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Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
For discussion of our valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 of Notes to Consolidated Financial Statements in our 2022 Form 10-K.
The following tables include a list of assets and liabilities that are measured at fair value by hierarchy level as of the dates indicated.
Assets and liabilities carried at fair value by hierarchy level
September 30, 2023
(In thousands)Level ILevel IILevel IIITotal
Investments
Fixed-maturities available for sale
U.S. government and agency securities$125,053 $10,125 $— $135,178 
State and municipal obligations— 133,569 — 133,569 
Corporate bonds and notes— 2,379,958 — 2,379,958 
RMBS— 959,210 — 959,210 
CMBS— 560,352 — 560,352 
CLO— 493,677 — 493,677 
Other ABS— 320,088 — 320,088 
Foreign government and agency securities— 5,033 — 5,033 
Mortgage insurance-linked notes (1)
— 50,682 — 50,682 
Total fixed-maturities available for sale125,053 4,912,694 — 5,037,747 
Assets and liabilities carried at fair value by hierarchy level
September 30, 2023
(In thousands)Level ILevel IILevel IIITotal
Trading securities
State and municipal obligations— 66,554 — 66,554 
Corporate bonds and notes— 22,798 — 22,798 
RMBS— 5,883 — 5,883 
CMBS— 4,534 — 4,534 
Total trading securities— 99,769 — 99,769 
Equity securities100,194 6,217 2,500 108,911 
Mortgage loans held for sale (2)
— 138,289 — 138,289 
Other invested assets (3)
— — 7,016 7,016 
Short-term investments
U.S. government and agency securities7,727 — — 7,727 
State and municipal obligations— 2,500 — 2,500 
Money market instruments262,506 — — 262,506 
Corporate bonds and notes— 104,899 — 104,899 
RMBS— 1,620 — 1,620 
CMBS— 1,336 — 1,336 
Other ABS— 7,069 — 7,069 
Other investments (4)
— 104,787 — 104,787 
Total short-term investments270,233 222,211 — 492,444 
Total investments at fair value (3)
495,480 5,379,180 9,516 5,884,176 
Other
Derivative assets (5)
— 2,426 137 2,563 
Loaned securities (6)
Corporate bonds and notes— 79,016 — 79,016 
Equity securities70,525 — — 70,525 
Mortgage insurance-linked notes (1)
— — — — 
Total assets at fair value (3)
$566,005 $5,460,622 $9,653 $6,036,280 
Liabilities
Derivative liabilities (5)
$— $15 $562 $577 
Total liabilities at fair value$— $15 $562 $577 
(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)We elected the fair value option for our mortgage loans held for sale to mitigate income statement volatility and allow for consistent treatment of both loans and any associated hedges or derivatives. See Note 6 for more information about our mortgage loans held for sale.
(3)Does not include other invested assets of $1.5 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient.
(4)Comprises short-term certificates of deposit and commercial paper.
(5)Level III derivative assets and liabilities consist of embedded derivatives related to our Excess-of-Loss Program, which are classified as other assets in our condensed consolidated balance sheets. See Note 8 for more information.
(6)Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 6 for more information.
Assets and liabilities carried at fair value by hierarchy level
December 31, 2022
(In thousands)Level ILevel IILevel IIITotal
Investments
Fixed-maturities available for sale
U.S. government and agency securities$140,011 $5,431 $— $145,442 
State and municipal obligations— 142,386 — 142,386 
Corporate bonds and notes— 2,490,582 — 2,490,582 
RMBS— 928,399 — 928,399 
CMBS— 593,357 — 593,357 
CLO— 498,192 — 498,192 
Other ABS— 161,359 — 161,359 
Foreign government and agency securities— 4,975 — 4,975 
Mortgage insurance-linked notes (1)
— 53,019 — 53,019 
Total fixed-maturities available for sale140,011 4,877,700 — 5,017,711 
Trading securities
State and municipal obligations— 70,511 — 70,511 
Corporate bonds and notes— 32,827 — 32,827 
RMBS— 6,847 — 6,847 
CMBS— 5,480 — 5,480 
Total trading securities— 115,665 — 115,665 
Equity securities138,716 7,749 2,500 148,965 
Mortgage loans held for sale— 3,549 — 3,549 
Other invested assets (2)
— — 4,296 4,296 
Short-term investments
State and municipal obligations— 2,785 — 2,785 
Money market instruments241,440 — — 241,440 
Corporate bonds and notes— 42,385 — 42,385 
Other investments (3)
— 115,480 — 115,480 
Total short-term investments241,440 160,650 — 402,090 
Total investments at fair value (2)
520,167 5,165,313 6,796 5,692,276 
Other
Derivative assets— 11 — 11 
Loaned securities (4)
Corporate bonds and notes— 47,585 — 47,585 
Equity securities64,554 — — 64,554 
Total assets at fair value (2)
$584,721 $5,212,909 $6,796 $5,804,426 
Liabilities
Derivative liabilities (5)
$— $42 $4,858 $4,900 
Total liabilities at fair value$— $42 $4,858 $4,900 
(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)Does not include other invested assets of $1.2 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient.
(3)Comprises short-term certificates of deposit and commercial paper.
(4)Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 6 for more information.
(5)Level III derivative liabilities consist of embedded derivatives related to our Excess-of-Loss Program, which are classified as other liabilities in our condensed consolidated balance sheets. See Note 8 for more information.
There were no transfers to or from Level III for the three and nine months ended September 30, 2023 or 2022. Activity related to Level III assets and liabilities (including realized and unrealized gains and losses, purchases, sales, issuances, settlements and transfers) was immaterial for the three and nine months ended September 30, 2023 and 2022.
Other Fair Value Disclosure
The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value in our condensed consolidated balance sheets were as follows as of the dates indicated.
Financial instruments not carried at fair value
September 30, 2023December 31, 2022
(In thousands)Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Company-owned life insurance$107,489 $95,407 $105,331 $94,943 
Senior notes1,416,687 1,379,192 1,413,504 1,361,844 
Secured borrowings
FHLB advances$119,522 $119,543 $153,686 $153,728 
Mortgage loan financing facilities122,231 122,231 2,136 2,136 
Total secured borrowings$241,753 $241,774 $155,822 $155,864 
The fair value of our company-owned life insurance is estimated based on market surrender value less applicable surrender charges. These assets are categorized in Level III of the fair value hierarchy. See Note 9 for further information on our company-owned life insurance. The fair value of our senior notes is estimated based on quoted market prices. The fair value of our secured borrowings is estimated based on contractual cash flows discounted at current borrowing rates for similar borrowing arrangements. These liabilities are categorized in Level II of the fair value hierarchy. See Note 12 for further information about our senior notes and secured borrowings.