XML 55 R27.htm IDEA: XBRL DOCUMENT
v3.8.0.1

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended
--- | ---
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED BALANCE SHEETS PARENT COMPANY ONLY
|  |  | December 31,
| (In thousands) |  | 2017 |  | 2016
| ASSETS |  |  |  |
| Fixed income (amortized cost, 2017 – $195,846; 2016 – $247,396) |  | $ | 194,061 |  |  | $ | 245,435 |
| Cash and cash equivalents |  | 22,247 |  |  | 37,666 |
| Investment in subsidiaries, at equity in net assets |  | 3,567,034 |  |  | 3,150,671 |
| Accounts receivable - affiliates |  | 1,414 |  |  | 780 |
| Income taxes - current and deferred |  | 192,570 |  |  | 289,703 |
| Accrued investment income |  | 1,941 |  |  | 1,749 |
| Other assets |  | 1,275 |  |  | 80 |
| Total assets |  | $ | 3,980,542 |  |  | $ | 3,726,084 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |
| Liabilities: |  |  |  |  |  |
| Senior notes |  | $ | 418,560 |  |  | $ | 417,406 |
| Convertible senior notes |  | — |  |  | 349,461 |
| Convertible junior subordinated debentures |  | 389,522 |  |  | 389,522 |
| Accrued interest |  | 17,934 |  |  | 20,853 |
| Total liabilities |  | 826,016 |  |  | 1,177,242 |
| Shareholders’ equity: |  |  |  |  |  |
| Common stock, (one dollar par value, shares authorized 1,000,000; shares issued 2017 – 370,567; 2016 – 359,400; outstanding 2017 – 370,567; 2016 – 340,663) |  | 370,567 |  |  | 359,400 |
| Paid-in capital |  | 1,850,582 |  |  | 1,782,337 |
| Treasury stock (shares at cost 2016 – 18,737) |  | — |  |  | (150,359 | )
| Accumulated other comprehensive loss, net of tax |  | (43,783 | ) |  | (75,100 | )
| Retained earnings |  | 977,160 |  |  | 632,564 |
| Total shareholders’ equity |  | 3,154,526 |  |  | 2,548,842 |
| Total liabilities and shareholders’ equity |  | $ | 3,980,542 |  |  | $ | 3,726,084 |
See accompanying supplementary notes to Parent Company condensed financial statements. MGIC INVESTMENT CORPORATION SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF OPERATIONS PARENT COMPANY ONLY
|  |  | Years Ended December 31,
| (In thousands) |  | 2017 |  | 2016 |  | 2015
| Revenues: |  |  |  |  |  |
| Investment income, net of expenses |  | $ | 3,177 |  |  | $ | 3,807 |  |  | $ | 7,586 |
| Net realized investment (losses) gains |  | (13 | ) |  | 646 |  |  | 357 |
| Total revenues |  | 3,164 |  |  | 4,453 |  |  | 7,943 |
| Expenses: |  |  |  |  |  |  |  |  |
| Operating expenses |  | 642 |  |  | 1,409 |  |  | 582 |
| Interest expense |  | 65,972 |  |  | 64,598 |  |  | 68,932 |
| Loss on debt extinguishment |  | 65 |  |  | 82,234 |  |  | 507 |
| Total expenses |  | 66,679 |  |  | 148,241 |  |  | 70,021 |
| Loss before tax |  | (63,515 | ) |  | (143,788 | ) |  | (62,078 | )
| Provision for (benefit from) income taxes |  | 95,517 |  |  | (52,575 | ) |  | (125,487 | )
| Equity in net income of subsidiaries |  | 514,793 |  |  | 433,730 |  |  | 1,108,591 |
| Net income |  | 355,761 |  |  | 342,517 |  |  | 1,172,000 |
| Other comprehensive income (loss), net of tax |  | 41,739 |  |  | (14,220 | ) |  | 20,461 |
| Comprehensive income |  | $ | 397,500 |  |  | $ | 328,297 |  |  | $ | 1,192,461 |
See accompanying supplementary notes to Parent Company condensed financial statements. MGIC INVESTMENT CORPORATION SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF CASH FLOWS PARENT COMPANY ONLY
|  |  | Years Ended December 31,
| (In thousands) |  | 2017 |  | 2016 |  | 2015
| Cash flows from operating activities: |  |  |  |  |  |
| Net income |  | $ | 355,761 |  |  | $ | 342,517 |  |  | $ | 1,172,000 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |  |  |  |  |
| Equity in net income of subsidiaries |  | (514,793 | ) |  | (433,730 | ) |  | (1,108,591 | )
| Dividends received from subsidiaries |  | 110,145 |  |  | 64,000 |  |  | 6,500 |
| Deferred tax benefit |  | 96,741 |  |  | (55,988 | ) |  | (125,532 | )
| Loss on debt extinguishment |  | 65 |  |  | 82,234 |  |  | 507 |
| Other |  | 18,716 |  |  | 16,722 |  |  | 31,701 |
| Change in certain assets and liabilities: |  |  |  |  |  |  |  |  |
| Accounts receivable - affiliates |  | (634 | ) |  | 158 |  |  | (626 | )
| Income taxes receivable |  | 297 |  |  | 3,602 |  |  | (8,308 | )
| Accrued investment income |  | (192 | ) |  | 1,951 |  |  | (265 | )
| Accrued interest |  | (2,819 | ) |  | 6,811 |  |  | (652 | )
| Net cash provided by (used in) operating activities |  | 63,287 |  |  | 28,277 |  |  | (33,266 | )
| Cash flows from investing activities: |  |  |  |  |  |  |  |  |
| Capital distributions from subsidiaries |  | — |  |  | 51,987 |  |  | 32,000 |
| Capital contributions to subsidiaries |  | — |  |  | (36,025 | ) |  | — |
| Purchase of fixed income |  | (97,091 | ) |  | (194,751 | ) |  | (295,010 | )
| Sale of fixed income |  | 176,960 |  |  | 330,142 |  |  | 386,385 |
| Net cash provided by investing activities |  | 79,869 |  |  | 151,353 |  |  | 123,375 |
| Cash flows from financing activities: |  |  |  |  |  |  |  |  |
| Proceeds from revolving credit facility |  | 150,000 |  |  | — |  |  | — |
| Repayment of revolving credit facility |  | (150,000 | ) |  | — |  |  | — |
| Net proceeds from issuance of long-term debt |  | — |  |  | 418,094 |  |  | — |
| Repayment of long-term debt |  | — |  |  | — |  |  | (61,953 | )
| Repurchase of convertible senior notes |  | (150,124 | ) |  | (426,191 | ) |  | (12,004 | )
| Repurchase of common stock |  | — |  |  | (147,127 | ) |  | — |
| Payment of debt issuance costs |  | (1,630 | ) |  | (1,127 | ) |  | — |
| Payment of withholding taxes related to share-based compensation net share settlement |  | (6,821 | ) |  | (5,030 | ) |  | (7,242 | )
| Net cash used in financing activities |  | (158,575 | ) |  | (161,381 | ) |  | (81,199 | )
| Net (decrease) increase in cash and cash equivalents |  | (15,419 | ) |  | 18,249 |  |  | 8,910 |
| Cash and cash equivalents at beginning of year |  | 37,666 |  |  | 19,417 |  |  | 10,507 |
| Cash and cash equivalents at end of year |  | $ | 22,247 |  |  | $ | 37,666 |  |  | $ | 19,417 |
See accompanying supplementary notes to Parent Company condensed financial statements. SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY ONLY SUPPLEMENTARY NOTES Note A The accompanying Parent Company financial statements should be read in conjunction with the consolidated financial statements and notes to consolidated financial statements appearing this annual report. Note B Our insurance subsidiaries are subject to statutory regulations as to maintenance of policyholders’ surplus and payment of dividends. The maximum amount of dividends that the insurance subsidiaries may pay in any twelve-month period without regulatory approval by the OCI is the lesser of adjusted statutory net income or 10% of statutory policyholders’ surplus as of the preceding calendar year end. Adjusted statutory net income is defined for this purpose to be the greater of statutory net income, net of realized investment gains, for the calendar year preceding the date of the dividend or statutory net income, net of realized investment gains, for the three calendar years preceding the date of the dividend less dividends paid within the first two of the preceding three calendar years. The payment of dividends from our insurance subsidiaries is the principal source of cash inflow for MGIC Investment Corporation, our holding company, other than investment income and raising capital in the public markets. The payment of dividends by our insurance subsidiaries is restricted by insurance regulation as discussed above. MGIC is the principal source of dividend-paying capacity and, in 2017, it paid a total of $140 million in dividends in cash and securities to our holding company, and we expect MGIC to continue to pay quarterly dividends. During 2016, MGIC paid a total of $64 million in dividends to our holding company and distributions of $52 million were paid to our holding company from other insurance subsidiaries. These distributions were completed in conjunction with the transfer of risk and the final dissolution of those insurance entities during 2016. Our holding company subsequently contributed the majority of the funds, approximately $36 million, to MGIC in relation to the transfer of risk. During 2015, distributions of $38.5 million, which includes dividends of $6.5 million, were paid to the holding company from other insurance subsidiaries. No contributions were made to our insurance subsidiaries in 2017 or 2015. Note C The senior notes and convertible junior subordinated debentures ("9% Debentures"), discussed in Note 7 – “Debt” to our consolidated financial statements, are obligations of MGIC Investment Corporation, our holding company, and not of its subsidiaries. In February 2016, MGIC purchased $132.7 million in aggregate principal of the 9% Debentures. The details of this transaction are discussed in Note 7 – “Debt” to our consolidated financial statements. The 9% Debentures owned by MGIC remain obligations of our holding company. The carrying amount outstanding of the 9% Debentures of $389.5 million is reported on the Parent Company only condensed balance sheet. For GAAP accounting purposes, the 9% Debentures owned by MGIC are eliminated in our consolidated financial statements.

X
- References No definition available. + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=96868048&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration