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Investments (Tables) | 9 Months Ended
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Sep. 30, 2023
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, 2023
(In thousands) |  | Amortized Cost |  |  |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Fixed-maturities available for sale |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 171,560 |  |  |  |  | $ | — |  |  | $ | (36,382) |  |  | $ | 135,178 |
State and municipal obligations |  | 158,658 |  |  |  |  | 4 |  |  | (25,093) |  |  | 133,569 |
Corporate bonds and notes |  | 2,853,366 |  |  |  |  | 120 |  |  | (394,766) |  |  | 2,458,720 |
RMBS |  | 1,089,098 |  |  |  |  | 5,446 |  |  | (135,334) |  |  | 959,210 |
CMBS |  | 618,127 |  |  |  |  | 27 |  |  | (57,802) |  |  | 560,352 |
CLO |  | 502,572 |  |  |  |  | 74 |  |  | (8,969) |  |  | 493,677 |
Other ABS |  | 328,896 |  |  |  |  | 105 |  |  | (8,913) |  |  | 320,088 |
Foreign government and agency securities |  | 5,125 |  |  |  |  | — |  |  | (92) |  |  | 5,033 |
Mortgage insurance-linked notes (1) |  | 49,264 |  |  |  |  | 1,424 |  |  | (6) |  |  | 50,682 |
Total securities available for sale, including loaned securities |  | 5,776,666 |  |  |  |  | $ | 7,200 |  |  | $ | (667,357) |  | (2) | 5,116,509 |
Less: loaned securities (3) |  | 93,294 |  |  |  |  |  |  |  |  | 78,762 |
Total fixed-maturities available for sale |  | $ | 5,683,372 |  |  |  |  |  |  |  |  | $ | 5,037,747 |
|  | 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. See “Loaned Securities” below for a discussion of our securities lending agreements.
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, 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
|  |  |  | September 30, 2023
(In thousands) |  |  |  | Less Than 12 Months |  |  |  | 12 Months or Greater |  |  |  | Total
Description of Securities |  |  |  | Fair Value |  | Unrealized Losses |  |  |  | Fair Value |  | Unrealized Losses |  |  |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  |  |  | $ | 18,644 |  |  | $ | (3,052) |  |  |  |  | $ | 106,409 |  |  | $ | (33,330) |  |  |  |  | $ | 125,053 |  |  | $ | (36,382) |
State and municipal obligations |  |  |  | 34,225 |  |  | (2,994) |  |  |  |  | 98,445 |  |  | (22,099) |  |  |  |  | 132,670 |  |  | (25,093) |
Corporate bonds and notes |  |  |  | 439,005 |  |  | (18,372) |  |  |  |  | 1,976,424 |  |  | (376,394) |  |  |  |  | 2,415,429 |  |  | (394,766) |
RMBS |  |  |  | 201,321 |  |  | (11,093) |  |  |  |  | 628,227 |  |  | (124,241) |  |  |  |  | 829,548 |  |  | (135,334) |
CMBS |  |  |  | 18,900 |  |  | (272) |  |  |  |  | 538,095 |  |  | (57,530) |  |  |  |  | 556,995 |  |  | (57,802) |
CLO |  |  |  | 14,841 |  |  | (19) |  |  |  |  | 445,391 |  |  | (8,950) |  |  |  |  | 460,232 |  |  | (8,969) |
Other ABS |  |  |  | 203,657 |  |  | (3,774) |  |  |  |  | 69,537 |  |  | (5,139) |  |  |  |  | 273,194 |  |  | (8,913) |
Mortgage insurance-linked notes |  |  |  | 3,125 |  |  | (6) |  |  |  |  | — |  |  | — |  |  |  |  | 3,125 |  |  | (6) |
Foreign government and agency securities |  |  |  | — |  |  | — |  |  |  |  | 5,033 |  |  | (92) |  |  |  |  | 5,033 |  |  | (92) |
Total |  |  |  | $ | 933,718 |  |  | $ | (39,582) |  |  |  |  | $ | 3,867,561 |  |  | $ | (627,775) |  |  |  |  | $ | 4,801,279 |  |  | $ | (667,357) |
|  |  |  | December 31, 2022
(In thousands) |  |  |  | Less Than 12 Months |  |  |  | 12 Months or Greater |  |  |  | Total
Description of Securities |  |  |  | Fair Value |  | Unrealized Losses |  |  |  | Fair Value |  | Unrealized Losses |  |  |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  |  |  | $ | 86,964 |  |  | $ | (21,370) |  |  |  |  | $ | 47,770 |  |  | $ | (7,532) |  |  |  |  | $ | 134,734 |  |  | $ | (28,902) |
State and municipal obligations |  |  |  | 116,285 |  |  | (14,231) |  |  |  |  | 25,401 |  |  | (7,708) |  |  |  |  | 141,686 |  |  | (21,939) |
Corporate bonds and notes |  |  |  | 1,769,547 |  |  | (176,768) |  |  |  |  | 701,936 |  |  | (173,769) |  |  |  |  | 2,471,483 |  |  | (350,537) |
RMBS |  |  |  | 610,812 |  |  | (46,117) |  |  |  |  | 261,370 |  |  | (52,442) |  |  |  |  | 872,182 |  |  | (98,559) |
CMBS |  |  |  | 469,100 |  |  | (38,178) |  |  |  |  | 121,277 |  |  | (14,368) |  |  |  |  | 590,377 |  |  | (52,546) |
CLO |  |  |  | 246,705 |  |  | (10,271) |  |  |  |  | 245,584 |  |  | (10,214) |  |  |  |  | 492,289 |  |  | (20,485) |
Other ABS |  |  |  | 115,181 |  |  | (3,603) |  |  |  |  | 31,041 |  |  | (3,140) |  |  |  |  | 146,222 |  |  | (6,743) |
Mortgage insurance-linked notes |  |  |  | 43,745 |  |  | (1,639) |  |  |  |  | — |  |  | — |  |  |  |  | 43,745 |  |  | (1,639) |
Foreign government and agency securities |  |  |  | 4,975 |  |  | (143) |  |  |  |  | — |  |  | — |  |  |  |  | 4,975 |  |  | (143) |
Total |  |  |  | $ | 3,463,314 |  |  | $ | (312,320) |  |  |  |  | $ | 1,434,379 |  |  | $ | (269,173) |  |  |  |  | $ | 4,897,693 |  |  | $ | (581,493) |
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 September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Net realized gains (losses) on investments sold or redeemed |  |  |  |  |  |  |  |
Fixed-maturities available for sale |  |  |  |  |  |  |  |
Gross realized gains |  | $ | 20 |  |  | $ | 411 |  |  | $ | 588 |  |  | $ | 2,554 |
Gross realized losses |  | (2,814) |  |  | (4,564) |  |  | (13,768) |  |  | (12,625) |
Fixed-maturities available for sale, net |  | (2,794) |  |  | (4,153) |  |  | (13,180) |  |  | (10,071) |
Trading securities |  | — |  |  | (30) |  |  | (402) |  |  | (136) |
Equity securities |  | — |  |  | — |  |  | 1,890 |  |  | 1,655 |
Mortgage loans held for sale |  | (99) |  |  | — |  |  | (94) |  |  | — |
Other investments |  | 19 |  |  | 44 |  |  | 56 |  |  | 98 |
Net realized gains (losses) on investments sold or redeemed |  | (2,874) |  |  | (4,139) |  |  | (11,730) |  |  | (8,454) |
Change in unrealized gains (losses) on investments sold or redeemed |  | 9 |  |  | 29 |  |  | 226 |  |  | (2,914) |
Net unrealized gains (losses) on investments still held |  |  |  |  |  |  |  |
Trading securities |  | (5,632) |  |  | (7,398) |  |  | (4,494) |  |  | (27,892) |
Equity securities |  | 290 |  |  | (7,256) |  |  | 4,991 |  |  | (32,249) |
Mortgage loans held for sale |  | (1,675) |  |  | — |  |  | (1,785) |  |  | — |
Other investments |  | (1) |  |  | (149) |  |  | (97) |  |  | (490) |
Net unrealized gains (losses) on investments still held |  | (7,018) |  |  | (14,803) |  |  | (1,385) |  |  | (60,631) |
Total net gains (losses) on investments |  | (9,883) |  |  | (18,913) |  |  | (12,889) |  |  | (71,999) |
Net gains (losses) on other financial instruments (1) |  | 1,328 |  |  | 2,661 |  |  | 9,683 |  |  | (15,579) |
Net gains (losses) on investments and other financial instruments |  | $ | (8,555) |  |  | $ | (16,252) |  |  | $ | (3,206) |  |  | $ | (87,578) |
(1)Includes changes in the fair value of derivatives, including embedded derivatives associated with our Excess-of-Loss program and derivatives that hedge interest rate risk related to our mortgage loans held for sale.
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, 2023
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 108,051 |  |  | $ | 106,300 |
Due after one year through five years (1) |  | 1,296,150 |  |  | 1,209,013 |
Due after five years through 10 years (1) |  | 917,687 |  |  | 781,903 |
Due after 10 years (1) |  | 866,821 |  |  | 635,284 |
Asset-backed and mortgage-backed securities (2) |  | 2,587,957 |  |  | 2,384,009 |
Total |  | 5,776,666 |  |  | 5,116,509 |
Less: loaned securities |  | 93,294 |  |  | 78,762 |
Total fixed-maturities available for sale |  | $ | 5,683,372 |  |  | $ | 5,037,747 |
(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.

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