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Investments | 6 Months Ended
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Jun. 30, 2024
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
|  | June 30, 2024
(In thousands) |  | Amortized Cost |  |  |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Fixed-maturities available for sale |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 166,275 |  |  |  |  | $ | — |  |  | $ | (31,581) |  |  | $ | 134,694 |
State and municipal obligations |  | 169,734 |  |  |  |  | 87 |  |  | (16,850) |  |  | 152,971 |
Corporate bonds and notes |  | 2,804,815 |  |  |  |  | 5,287 |  |  | (297,211) |  |  | 2,512,891 |
RMBS |  | 1,157,427 |  |  |  |  | 8,153 |  |  | (104,775) |  |  | 1,060,805 |
CMBS |  | 532,968 |  |  |  |  | 33 |  |  | (37,386) |  |  | 495,615 |
CLO |  | 517,651 |  |  |  |  | 310 |  |  | (2,622) |  |  | 515,339 |
Other ABS |  | 363,736 |  |  |  |  | 843 |  |  | (4,408) |  |  | 360,171 |
Mortgage insurance-linked notes (1) |  | 45,717 |  |  |  |  | 2,038 |  |  | — |  |  | 47,755 |
Total securities available for sale, including loaned securities |  | 5,758,323 |  |  |  |  | $ | 16,751 |  |  | $ | (494,833) |  | (2) | 5,280,241 |
Less: loaned securities (3) |  | 110,020 |  |  |  |  |  |  |  |  | 103,720 |
Total fixed-maturities available for sale |  | $ | 5,648,303 |  |  |  |  |  |  |  |  | $ | 5,176,521 |
|  | December 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 |  | $ | 171,194 |  |  |  |  | $ | 93 |  |  | $ | (26,891) |  |  | $ | 144,396 |
State and municipal obligations |  | 158,539 |  |  |  |  | 283 |  |  | (16,037) |  |  | 142,785 |
Corporate bonds and notes |  | 2,876,175 |  |  |  |  | 12,286 |  |  | (259,177) |  |  | 2,629,284 |
RMBS |  | 1,089,919 |  |  |  |  | 8,250 |  |  | (84,098) |  |  | 1,014,071 |
CMBS |  | 605,029 |  |  |  |  | 51 |  |  | (46,697) |  |  | 558,383 |
CLO |  | 494,339 |  |  |  |  | 63 |  |  | (6,553) |  |  | 487,849 |
Other ABS |  | 286,988 |  |  |  |  | 1,608 |  |  | (4,037) |  |  | 284,559 |
Foreign government and agency securities |  | 5,128 |  |  |  |  | — |  |  | (41) |  |  | 5,087 |
Mortgage insurance-linked notes (1) |  | 47,456 |  |  |  |  | 1,540 |  |  | — |  |  | 48,996 |
Total securities available for sale, including loaned securities |  | 5,734,767 |  |  |  |  | $ | 24,174 |  |  | $ | (443,531) |  | (2) | 5,315,410 |
Less: loaned securities (3) |  | 135,656 |  |  |  |  |  |  |  |  | 127,182 |
Total fixed-maturities available for sale |  | $ | 5,599,111 |  |  |  |  |  |  |  |  | $ | 5,188,228 |
(1)Includes mortgage insurance-linked notes purchased by Radian Group in connection with the XOL 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 on 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 June 30, 2024, and December 31, 2023, are loaned securities that are classified as other assets on our condensed consolidated balance sheets, as further described below.
Unrealized losses on fixed-maturities available for sale by category and length of time
|  |  |  | June 30, 2024
|  |  |  | Less Than 12 Months |  |  |  | 12 Months or Greater |  |  |  | Total
(In thousands) Description of Securities |  |  |  | Fair Value |  | Unrealized Losses |  |  |  | Fair Value |  | Unrealized Losses |  |  |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  |  |  | $ | 6,009 |  |  | $ | (349) |  |  |  |  | $ | 119,459 |  |  | $ | (31,232) |  |  |  |  | $ | 125,468 |  |  | $ | (31,581) |
State and municipal obligations |  |  |  | 28,122 |  |  | (1,216) |  |  |  |  | 92,942 |  |  | (15,634) |  |  |  |  | 121,064 |  |  | (16,850) |
Corporate bonds and notes |  |  |  | 353,929 |  |  | (6,424) |  |  |  |  | 1,872,436 |  |  | (290,787) |  |  |  |  | 2,226,365 |  |  | (297,211) |
RMBS |  |  |  | 175,512 |  |  | (2,249) |  |  |  |  | 679,163 |  |  | (102,526) |  |  |  |  | 854,675 |  |  | (104,775) |
CMBS |  |  |  | 13,429 |  |  | (22) |  |  |  |  | 479,194 |  |  | (37,364) |  |  |  |  | 492,623 |  |  | (37,386) |
CLO |  |  |  | 113,018 |  |  | (242) |  |  |  |  | 98,002 |  |  | (2,380) |  |  |  |  | 211,020 |  |  | (2,622) |
Other ABS |  |  |  | 137,812 |  |  | (654) |  |  |  |  | 67,892 |  |  | (3,754) |  |  |  |  | 205,704 |  |  | (4,408) |
Total |  |  |  | $ | 827,831 |  |  | $ | (11,156) |  |  |  |  | $ | 3,409,088 |  |  | $ | (483,677) |  |  |  |  | $ | 4,236,919 |  |  | $ | (494,833) |
|  |  |  | December 31, 2023
|  |  |  | Less Than 12 Months |  |  |  | 12 Months or Greater |  |  |  | Total
(In thousands) Description of Securities |  |  |  | Fair Value |  | Unrealized Losses |  |  |  | Fair Value |  | Unrealized Losses |  |  |  | Fair Value |  | Unrealized Losses
U.S. government and agency securities |  |  |  | $ | 15,650 |  |  | $ | (938) |  |  |  |  | $ | 113,678 |  |  | $ | (25,953) |  |  |  |  | $ | 129,328 |  |  | $ | (26,891) |
State and municipal obligations |  |  |  | 17,154 |  |  | (551) |  |  |  |  | 104,949 |  |  | (15,486) |  |  |  |  | 122,103 |  |  | (16,037) |
Corporate bonds and notes |  |  |  | 161,924 |  |  | (1,261) |  |  |  |  | 2,055,113 |  |  | (257,916) |  |  |  |  | 2,217,037 |  |  | (259,177) |
RMBS |  |  |  | 113,506 |  |  | (1,439) |  |  |  |  | 653,955 |  |  | (82,659) |  |  |  |  | 767,461 |  |  | (84,098) |
CMBS |  |  |  | 8,558 |  |  | (31) |  |  |  |  | 546,104 |  |  | (46,666) |  |  |  |  | 554,662 |  |  | (46,697) |
CLO |  |  |  | 15,083 |  |  | (25) |  |  |  |  | 438,294 |  |  | (6,528) |  |  |  |  | 453,377 |  |  | (6,553) |
Other ABS |  |  |  | 49,513 |  |  | (322) |  |  |  |  | 64,078 |  |  | (3,715) |  |  |  |  | 113,591 |  |  | (4,037) |
Foreign government and agency securities |  |  |  | — |  |  | — |  |  |  |  | 5,087 |  |  | (41) |  |  |  |  | 5,087 |  |  | (41) |
Total |  |  |  | $ | 381,388 |  |  | $ | (4,567) |  |  |  |  | $ | 3,981,258 |  |  | $ | (438,964) |  |  |  |  | $ | 4,362,646 |  |  | $ | (443,531) |
There were 1,037 and 1,063 securities in an unrealized loss position at June 30, 2024, and December 31, 2023, respectively. We determined that these unrealized losses were due to non-credit factors and that, as of June 30, 2024, 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 2023 Form 10-K for information regarding our accounting policy for impairments of investments. Contractual Maturities The contractual maturities of fixed-maturities available for sale were as follows.
Contractual maturities of fixed-maturities available for sale
|  | June 30, 2024
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 93,971 |  |  | $ | 92,593 |
Due after one year through five years (1) |  | 1,159,906 |  |  | 1,105,988 |
Due after five years through 10 years (1) |  | 980,900 |  |  | 890,580 |
Due after 10 years (1) |  | 906,047 |  |  | 711,395 |
Asset-backed and mortgage-backed securities (2) |  | 2,617,499 |  |  | 2,479,685 |
Total |  | 5,758,323 |  |  | 5,280,241 |
Less: loaned securities |  | 110,020 |  |  | 103,720 |
Total fixed-maturities available for sale |  | $ | 5,648,303 |  |  | $ | 5,176,521 |
(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. Net Investment Income Net investment income consisted of the following.
Net investment income
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Investment income |  |  |  |  |  |  |  |
Fixed-maturities |  | $ | 57,924 |  |  | $ | 56,439 |  |  | $ | 115,183 |  |  | $ | 109,387 |
Equity securities |  | 3,067 |  |  | 3,512 |  |  | 5,606 |  |  | 6,444 |
Mortgage loans held for sale (1) |  | 5,411 |  |  | 574 |  |  | 7,204 |  |  | 768 |
Short-term investments |  | 8,614 |  |  | 3,976 |  |  | 17,572 |  |  | 7,564 |
Other (2) |  | 1,504 |  |  | 1,250 |  |  | 3,101 |  |  | 2,325 |
Gross investment income |  | 76,520 |  |  | 65,751 |  |  | 148,666 |  |  | 126,488 |
Investment expenses (2) |  | (2,754) |  |  | (2,403) |  |  | (5,679) |  |  | (4,687) |
Net investment income |  | $ | 73,766 |  |  | $ | 63,348 |  |  | $ | 142,987 |  |  | $ | 121,801 |
(1)See Note 7 for additional information on our mortgage loans held for sale. (2)Includes the impact from our securities lending activities. Investment expenses also include other investment management expenses. 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 June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Net realized gains (losses) on investments sold or redeemed (1) |  |  |  |  |  |  |  |
Fixed-maturities available for sale |  |  |  |  |  |  |  |
Gross realized gains |  | $ | 579 |  |  | $ | 490 |  |  | $ | 631 |  |  | $ | 568 |
Gross realized losses |  | (3,413) |  |  | (5,644) |  |  | (7,148) |  |  | (10,954) |
Fixed-maturities available for sale, net |  | (2,834) |  |  | (5,154) |  |  | (6,517) |  |  | (10,386) |
Trading securities |  | (191) |  |  | (100) |  |  | (191) |  |  | (402) |
Equity securities |  | 6 |  |  | 1,890 |  |  | 6 |  |  | 1,890 |
Other investments |  | — |  |  | 9 |  |  | 1 |  |  | 37 |
Net realized gains (losses) on investments sold or redeemed (1) |  | (3,019) |  |  | (3,355) |  |  | (6,701) |  |  | (8,861) |
Change in unrealized gains (losses) on investments sold or redeemed (1) |  | 367 |  |  | (1,092) |  |  | 130 |  |  | 253 |
Impairment losses due to intent to sell |  | (237) |  |  | — |  |  | (237) |  |  | — |
Net unrealized gains (losses) on investments still held (1) |  |  |  |  |  |  |  |
Trading securities |  | (1,371) |  |  | (966) |  |  | (3,131) |  |  | 1,092 |
Equity securities |  | (416) |  |  | 2,204 |  |  | 3,605 |  |  | 4,725 |
Other investments |  | (42) |  |  | (110) |  |  | (55) |  |  | (110) |
Net unrealized gains (losses) on investments still held (1) |  | (1,829) |  |  | 1,128 |  |  | 419 |  |  | 5,707 |
Total net gains (losses) on investments (1) |  | (4,718) |  |  | (3,319) |  |  | (6,389) |  |  | (2,901) |
Net gains (losses) on mortgage loans held for sale (Note 7) (2) |  | (50) |  |  | 94 |  |  | 334 |  |  | 175 |
Net gains (losses) on other financial instruments (1) (3) |  | 281 |  |  | 2,989 |  |  | 2,058 |  |  | 8,075 |
Net gains (losses) on investments and other financial instruments |  | $ | (4,487) |  |  | $ | (236) |  |  | $ | (3,997) |  |  | $ | 5,349 |
(1)Excludes activities related to our mortgage loans held for sale. See Note 7 for additional information. (2)Includes realized and unrealized net gains (losses) on mortgage loans held for sale and related activities, including interest rate hedges. See Note 7 for additional details. (3)Includes changes in the fair value of embedded derivatives associated with our XOL Program. See Note 8 for additional information. 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. Under this program, we had loaned $148 million and $204 million of our investment securities to third parties as of June 30, 2024, and December 31, 2023, respectively, including fixed-maturities, equity securities and short-term investments. Although we report such securities at fair value within other assets on 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 $55 million and $61 million as of June 30, 2024, and December 31, 2023, 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 2023 Form 10-K for additional information about our accounting policies with respect to our securities lending agreements and the collateral requirements thereunder. Other Our fixed-maturities available for sale include securities totaling $14 million at both June 30, 2024, and December 31, 2023, that are on deposit and serving as collateral with various state regulatory authorities. Our fixed-maturities available for sale also include securities serving as collateral for our FHLB advances. See Note 12 for additional information about our FHLB advances.

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