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Investments
 9 Months Ended
Sep. 30, 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
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 obligations158,658 4 (25,093)133,569 
Corporate bonds and notes2,853,366 120 (394,766)2,458,720 
RMBS1,089,098 5,446 (135,334)959,210 
CMBS618,127 27 (57,802)560,352 
CLO502,572 74 (8,969)493,677 
Other ABS328,896 105 (8,913)320,088 
Foreign government and agency securities5,125 — (92)5,033 
Mortgage insurance-linked notes (1)
49,264 1,424 (6)50,682 
Total securities available for sale, including loaned securities5,776,666 $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 obligations164,325 — (21,939)142,386 
Corporate bonds and notes2,886,905 1,403 (350,537)2,537,771 
RMBS1,025,795 1,163 (98,559)928,399 
CMBS645,890 13 (52,546)593,357 
CLO518,677 — (20,485)498,192 
Other ABS168,033 69 (6,743)161,359 
Foreign government and agency securities5,118 — (143)4,975 
Mortgage insurance-linked notes (1)
54,578 80 (1,639)53,019 
Total securities available for sale, including loaned securities5,643,459 $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.
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 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 Months12 Months or GreaterTotal
Description of SecuritiesFair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
U.S. government and agency securities$18,644 $(3,052)$106,409 $(33,330)$125,053 $(36,382)
State and municipal obligations34,225 (2,994)98,445 (22,099)132,670 (25,093)
Corporate bonds and notes439,005 (18,372)1,976,424 (376,394)2,415,429 (394,766)
RMBS201,321 (11,093)628,227 (124,241)829,548 (135,334)
CMBS18,900 (272)538,095 (57,530)556,995 (57,802)
CLO14,841 (19)445,391 (8,950)460,232 (8,969)
Other ABS203,657 (3,774)69,537 (5,139)273,194 (8,913)
Mortgage insurance-linked notes3,125 (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 Months12 Months or GreaterTotal
Description of SecuritiesFair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
U.S. government and agency securities$86,964 $(21,370)$47,770 $(7,532)$134,734 $(28,902)
State and municipal obligations116,285 (14,231)25,401 (7,708)141,686 (21,939)
Corporate bonds and notes1,769,547 (176,768)701,936 (173,769)2,471,483 (350,537)
RMBS610,812 (46,117)261,370 (52,442)872,182 (98,559)
CMBS469,100 (38,178)121,277 (14,368)590,377 (52,546)
CLO246,705 (10,271)245,584 (10,214)492,289 (20,485)
Other ABS115,181 (3,603)31,041 (3,140)146,222 (6,743)
Mortgage insurance-linked notes43,745 (1,639)— — 43,745 (1,639)
Foreign government and agency securities4,975 (143)— — 4,975 (143)
Total$3,463,314 $(312,320)$1,434,379 $(269,173)$4,897,693 $(581,493)
There were 1,216 and 1,284 securities in an unrealized loss position at September 30, 2023, and December 31, 2022, respectively. We determined that these unrealized losses were due to non-credit factors and that, as of September 30, 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 $35 million and $16 million as of September 30, 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.
Mortgage Loans Held for Sale
The carrying value of mortgage loans held for sale owned by Radian Mortgage Capital totaled $138 million and $4 million at September 30, 2023, and December 31, 2022, respectively, and is based on fair value as discussed below. As of September 30, 2023, our mortgage loans held for sale consisted of 331 mortgage loans with a total unpaid principal balance of $139 million, related to properties in 35 states and the District of Columbia. As of September 30, 2023, none of these loans were greater than ninety days delinquent. Interest earned on mortgage loans held for sale is included in net investment income on our condensed consolidated statements of operations.
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. Net gains (losses) associated with our mortgage loans held for sale and any related hedges are included in net gains (losses) on investments and other financial instruments on our condensed consolidated statements of operations. See Note 5 for additional information about the fair value of these financial instruments.
We typically fund the purchases of our mortgage loans held for sale primarily with amounts borrowed under our mortgage loan financing facilities. See Note 12 for additional information on these facilities and their related terms.
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)2023202220232022
Net realized gains (losses) on investments sold or redeemed   
Fixed-maturities available for sale
Gross realized gains$20 $411 $588 $2,554 
Gross realized losses(2,814)(4,564)(13,768)(12,625)
Fixed-maturities available for sale, net(2,794)(4,153)(13,180)(10,071)
Trading securities— (30)(402)(136)
Equity securities— — 1,890 1,655 
Mortgage loans held for sale(99)— (94)— 
Other investments19 44 56 98 
Net realized gains (losses) on investments sold or redeemed(2,874)(4,139)(11,730)(8,454)
Change in unrealized gains (losses) on investments sold or redeemed9 29 226 (2,914)
Net unrealized gains (losses) on investments still held
Trading securities(5,632)(7,398)(4,494)(27,892)
Equity securities290 (7,256)4,991 (32,249)
Mortgage loans held for sale(1,675)— (1,785)— 
Other investments(1)(149)(97)(490)
Net unrealized gains (losses) on investments still held(7,018)(14,803)(1,385)(60,631)
Total net gains (losses) on investments(9,883)(18,913)(12,889)(71,999)
Net gains (losses) on other financial instruments (1)
1,328 2,661 9,683 (15,579)
Net gains (losses) on investments and other financial instruments$(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
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 CostFair 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 securities93,294 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.
Other
Our fixed-maturities available for sale include securities totaling $13 million at both September 30, 2023, and December 31, 2022, 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.