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Investments | 12 Months Ended
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Dec. 31, 2022
Investments [Abstract] |
Investments | Investments 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 |  |  |  |  |  |  |  |  |  |
|  | 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. 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) |
Given our intent and ability as of December 31, 2022, to hold these securities until recovery of their amortized cost basis, we do not expect to realize a loss on any of our investments in an unrealized loss position. See Note 2 for information regarding our accounting policy for impairments. Loaned Securities We participate in a securities lending program whereby we loan certain securities in our investment portfolio to third-party borrowers for short periods of time. These securities lending agreements are collateralized financing arrangements whereby we transfer securities to third parties through an intermediary in exchange for cash or other securities. However, pursuant to the terms of these agreements, we maintain effective control over all loaned securities. Although we report such securities at fair value within other assets in our consolidated balance sheets, rather than within investments, the detailed information we provide in this Note 6 includes these securities. See Note 5 for additional detail on the loaned securities. Under our securities lending agreements, the borrower is required to provide to us collateral, consisting of cash or securities, in amounts generally equal to or exceeding: (i) 102% of the value of the loaned securities (105% in the case of foreign securities) or (ii) another agreed-upon percentage not less than 100% of the market value of the loaned securities. Any cash collateral we receive may be invested in liquid assets. Cash collateral, which is reinvested for our benefit by the intermediary in accordance with the investment guidelines contained in the securities lending and collateral agreements, is reflected in short-term investments, with an offsetting liability recognized in other liabilities for the obligation to return the cash collateral. Securities collateral we receive is held on deposit for the borrower’s benefit and we may not transfer or loan such securities collateral unless the borrower is in default. Therefore, such securities collateral is not reflected in our consolidated financial statements given that the risks and rewards of ownership are not transferred to us from the borrowers. Fees received and paid in connection with securities lending agreements are recorded in net investment income and interest expense, respectively, on the consolidated statements of operations. All of our securities lending agreements are classified as overnight and revolving. Securities collateral on deposit with us from third-party borrowers totaling $16.2 million and $57.8 million as of December 31, 2022 and 2021, respectively, may not be transferred or re-pledged unless the third-party borrower is in default, and is therefore not reflected in our consolidated financial statements. 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 and Other Financial Instruments 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. Other Our fixed-maturities available for sale include securities totaling $13.3 million and $14.3 million at December 31, 2022 and 2021, respectively, on deposit and serving as collateral with various state regulatory authorities. Our fixed-maturities available for sale and trading securities also include securities serving as collateral for our FHLB advances. See Note 12 for additional information about our FHLB advances.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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