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Investments | 12 Months Ended
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Dec. 31, 2024
Investments [Abstract] |
Investments | 6. Inve stments 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 |  |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, 2024 |
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  |  | Fair Value |
Fixed maturities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 160,509 |  |  | $ | — |  |  | $ | (32,177 | ) |  |  | $ | 128,332 |
State and municipal obligations |  |  | 167,114 |  |  |  | 40 |  |  |  | (18,263 | ) |  |  |  | 148,891 |
Corporate bonds and notes |  |  | 2,878,705 |  |  |  | 5,261 |  |  |  | (277,535 | ) |  |  |  | 2,606,431 |
RMBS |  |  | 1,104,721 |  |  |  | 6,965 |  |  |  | (100,056 | ) |  |  |  | 1,011,630 |
CMBS |  |  | 438,139 |  |  |  | 51 |  |  |  | (26,191 | ) |  |  |  | 411,999 |
CLO |  |  | 411,328 |  |  |  | 983 |  |  |  | (849 | ) |  |  |  | 411,462 |
Other ABS |  |  | 442,620 |  |  |  | 1,556 |  |  |  | (5,305 | ) |  |  |  | 438,871 |
Mortgage insurance-linked notes (1) |  |  | 45,447 |  |  |  | 1,709 |  |  |  | — |  |  |  |  | 47,156 |
Total securities available for sale, including loaned securities |  |  | 5,648,583 |  |  | $ | 16,565 |  |  | $ | (460,376 | ) | (2) |  |  | 5,204,772 |
Less: loaned securities (3) |  |  | 137,082 |  |  |  |  |  |  |  |  |  |  | 129,852 |
Total fixed maturities available for sale |  | $ | 5,511,501 |  |  |  |  |  |  |  |  |  | $ | 5,074,920 |
|  | 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 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 December 31, 2024 and 2023, are loaned securities that are classified as other assets on our consolidated balance sheets, as further described below.
Unrealized losses on fixed maturities available for sale by category and length of time |
|  | December 31, 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 |  | $ | 5,807 |  |  | $ | (574 | ) |  | $ | 113,783 |  |  | $ | (31,603 | ) |  | $ | 119,590 |  |  | $ | (32,177 | )
State and municipal obligations |  |  | 45,539 |  |  |  | (2,399 | ) |  |  | 78,523 |  |  |  | (15,864 | ) |  |  | 124,062 |  |  |  | (18,263 | )
Corporate bonds and notes |  |  | 749,427 |  |  |  | (18,113 | ) |  |  | 1,552,535 |  |  |  | (259,422 | ) |  |  | 2,301,962 |  |  |  | (277,535 | )
RMBS |  |  | 296,899 |  |  |  | (6,467 | ) |  |  | 559,525 |  |  |  | (93,589 | ) |  |  | 856,424 |  |  |  | (100,056 | )
CMBS |  |  | 15,179 |  |  |  | (139 | ) |  |  | 388,282 |  |  |  | (26,052 | ) |  |  | 403,461 |  |  |  | (26,191 | )
CLO |  |  | 44,350 |  |  |  | (65 | ) |  |  | 43,542 |  |  |  | (784 | ) |  |  | 87,892 |  |  |  | (849 | )
Other ABS |  |  | 180,824 |  |  |  | (3,081 | ) |  |  | 45,192 |  |  |  | (2,224 | ) |  |  | 226,016 |  |  |  | (5,305 | )
Total |  | $ | 1,338,025 |  |  | $ | (30,838 | ) |  | $ | 2,781,382 |  |  | $ | (429,538 | ) |  | $ | 4,119,407 |  |  | $ | (460,376 | )
|  | 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 1,059 and 1,063 securities in an unrealized loss position at December 31, 2024 and 2023, respectively. We determined that these unrealized losses were due to non-credit factors and that, as of December 31, 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 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 |
|  | December 31, 2024 |
(In thousands) |  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 134,289 |  |  | $ | 133,121 |
Due after one year through five years (1) |  |  | 1,104,983 |  |  |  | 1,067,941 |
Due after five years through 10 years (1) |  |  | 1,032,245 |  |  |  | 954,004 |
Due after 10 years (1) |  |  | 934,811 |  |  |  | 728,588 |
Asset-backed and mortgage-backed securities (2) |  |  | 2,442,255 |  |  |  | 2,321,118 |
Total |  |  | 5,648,583 |  |  |  | 5,204,772 |
Less: loaned securities |  |  | 137,082 |  |  |  | 129,852 |
Total fixed maturities available for sale |  | $ | 5,511,501 |  |  | $ | 5,074,920 |
(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 |  |  |  |  |  |  |  |  |
|  | Years Ended December 31, |
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Investment income |  |  |  |  |  |  |  |  |
Fixed maturities |  | $ | 231,769 |  |  | $ | 226,654 |  |  | $ | 184,189 |
Equity securities |  |  | 12,003 |  |  |  | 13,420 |  |  |  | 11,210 |
Residential mortgage loans held for sale (1) |  |  | 22,569 |  |  |  | 4,212 |  |  |  | 39 |
Short-term investments |  |  | 31,736 |  |  |  | 18,840 |  |  |  | 5,716 |
Other (2) |  |  | 6,282 |  |  |  | 5,286 |  |  |  | 1,370 |
Gross investment income |  |  | 304,359 |  |  |  | 268,412 |  |  |  | 202,524 |
Investment expenses (2) |  |  | (11,666 | ) |  |  | (9,982 | ) |  |  | (6,866 | )
Net investment income |  | $ | 292,693 |  |  | $ | 258,430 |  |  | $ | 195,658 |
(1) See Note 7 for additional information on our residential 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 |  |  |  |
|  | Years Ended December 31, |
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Net realized gains (losses) on investments sold or redeemed (1) |  |  |  |  |  |  |  |  |
Fixed maturities available for sale |  |  |  |  |  |  |  |  |
Gross realized gains |  | $ | 3,428 |  |  | $ | 1,609 |  |  | $ | 2,763 |
Gross realized losses |  |  | (12,465 | ) |  |  | (15,346 | ) |  |  | (12,737 | )
Fixed maturities available for sale, net |  |  | (9,037 | ) |  |  | (13,737 | ) |  |  | (9,974 | )
Fixed maturities trading securities |  |  | (704 | ) |  |  | (402 | ) |  |  | (135 | )
Equity securities |  |  | 1,867 |  |  |  | 3,350 |  |  |  | 1,655 |
Other investments |  |  | 69 |  |  |  | 56 |  |  |  | 148 |
Net realized gains (losses) on investments sold or redeemed (1) |  |  | (7,805 | ) |  |  | (10,733 | ) |  |  | (8,306 | )
Change in unrealized gains (losses) on investments sold or redeemed (1) |  |  | (281 | ) |  |  | 915 |  |  |  | (3,458 | )
Impairment losses due to intent to sell |  |  | (369 | ) |  |  | — |  |  |  | — |
Net unrealized gains (losses) on investments still held (1) |  |  |  |  |  |  |  |  |
Fixed maturities trading securities |  |  | (3,135 | ) |  |  | 2,308 |  |  |  | (27,700 | )
Equity securities |  |  | 3,054 |  |  |  | 7,625 |  |  |  | (25,255 | )
Other investments |  |  | 75 |  |  |  | 25 |  |  |  | (387 | )
Net unrealized gains (losses) on investments still held (1) |  |  | (6 | ) |  |  | 9,958 |  |  |  | (53,342 | )
Total net gains (losses) on investments (1) |  |  | (8,461 | ) |  |  | 140 |  |  |  | (65,106 | )
Net gains (losses) on residential mortgage loans held for sale (Note 7) (2) |  |  | (5,798 | ) |  |  | 814 |  |  |  | 48 |
Net gains (losses) on other financial instruments (1) (3) |  |  | 4,145 |  |  |  | 9,287 |  |  |  | (15,675 | )
Net gains (losses) on investments and other financial instruments |  | $ | (10,114 | ) |  | $ | 10,241 |  |  | $ | (80,733 | )
(1) Excludes activities related to our residential mortgage loans held for sale. See Note 7 for additional information. (2) Includes realized and unrealized net gains (losses) on residential 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. These securities lending agreements are collateralized financing arrangements whereby we transfer securities to third parties through an intermediary in exchange for cash or other securities. However, pursuant to the terms of these agreements, we maintain effective control over all loaned securities. Although we report such securities at fair value within other assets in our consolidated balance sheets, rather than within investments, the detailed information we provide in this Note 6 includes these securities. See Note 5 for additional detail on the loaned securities. Under our securities lending agreements, the borrower is required to provide to us collateral, consisting of cash or securities, in amounts generally equal to or exceeding: (i) 102% of the value of the loaned securities (105% in the case of foreign securities) or (ii) another agreed-upon percentage not less than 100% of the market value of the loaned securities. Any cash collateral we receive may be invested in liquid assets. Cash collateral, which is reinvested for our benefit by the intermediary in accordance with the investment guidelines contained in the securities lending and collateral agreements, is reflected in short-term investments, with an offsetting liability recognized in other liabilities for the obligation to return the cash collateral. Securities collateral we receive is held on deposit for the borrower’s benefit and we may not transfer or loan such securities collateral unless the borrower is in default. Therefore, such securities collateral is not reflected in our consolidated financial statements given that the risks and rewards of ownership are not transferred to us from the borrowers. Fees received and paid in connection with securities lending agreements are recorded in net investment income on the consolidated statements of operations. All of our securities lending agreements are classified as overnight and revolving. Securities collateral on deposit with us from third-party borrowers totaling $18 million and $61 million as of December 31, 2024 and 2023, respectively, may not be transferred or re-pledged unless the third-party borrower is in default, and is therefore not reflected in our consolidated financial statements. Other Our investments include securities totaling $14 million at both December 31, 2024 and 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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