Investments

9 Months Ended

Sep. 30, 2025

7. Investments

Available for Sale Securities

Our available for sale securities within our investment portfolio consist of the following as of the dates indicated.


Available for sale securities


	September 30, 2025

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses				Fair Value

Fixed maturities available for sale
U.S. government and agency securities	$	149,659	$	163	$	(27,621	)		$	122,201
State and municipal obligations		185,638		1,558		(14,550	)			172,646
Corporate bonds and notes		2,764,029		26,859		(205,510	)			2,585,378
RMBS		1,027,209		10,591		(69,008	)			968,792
CMBS		295,853		184		(14,989	)			281,048
CLO		439,257		1,213		(295	)			440,175
Other ABS		550,586		5,819		(2,389	)			554,016
Mortgage insurance-linked notes (1)		45,384		952		—				46,336
Total securities available for sale, including loaned securities		5,457,615	$	47,339	$	(334,362	)	(2)		5,170,592
Less: loaned securities (3)		97,217								96,167
Total fixed maturities available for sale	$	5,360,398							$	5,074,425


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	$	151,955	$	—	$	(31,714	)		$	120,241
State and municipal obligations		166,114		40		(18,263	)			147,891
Corporate bonds and notes		2,876,060		5,261		(277,535	)			2,603,786
RMBS		1,104,708		6,965		(100,055	)			1,011,618
CMBS		437,314		51		(26,090	)			411,275
CLO		411,328		983		(849	)			411,462
Other ABS		442,578		1,555		(5,305	)			438,828
Mortgage insurance-linked notes (1)		45,447		1,709		—				47,156
Total securities available for sale, including loaned securities		5,635,504	$	16,564	$	(459,811	)	(2)		5,192,257
Less: loaned securities (3)		137,082								129,852
Total fixed maturities available for sale	$	5,498,422							$	5,062,405

(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 September 30, 2025, and December 31, 2024, are loaned securities that are classified as other assets on our condensed consolidated balance sheets, as further described below under “Loaned Securities.”


Unrealized losses on fixed maturities available for sale by category and length of time


	September 30, 2025
	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	$	4,695	$	(466	)	$	100,672	$	(27,155	)	$	105,367	$	(27,621	)
State and municipal obligations		19,551		(468	)		92,290		(14,082	)		111,841		(14,550	)
Corporate bonds and notes		175,092		(2,980	)		1,338,704		(202,530	)		1,513,796		(205,510	)
RMBS		78,589		(859	)		556,563		(68,149	)		635,152		(69,008	)
CMBS		3,843		(11	)		269,460		(14,978	)		273,303		(14,989	)
CLO		40,727		(62	)		23,565		(233	)		64,292		(295	)
Other ABS		57,956		(726	)		35,215		(1,663	)		93,171		(2,389	)
Total	$	380,453	$	(5,572	)	$	2,416,469	$	(328,790	)	$	2,796,922	$	(334,362	)

	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	$	5,770	$	(574	)	$	107,886	$	(31,141	)	$	113,656	$	(31,715	)
State and municipal obligations		45,539		(2,399	)		78,523		(15,864	)		124,062		(18,263	)
Corporate bonds and notes		748,877		(18,113	)		1,552,535		(259,422	)		2,301,412		(277,535	)
RMBS		296,899		(6,467	)		559,513		(93,587	)		856,412		(100,054	)
CMBS		15,179		(139	)		387,559		(25,951	)		402,738		(26,090	)
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	$	1,337,438	$	(30,838	)	$	2,774,750	$	(428,973	)	$	4,112,188	$	(459,811	)

There were 727 and 1,054 securities in an unrealized loss position at September 30, 2025, and December 31, 2024, respectively. We determined that these unrealized losses were due to non-credit factors and that, as of September 30, 2025, 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 2024 Form 10-K for information regarding our accounting policy for impairments of investments.

Contractual Maturities

The contractual maturities of fixed-maturities available for sale are as follows.


Contractual maturities of fixed maturities available for sale


	September 30, 2025
(In thousands)	Amortized Cost		Fair Value


Due in one year or less	$	133,848	$	132,547
Due after one year through five years (1)		1,020,087		1,000,206
Due after five years through 10 years (1)		1,018,332		1,000,293
Due after 10 years (1)		927,060		747,179
Asset-backed and mortgage-backed securities (2)		2,358,288		2,290,367
Total		5,457,615		5,170,592
Less: loaned securities		97,217		96,167
Total fixed maturities available for sale	$	5,360,398	$	5,074,425

(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 consists of the following.


Net investment income


	Three Months Ended September 30,						Nine Months Ended September 30,

(In thousands)	2025			2024			2025			2024


Investment income
Fixed maturities	$	57,614		$	59,238		$	171,617		$	174,106
Equity securities		2,446			3,047			7,225			8,653
Short-term investments		4,503			8,564			10,853			23,898
Other (1)		1,810			1,525			5,244			4,626
Gross investment income		66,373			72,374			194,939			211,283
Investment expenses (1)		(2,974	)		(3,025	)		(8,858	)		(8,680	)
Net investment income	$	63,399		$	69,349		$	186,081		$	202,603

(1)

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 consists of the following.


Net gains (losses) on investments and other financial instruments


	Three Months Ended September 30,						Nine Months Ended September 30,

(In thousands)	2025			2024			2025			2024


Net realized gains (losses) on investments sold or redeemed
Fixed maturities available for sale
Gross realized gains	$	64		$	2,021		$	526		$	2,652
Gross realized losses		(933	)		(1,324	)		(5,801	)		(8,472	)
Fixed maturities available for sale, net		(869	)		697			(5,275	)		(5,820	)
Fixed maturities trading securities		(54	)		(496	)		(54	)		(686	)
Equity securities		1,683			2,156			2,581			2,162
Other investments		48			44			62			45
Net realized gains (losses) on investments sold or redeemed		808			2,401			(2,686	)		(4,299	)
Change in unrealized gains (losses) on investments sold or redeemed		(847	)		(2,025	)		(1,282	)		(690	)
Impairment losses due to intent to sell		—			(131	)		—			(369	)
Net unrealized gains (losses) on investments still held
Fixed maturities trading securities		1,048			3,926			3,267			988
Equity securities		(1,570	)		2,585			(2,275	)		4,739
Other investments		816			48			793			58
Net unrealized gains (losses) on investments still held		294			6,559			1,785			5,785
Total net gains (losses) on investments		255			6,804			(2,183	)		427
Net gains (losses) on other financial instruments		1,030			(83	)		3,318			1,976
Net gains (losses) on investments and other financial instruments	$	1,285		$	6,721		$	1,135		$	2,403

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 $134 million and $139 million of our investment

securities to third parties as of September 30, 2025, and December 31, 2024, 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 7 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 $21 million and $18 million as of September 30, 2025, and December 31, 2024, 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 6 herein for additional detail on the loaned securities and see Note 6 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional information about our accounting policies with respect to our securities lending agreements and the collateral requirements thereunder.

Other

Our investments include securities totaling $10 million and $8 million at September 30, 2025, and December 31, 2024, respectively, 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.