle beyond our prior expectations. As a result, we are placing the ratings for several mortgage insurance companies on CreditWatch with negative implications. On Oct. 27, 2009, Standard&Poor's Ratings Services placed its ratings on several U.S. mortgage insurance groups and their core and dependent foreign subsidiaries on CreditWatch with negative implications. These groups are Old Republic, PMI, Radian, Genworth, United Guaranty, CMG Mortgage Insurance Co. (CMG), and California Housing
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