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SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended
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Dec. 31, 2020
Condensed Financial Information 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) |  | 2020 |  | 2019
ASSETS |  |  |  |
Fixed income, available-for-sale, at fair value (amortized cost, 2020 – $773,881; 2019 – $287,489) |  | $ | 773,995 |  |  | $ | 288,362 |
Cash and cash equivalents |  | 73,000 |  |  | 36,621 |
Investment in subsidiaries, at equity in net assets |  | 4,740,074 |  |  | 4,611,356 |
Accounts receivable - affiliates |  | 1,450 |  |  | 2,129 |
Income taxes -current and deferred |  | 219,059 |  |  | 196,978 |
Accrued investment income |  | 3,760 |  |  | 2,498 |
Other assets |  | — |  |  | 81 |
Total assets |  | $ | 5,811,338 |  |  | $ | 5,138,025 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |
Liabilities: |  |  |  |
Senior notes |  | $ | 879,379 |  |  | $ | 420,867 |
Convertible junior subordinated debentures |  | 208,814 |  |  | 389,522 |
Accrued interest |  | 23,004 |  |  | 17,928 |
Other liabilities |  | 1,155 |  |  | 474 |
Total liabilities |  | 1,112,352 |  |  | 828,791 |
Shareholders’ equity: |  |  |  |
Common stock, (one dollar par value, shares authorized 1,000,000; shares issued 2020 – 371,353; 2019 – 371,353; outstanding 2020 – 338,573; 2019 – 347,308) |  | 371,353 |  |  | 371,353 |
Paid-in capital |  | 1,862,042 |  |  | 1,869,719 |
Treasury stock (shares at cost 2020 – 32,779; 2019 – 24,045) |  | (393,326) |  |  | (283,196) |
Accumulated other comprehensive income, net of tax |  | 216,821 |  |  | 72,708 |
Retained earnings |  | 2,642,096 |  |  | 2,278,650 |
Total shareholders’ equity |  | 4,698,986 |  |  | 4,309,234 |
Total liabilities and shareholders’ equity |  | $ | 5,811,338 |  |  | $ | 5,138,025 |
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) |  | 2020 |  | 2019 |  | 2018
Revenues: |  |  |  |  |  |
Investment income, net of expenses |  | $ | 7,090 |  |  | $ | 7,695 |  |  | $ | 4,685 |
Net realized investment gains (losses) |  | 1,454 |  |  | (311) |  |  | (532) |
Total revenues |  | 8,544 |  |  | 7,384 |  |  | 4,153 |
Expenses: |  |  |  |  |  |
Operating expenses |  | 719 |  |  | 793 |  |  | 637 |
Interest expense |  | 65,472 |  |  | 61,593 |  |  | 61,930 |
Loss on debt extinguishment |  | 35,033 |  |  | — |  |  | — |
Total expenses |  | 101,224 |  |  | 62,386 |  |  | 62,567 |
Loss before tax |  | (92,680) |  |  | (55,002) |  |  | (58,414) |
(Benefit from) provision for income taxes |  | (18,431) |  |  | (12,263) |  |  | (13,517) |
Equity in net income of subsidiaries |  | 520,342 |  |  | 716,502 |  |  | 714,994 |
Net income |  | 446,093 |  |  | 673,763 |  |  | 670,097 |
Other comprehensive income (loss), net of tax |  | 144,113 |  |  | 196,922 |  |  | (80,413) |
Comprehensive income |  | $ | 590,206 |  |  | $ | 870,685 |  |  | $ | 589,684 |
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) |  | 2020 |  | 2019 |  | 2018
Cash flows from operating activities: |  |  |  |  |  |
Net income |  | 446,093 |  |  | $ | 673,763 |  |  | $ | 670,097 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Equity in net income of subsidiaries |  | (520,342) |  |  | (716,502) |  |  | (714,994) |
Dividends received from subsidiaries |  | 221,024 |  |  | 154,413 |  |  | 199,692 |
Deferred tax (benefit) expense |  | (18,252) |  |  | (10,416) |  |  | (11,756) |
Loss on debt extinguishment |  | 35,033 |  |  | — |  |  | — |
Other |  | 19,088 |  |  | 21,104 |  |  | 24,303 |
Change in certain assets and liabilities: |  |  |  |  |  |
Accounts receivable - affiliates |  | 972 |  |  | (735) |  |  | 18 |
Income taxes receivable |  | — |  |  | 1 |  |  | 17,859 |
Accrued investment income |  | (1,262) |  |  | (478) |  |  | 112 |
Accrued interest |  | 5,076 |  |  | (2) |  |  | (4) |
Net cash provided by operating activities |  | 187,430 |  |  | 121,148 |  |  | 185,327 |
Cash flows from investing activities: |  |  |  |  |  |
Purchases of investments |  | (1,131,060) |  |  | (117,663) |  |  | (83,003) |
Proceeds from sales of investments |  | 812,188 |  |  | 160,040 |  |  | 93,481 |
Net cash provided by investing activities |  | (318,872) |  |  | 42,377 |  |  | 10,478 |
Cash flows from financing activities: |  |  |  |  |  |
Proceeds from issuance of senior notes |  | 640,250 |  |  | — |  |  | — |
Purchase of senior notes |  | (179,735) |  |  | — |  |  | — |
Payment of original issue discount - senior notes |  | (2,969) |  |  | — |  |  | — |
Purchase of convertible junior subordinated debentures |  | (36,392) |  |  | — |  |  | — |
Payment of original issue discount - convertible junior subordinated debentures |  | (15,049) |  |  | — |  |  | — |
Cash portion of loss on debt extinguishment |  | (25,266) |  |  | — |  |  | — |
Repurchase of common stock |  | (119,997) |  |  | (125,766) |  |  | (163,419) |
Dividends paid |  | (82,061) |  |  | (41,914) |  |  | — |
Payment of debt issuance costs |  | (2,020) |  |  | — |  |  | — |
Payment of withholding taxes related to share-based compensation net share settlement |  | (8,940) |  |  | (5,726) |  |  | (8,131) |
Net cash provided by (used in) financing activities |  | 167,821 |  |  | (173,406) |  |  | (171,550) |
Net increase (decrease) in cash and cash equivalents |  | 36,379 |  |  | (9,881) |  |  | 24,255 |
Cash and cash equivalents at beginning of year |  | 36,621 |  |  | 46,502 |  |  | 22,247 |
Cash and cash equivalents at end of year |  | $ | 73,000 |  |  | $ | 36,621 |  |  | $ | 46,502 |
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 paid a total of $390 million, $280 million and $220 million in dividends in cash and fixed income securities to our holding company during 2020, 2019 and 2018, respectively. No contributions were made to our insurance subsidiaries in 2020, 2019 or 2018. 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. MGIC's ownership of our holding company's 9% Debentures of $132.7 million were previously eliminated in consolidation, but remained an obligation of our holding company. In the third quarter of 2020, MGIC distributed to the holding company, as a dividend, its ownership in the 9% Debentures, retiring those 9% Debentures.

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- 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/disclosureRef -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 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 + Details
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