XML 40 R29.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Investments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2022
Investments [Abstract] |
Summary of Available for Sale Securities | Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated.
Available for sale securities
|  | September 30, 2022
(In thousands) |  | Amortized Cost |  |  |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Fixed-maturities available for sale |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 175,175 |  |  |  |  | $ | — |  |  | $ | (28,511) |  |  | $ | 146,664 |
State and municipal obligations |  | 164,045 |  |  |  |  | — |  |  | (21,302) |  |  | 142,743 |
Corporate bonds and notes |  | 2,869,400 |  |  |  |  | 132 |  |  | (400,572) |  |  | 2,468,960 |
RMBS |  | 1,010,453 |  |  |  |  | 522 |  |  | (110,384) |  |  | 900,591 |
CMBS |  | 656,321 |  |  |  |  | 4 |  |  | (47,196) |  |  | 609,129 |
CLO |  | 518,261 |  |  |  |  | — |  |  | (20,312) |  |  | 497,949 |
Other ABS |  | 177,299 |  |  |  |  | 26 |  |  | (6,362) |  |  | 170,963 |
Foreign government and agency securities |  | 5,115 |  |  |  |  | — |  |  | (145) |  |  | 4,970 |
Mortgage insurance-linked notes (1) |  | 45,384 |  |  |  |  | — |  |  | (1,947) |  |  | 43,437 |
Total securities available for sale, including loaned securities and securities sold under repurchase agreements |  | 5,621,453 |  |  |  |  | $ | 684 |  |  | $ | (636,731) |  | (2) | 4,985,406 |
Less: loaned securities and securities sold under repurchase agreements (3) |  | 85,921 |  |  |  |  |  |  |  |  | 76,174 |
Total fixed-maturities available for sale |  | $ | 5,535,532 |  |  |  |  |  |  |  |  | $ | 4,909,232 |
(1)Comprises the notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information. (2)See “—Gross Unrealized Losses and Related Fair Value of Available for Sale Securities” below for additional details. (3)Included in other assets in our condensed consolidated balance sheets as further described below. See “—Loaned Securities and Securities Sold Under Repurchase Agreements” below for a discussion of our securities lending and repurchase agreements.
Available for sale securities
|  | December 31, 2021
(In thousands) |  | Amortized Cost |  |  |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Fixed-maturities available for sale |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 221,407 |  |  |  |  | $ | 1,719 |  |  | $ | (1,396) |  |  | $ | 221,730 |
State and municipal obligations |  | 162,964 |  |  |  |  | 14,694 |  |  | (401) |  |  | 177,257 |
Corporate bonds and notes |  | 2,867,063 |  |  |  |  | 133,665 |  |  | (24,886) |  |  | 2,975,842 |
RMBS |  | 697,581 |  |  |  |  | 14,313 |  |  | (6,777) |  |  | 705,117 |
CMBS |  | 690,827 |  |  |  |  | 21,444 |  |  | (3,068) |  |  | 709,203 |
CLO |  | 529,906 |  |  |  |  | 1,032 |  |  | (898) |  |  | 530,040 |
Other ABS |  | 210,657 |  |  |  |  | 1,142 |  |  | (612) |  |  | 211,187 |
Foreign government and agency securities |  | 5,109 |  |  |  |  | 187 |  |  | — |  |  | 5,296 |
Mortgage insurance-linked notes (1) |  | 45,384 |  |  |  |  | 1,633 |  |  | — |  |  | 47,017 |
Total securities available for sale, including loaned securities |  | 5,430,898 |  |  |  |  | $ | 189,829 |  |  | $ | (38,038) |  | (2) | 5,582,689 |
Less: loaned securities (3) |  | 63,169 |  |  |  |  |  |  |  |  | 65,611 |
Total fixed-maturities available for sale |  | $ | 5,367,729 |  |  |  |  |  |  |  |  | $ | 5,517,078 |
(1)Comprises the notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information. (2)See “—Gross Unrealized Losses and Related Fair Value of Available for Sale Securities” below for additional details. (3)Included in other assets in our condensed consolidated balance sheets as further described below. See “—Loaned Securities and Securities Sold Under Repurchase Agreements” below for a discussion of our securities lending and repurchase agreements.
Rollforward of Allowance for Credit Losses on Fixed-Maturities Available for Sale | The following table provides a rollforward of the allowance for credit losses on fixed-maturities available for sale, which relates entirely to corporate bonds and notes for the periods indicated. There was no allowance as of September 30, 2022, or December 31, 2021.
Rollforward of allowance for credit losses on fixed-maturities available for sale
(In thousands) |  |  |  | Nine Months Ended September 30, 2021
Beginning balance |  |  |  | $ | 948 |
Net decreases in allowance on previously impaired securities |  |  |  | (918) |
Reduction for securities sold |  |  |  | (30) |
Ending balance |  |  |  | $ | — |
Unrealized Losses on Fixed-Maturities Available for Sale by Category and Length of Time | For securities deemed “available for sale” that are in an unrealized loss position and for which an allowance for credit loss has not been established, the following tables show the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated. Included in the amounts as of September 30, 2022, and December 31, 2021, are loaned securities and securities sold under repurchase agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below.
Unrealized losses on fixed-maturities available for sale by category and length of time
|  | September 30, 2022
($ in thousands) |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
Description of Securities |  | # of Securities |  | Fair Value |  | Unrealized Losses |  | # of Securities |  | Fair Value |  | Unrealized Losses |  | # of Securities |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  | 16 |  |  | $ | 94,560 |  |  | $ | (22,377) |  |  | 8 |  |  | $ | 48,322 |  |  | $ | (6,134) |  |  | 24 |  |  | $ | 142,882 |  |  | $ | (28,511) |
State and municipal obligations |  | 57 |  |  | 133,696 |  |  | (19,265) |  |  | 7 |  |  | 8,747 |  |  | (2,037) |  |  | 64 |  |  | 142,443 |  |  | (21,302) |
Corporate bonds and notes |  | 487 |  |  | 1,992,250 |  |  | (266,626) |  |  | 123 |  |  | 451,971 |  |  | (133,946) |  |  | 610 |  |  | 2,444,221 |  |  | (400,572) |
RMBS |  | 152 |  |  | 716,471 |  |  | (80,207) |  |  | 24 |  |  | 130,465 |  |  | (30,177) |  |  | 176 |  |  | 846,936 |  |  | (110,384) |
CMBS |  | 129 |  |  | 517,151 |  |  | (35,210) |  |  | 39 |  |  | 86,743 |  |  | (11,986) |  |  | 168 |  |  | 603,894 |  |  | (47,196) |
CLO |  | 121 |  |  | 359,365 |  |  | (14,230) |  |  | 36 |  |  | 138,584 |  |  | (6,082) |  |  | 157 |  |  | 497,949 |  |  | (20,312) |
Other ABS |  | 76 |  |  | 133,593 |  |  | (3,938) |  |  | 8 |  |  | 18,850 |  |  | (2,424) |  |  | 84 |  |  | 152,443 |  |  | (6,362) |
Mortgage insurance-linked notes |  | 2 |  |  | 43,437 |  |  | (1,947) |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 43,437 |  |  | (1,947) |
Foreign government and agency securities |  | 1 |  |  | 4,970 |  |  | (145) |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 4,970 |  |  | (145) |
Total |  | 1,041 |  |  | $ | 3,995,493 |  |  | $ | (443,945) |  |  | 245 |  |  | $ | 883,682 |  |  | $ | (192,786) |  |  | 1,286 |  |  | $ | 4,879,175 |  |  | $ | (636,731) |
|  | December 31, 2021
($ in thousands) |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
Description of Securities |  | # of Securities |  | Fair Value |  | Unrealized Losses |  | # of Securities |  | Fair Value |  | Unrealized Losses |  | # of Securities |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  | 14 |  |  | $ | 101,602 |  |  | $ | (1,165) |  |  | 2 |  |  | $ | 6,937 |  |  | $ | (231) |  |  | 16 |  |  | $ | 108,539 |  |  | $ | (1,396) |
State and municipal obligations |  | 20 |  |  | 32,721 |  |  | (401) |  |  | — |  |  | — |  |  | — |  |  | 20 |  |  | 32,721 |  |  | (401) |
Corporate bonds and notes |  | 209 |  |  | 864,355 |  |  | (16,799) |  |  | 34 |  |  | 99,475 |  |  | (8,087) |  |  | 243 |  |  | 963,830 |  |  | (24,886) |
RMBS |  | 57 |  |  | 365,476 |  |  | (6,749) |  |  | 3 |  |  | 1,543 |  |  | (28) |  |  | 60 |  |  | 367,019 |  |  | (6,777) |
CMBS |  | 81 |  |  | 188,457 |  |  | (2,053) |  |  | 9 |  |  | 22,050 |  |  | (1,015) |  |  | 90 |  |  | 210,507 |  |  | (3,068) |
CLO |  | 84 |  |  | 313,380 |  |  | (675) |  |  | 11 |  |  | 35,612 |  |  | (223) |  |  | 95 |  |  | 348,992 |  |  | (898) |
Other ABS |  | 54 |  |  | 138,851 |  |  | (603) |  |  | 1 |  |  | 631 |  |  | (9) |  |  | 55 |  |  | 139,482 |  |  | (612) |
Total |  | 519 |  |  | $ | 2,004,842 |  |  | $ | (28,445) |  |  | 60 |  |  | $ | 166,248 |  |  | $ | (9,593) |  |  | 579 |  |  | $ | 2,171,090 |  |  | $ | (38,038) |
Net Gains (Losses) on Investments | Net gains (losses) on investments and other financial instruments consisted of the following.
Net gains (losses) on investments and other financial instruments
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Net realized gains (losses) on investments sold or redeemed |  |  |  |  |  |  |  |
Fixed-maturities available for sale |  |  |  |  |  |  |  |
Gross realized gains |  | $ | 411 |  |  | $ | 5,874 |  |  | $ | 2,554 |  |  | $ | 19,588 |
Gross realized losses |  | (4,564) |  |  | (1,776) |  |  | (12,625) |  |  | (13,904) |
Fixed-maturities available for sale, net |  | (4,153) |  |  | 4,098 |  |  | (10,071) |  |  | 5,684 |
Trading securities |  | (30) |  |  | — |  |  | (136) |  |  | 391 |
Equity securities |  | — |  |  | 8,632 |  |  | 1,655 |  |  | 8,405 |
Other investments |  | 44 |  |  | 1,516 |  |  | 98 |  |  | 3,850 |
Net realized gains (losses) on investments sold or redeemed |  | (4,139) |  |  | 14,246 |  |  | (8,454) |  |  | 18,330 |
Change in unrealized gains (losses) on investments sold or redeemed |  | 29 |  |  | (7,584) |  |  | (2,914) |  |  | (7,115) |
Net decrease (increase) in expected credit losses |  | — |  |  | — |  |  | — |  |  | 918 |
Net unrealized gains (losses) on investments still held |  |  |  |  |  |  |  |
Trading securities |  | (7,398) |  |  | (2,659) |  |  | (27,892) |  |  | (6,011) |
Equity securities |  | (7,256) |  |  | (1,086) |  |  | (32,249) |  |  | 6,251 |
Other investments |  | (149) |  |  | (13) |  |  | (490) |  |  | 1,050 |
Net unrealized gains (losses) on investments still held |  | (14,803) |  |  | (3,758) |  |  | (60,631) |  |  | 1,290 |
Total net gains (losses) on investments |  | (18,913) |  |  | 2,904 |  |  | (71,999) |  |  | 13,423 |
Net gains (losses) on other financial instruments |  | 2,661 |  |  | (806) |  |  | (15,579) |  |  | (845) |
Net gains (losses) on investments and other financial instruments |  | $ | (16,252) |  |  | $ | 2,098 |  |  | $ | (87,578) |  |  | $ | 12,578 |
Contractual Maturities of Fixed-Maturities Available for Sale | The contractual maturities of fixed-maturities available for sale were as follows.
Contractual maturities of fixed-maturities available for sale
|  | September 30, 2022
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 105,948 |  |  | $ | 104,459 |
Due after one year through five years (1) |  | 1,264,301 |  |  | 1,178,849 |
Due after five years through 10 years (1) |  | 1,004,494 |  |  | 847,994 |
Due after 10 years (1) |  | 838,992 |  |  | 632,035 |
Asset-backed and mortgage-backed securities (2) |  | 2,407,718 |  |  | 2,222,069 |
Total |  | 5,621,453 |  |  | 4,985,406 |
Less: loaned securities and securities sold under repurchase agreements |  | 85,921 |  |  | 76,174 |
Total fixed-maturities available for sale |  | $ | 5,535,532 |  |  | $ | 4,909,232 |
(1)Actual maturities may differ as a result of calls before scheduled maturity. (2)Includes RMBS, CMBS, CLO, Other ABS and mortgage insurance-linked notes, which are not due at a single maturity date.

X
- Definition Tabular disclosure of allowance for credit loss on investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 30 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=124269663&loc=SL82922900-210455 + Details
Name: | us-gaap_DebtSecuritiesAvailableForSaleAllowanceForCreditLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 + Details
Name: | us-gaap_DebtSecuritiesAvailableForSaleTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of realized and unrealized gain (loss) on investment in security. + References No definition available. + Details
Name: | us-gaap_GainLossOnInvestmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unrealized gains and losses on investments. + References No definition available. + Details
Name: | us-gaap_UnrealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration