876437--3/1/2010--MGIC_INVESTMENT

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While our plan to write new insurance in MGIC Indemnity Corporation ( MIC ) has received Wisconsin OCI and GSE approval, we cannot guarantee that its implementation will allow us to continue to write new insurance on an uninterrupted basis throughout the United States in the future. We may not continue to realize benefits from rescissions at the levels we have recently experienced and we may not prevail in proceedings challenging whether our rescissions were proper. Changes in the business practices of the GSEs, federal legislation that changes their charters or a restructuring of the GSEs could reduce our revenues or increase our losses. Downturns in the domestic economy or declines in the value of borrowers homes from their value at the time their loans closed may result in more homeowners defaulting and our losses increasing. The mix of business we write also affects the likelihood of losses occurring. Because we establish loss reserves only upon a loan default rather than based on estimates of our ultimate losses, losses may have a disproportionate adverse effect on our earnings in certain periods. Because loss reserve estimates are subject to uncertainties and are based on assumptions that are currently very volatile, paid claims may be substantially different than our loss reserves. The premiums we charge may not be adequate to compensate us for our liabilities for losses and as a result any inadequacy could materially affect our financial condition and results of operations. We may not be able to repay the amounts that we owe under our Senior Notes due in September 2011. MGIC may not continue to meet the GSEs mortgage insurer eligibility requirements. Loan modification and other similar programs may not provide material benefits to us and may increase our losses. If interest rates decline, house prices appreciate or mortgage insurance cancellation requirements change, the length of time that our policies remain in force could decline and result in declines in our revenue. The amount of insurance we write could be adversely affected if lenders and investors select alternatives to private mortgage insurance. Competition or changes in our relationships with our customers could reduce our revenues or increase our losses. Your ownership in our company may be diluted by additional capital that we raise or if the holders of our convertible debentures convert their debentures into shares of our common stock. Our common stock could be delisted from the NYSE. If the volume of low down payment home mortgage originations declines, the amount of insurance that we write could decline, which would reduce our revenues. We are subject to the risk of private litigation and regulatory proceedings. The Internal Revenue Service has proposed significant adjustments to our taxable income for 2000 through 2007. We could be adversely affected if personal information on consumers that we maintain is improperly disclosed. The implementation of the Basel II capital accord, or other changes to our customers capital requirements, may discourage the use of mortgage insurance. We may not be able to recover the capital we invested in our Australian operations for many years and may not recover all of such capital.

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876437--3/1/2010--MGIC_INVESTMENT_CORP