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v3.22.2.2

Reinsurance (Tables) | 9 Months Ended
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Sep. 30, 2022
Reinsurance Disclosures [Abstract] |
Reinsurance Impacts on Net Premiums Written and Earned | The effect of all of our reinsurance programs on our net income is as follows.
Reinsurance impacts on net premiums written and earned
|  | Net Premiums Written |  | Net Premiums Earned
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021 |  | 2022 |  | 2021 |  | 2022 |  | 2021
Direct |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage insurance |  | $ | 243,145 |  |  | $ | 240,669 |  |  | $ | 728,171 |  |  | $ | 734,993 |  |  | $ | 256,845 |  |  | $ | 265,378 |  |  | $ | 771,971 |  |  | $ | 835,462 |
Title insurance |  | 5,164 |  |  | 12,570 |  |  | 21,443 |  |  | 27,714 |  |  | 5,165 |  |  | 12,570 |  |  | 21,444 |  |  | 27,714 |
Total direct |  | 248,309 |  |  | 253,239 |  |  | 749,614 |  |  | 762,707 |  |  | 262,010 |  |  | 277,948 |  |  | 793,415 |  |  | 863,176 |
Assumed (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage insurance |  | 1,211 |  |  | 1,683 |  |  | 4,081 |  |  | 5,596 |  |  | 1,211 |  |  | 1,683 |  |  | 4,081 |  |  | 5,596 |
Ceded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage insurance (2) |  | (9,278) |  |  | (14,236) |  |  | (170) |  |  | (34,572) |  |  | (22,859) |  |  | (30,194) |  |  | (48,772) |  |  | (92,441) |
Title insurance |  | (140) |  |  | (319) |  |  | (420) |  |  | (585) |  |  | (140) |  |  | (319) |  |  | (420) |  |  | (585) |
Total ceded |  | (9,418) |  |  | (14,555) |  |  | (590) |  |  | (35,157) |  |  | (22,999) |  |  | (30,513) |  |  | (49,192) |  |  | (93,026) |
Total net premiums |  | $ | 240,102 |  |  | $ | 240,367 |  |  | $ | 753,105 |  |  | $ | 733,146 |  |  | $ | 240,222 |  |  | $ | 249,118 |  |  | $ | 748,304 |  |  | $ | 775,746 |
(1)Represents premiums from our participation in certain credit risk transfer programs. (2)Net of profit commission, which is impacted by the level of ceded losses recoverable, if any, on reinsurance transactions. See Note 11 for additional information on our reserve for losses and reinsurance recoverables.
Other reinsurance impacts
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Ceding commissions earned (1) |  | $ | 4,772 |  |  | $ | 7,120 |  |  | $ | 13,330 |  |  | $ | 25,446 |
Ceded losses (2) |  | (9,278) |  |  | 795 |  |  | (37,138) |  |  | 3,463 |
(1)Ceding commissions earned are primarily related to mortgage insurance and are included as an offset to expenses primarily in other operating expenses on our condensed consolidated statements of operations. Deferred ceding commissions of $30.2 million and $38.6 million are included in other liabilities on our condensed consolidated balance sheets at September 30, 2022, and December 31, 2021, respectively. (2)Primarily all related to mortgage insurance.
Single Premium QSR Program | The following table sets forth additional details regarding the QSR Program.
QSR Program (1)
|  | 2022 QSR Agreement |  | 2020 Single Premium QSR Agreement |  | 2018 Single Premium QSR Agreement |  | 2016 Single Premium QSR Agreement
NIW policy dates |  | Jan 1, 2022- June 30, 2023 |  | Jan 1, 2020- Dec 31, 2021 |  | Jan 1, 2018- Dec 31, 2019 |  | Jan 1, 2012- Dec 31, 2017
Effective date |  | July 1, 2022 |  | January 1, 2020 |  | January 1, 2018 |  | January 1, 2016
Scheduled termination date |  | June 30, 2033 |  | December 31, 2031 |  | December 31, 2029 |  | December 31, 2027
Optional termination date (2) |  | July 1, 2026 |  | January 1, 2024 |  | January 1, 2022 |  | January 1, 2020
Quota share % |  | 20% |  | 65% |  | 65% |  | 18% - 57% (3)
Ceding commission % |  | 20% |  | 25% |  | 25% |  | 25%
Profit commission % |  | Up to 59% |  | Up to 56% |  | Up to 56% |  | Up to 55%
(In millions) |  | As of September 30, 2022
RIF ceded |  | $ | 2,710 |  |  | $ | 2,038 |  |  | $ | 917 |  |  | $ | 1,319 |
(In millions) |  | As of December 31, 2021
RIF ceded |  | $ | — |  |  | $ | 2,137 |  |  | $ | 1,021 |  |  | $ | 1,698 |
(1)Excludes the 2012 QSR Agreements, for which RIF ceded is no longer material. (2)Radian Guaranty has the option, based on certain conditions and subject to a termination fee, to terminate any of the agreements at the end of any calendar quarter on or after the applicable optional termination date. If Radian Guaranty exercises this option in the future, it would result in Radian Guaranty reassuming the related RIF in exchange for a net payment to the reinsurers calculated in accordance with the terms of the applicable agreement. Radian Guaranty also may terminate any of the agreements prior to the scheduled termination date under certain circumstances, including if one or both of the GSEs no longer grant full PMIERs credit for the reinsurance. (3)Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk on performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages. Loans included in the 2012 through 2014 vintages, and any other loans subject to the agreement that were delinquent at the time of the amendment, were unaffected by the change and therefore the amount of ceded risk for those loans continues to range from 20% to 35%. Effective September 30, 2022, one reinsurer terminated its interest in the 2016 Single Premium QSR Agreement in exchange for participating in the 2022 QSR Agreement. As a result, the portions ceded under this agreement declined from 20% to 65% to approximately 18% to 57% as of September 30, 2022.
Excess-of-Loss Program | The following tables set forth additional details regarding the Excess-of-Loss Program as of September 30, 2022, and December 31, 2021.
Excess-of-Loss Program (1)
(In millions) |  | Eagle Re 2021-2 Ltd. |  | Eagle Re 2021-1 Ltd. (2) |  |  |  |  | Eagle Re 2020-1 Ltd. |  | Eagle Re 2019-1 Ltd. |  | Eagle Re 2018-1 Ltd.
Issued |  | November 2021 |  | April 2021 |  |  |  |  | February 2020 |  | April 2019 |  | November 2018
NIW policy dates |  | Jan 1, 2021- Jul 31, 2021 |  | Aug 1, 2020- Dec 31, 2020 |  |  |  |  | Jan 1, 2019- Sep 30, 2019 |  | Jan 1, 2018- Dec 31, 2018 |  | Jan 1, 2017- Dec 31, 2017
Initial RIF |  | $ | 10,758 |  |  |  | $ | 11,061 |  |  |  |  |  |  | $ | 9,866 |  |  |  | $ | 10,705 |  |  |  | $ | 9,109 |  |
Initial coverage |  | 484 |  |  |  | 498 |  |  |  |  |  |  | 488 |  |  |  | 562 |  |  |  | 434 |  |
Initial first layer retention |  | 242 |  |  |  | 221 |  |  |  |  |  |  | 202 |  |  |  | 268 |  |  |  | 205 |  |
(In millions) |  | As of September 30, 2022
RIF |  | $ | 9,394 |  |  |  | $ | 8,223 |  |  |  |  |  |  | $ | 2,510 |  |  |  | $ | 1,849 |  |  |  | $ | 1,596 |  |
Remaining coverage |  | 484 |  |  |  | 401 |  |  |  |  |  |  | 394 |  |  |  | 385 |  |  |  | 276 |  |
First layer retention |  | 242 |  |  |  | 221 |  |  |  |  |  |  | 202 |  |  |  | 263 |  |  |  | 201 |  |
(In millions) |  | As of December 31, 2021
RIF |  | $ | 10,379 |  |  |  | $ | 9,496 |  |  |  |  |  |  | $ | 3,241 |  |  |  | $ | 2,429 |  |  |  | $ | 2,117 |  |
Remaining coverage |  | 484 |  |  |  | 498 |  |  |  |  |  |  | 488 |  |  |  | 385 |  |  |  | 276 |  |
First layer retention |  | 242 |  |  |  | 221 |  |  |  |  |  |  | 202 |  |  |  | 264 |  |  |  | 201 |  |
(1)Excludes Eagle Re 2020-2 Ltd., which was terminated in September 2022, as further discussed above. (2)Radian Group purchased $45.4 million original principal amount of these mortgage insurance-linked notes, which are included in fixed-maturities available for sale on our condensed consolidated balance sheet at September 30, 2022. See Notes 5 and 6 for additional information.
Schedule of VIE Assets | The following table presents the total assets and liabilities of the Eagle Re Issuers as of the dates indicated.
Total VIE assets and liabilities of Eagle Re Issuers (1)
(In thousands) |  | September 30, 2022 |  | December 31, 2021
Eagle Re 2021-2 Ltd. |  | $ | 484,122 |  |  | $ | 484,122 |
Eagle Re 2021-1 Ltd. |  | 401,377 |  |  | 497,735 |
Eagle Re 2020-2 Ltd. (2) |  | — |  |  | 143,986 |
Eagle Re 2020-1 Ltd. |  | 394,306 |  |  | 488,385 |
Eagle Re 2019-1 Ltd. |  | 384,603 |  |  | 384,602 |
Eagle Re 2018-1 Ltd. |  | 275,718 |  |  | 275,718 |
Total |  | $ | 1,940,126 |  |  | $ | 2,274,548 |
(1)Assets held by the Eagle Re Issuers are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Liabilities of the Eagle Re Issuers consist of their mortgage insurance-linked notes, as described above. Assets and liabilities are equal to each other for each of the Eagle Re Issuers. (2)In September 2022, the excess-of-loss reinsurance agreement with Eagle Re 2020-2 Ltd. was terminated, as further discussed above.

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