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Statutory Information | 9 Months Ended
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Sep. 30, 2022
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] |
Statutory Information | Statutory Information Our insurance subsidiaries’ statutory net income for the year-to-date periods ended September 30, 2022 and 2021, and statutory policyholders’ surplus as of September 30, 2022, and December 31, 2021, were as follows.
Statutory net income
|  | Nine Months Ended September 30,
(In thousands) |  | 2022 |  | 2021
Radian Guaranty |  | $ | 864,681 |  |  | $ | 516,866 |
Radian Reinsurance |  | 2,724 |  |  | 8,765 |
Other mortgage subsidiaries |  | 1,826 |  |  | 777 |
Radian Title Insurance |  | 2,500 |  |  | 4,777 |
Statutory policyholders’ surplus
(In thousands) |  | September 30, 2022 |  | December 31, 2021
Radian Guaranty |  | $ | 738,625 |  |  | $ | 778,148 |
Radian Reinsurance |  | 292,121 |  |  | 327,118 |
Other mortgage subsidiaries |  | 16,246 |  |  | 14,524 |
Radian Title Insurance |  | 39,241 |  |  | 36,599 |
Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, a maximum ratio of net RIF relative to statutory capital, or Risk-to-capital. There are 16 RBC States that currently impose a Statutory RBC Requirement. The most common Statutory RBC Requirement is that a mortgage insurer’s Risk-to-capital may not exceed 25 to 1. In certain of the RBC States, a mortgage insurer must satisfy a MPP Requirement. Radian Guaranty was in compliance with all applicable Statutory RBC Requirements and MPP Requirements in each of the RBC States as of September 30, 2022. Radian Guaranty’s Risk-to-capital was 11.1:1 as of both September 30, 2022, and December 31, 2021. For purposes of the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus plus statutory contingency reserves. Our other mortgage insurance and title insurance subsidiaries were also in compliance with all statutory and counterparty capital requirements as of September 30, 2022. In addition, in order to be eligible to insure loans purchased by the GSEs, mortgage insurers such as Radian Guaranty must meet the GSEs’ eligibility requirements, or PMIERs. At September 30, 2022, Radian Guaranty is an approved mortgage insurer under the PMIERs and is in compliance with the current PMIERs financial requirements. State insurance regulations include various capital requirements and dividend restrictions based on our insurance subsidiaries’ statutory financial position and results of operations. As of September 30, 2022, the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $4.3 billion of our consolidated net assets. In light of Radian Guaranty’s negative unassigned surplus related to operating losses in prior periods and the ongoing need to set aside contingency reserves, which totaled $4.2 billion as of September 30, 2022, Radian Guaranty is not currently permitted under applicable insurance laws to pay ordinary dividends or other distributions to Radian Group without prior approval from the Pennsylvania Insurance Department. In February 2022, the Pennsylvania Insurance Department provided such approval for a $500 million return of capital from Radian Guaranty to Radian Group, which was paid on February 11, 2022, in cash and marketable securities. This transfer was approved as an Extraordinary Distribution in the form of a return of paid-in capital and resulted in a $500 million decrease in Radian Guaranty’s statutory policyholders’ surplus. Based on the current performance and assuming the continuation of favorable credit performance in our mortgage insurance business, we expect that Radian Guaranty could potentially have positive unassigned surplus by early 2023. Radian Reinsurance has positive unassigned surplus, and as a result, Radian Reinsurance paid an ordinary dividend of $32.5 million to Radian Group in September 2022. For a description of our compliance with statutory and other regulations for our mortgage insurance and title insurance businesses, including statutory capital requirements and dividend restrictions, see Note 16 of Notes to Consolidated Financial Statements in our 2021 Form 10-K.

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- Definition The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -URI https://asc.fasb.org/topic&trid=2303980 + Details
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