XML 103 R28.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Schedule II Financial Information of Registrant | 12 Months Ended
--- | ---
Dec. 31, 2019
Condensed Financial Statements Parent Only [Abstract] |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Condensed Balance Sheet Parent Company Only
| December 31,
(In thousands, except per-share amounts) | 2019 |  | 2018
Assets |  |  |
Investments |  |  |
Fixed-maturities available for sale—at fair value (amortized cost of $429,999 and $320,746) | $ | 430,442 |  |  | $ | 321,401 |
Trading securities—at fair value (amortized cost of $0 and $55,948) | — |  |  | 56,011 |
Equity securities—at fair value (cost of $13,280 and $29,387) | 13,381 |  |  | 29,375 |
Short-term investments—at fair value | 162,363 |  |  | 238,185 |
Other invested assets—at fair value | 1,500 |  |  | — |
Total investments | 607,686 |  |  | 644,972 |
Cash | 23,534 |  |  | 32,352 |
Investment in subsidiaries, at equity in net assets (Note C) | 4,413,065 |  |  | 3,927,268 |
Accounts and notes receivable | 100,775 |  |  | 101,072 |
Federal income taxes recoverable, net—current | — |  |  | 49,381 |
Other assets (Note C) | 113,917 |  |  | 58,993 |
Total assets | $ | 5,258,977 |  |  | $ | 4,814,038 |
Liabilities and Stockholders’ Equity |  |  |
Senior notes | $ | 887,110 |  |  | $ | 1,030,348 |
Federal income taxes—deferred (Note A) | 253,739 |  |  | 243,341 |
Other liabilities | 69,405 |  |  | 51,634 |
Total liabilities | 1,210,254 |  |  | 1,325,323 |
Common stockholders’ equity |  |  |
Common stock: par value $.001 per share; 485,000 shares authorized at December 31, 2019 and 2018; 219,123 and 231,132 shares issued at December 31, 2019 and 2018, respectively; 201,164 and 213,473 shares outstanding at December 31, 2019 and 2018, respectively | 219 |  |  | 231 |
Treasury stock, at cost: 17,959 and 17,660 shares at December 31, 2019 and 2018, respectively | (901,657 | ) |  | (894,870 | )
Additional paid-in capital | 2,449,884 |  |  | 2,724,733 |
Retained earnings | 2,389,789 |  |  | 1,719,541 |
Accumulated other comprehensive income (loss) | 110,488 |  |  | (60,920 | )
Total common stockholders’ equity | 4,048,723 |  |  | 3,488,715 |
Total liabilities and stockholders’ equity | $ | 5,258,977 |  |  | $ | 4,814,038 |
See Supplemental Notes. Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Statements of Operations Parent Company Only
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Revenues: |  |  |  |  |
Net investment income | $ | 19,751 |  |  | $ | 21,294 |  |  | $ | 22,528 |
Net gains (losses) on investments and other financial instruments | 12,863 |  |  | (470 | ) |  | (328 | )
Other income | 218 |  |  | — |  |  | 80 |
Total revenues | 32,832 |  |  | 20,824 |  |  | 22,280 |
Expenses: |  |  |  |  |
Loss on extinguishment of debt | 22,738 |  |  | — |  |  | 51,469 |
Interest expense | — |  |  | 17,805 |  |  | 18,033 |
Total expenses (Note B) | 22,738 |  |  | 17,805 |  |  | 69,502 |
Pretax income (loss) | 10,094 |  |  | 3,019 |  |  | (47,222 | )
Income tax benefit | (19,997 | ) |  | (3,319 | ) |  | (141,437 | )
Equity in net income of affiliates | 642,218 |  |  | 599,673 |  |  | 26,873 |
Net income | 672,309 |  |  | 606,011 |  |  | 121,088 |
Other comprehensive income (loss), net of tax | 171,408 |  |  | (86,953 | ) |  | 35,480 |
Comprehensive income | $ | 843,717 |  |  | $ | 519,058 |  |  | $ | 156,568 |
See Supplemental Notes. Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Statements of Cash Flows Parent Company Only
| Year Ended December 31,
(In thousands) | 2019 |  | 2018 |  | 2017
Net cash provided by (used in) operating activities (1) | $ | 143,664 |  |  | $ | 254,698 |  |  | $ | (23,654 | )
Cash flows from investing activities: |  |  |  |  |
Proceeds from sales of: |  |  |  |  |
Fixed-maturities available for sale | 296,171 |  |  | 6,779 |  |  | 58,007 |
Trading securities | 56,787 |  |  | — |  |  | — |
Equity securities | 16,916 |  |  | — |  |  | — |
Proceeds from redemptions of: |  |  |  |  |
Fixed-maturities available for sale | 149,767 |  |  | 12,391 |  |  | 60,414 |
Trading securities | 114 |  |  | — |  |  | — |
Purchases of: |  |  |  |  |
Fixed-maturities available for sale | (293,284 | ) |  | (37,552 | ) |  | (134,456 | )
Sales, redemptions and (purchases) of : |  |  |  |  |
Short-term investments, net | 157,045 |  |  | (131,164 | ) |  | 210,529 |
Other assets, net | (6,958 | ) |  | (3,317 | ) |  | (1,107 | )
Capital distributions from subsidiaries | 6,000 |  |  | — |  |  | 924 |
Capital contributions to subsidiaries | (65,879 | ) |  | (30,338 | ) |  | (21,643 | )
(Issuance) repayment of note receivable from affiliate | — |  |  | — |  |  | (44 | )
Net cash provided by (used in) investing activities | 316,679 |  |  | (183,201 | ) |  | 172,624 |
Cash flows from financing activities: |  |  |  |  |
Dividends paid | (2,061 | ) |  | (2,140 | ) |  | (2,154 | )
Issuance of senior notes, net | 442,439 |  |  | — |  |  | 442,163 |
Repayments and repurchases of senior notes | (610,763 | ) |  | — |  |  | (593,527 | )
Proceeds from termination of capped calls | — |  |  | — |  |  | 4,208 |
Issuance of common stock | 2,416 |  |  | 1,385 |  |  | 7,132 |
Repurchases of common shares | (300,201 | ) |  | (50,053 | ) |  | (6 | )
Credit facility commitment fees paid | (989 | ) |  | (1,510 | ) |  | (1,993 | )
Net cash provided by (used in) financing activities | (469,159 | ) |  | (52,318 | ) |  | (144,177 | )
Effect of exchange rate changes on cash and restricted cash | (2 | ) |  | — |  |  | — |
Increase (decrease) in cash and restricted cash | (8,818 | ) |  | 19,179 |  |  | 4,793 |
Cash and restricted cash, beginning of period | 32,352 |  |  | 13,173 |  |  | 8,380 |
Cash and restricted cash, end of period | $ | 23,534 |  |  | $ | 32,352 |  |  | $ | 13,173 |
______________________
(1) | Includes cash distributions received from subsidiaries of $26.6 million, $55.4 million and $24.3 million in 2019, 2018 and 2017, respectively. Excludes non-cash distributions received from subsidiaries of $362.4 million, $394.6 million and $197.3 million in 2019, 2018 and 2017, respectively.
See Supplemental Notes. Radian Group Inc. Schedule II—Financial Information of Registrant Parent Company Only Supplemental Notes Note A The Radian Group Inc. (the “Parent Company”, “we” or “our”) financial statements represent the stand-alone financial statements of the Parent Company. These financial statements have been prepared on the same basis and using the same accounting policies as described in the consolidated financial statements included herein, except that the Parent Company uses the equity-method of accounting for its majority-owned subsidiaries. These financial statements should be read in conjunction with our consolidated financial statements and the accompanying notes thereto. See Notes 12 and 14 of Notes to Consolidated Financial Statements for additional information on the Parent Company’s debt obligations and capital stock. The Parent Company has entered into the following intercompany guarantees with certain of our subsidiaries:
• | Radian Group and Radian Mortgage Assurance are parties to a guaranty agreement, which provides that Radian Group will make sufficient funds available to Radian Mortgage Assurance to ensure that Radian Mortgage Assurance has a minimum of $5.0 million of statutory policyholders’ surplus every calendar quarter. Radian Mortgage Assurance had $8.8 million of statutory policyholders’ surplus and no RIF exposure as of December 31, 2019.
• | To allow our mortgage insurance customers to comply with applicable securities regulations for issuers of ABS (including mortgage-backed securities), Radian Group has guaranteed two structured transactions for Radian Guaranty with $79.3 million of aggregate remaining credit exposure as of December 31, 2019.
• | Radian Group and Radian Guaranty Reinsurance are parties to an Assumption and Indemnification Agreement with regard to obligations under our tax-sharing arrangements. Pursuant to this agreement, Radian Group is required to assume certain obligations that arise as a result of our tax-sharing arrangement.
As of December 31, 2019, Radian Group recorded a net deferred tax liability of $253.7 million. This balance includes liabilities related to certain of our subsidiaries which have incurred federal NOLs that could not be carried-back and utilized on a separate company tax return basis. As a result, we are not currently obligated under our tax-sharing agreement to reimburse these subsidiaries for their separate company federal NOL carryforward. However, if in a future period, one of these subsidiaries utilizes its share of federal NOL carryforwards on a separate entity basis, then Radian Group may be obligated to fund such subsidiary’s share of our consolidated tax liability to the IRS. Note B The Parent Company provides certain services to its subsidiaries. The Parent Company allocates to its subsidiaries expenses it incurs in the capacity of supporting those subsidiaries, including operating expenses, which are allocated based on the forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on certain subsidiaries, and interest expense, which is allocated based on relative capital. These expenses are presented net of allocations in the Statements of Operations. Substantially all operating expenses and interest expense, have been allocated to the subsidiaries for 2019, 2018 and 2017. Amounts allocated to the subsidiaries for expenses are based on actual cost, without any mark-up. The Parent Company considers these charges fair and reasonable. The subsidiaries generally reimburse the Parent Company for these costs in a timely manner, which has the impact of temporarily improving the cash flows of the Parent Company, if accrued expenses are reimbursed prior to actual payment. The following table shows the components of our Parent Company expenses that have been allocated to our subsidiaries for the periods indicated:
| Year Ended December 31,
(in thousands) | 2019 |  | 2018 |  | 2017
Allocated operating expenses | $ | 124,412 |  |  | $ | 94,815 |  |  | $ | 72,764 |
Allocated interest expense | 53,692 |  |  | 42,195 |  |  | 44,686 |
Total allocated expenses | $ | 178,104 |  |  | $ | 137,010 |  |  | $ | 117,450 |
Note C During 2018, the Services segment had not generated sufficient cash flow to reimburse the Parent Company for its share of its direct and allocated operating expenses and interest expense, and therefore the Parent Company effectively contributed $66.1 million to Clayton Group Holdings Inc. to reflect the impairment of the interest receivable on the Clayton Intercompany Note of $17.8 million and the outstanding intercompany receivable balance of $48.3 million representing unreimbursed direct and allocated costs. See Note 18 of Notes to Consolidated Financial Statements for additional information related to capital transactions between the Parent Company and its consolidated insurance subsidiaries.

X
- Definition Condensed Financial Statements Parent Only [Abstract] + References No definition available. + Details
Name: | rdn_CondensedFinancialStatementsParentOnlyAbstract
Namespace Prefix: | rdn_
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/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
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration