XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.23.1

Investments | 3 Months Ended
--- | ---
Mar. 31, 2023
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
|  | March 31, 2023
(In thousands) |  | Amortized Cost |  |  |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Fixed-maturities available for sale |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 191,827 |  |  |  |  | $ | 713 |  |  | $ | (24,369) |  |  | $ | 168,171 |
State and municipal obligations |  | 182,415 |  |  |  |  | 478 |  |  | (16,471) |  |  | 166,422 |
Corporate bonds and notes |  | 2,901,464 |  |  |  |  | 3,882 |  |  | (303,775) |  |  | 2,601,571 |
RMBS |  | 1,043,417 |  |  |  |  | 1,776 |  |  | (82,724) |  |  | 962,469 |
CMBS |  | 637,554 |  |  |  |  | 3 |  |  | (47,719) |  |  | 589,838 |
CLO |  | 506,227 |  |  |  |  | 2 |  |  | (17,445) |  |  | 488,784 |
Other ABS |  | 203,111 |  |  |  |  | 615 |  |  | (4,967) |  |  | 198,759 |
Foreign government and agency securities |  | 5,121 |  |  |  |  | — |  |  | (107) |  |  | 5,014 |
Mortgage insurance-linked notes (1) |  | 61,318 |  |  |  |  | 194 |  |  | (53) |  |  | 61,459 |
Total securities available for sale, including loaned securities |  | 5,732,454 |  |  |  |  | $ | 7,663 |  |  | $ | (497,630) |  | (2) | 5,242,487 |
Less: loaned securities (3) |  | 77,174 |  |  |  |  |  |  |  |  | 70,112 |
Total fixed-maturities available for sale |  | $ | 5,655,280 |  |  |  |  |  |  |  |  | $ | 5,172,375 |
|  | 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 |
(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 condensed consolidated balance sheets as further described below. See “Loaned Securities” below for a discussion of our securities lending agreements. 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 March 31, 2023, and December 31, 2022, are loaned securities 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
|  | March 31, 2023
($ 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 |  | 7 |  |  | $ | 35,340 |  |  | $ | (2,589) |  |  | 17 |  |  | $ | 108,647 |  |  | $ | (21,780) |  |  | 24 |  |  | $ | 143,987 |  |  | $ | (24,369) |
State and municipal obligations |  | 24 |  |  | 84,812 |  |  | (4,293) |  |  | 36 |  |  | 53,004 |  |  | (12,178) |  |  | 60 |  |  | 137,816 |  |  | (16,471) |
Corporate bonds and notes |  | 227 |  |  | 980,939 |  |  | (46,110) |  |  | 362 |  |  | 1,418,761 |  |  | (257,665) |  |  | 589 |  |  | 2,399,700 |  |  | (303,775) |
RMBS |  | 49 |  |  | 319,516 |  |  | (10,804) |  |  | 132 |  |  | 500,482 |  |  | (71,920) |  |  | 181 |  |  | 819,998 |  |  | (82,724) |
CMBS |  | 40 |  |  | 134,349 |  |  | (6,053) |  |  | 120 |  |  | 452,445 |  |  | (41,666) |  |  | 160 |  |  | 586,794 |  |  | (47,719) |
CLO |  | 35 |  |  | 93,096 |  |  | (4,139) |  |  | 111 |  |  | 383,681 |  |  | (13,306) |  |  | 146 |  |  | 476,777 |  |  | (17,445) |
Other ABS |  | 47 |  |  | 89,870 |  |  | (1,270) |  |  | 26 |  |  | 43,541 |  |  | (3,697) |  |  | 73 |  |  | 133,411 |  |  | (4,967) |
Mortgage insurance-linked notes |  | 2 |  |  | 10,636 |  |  | (53) |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 10,636 |  |  | (53) |
Foreign government and agency securities |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 5,014 |  |  | (107) |  |  | 1 |  |  | 5,014 |  |  | (107) |
Total |  | 431 |  |  | $ | 1,748,558 |  |  | $ | (75,311) |  |  | 805 |  |  | $ | 2,965,575 |  |  | $ | (422,319) |  |  | 1,236 |  |  | $ | 4,714,133 |  |  | $ | (497,630) |
|  | 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) |
As of March 31, 2023, we did not expect to realize a loss for our investments in an unrealized loss position given our intent and ability to hold these investment securities until recovery of their amortized cost basis. See Note 2 of Notes to Consolidated Financial Statements in our 2022 Form 10-K for information regarding our accounting policy for impairments of investments. 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. Although we report such securities at fair value within other assets in our condensed consolidated balance sheets, rather than within investments, the detailed information we provide in this Note 6 includes these securities. All of our securities lending agreements are classified as overnight and revolving. Securities collateral on deposit with us from third-party borrowers totaling $41.1 million and $16.2 million as of March 31, 2023, and December 31, 2022, respectively, may not be transferred or re-pledged unless the third-party borrower is in default, and is therefore not reflected in our condensed consolidated financial statements. See Note 5 herein for additional detail on the loaned securities, and see Note 6 of Notes to Consolidated Financial Statements in our 2022 Form 10-K for additional information about our accounting policies with respect to our securities lending agreements and the collateral requirements thereunder. 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
|  |  |  | Three Months Ended March 31,
(In thousands) |  |  |  |  |  | 2023 |  | 2022
Net realized gains (losses) on investments sold or redeemed |  |  |  |  |  |  |  |
Fixed-maturities available for sale |  |  |  |  |  |  |  |
Gross realized gains |  |  |  |  |  | $ | 78 |  |  | $ | 1,430 |
Gross realized losses |  |  |  |  |  | (5,310) |  |  | (3,408) |
Fixed-maturities available for sale, net |  |  |  |  |  | (5,232) |  |  | (1,978) |
Trading securities |  |  |  |  |  | (302) |  |  | — |
Equity securities |  |  |  |  |  | — |  |  | 1,655 |
Mortgage loans held for sale |  |  |  |  |  | 1 |  |  | — |
Other investments |  |  |  |  |  | 28 |  |  | — |
Net realized gains (losses) on investments sold or redeemed |  |  |  |  |  | (5,505) |  |  | (323) |
Change in unrealized gains (losses) on investments sold or redeemed |  |  |  |  |  | 439 |  |  | (1,949) |
Net unrealized gains (losses) on investments still held |  |  |  |  |  |  |  |
Trading securities |  |  |  |  |  | 2,078 |  |  | (13,033) |
Equity securities |  |  |  |  |  | 3,444 |  |  | (4,385) |
Mortgage loans held for sale |  |  |  |  |  | 86 |  |  | — |
Other investments |  |  |  |  |  | (37) |  |  | (263) |
Net unrealized gains (losses) on investments still held |  |  |  |  |  | 5,571 |  |  | (17,681) |
Total net gains (losses) on investments |  |  |  |  |  | 505 |  |  | (19,953) |
Net gains (losses) on other financial instruments (1) |  |  |  |  |  | 5,080 |  |  | (9,504) |
Net gains (losses) on investments and other financial instruments |  |  |  |  |  | $ | 5,585 |  |  | $ | (29,457) |
(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
|  | March 31, 2023
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 112,649 |  |  | $ | 110,871 |
Due after one year through five years (1) |  | 1,296,849 |  |  | 1,226,557 |
Due after five years through 10 years (1) |  | 992,330 |  |  | 887,695 |
Due after 10 years (1) |  | 878,999 |  |  | 716,055 |
Asset-backed and mortgage-backed securities (2) |  | 2,451,627 |  |  | 2,301,309 |
Total |  | 5,732,454 |  |  | 5,242,487 |
Less: loaned securities |  | 77,174 |  |  | 70,112 |
Total fixed-maturities available for sale |  | $ | 5,655,280 |  |  | $ | 5,172,375 |
(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 $13.5 million and $13.3 million at March 31, 2023, and December 31, 2022, 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.

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 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
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration