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## Other Fair Value Disclosure 

## Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) 

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our consolidated balance sheets were as follows as of the dates indicated: 

## (In millions) 

Assets: Fixed-maturities held to maturity (1) . . . . . . . . . . . Other invested assets (1) . . . . . . . . . . . . . . . . . . . . Liabilities: Long-term debt (1) . . . . . . . . . . . . . . . . . . . . . . . . . Non-derivative financial guaranty liabilities (2) . . 

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(1) These estimated fair values would be classified in Level II of the fair value hierarchy . 

(2) These estimated fair values would be classified in Level III of the fair value hierarchy . 

Fixed-Maturities Held to Maturity— The fair values of fixed-maturity securities are obtained from independent pricing services that use observed market transactions, including broker -dealer quotes and actual trade activity as a basis for valuation. 

Other Invested Assets— The fair value of these assets, primarily invested in limited partnerships, is estimated based on information within the financial statements provided by the limited partnerships. These interests are accounted for and carried as cost-method investments. 

Long-Term Debt— The fair value is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities. Included in the carrying amount of long-term debt is the impact of the unamortized discount associated with the convertible senior notes issued in November 2010. See Note 13 for additional information. 

Non-Derivative Financial Guaranty Liabilities— We estimate the fair value of these non-derivative financial guarantees in a hypothetical market where market participants include other monoline mortgage and financial guaranty insurers with similar credit quality to us, assuming that the net liability related to these insurance contracts could be transferred to these other mortgage and financial guaranty insurance and reinsurance companies. 

This fair value estimate of non-derivative financial guarantees includes direct and assumed contracts written and is based on the difference between the present value of: (1) the expected future contractual premiums; and (2) the fair premium amount to provide the same credit protection assuming a transfer of our obligation to a guarantor of similar credit quality as Radian as of the measurement date. 

The key variables considered in estimating fair value include par amounts outstanding (including future periods for the estimation of future installment premiums), expected term, unearned premiums, expected losses and our CDS spread. Estimates of future installment premiums received are based on contractual premium rates. 

With respect to the fair premium amount, the accounting standard regarding fair value measurements requires that the non-performance risk of a financial liability be included in the estimation of fair value. Accordingly, the fair premium amount for financial guaranty insurance contracts includes consideration of our credit quality as represented by our CDS spread. 

