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Investments (Tables) | 12 Months Ended
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Dec. 31, 2022
Investments [Abstract] |
Debt Securities, Available-for-sale | Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated.
Available for sale securities |  |  |  |  |  |  |  |  |  |
|  | December 31, 2022
(In thousands) |  | Amortized Cost |  |  |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Fixed-maturities available for sale |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 174,138 |  |  |  |  | $ | 206 |  |  | $ | (28,902) |  |  | $ | 145,442 |
State and municipal obligations |  | 164,325 |  |  |  |  | — |  |  | (21,939) |  |  | 142,386 |
Corporate bonds and notes |  | 2,886,905 |  |  |  |  | 1,403 |  |  | (350,537) |  |  | 2,537,771 |
RMBS |  | 1,025,795 |  |  |  |  | 1,163 |  |  | (98,559) |  |  | 928,399 |
CMBS |  | 645,890 |  |  |  |  | 13 |  |  | (52,546) |  |  | 593,357 |
CLO |  | 518,677 |  |  |  |  | — |  |  | (20,485) |  |  | 498,192 |
Other ABS |  | 168,033 |  |  |  |  | 69 |  |  | (6,743) |  |  | 161,359 |
Foreign government and agency securities |  | 5,118 |  |  |  |  | — |  |  | (143) |  |  | 4,975 |
Mortgage insurance-linked notes (1) |  | 54,578 |  |  |  |  | 80 |  |  | (1,639) |  |  | 53,019 |
Total securities available for sale, including loaned securities |  | 5,643,459 |  |  |  |  | $ | 2,934 |  |  | $ | (581,493) |  | (2) | 5,064,900 |
Less: loaned securities (3) |  | 56,198 |  |  |  |  |  |  |  |  | 47,189 |
Total fixed-maturities available for sale |  | $ | 5,587,261 |  |  |  |  |  |  |  |  | $ | 5,017,711 |
|  | 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)Includes mortgage insurance-linked 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 consolidated balance sheets as further described below. See “—Loaned Securities” below for a discussion of our securities lending.
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 December 31, 2022.
Rollforward of allowance for credit losses on fixed-maturities available for sale
|  |  |  | Year Ended December 31,
(In thousands) |  |  |  | 2021
Beginning balance |  |  |  | $ | 948 |
Net increases (decreases) in allowance on previously impaired securities |  |  |  | (918) |
Reduction for securities sold |  |  |  | (30) |
Ending balance |  |  |  | $ | — |
Gross Unrealized Losses and Related Fair Value of Available for Sale Securities | 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 December 31, 2022 and 2021, are loaned securities that are classified as other assets in our consolidated balance sheets, as further described below.
Unrealized losses on fixed-maturities available for sale by category and length of time
|  | December 31, 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 |  | 14 |  |  | $ | 86,964 |  |  | $ | (21,370) |  |  | 10 |  |  | $ | 47,770 |  |  | $ | (7,532) |  |  | 24 |  |  | $ | 134,734 |  |  | $ | (28,902) |
State and municipal obligations |  | 43 |  |  | 116,285 |  |  | (14,231) |  |  | 20 |  |  | 25,401 |  |  | (7,708) |  |  | 63 |  |  | 141,686 |  |  | (21,939) |
Corporate bonds and notes |  | 411 |  |  | 1,769,547 |  |  | (176,768) |  |  | 203 |  |  | 701,936 |  |  | (173,769) |  |  | 614 |  |  | 2,471,483 |  |  | (350,537) |
RMBS |  | 124 |  |  | 610,812 |  |  | (46,117) |  |  | 59 |  |  | 261,370 |  |  | (52,442) |  |  | 183 |  |  | 872,182 |  |  | (98,559) |
CMBS |  | 108 |  |  | 469,100 |  |  | (38,178) |  |  | 55 |  |  | 121,277 |  |  | (14,368) |  |  | 163 |  |  | 590,377 |  |  | (52,546) |
CLO |  | 94 |  |  | 246,705 |  |  | (10,271) |  |  | 61 |  |  | 245,584 |  |  | (10,214) |  |  | 155 |  |  | 492,289 |  |  | (20,485) |
Other ABS |  | 61 |  |  | 115,181 |  |  | (3,603) |  |  | 18 |  |  | 31,041 |  |  | (3,140) |  |  | 79 |  |  | 146,222 |  |  | (6,743) |
Mortgage insurance-linked notes |  | 2 |  |  | 43,745 |  |  | (1,639) |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 43,745 |  |  | (1,639) |
Foreign government and agency securities |  | 1 |  |  | 4,975 |  |  | (143) |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 4,975 |  |  | (143) |
Total |  | 858 |  |  | $ | 3,463,314 |  |  | $ | (312,320) |  |  | 426 |  |  | $ | 1,434,379 |  |  | $ | (269,173) |  |  | 1,284 |  |  | $ | 4,897,693 |  |  | $ | (581,493) |
|  | 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 Investment Income | Net investment income consisted of the following.
Net investment income |  |  |  |  |  |
|  | Years Ended December 31,
(In thousands) |  | 2022 |  | 2021 |  | 2020
Investment income |  |  |  |  |  |
Fixed-maturities |  | $ | 184,189 |  |  | $ | 145,613 |  |  | $ | 148,127 |
Equity securities |  | 11,210 |  |  | 8,158 |  |  | 6,378 |
Mortgage loans |  | 39 |  |  | — |  |  | — |
Short-term investments |  | 5,716 |  |  | 817 |  |  | 5,774 |
Other |  | 1,370 |  |  | 368 |  |  | 354 |
Gross investment income |  | 202,524 |  |  | 154,956 |  |  | 160,633 |
Investment expenses |  | (6,866) |  |  | (7,047) |  |  | (6,596) |
Net investment income |  | $ | 195,658 |  |  | $ | 147,909 |  |  | $ | 154,037 |
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 |  |  |  |  |  |
|  | Years Ended December 31,
(In thousands) |  | 2022 |  | 2021 |  | 2020
Net realized gains (losses) on investments sold or redeemed |  |  |  |  |  |
Fixed-maturities available for sale |  |  |  |  |  |
Gross realized gains |  | $ | 2,763 |  |  | $ | 22,766 |  |  | $ | 37,431 |
Gross realized losses |  | (12,737) |  |  | (17,105) |  |  | (2,562) |
Fixed-maturities available for sale, net |  | (9,974) |  |  | 5,661 |  |  | 34,869 |
Trading securities |  | (135) |  |  | 390 |  |  | 4 |
Equity securities |  | 1,655 |  |  | 10,820 |  |  | 353 |
Mortgage loans held for sale |  | 28 |  |  | — |  |  | — |
Other investments |  | 148 |  |  | 3,971 |  |  | 600 |
Net realized gains (losses) on investments sold or redeemed |  | (8,278) |  |  | 20,842 |  |  | 35,826 |
Change in unrealized gains (losses) on investments sold or redeemed |  | (3,458) |  |  | (8,714) |  |  | (1,630) |
Impairment losses due to intent to sell |  | — |  |  | — |  |  | (1,401) |
Net decrease (increase) in expected credit losses |  | — |  |  | 918 |  |  | (1,254) |
Net unrealized gains (losses) on investments still held |  |  |  |  |  |
Trading securities |  | (27,700) |  |  | (7,330) |  |  | 10,583 |
Equity securities |  | (25,255) |  |  | 10,210 |  |  | 1,759 |
Mortgage loans held for sale |  | 51 |  |  | — |  |  | — |
Other investments |  | (387) |  |  | 1,173 |  |  | 248 |
Net unrealized gains (losses) on investments still held |  | (53,291) |  |  | 4,053 |  |  | 12,590 |
Total net gains (losses) on investments |  | (65,027) |  |  | 17,099 |  |  | 44,131 |
Net gains (losses) on other financial instruments (1) |  | (15,706) |  |  | (1,496) |  |  | 16,146 |
Net gains (losses) on investments and other financial instruments |  | $ | (80,733) |  |  | $ | 15,603 |  |  | $ | 60,277 |
(1)Primarily reflects the change in fair value of the embedded derivatives associated with our Excess-of-Loss program. See Note 8 for more information.
Contractual Maturities | The contractual maturities of fixed-maturities available for sale were as follows.
Contractual maturities of fixed-maturities available for sale |  |  |  |
|  | December 31, 2022
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 111,909 |  |  | $ | 110,443 |
Due after one year through five years (1) |  | 1,274,935 |  |  | 1,197,900 |
Due after five years through 10 years (1) |  | 989,545 |  |  | 857,164 |
Due after 10 years (1) |  | 854,097 |  |  | 665,067 |
Asset-backed securities and mortgage-related assets (2) |  | 2,412,973 |  |  | 2,234,326 |
Total |  | 5,643,459 |  |  | 5,064,900 |
Less: loaned securities |  | 56,198 |  |  | 47,189 |
Total fixed-maturities available for sale |  | $ | 5,587,261 |  |  | $ | 5,017,711 |
(1)Actual maturities may differ as a result of calls before scheduled maturity. (2)Includes RMBS, CMBS, CLO, Other ABS, mortgage insurance-linked notes and mortgage loans, which are not due at a single maturity date.

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