Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | Radian Group Inc. | ||
Entity Central Index Key | 890,926 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 216,032,041 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,510,436,004 |
Consolidated Balance Sheets Sta
Consolidated Balance Sheets Statement - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed-maturities available for sale—at fair value (amortized cost $3,426,217 and $2,856,468) | $ 3,458,719 | $ 2,838,512 |
Equity securities available for sale—at fair value (cost $163,106 and $1,330) | 162,830 | 1,330 |
Trading Securities, Debt | 606,401 | 879,862 |
Short-term investments—at fair value (includes $19,357 and $0 of reinvested cash collateral held under securities lending agreements) | 415,658 | 741,531 |
Other invested assets | 334 | 1,195 |
Total investments | 4,643,942 | 4,462,430 |
Cash | 80,569 | 52,149 |
Restricted cash | 15,675 | 9,665 |
Accounts and notes receivable | 72,558 | 77,631 |
Deferred income taxes, net (Note 10) | 229,567 | 411,798 |
Goodwill and other intangible assets, net (Note 7) | 64,212 | 276,228 |
Prepaid reinsurance premiums (Note 2) | 386,509 | 229,438 |
Other assets (Note 9) | 407,849 | 343,835 |
Total assets | 5,900,881 | 5,863,174 |
Liabilities and Stockholders’ Equity | ||
Unearned premiums | 723,938 | 681,222 |
Reserve for losses and loss adjustment expenses (“LAE”) (Note 11) | 507,588 | 760,269 |
Long-term debt (Note 12) | 1,027,074 | 1,069,537 |
Reinsurance funds withheld (Note 2) | 288,398 | 158,001 |
Other liabilities | 353,845 | 321,859 |
Total liabilities | 2,900,843 | 2,990,888 |
Commitments and Contingencies (Note 13) | ||
Stockholders’ equity | ||
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2017 and 2016; 233,416,989 and 232,091,921 shares issued at December 31, 2017 and 2016, respectively; 215,814,188 and 214,521,079 shares outstanding at December 31, 2017 and 2016, respectively | 233 | 232 |
Treasury stock, at cost: 17,602,801 and 17,570,842 shares at December 31, 2017 and 2016, respectively | (893,888) | (893,332) |
Additional paid-in capital | 2,754,275 | 2,779,891 |
Retained earnings | 1,116,333 | 997,890 |
Accumulated other comprehensive income (loss) (Note 17) | 23,085 | (12,395) |
Total stockholders’ equity | 3,000,038 | 2,872,286 |
Total liabilities and stockholders’ equity | $ 5,900,881 | $ 5,863,174 |
Balance Sheet Parenthetical (Pa
Balance Sheet Parenthetical (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Debt Securities, Amortized Cost Basis | $ 3,426,217 | $ 2,856,468 |
Available-for-sale Equity Securities, Amortized Cost Basis | 163,106 | 1,330 |
Securities Received as Collateral | $ 19,357 | $ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 1,420 | $ 526 | $ 0 | ||
Revenues: | |||||
Net premiums earned—insurance | 932,773 | 921,769 | 915,908 | ||
Services revenue | 155,103 | 168,894 | 157,216 | ||
Net investment income | 127,248 | 113,466 | 81,537 | ||
Net gains on investments and other financial instruments | 3,621 | 30,751 | 35,693 | ||
Other income | 2,886 | 3,572 | 2,899 | ||
Total revenues | 1,221,631 | 1,238,452 | 1,193,253 | ||
Expenses: | |||||
Provision for losses | 135,154 | 202,788 | 198,585 | ||
Policy acquisition costs | 24,277 | 23,480 | 22,424 | ||
Cost of services | 104,599 | 114,174 | 93,715 | ||
Other operating expenses | 267,321 | 244,896 | 242,405 | ||
Restructuring and other exit costs (Note 1) | 17,268 | 0 | 0 | ||
Interest expense | 62,761 | 81,132 | 91,102 | ||
Loss on induced conversion and debt extinguishment (Note 12) | 51,469 | 75,075 | 94,207 | ||
Impairment of goodwill (Note 7) | 184,374 | 0 | 0 | ||
Amortization and impairment of other intangible assets | 27,671 | 13,221 | 12,986 | ||
Total expenses | 874,894 | 754,766 | 755,424 | ||
Pretax income from continuing operations | 346,737 | 483,686 | 437,829 | ||
Income tax provision | 225,649 | 175,433 | 156,290 | ||
Net income from continuing operations | 121,088 | 308,253 | 281,539 | ||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 5,385 | ||
Net income | $ 121,088 | $ 308,253 | $ 286,924 | ||
Earnings Per Share, Basic: | |||||
Net income (loss) from continuing operations, per basic share | $ 0.56 | $ 1.46 | $ 1.41 | ||
Net income (loss) from discontinued operations, per basic share | 0 | 0 | 0.03 | ||
Net income (loss), per basic share | 0.56 | 1.46 | 1.44 | ||
Earnings Per Share, Diluted: | |||||
Net income (loss) from continuing operations, per diluted share | 0.55 | 1.37 | 1.20 | ||
Net income (loss) from discontinued operations and disposal of discontinued operations, net of tax, per diluted share | 0 | 0 | 0.02 | ||
Net income (loss) per diluted share | $ 0.55 | [1] | $ 1.37 | [1] | $ 1.22 |
Weighted-average number of common shares outstanding—basic | 215,321 | 211,789 | 199,910 | ||
Weighted-average number of common and common equivalent shares outstanding—diluted | 220,406 | 229,258 | 246,332 | ||
Dividends per share | $ 0.01 | $ 0.01 | $ 0.01 | ||
[1] | Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 121,088 | $ 308,253 | $ 286,924 |
Unrealized gains (losses) on investments: | |||
Unrealized holding gains (losses) arising during the period | 31,903 | 8,782 | (22,573) |
Less: Reclassification adjustment for net gains (losses) included in net income | (2,642) | 2,251 | 44,183 |
Net unrealized gains (losses) on investments | 34,545 | 6,531 | (66,756) |
Unrealized foreign currency translation adjustments | 150 | (474) | (217) |
Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income | (721) | 0 | 0 |
Net foreign currency translation adjustments | 871 | (474) | (217) |
Activity related to investments recorded as assets held for sale | 0 | 0 | (3,254) |
Net actuarial gains | 64 | 25 | 265 |
Other comprehensive income (loss), net of tax | 35,480 | 6,082 | (69,962) |
Comprehensive income | $ 156,568 | $ 314,335 | $ 216,962 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Common Stockholders' Equity - USD ($) $ in Thousands | Total | Parent [Member] | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings/(Deficit) | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, at Dec. 31, 2014 | $ 209 | $ (892,961) | $ 2,531,513 | $ 406,814 | $ 51,485 | ||
Impact of extinguishment of Convertible Senior Notes due 2017 and 2019 (Note 12) | 28 | ||||||
Issuance of common stock under incentive and benefit plans | 1 | 2,422 | |||||
Stock-based compensation | 15,513 | ||||||
Termination of capped calls (Note 12) | (3) | 13,153 | |||||
Impact of extinguishment of Convertible Senior Notes due 2017 and 2019 (Note 12) | 336,358 | ||||||
Shares repurchased under share repurchase program (Note 14) | (11) | (201,989) | |||||
Repurchases of common stock under incentive plans | (215) | ||||||
Change in equity component of currently redeemable convertible senior notes | 19,648 | ||||||
Net income | $ 286,924 | 286,924 | |||||
Dividends declared | (1,996) | ||||||
Net foreign currency translation adjustment, net of tax | (217) | (217) | |||||
Net unrealized gains (losses) on investments, net of tax | (66,756) | ||||||
Activity related to investments recorded as assets held for sale | (3,254) | ||||||
Net actuarial gains | 265 | 265 | |||||
Balance, at Dec. 31, 2015 | $ 2,496,931 | 224 | (893,176) | 2,716,618 | 691,742 | (18,477) | |
Impact of extinguishment of Convertible Senior Notes due 2017 and 2019 (Note 12) | 17 | ||||||
Issuance of common stock under incentive and benefit plans | 0 | 2,117 | |||||
Stock-based compensation | 18,257 | ||||||
Termination of capped calls (Note 12) | 0 | 0 | |||||
Impact of extinguishment of Convertible Senior Notes due 2017 and 2019 (Note 12) | 143,078 | ||||||
Shares repurchased under share repurchase program (Note 14) | (9) | (100,179) | |||||
Repurchases of common stock under incentive plans | (156) | ||||||
Change in equity component of currently redeemable convertible senior notes | 0 | ||||||
Net income | 308,253 | 308,253 | |||||
Dividends declared | (2,105) | ||||||
Net foreign currency translation adjustment, net of tax | (474) | (474) | |||||
Net unrealized gains (losses) on investments, net of tax | 6,531 | ||||||
Activity related to investments recorded as assets held for sale | 0 | ||||||
Net actuarial gains | 25 | 25 | |||||
Balance, at Dec. 31, 2016 | 2,872,286 | 2,872,286 | 232 | (893,332) | 2,779,891 | 997,890 | (12,395) |
Impact of extinguishment of Convertible Senior Notes due 2017 and 2019 (Note 12) | 0 | ||||||
Issuance of common stock under incentive and benefit plans | 1 | 8,635 | |||||
Stock-based compensation | 13,491 | ||||||
Termination of capped calls (Note 12) | 0 | 4,208 | |||||
Impact of extinguishment of Convertible Senior Notes due 2017 and 2019 (Note 12) | (52,700) | ||||||
Shares repurchased under share repurchase program (Note 14) | 0 | (6) | |||||
Repurchases of common stock under incentive plans | (556) | ||||||
Change in equity component of currently redeemable convertible senior notes | 0 | ||||||
Net income | 121,088 | 121,088 | |||||
Dividends declared | (2,154) | ||||||
Net foreign currency translation adjustment, net of tax | 871 | 871 | |||||
Net unrealized gains (losses) on investments, net of tax | 34,545 | ||||||
Activity related to investments recorded as assets held for sale | 0 | ||||||
Net actuarial gains | 64 | 64 | |||||
Balance, at Dec. 31, 2017 | $ 3,000,038 | $ 3,000,038 | $ 233 | $ (893,888) | 2,754,275 | 1,116,333 | $ 23,085 |
Cumulative effect of adoption of the accounting standard update for share-based payment transactions | $ 756 | $ (491) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities [Abstract] | |||
Net income | $ 121,088 | $ 308,253 | $ 286,924 |
Less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 5,385 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Net (gains) losses on investments and other financial instruments | (3,621) | (30,751) | (35,693) |
Loss on induced conversion and debt extinguishment | 51,469 | 75,075 | 94,207 |
Deferred income tax provision | 166,527 | 170,887 | 156,170 |
Goodwill, Impairment Loss | 184,374 | 0 | 0 |
Amortization and impairment of other intangible assets | 27,797 | 13,221 | 12,986 |
Depreciation, other amortization, and other impairments, net | 58,038 | 57,795 | 68,639 |
Change in: | |||
Accounts and notes receivable | 3,628 | (16,011) | 25,656 |
Prepaid reinsurance premiums | (157,071) | (188,947) | 16,800 |
Unearned premiums | 42,716 | 862 | 35,796 |
Reserve for losses and LAE | (252,681) | (216,135) | (583,633) |
Reinsurance funds withheld | 130,397 | 158,001 | 0 |
Other assets | (16,491) | (7,662) | 7,799 |
Other liabilities | 4,405 | 57,136 | (66,786) |
Net cash provided by (used in) operating activities, continuing operations | 360,575 | 381,724 | 13,480 |
Net cash provided by (used in) operating activities, discontinued operations | 0 | 0 | (1,759) |
Net cash provided by (used in) operating activities | 360,575 | 381,724 | 11,721 |
Cash flows from investing activities: | |||
Proceeds from Sale and Maturity of Available-for-sale Securities | 888,219 | 687,173 | 20,100 |
Proceeds from Sale of Available-for-sale Securities, Equity | 38,318 | 74,868 | 146,049 |
Proceeds from Sale of Trading Securities Held-for-investment | 194,784 | 290,855 | 78,826 |
Proceeds from redemptions of fixed-maturity investments available for sale | 463,548 | 337,630 | 103,595 |
Proceeds from redemptions of fixed-maturity investments held to maturity | 79,296 | 123,645 | 221,914 |
Purchases of Available-for-sale Securities | (1,947,916) | (1,990,652) | (1,486,318) |
Purchases of equity securities available for sale | (213,469) | (830) | (75,538) |
Sales, redemptions and (purchases) of short-term investments, net | 324,258 | 334,456 | 222,882 |
Sales, redemptions and (purchases) of other assets and other invested assets, net | 882 | 2,489 | 16,717 |
Net Cash Received (Transferred) In Sale Of Subsidiaries | (650) | 0 | 784,866 |
Purchases of property and equipment, net | (28,676) | (35,542) | (25,466) |
Acquisitions, net of cash acquired | (86) | (150) | (9,834) |
Net cash provided by (used in) investing activities, continuing operations | (201,492) | (176,058) | (2,207) |
Net cash provided by (used in) investing activities, discontinued operations | 0 | 0 | 4,999 |
Net cash provided by (used in) investing activities | (201,492) | (176,058) | 2,792 |
Cash flows from financing activities: | |||
Dividends paid | (2,154) | (2,105) | (1,996) |
Issuance of long-term debt, net | 442,163 | 343,417 | 343,334 |
Purchases and redemptions of long-term debt | (593,527) | (445,072) | (156,172) |
Proceeds from termination of capped calls | 4,208 | 0 | 13,150 |
Issuance of common stock | 7,132 | 717 | 1,285 |
Purchase of common shares | (6) | (100,188) | (202,000) |
Credit facility commitment fees paid | (1,993) | 0 | 0 |
Change in payable under securities lending agreements | 19,357 | 0 | 0 |
Excess tax benefits from stock-based awards (Note 2) | 0 | 333 | 3,000 |
Repayment of other borrowings | (264) | (371) | 0 |
Net cash provided by (used in) financing activities, continuing operations | (125,084) | (203,269) | 601 |
Net cash provided by (used in) financing activities, discontinued operations | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (125,084) | (203,269) | 601 |
Effect of exchange rate changes on cash and restricted cash | 431 | (481) | (133) |
Increase (decrease) in cash and restricted cash | 34,430 | 1,916 | 14,981 |
Cash and restricted cash, beginning of period | 61,814 | 59,898 | 44,496 |
Less: Increase (decrease) in cash of business held for sale | 0 | 0 | (421) |
Cash and restricted cash, end of period | 96,244 | 61,814 | 59,898 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid (received), continuing operations | 94,328 | (673) | 3,712 |
Income taxes paid, discontinued operations | 0 | 0 | 2,036 |
Interest paid | $ 57,453 | $ 65,531 | $ 61,077 |
Note 1 - Description of Busines
Note 1 - Description of Business and Recent Developments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business and Recent Developments We are a diversified mortgage and real estate services business, providing both credit-related insurance coverage and other credit risk management solutions, as well as a broad array of mortgage and real estate services. We have two reportable business segments—Mortgage Insurance and Services. On April 1, 2015, Radian Guaranty completed the sale of its former financial guaranty subsidiary, Radian Asset Assurance, to Assured, pursuant to the Radian Asset Assurance Stock Purchase Agreement. The operating results of Radian Asset Assurance were classified as discontinued operations. See Note 18 for additional information related to discontinued operations. Mortgage Insurance Our Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance, as well as other credit risk management solutions, to mortgage lending institutions nationwide. Private mortgage insurance plays an important role in the U.S. housing finance system because it promotes affordable home ownership and helps protect mortgage lenders, investors or other beneficiaries by mitigating default-related losses on residential mortgage loans. Generally, these loans are made to home buyers who make down payments of less than 20% of the purchase price for their home or, in the case of refinancings, have less than 20% equity in their homes. Private mortgage insurance also facilitates the sale of these low down payment loans in the secondary mortgage market, most of which are sold to the GSEs. Our Mortgage Insurance segment currently offers primary mortgage insurance coverage on residential first-lien mortgage loans. Our total direct primary mortgage insurance RIF was $51.3 billion as of December 31, 2017 . We provide our mortgage insurance products and services mainly through our wholly-owned subsidiary, Radian Guaranty. The GSEs and state insurance regulators impose various capital and financial requirements on our insurance subsidiaries. These include Risk-to-capital, other risk-based capital measures and surplus requirements, as well as the PMIERs financial requirements discussed below. Failure to comply with these capital and financial requirements may limit the amount of insurance that our insurance subsidiaries may write or prohibit our insurance subsidiaries from writing insurance altogether. The GSEs and state insurance regulators also possess significant discretion with respect to our insurance subsidiaries and all aspects of their business. See Note 19 for additional regulatory information. PMIERs. In order to be eligible to insure loans purchased by the GSEs, mortgage insurers such as Radian Guaranty must meet the GSEs’ eligibility requirements, or PMIERs. At December 31, 2017 , Radian Guaranty is an approved mortgage insurer under the PMIERs and is in compliance with the PMIERs financial requirements. The PMIERs are comprehensive, covering virtually all aspects of the business and operations of a private mortgage insurer, including internal risk management and quality controls, the relationship between the GSEs and the approved insurer, as well as the approved insurer’s financial condition. In addition, private mortgage insurers are required under the PMIERs to obtain the prior consent of the GSEs before taking certain actions, which may include paying dividends, entering into various intercompany agreements, and commuting or reinsuring risk, among others. If Radian Guaranty is unable to satisfy the requirements set forth in the PMIERs, the GSEs could restrict it from conducting certain types of business with them or take actions that may include not purchasing loans insured by Radian Guaranty. The PMIERs financial requirements require that a mortgage insurer’s Available Assets meet or exceed its Minimum Required Assets. The GSEs may amend the PMIERs at any time, and they have broad discretion to interpret the requirements, which could impact the calculation of Radian Guaranty’s Available Assets and/or Minimum Required Assets, and the PMIERs specifically provide that the factors that are applied to calculate and determine a mortgage insurer’s Minimum Required Assets may be updated every two years following a minimum of 180 days’ notice, or more frequently, as determined by the GSEs, to reflect changes in macroeconomic conditions or loan performance. On December 18, 2017, Radian Guaranty received, on a confidential basis, a summary of proposed changes to the PMIERs. Although it is reasonably likely that updates to the PMIERs could, among other things, result in a material increase to Radian Guaranty’s capital requirements under the PMIERs financial requirements, Radian expects to be able to fully comply with the proposed PMIERs as of the expected effective date in late 2018. From time to time, we enter into reinsurance transactions as part of our strategy to manage our capital position and risk profile, which includes managing Radian Guaranty’s position under the PMIERs financial requirements. The credit that we receive under the PMIERs financial requirements for these transactions is subject to the periodic review of the GSEs. Services Our Services business is a fee-for-service business that offers a broad array of services to market participants across the mortgage and real estate value chain. These comprise mortgage services and real estate services that provide mortgage lenders, financial institutions, mortgage and real estate investors and government entities, among others, with information and other resources and services that are used to originate, evaluate, acquire, securitize, service and monitor residential real estate and loans secured by residential real estate. Our mortgage services offerings include transaction management services such as loan review, RMBS securitization and distressed asset reviews, servicer and loan surveillance and underwriting. Our real estate services include: REO asset management; review and valuation services related to single family rental properties; real estate valuation services; real estate brokerage services; and title and settlement services that include title search, settlement and closing services. Discontinued Operations On April 1, 2015, Radian Guaranty completed the sale of 100% of the issued and outstanding shares of Radian Asset Assurance, its former financial guaranty subsidiary, for a purchase price of approximately $810 million , pursuant to the Radian Asset Assurance Stock Purchase Agreement. The divestiture was intended to better position Radian Guaranty to comply with the PMIERs and to support Radian’s strategic focus on the mortgage and real estate industries. After closing costs and other adjustments, Radian Guaranty received net proceeds of $789 million . For additional information related to discontinued operations, see Note 18 . 2017 Developments Capital and Liquidity Actions. During 2017, we completed a series of capital and liquidity actions, including: (i) extending the weighted average maturity of our Senior Notes by purchasing a portion of our Senior Notes due 2019, 2020 and 2021 through tender offers and issuing our Senior Notes due 2024; (ii) eliminating our Convertible Senior Notes due 2017 and 2019; (iii) entering into a $225 million unsecured revolving credit facility; and (iv) renewing our share repurchase program. These transactions strengthened our capital and liquidity position and improved our financial flexibility, including by improving our debt maturity profile. See Notes 12 and 14 for additional information. Restructuring and Other Exit Costs. Based on our strategic assessment of the Services business, on September 5, 2017, the Company committed to a plan to restructure the Services business and incurred pretax restructuring charges of $17.3 million in 2017, including $6.8 million in cash payments. Additional pretax restructuring charges of approximately $3.8 million , including approximately $3.0 million in cash, are expected to be recognized within the next 12 months. The total restructuring charges of approximately $21.1 million are expected to consist of: (i) asset impairment charges (including the loss recognized on the sale of our EuroRisk business) of approximately $11.3 million ; (ii) employee severance and benefit costs of approximately $7.1 million ; (iii) facility and lease termination costs of approximately $1.8 million ; and (iv) contract termination and other restructuring costs of approximately $0.9 million . See Note 7 for additional information, including the events that led to the restructuring decision. Impairment of Goodwill and Other Intangible Assets. During the second quarter of 2017, we recorded a goodwill impairment charge and an impairment charge for other intangible assets. See Note 7 for additional information. Reinsurance. During 2017, we entered into the 2018 Single Premium QSR Transaction with a panel of reinsurers and we amended the terms of the 2016 Single Premium QSR Transaction to increase the ceded risk on performing loans from 35% to 65% for the 2015 through 2017 vintages. See Note 8 for additional information about our reinsurance transactions. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Basis of Presentation Our consolidated financial statements are prepared in accordance with GAAP and include the accounts of Radian Group Inc. and its subsidiaries. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation. We refer to Radian Group Inc. together with its consolidated subsidiaries as “Radian,” the “Company,” “we,” “us” or “our,” unless the context requires otherwise. We generally refer to Radian Group Inc. alone, without its consolidated subsidiaries, as “Radian Group.” Unless otherwise defined in this report, certain terms and acronyms used throughout this report are defined in the Glossary of Abbreviations and Acronyms included as part of this report. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our consolidated financial statements include our best estimates and assumptions, actual results may vary materially. Risks and Uncertainties Radian Group and its subsidiaries are subject to risks and uncertainties that could affect amounts reported in our financial statements in future periods. Our future performance and financial condition are subject to significant risks and uncertainties that could cause actual results to be materially different from our estimates and forward-looking statements. Reserve for Losses and LAE We establish reserves to provide for losses and LAE, which include the estimated costs of settling claims in our Mortgage Insurance segment, in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, because there is no specific guidance for mortgage insurance, we establish reserves for mortgage insurance as described below, using the guidance contained in this standard supplemented with other accounting guidance. Estimating our loss reserves involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss, including an estimate of the impact of our Loss Mitigation Activities. The models, assumptions and estimates we use to establish loss reserves may prove to be inaccurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty. As such, we cannot be certain that our reserve estimate will be adequate to cover ultimate losses on incurred defaults. For example, our mortgage insurance loss reserves generally increase as defaulted loans age, because historically, as defaulted loans age, they have been more likely to result in foreclosure, and therefore, have been more likely to result in a claim payment. While we believe this remains accurate, following the financial crisis, there are a significant number of loans in our defaulted portfolio that have been in default for an extended period of time, but which have not been subject to foreclosure, and therefore, have not resulted in claims. As a result, significant uncertainty remains with respect to the ultimate resolution of these aged defaults. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. Commutations and other negotiated terminations of our insured risks in our Mortgage Insurance segment provide us with an opportunity to exit exposures for an agreed upon payment, or payments, sometimes at an amount less than the previously estimated ultimate liability. Once all exposures relating to such policies are extinguished, all reserves for losses and LAE and other balances relating to the insured policies are generally reversed, with any remaining net gain or loss typically recorded through provision for losses. We take into consideration the specific contractual and economic terms for each individual agreement when accounting for our commutations or other negotiated terminations, which may result in differences in the accounting for these transactions. In our Mortgage Insurance business, the default and claim cycle begins with the receipt of a default notice from the loan servicer. Reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We maintain an extensive database of claim payment history, and use models based on a variety of loan characteristics to determine the likelihood that a default will reach claim status. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. The attributes currently used to define the groups for purposes of developing various assumptions include, but are not limited to, the Stage of Default, the Time in Default and type of insurance (i.e., primary or pool). We use an actuarial projection methodology referred to as a “roll rate” analysis that uses historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default and Time in Default as well as the date that a loan goes into default. With respect to new defaults in FEMA Designated Areas associated with Hurricanes Harvey and Irma received subsequent to those two disasters, we assume a lower gross Default to Claim Rate than for new defaults with similar characteristics from other areas, due to our expectations based on past experience with other natural disasters, that a significant portion of these defaults will not result in claims. The Default to Claim Rate also includes our estimates with respect to expected Rescissions and Claim Denials, which have the effect of reducing our Default to Claim Rates. We forecast the impact of our Loss Mitigation Activity in protecting us against fraud, underwriting negligence, breach of representation and warranties, inadequate documentation of submitted claims and other items that may give rise to Rescissions or cancellations and Claim Denials, to help determine the Default to Claim Rate. Our Loss Mitigation Activities have resulted in challenges from certain lender and servicer customers, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials and Claim Curtailments in the ordinary course. Although we believe that our Loss Mitigation Activities are justified under our policies, certain challenges have resulted in disputes and litigation, which if resolved unfavorably to us, could require us to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. See Note 7 for additional information. Our Master Policies specify the time period during which a suit or action arising from any right of the insured under the policy must be commenced. The assumptions embedded in our estimated Default to Claim Rate on our in-force default inventory include an adjustment to our estimated Rescissions and Claim Denials to account for the fact that we expect a certain number of policies to be reinstated and ultimately to be paid, as a result of valid challenges by such policy holders. After estimating the Default to Claim Rate, we estimate Claim Severity based on the average of recently observed severity rates within product type, type of insurance, and Time in Default cohorts. These average severity estimates are then applied to individual loan coverage amounts to determine reserves. Similar to the Default to Claim Rate, Claim Severity also is impacted by the length of time that loans are in default and by our Loss Mitigation Activity. For claims under our primary mortgage insurance, the coverage percentage is applied to the claim amount, which consists of the unpaid loan principal, plus past due interest (for which our liability is contractually capped in accordance with the terms of our Master Policies) and certain expenses associated with the default, to determine our maximum liability. Therefore, Claim Severity generally increases the longer that a loan is in default. In addition, we estimate the impact that the amount that Claim Curtailments due to servicer noncompliance with our insurance policies and servicing guidelines have on the amount that we ultimately will have to pay with respect to claims. As part of our claims review process, we assess whether defaulted loans were serviced appropriately in accordance with our insurance policies and servicing guidelines. If a servicer failed to satisfy its servicing obligations, our insurance policies provide that we may curtail the claim payment for such default, and in some circumstances, cancel coverage or deny the claim. We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default unless a reserve for premium deficiency is required. We generally do not establish loss reserves for expected future claims on insured mortgages that are not in default. See “— Reserve for Premium Deficiency” below for an exception to this general principle. IBNR and Other Reserves We also establish reserves for defaults that we estimate have been incurred but have not been reported to us on a timely basis by the servicer, as well as for previous Rescissions, Claim Denials and Claim Curtailments that we estimate will be reinstated and subsequently paid. We generally give the policyholder up to 30 days to challenge our decision to rescind coverage before we consider a policy to be rescinded and remove it from our defaulted inventory; therefore, we currently expect only a limited percentage of policies that were rescinded to be reinstated. We currently expect a significant percentage of claims that were denied to be resubmitted as a perfected claim and ultimately paid. Most often, a Claim Denial is the result of a servicer’s inability to provide the loan origination file or other servicing documents for review. Under the terms of our Master Policies with our lending customers, our policyholders have up to one year after the acquisition of borrower’s title to provide to us the necessary documents to perfect a claim. All estimates are periodically reviewed and adjustments are made as they become necessary. The impact to our reserve due to estimated future Loss Mitigation Activities incorporates our expectations regarding the number of policies that we expect to be reinstated as a result of our claims rebuttal process. Rescissions, Claim Denials and Claim Curtailments may occur for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties and inadequate documentation, primarily related to our Legacy Portfolio. The level of Rescissions, Claim Denials and Claim Curtailments has been declining in recent periods as our defaulted Legacy Portfolio continues to decline, and we expect this trend to continue. Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we consider our claim payments and our Rescissions, Claim Denials and Claim Curtailments to be resolved for financial reporting purposes. Under the accounting standard regarding contingencies, an estimated loss is accrued only if we determine that the loss is probable and can be reasonably estimated. For populations of disputed Rescissions, Claim Denials and Claim Curtailments where we determine that a settlement is probable and that a loss can be reasonably estimated, we reflect our best estimate of the expected loss related to the populations under discussion in our financial statements, primarily as a component of our IBNR reserve. While our reserves include our best estimate of such losses, the outcome of the discussions or potential legal proceedings that could ensue is uncertain, and it is reasonably possible that a loss exists in excess of the amount accrued. Included in our loss reserves is an estimate related to a potential additional payment to Freddie Mac under the Freddie Mac Agreement, which is dependent upon the Loss Mitigation Activity on the population of loans subject to that agreement. Our reserve related to this potential additional payment is based on the estimated Rescissions, Claim Denials, Claim Curtailments and cancellations for this population of loans, determined using assumptions that are consistent with those utilized to determine our overall loss reserves. During the third quarter of 2017, the scheduled final settlement date under the Freddie Mac Agreement occurred, although an immaterial amount remains outstanding due to Loss Mitigation Activity and pending claims activity already in process but not yet finalized. See Note 11 for additional information about the Freddie Mac Agreement. Senior management regularly reviews the modeled frequency, Rescission, Claim Denial, Claim Curtailments and Claim Severity estimates, which are based on historical trends, as described above. If recent emerging or projected trends differ significantly from the historical trends used to develop the modeled estimates, management evaluates these trends and determines how they should be considered in its reserve estimates. Reserve for Premium Deficiency Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product line. We reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and update our premium deficiency analyses accordingly. For our mortgage insurance business, we group our mortgage insurance products into two categories: first-lien and second-lien mortgage loans. As of December 31, 2017 and 2016, the combination of the net present value of our expected future premiums and existing reserves (net of reinsurance recoverables) significantly exceeded the net present value of our future expected losses and expenses associated with our first lien mortgage insurance portfolio. Our second-lien PDR is recorded as a component of other liabilities. Fair Value of Financial Instruments Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and changes in the value of underlying collateral, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with GAAP, we established a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below: Level I — Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level II — Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and Level III — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available. For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment necessary, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy. Available for sale securities, trading securities, and certain other assets are recorded at fair value as described in Note 5. All changes in fair value of trading securities and certain other assets are included in our consolidated statements of operations. All changes in the fair value of available for sale securities are recorded in accumulated other comprehensive income (loss) . Insurance Premiums—Revenue Recognition Mortgage insurance premiums written on an annual or multi-year basis are initially recorded as unearned premiums and earned over time. Annual premiums are amortized on a monthly, straight-line basis. Multi-year premiums are amortized over the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Premiums written on a monthly basis are earned over the period that coverage is provided. When we rescind insurance coverage on a loan, we refund all premiums received in connection with such coverage. Premium revenue is recognized net of our accrual for estimated premium refunds due to Rescissions or other factors. With respect to our reinsurance transactions, ceded premiums written are initially set up as prepaid reinsurance and are amortized in a manner consistent with the recognition of income on direct premiums. Deferred Policy Acquisition Costs Incremental, direct costs associated with the successful acquisition of mortgage insurance business, consisting of compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Amortization of these costs for each underwriting year book of business is expensed in proportion to estimated gross profits over the estimated life of the policies. This includes accruing interest on the unamortized balance of deferred policy acquisition costs. Ceding commissions received under our reinsurance arrangements related to these costs are also deferred and accounted for using similar assumptions, including certain amounts received under our reinsurance transactions. See Notes 8 and 9 for additional details. Estimates of expected gross profit, including the Persistency Rate and loss development assumptions for each underwriting year used as a basis for amortization, are evaluated quarterly and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that previous estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions may have a significant effect on the amortization of deferred policy acquisition costs. Revenue Recognition—Services Revenue Services revenue is recognized when pervasive evidence of an arrangement exists, the service has been performed, the fee is fixed and determinable and collection of the resulting receivable is reasonably assured. The Services segment derives most of its revenue from professional service activities. A portion of these activities are provided under “time-and-materials” billing arrangements. Services revenue consisting of billed fees and pass-through expenses is recorded as work is performed and expenses are incurred. Services revenue also includes expenses billed to clients, which includes travel and other out-of-pocket expenses, and other reimbursable expenses. The Services segment also derives revenue from REO management activities, and is generally paid a fixed fee or a percentage of the sale proceeds upon the sale of a property. Services revenue is recognized when the sale of a property closes and the client has confirmed receipt of the sale proceeds from a buyer. In certain instances, fees are received at the time that an asset is assigned to Radian for REO management. These fees are recorded as deferred revenue and are recognized on a straight-line basis over the average period of time required to sell an asset and complete the earnings process. The Services segment also generates additional revenue utilizing a percentage-of-sales contract. Through the use of Services’ proprietary technology, property leads are sent to select clients. Services recognizes revenue for these transactions based on a percentage of the sale, upon the client’s successful closing on the property. The Services segment also provides certain services under multiple element arrangements, including valuations, title reviews and tax lien reviews. Contracts for these services include provisions requiring the client to pay a per-unit price for services that have been performed if the client cancels the contract. Each service qualifies as a separate unit of accounting on a per-unit basis, and we recognize revenue as each individual service is performed. We do not recognize revenue or expense related to amounts advanced by us and subsequently reimbursed by clients for maintenance or repairs of REO properties because we are not the primary obligor and we have minimal credit risk. We record an expense if an advance is made that is not in accordance with a client contract and the client is not obligated to reimburse us. Cost of Services Cost of services consists primarily of employee compensation and related payroll benefits, the cost of billable labor assigned to revenue-generating activities, as well as corresponding travel and related expenses incurred in providing such services to clients in our Services segment. Cost of services also includes costs paid to outside vendors, including real estate agents that provide valuation and related services, as well as data acquisition costs and other compensation-related expenses to maintain software application platforms that directly support our businesses. Cost of services does not include an allocation of overhead costs. Income Taxes We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our deferred tax assets and deferred tax liabilities are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. Deferred tax assets and deferred tax liabilities are measured using the enacted tax rates that are expected to apply to taxable income in the periods in which the deferred tax asset or deferred tax liability is expected to be realized or settled. We are required to establish a valuation allowance against our deferred tax assets when it is more likely than not that all or some portion of our deferred tax assets will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our deferred tax assets will be realized in future periods. Our provision for income taxes for interim financial periods is based on an estimate of our annual effective tax rate for the full year of 2017 and 2016. When estimating our full year 2017 and 2016 effective tax rates, we adjust our forecasted pre-tax income for gains and losses on our investments, changes in the accounting for uncertainty in income taxes, changes in our beginning of year valuation allowance, and other adjustments. The impact of these items is accounted for as Discrete Items at the applicable federal tax rate. On December 22, 2017, the TCJA was enacted into law. We are required to recognize the accounting effects of the TCJA in the period of enactment, such as remeasuring our deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the TCJA for which the accounting is incomplete. To the extent that a company’s accounting for certain income tax effects of the TCJA is incomplete but it is able to determine a reasonable estimate, it must record provisional estimates in the financial statements, during a measurement period not to extend beyond one year of the enactment date. Since the TCJA was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next 12 months, we have accounted for the tax effects of the TCJA on a provisional basis. Although our accounting for certain income tax effects is incomplete, we have determined reasonable estimates for those effects. Our reasonable estimates are included in our financial statements as of December 31, 2017 and we expect to complete our accounting during the one-year measurement period from the enactment date. Foreign Currency Revaluation/Translation Assets and liabilities denominated in foreign currencies are revalued or translated at year-end exchange rates. Operating results are translated at average rates of exchange prevailing during the year. Unrealized gains and losses, net of deferred taxes, resulting from translation are included in accumulated other comprehensive income (loss) in stockholders’ equity. Realized gains and losses resulting from transactions in foreign currency are recorded in our statements of operations. Cash and Restricted Cash Included in our restricted cash balances as of December 31, 2017 were: (i) funds for a mortgage insurance reserve policy held in escrow for any future duties, rights and liabilities; (ii) funds held in trust for the benefit of certain policyholders; (iii) escrow funds held for servicer liabilities; and (iv) escrow funds held for title services obligations. Total cash and restricted cash shown in the consolidated statement of cash flows as of December 31, 2017 of $96.2 million comprise cash and restricted cash of $80.6 million and $15.7 million , respectively, as shown on the consolidated balance sheet as of December 31, 2017 . Total cash and restricted cash shown in the consolidated statement of cash flows as of December 31, 2016 of $61.8 million comprise cash and restricted cash of $52.1 million and $9.7 million , respectively, as shown on the consolidated balance sheet as of December 31, 2016 . Within our consolidated statements of cash flows, we classify cash receipts and cash payments related to items measured at fair value according to their nature and purpose. Because our investment activity for trading securities relates to overall strategic initiatives and is not trading related, it is recorded as cash flows from investing activities. Investments We group assets in our investment portfolio into one of three main categories: held to maturity, available for sale or trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity, if any, are classified as held to maturity and are reported at amortized cost. Trading securities are securities that are purchased and held primarily for the purpose of selling them in the near term, and are reported at fair value, with unrealized gains and losses reported as a separate component of income. Investments in securities not classified as held to maturity or trading securities are classified as available for sale and are reported at fair value, with unrealized gains and losses (net of tax) reported as a separate component of stockholders’ equity as accumulated other comprehensive income (loss). Short-term investments consist of money market instruments, certificates of deposit and highly liquid, interest-bearing instruments with an original maturity of three months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Notes 5 and 6 for further discussion on the fair value of investments. We record an other-than-temporary impairment adjustment on a security with an unrealized loss if we intend to sell the impaired security, if it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the present value of cash flows we expect to collect is less than the amortized cost basis of the security. If a sale is likely, the security is classified as other-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, losses on securities that are other-than-temporarily impaired are separated into: (i) the portion of loss that represents the credit loss and (ii) the portion that is due to other factors. The credit loss portion is recognized as a loss in the statement of operations, while the loss due to other factors is recognized in accumulated other comprehensive income (loss), net of taxes. A credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less than the cost basis of the security. The present value of discounted cash flows is determined using the original yield of the security. In evaluating whether a decline in value is other-than-temporary, we consider several factors in addition to the above, including, but not limited to, the following: • the extent and the duration of the decline in value; • the reasons for the decline in value (e.g., credit event, interest related or market fluctuations); and • the financial position, access to capital and near term prospects of the issuer, including the current and future impact of any specific events. Securities Lending Agreements Securities lending agreements, in which we loan certain securities in our investment portfolio to third parties for short periods of time in exchange for collateral consisting of cash and other securities, are treated as collateralized financing arrangements on our consolidated balance sheets. In all of our securities lending agreements, the securities that we transfer to Borrowers (loaned securities) may be transferred or loaned by the Borrowers; however, we maintain effective control over all loaned securities, including: (i) retaining ownership of the securities; (ii) receiving the related investment or other income; and (iii) having the right to request the return of the loaned securities at any time. We report such securities within other assets in our consolidated balance sheets. We receive cash or other securities as collateral for such loaned securities. Any cash collateral 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 to the Borrower. Securities collateral we receive from Borrowers is held on deposit for the Borrower’s benefit and we may not transfer or loan su |
Note 3 - Net Income (Loss) Per
Note 3 - Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common stockholders by the sum of the weighted-average number of common shares outstanding and the weighted-average number of dilutive potential common shares. Dilutive potential common shares relate to our share-based compensation arrangements and our outstanding convertible senior notes. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income from continuing operations. The calculation of the basic and diluted net income per share was as follows: Year Ended December 31, 2017 2016 2015 (In thousands, except per-share amounts) Net income from continuing operations: Net income from continuing operations — basic $ 121,088 $ 308,253 $ 281,539 Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) (215 ) 5,816 14,758 Net income from continuing operations — diluted $ 120,873 $ 314,069 $ 296,297 Net income: Net income from continuing operations — basic $ 121,088 $ 308,253 $ 281,539 Income from discontinued operations, net of tax — — 5,385 Net income — basic 121,088 308,253 286,924 Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) (215 ) 5,816 14,758 Net income — diluted $ 120,873 $ 314,069 $ 301,682 Average common shares outstanding — basic 215,321 211,789 199,910 Dilutive effect of Convertible Senior Notes due 2017 (2) 323 207 6,293 Dilutive effect of Convertible Senior Notes due 2019 457 14,263 37,736 Dilutive effect of stock-based compensation arrangements (2) 4,305 2,999 2,393 Adjusted average common shares outstanding—diluted 220,406 229,258 246,332 Net income per share: Basic: Net income from continuing operations $ 0.56 $ 1.46 $ 1.41 Income from discontinued operations, net of tax — — 0.03 Net income $ 0.56 $ 1.46 $ 1.44 Diluted: Net income from continuing operations $ 0.55 $ 1.37 $ 1.20 Income from discontinued operations, net of tax — — 0.02 Net income $ 0.55 $ 1.37 $ 1.22 ______________________ (1) As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. Included in the year ended December 31, 2017 is a benefit related to our adjustment of estimated accrued expense to actual amounts, resulting from the January 2017 settlement of our obligations on the remaining Convertible Senior Notes due 2019. (2) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements and convertible debt, if any, were not included in the calculation of diluted net income per share because they were anti-dilutive: Year Ended December 31, (in thousands) 2017 2016 2015 Shares of common stock equivalents 353 1,042 728 |
Note 4 - Segment Reporting Leve
Note 4 - Segment Reporting Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Reporting We have two strategic business units that we manage separately—Mortgage Insurance and Services. Adjusted pretax operating income (loss) for each segment represents segment results on a standalone basis; therefore, inter-segment eliminations and reclassifications required for consolidated GAAP presentation have not been reflected. See Note 18 for information related to discontinued operations. Management responsibilities for all contract underwriting activities are performed by the Services segment. We include underwriting-related expenses for mortgage insurance, based on a pro-rata volume of mortgage applications excluding third-party contract underwriting services, in our Mortgage Insurance segment’s other operating expenses before corporate allocations. We include underwriting-related expenses for third-party contract underwriting services, based on a pro-rata volume of mortgage applications, in our Services segment’s cost of services and other operating expenses before corporate allocations, as applicable. We allocate to our Mortgage Insurance segment: (i) corporate expenses based on an allocated percentage of time spent on the Mortgage Insurance segment; (ii) all interest expense except for interest expense related to the original issued amount of $300 million from the Senior Notes due 2019 that were used to fund our purchase of Clayton; and (iii) all corporate cash and investments. We allocate to our Services segment: (i) corporate expenses based on an allocated percentage of time spent on the Services segment and (ii) as noted above, allocated interest expense based on the original amount of debt issued to fund our acquisition of Clayton. No material corporate cash or investments are allocated to the Services segment. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation. Adjusted Pretax Operating Income (Loss) Our senior management, including our Chief Executive Officer (Radian’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of Radian’s business segments and to allocate resources to the segments. Adjusted pretax operating income (loss) is defined as pretax income (loss) from continuing operations excluding the effects of net gains (losses) on investments and other financial instruments, loss on induced conversion and debt extinguishment, acquisition-related expenses, amortization or impairment of goodwill and other intangible assets, and net impairment losses recognized in earnings and losses from the sale of lines of business. Although adjusted pretax operating income excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income. These adjustments, along with the reasons for their treatment, are described below. (1) Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized investment gains and losses arise primarily from changes in the market value of our investments that are classified as trading securities. These valuation adjustments may not necessarily result in realized economic gains or losses. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). (2) Loss on induced conversion and debt extinguishment. Gains or losses on early extinguishment of debt and losses incurred to purchase our convertible debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial and capital positions; therefore, we do not view these activities as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). (3) Acquisition-related expenses. Acquisition-related expenses represent the costs incurred to effect an acquisition of a business (i.e., a business combination). Because we pursue acquisitions on a strategic and selective basis and not in the ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business activity. Therefore, we do not consider these expenses to be part of our operating performance and they are excluded from our calculation of adjusted pretax operating income (loss). (4) Amortization or impairment of goodwill and other intangible assets. Amortization of intangible assets represents the periodic expense required to amortize the cost of intangible assets over their estimated useful lives. Intangible assets with an indefinite useful life are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. These charges are not viewed as part of the operating performance of our primary activities and therefore are excluded from our calculation of adjusted pretax operating income (loss). (5) Net impairment losses recognized in earnings and losses from the sale of lines of business . The recognition of net impairment losses on investments and the impairment of other long-lived assets does not result in a cash payment and can vary significantly in both amount and frequency, depending on market credit cycles and other factors. Losses from the sale of lines of business are highly discretionary as a result of strategic restructuring decisions, and generally do not occur in the normal course of our business. We do not view these losses to be indicative of our fundamental operating activities. Therefore, whenever these losses occur, we exclude them from our calculation of adjusted pretax operating income (loss). Summarized operating results for our segments as of and for the years ended, as applicable, were as follows: December 31, 2017 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance (1) (2) $ 818,417 $ — $ 818,417 (Increase) decrease in unearned premiums (2) 114,356 — 114,356 Net premiums earned—insurance 932,773 — 932,773 Services revenue — 161,833 161,833 Net investment income 127,248 — 127,248 Other income 2,886 — 2,886 Total (3) (4) 1,062,907 161,833 1,224,740 Provision for losses 136,183 — 136,183 Policy acquisition costs 24,277 — 24,277 Cost of services — 105,812 105,812 Other operating expenses before corporate allocations 150,975 50,969 201,944 Restructuring and other exit costs (5) — 6,828 6,828 Total (4) 311,435 163,609 475,044 Adjusted pretax operating income (loss) before corporate allocations 751,472 (1,776 ) 749,696 Allocation of corporate operating expenses 55,441 14,319 69,760 Allocation of interest expense 45,016 17,745 62,761 Adjusted pretax operating income (loss) $ 651,015 $ (33,840 ) $ 617,175 Total assets $ 5,733,918 $ 166,963 (6) $ 5,900,881 NIW (in millions) $ 53,905 ______________________ (1) Net of ceded premiums written under the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. (2) Effective December 31, 2017, we amended the 2016 Single Premium QSR Transaction to increase the amount of ceded risk for performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages, resulting in a reduction of $145.7 million in net premiums written. (3) Excludes net gains on investments and other financial instruments of $3.6 million , not included in adjusted pretax operating income. (4) Includes inter-segment revenues and expenses as follows: December 31, 2017 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 6,730 Inter-segment expenses included in Mortgage Insurance segment 6,730 — (5) Primarily includes employee severance and related benefit costs. Does not include impairment of long-lived assets, which is not a component of adjusted pretax operating income. (6) The decrease in total assets for the Services segment at December 31, 2017, as compared to December 31, 2016, is primarily due to the impairment of goodwill and other intangible assets. See Note 7 for further details. December 31, 2016 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance (1) $ 733,834 $ — $ 733,834 (Increase) decrease in unearned premiums 187,935 — 187,935 Net premiums earned—insurance 921,769 — 921,769 Services revenue — 177,249 177,249 Net investment income 113,466 — 113,466 Other income 3,572 — 3,572 Total (2) (3) 1,038,807 177,249 1,216,056 Provision for losses 204,175 — 204,175 Policy acquisition costs 23,480 — 23,480 Cost of services — 115,369 115,369 Other operating expenses before corporate allocations 140,624 55,815 196,439 Total (3) 368,279 171,184 539,463 Adjusted pretax operating income (loss) before corporate allocations 670,528 6,065 676,593 Allocation of corporate operating expenses 45,178 8,533 53,711 Allocation of interest expense 63,439 17,693 81,132 Adjusted pretax operating income (loss) $ 561,911 $ (20,161 ) $ 541,750 Total assets $ 5,506,338 $ 356,836 $ 5,863,174 NIW (in millions) $ 50,530 ______________________ (1) Net of ceded premiums written under the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. (2) Excludes net gains on investments and other financial instruments of $30.8 million , not included in adjusted pretax operating income. (3) Includes inter-segment revenues and expenses as follows: December 31, 2016 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 8,355 Inter-segment expenses included in Mortgage Insurance segment 8,355 — December 31, 2015 Mortgage Insurance Services Total (In thousands) Net premiums written—insurance (1) $ 968,505 $ — $ 968,505 (Increase) decrease in unearned premiums (52,597 ) — (52,597 ) Net premiums earned—insurance 915,908 — 915,908 Services revenue — 163,140 163,140 Net investment income 81,537 — 81,537 Other income 2,899 — 2,899 Total (2) (3) 1,000,344 163,140 1,163,484 Provision for losses 198,433 — 198,433 Policy acquisition costs 22,424 — 22,424 Cost of services — 97,256 97,256 Other operating expenses before corporate allocations 148,619 43,515 192,134 Total (3) 369,476 140,771 510,247 Adjusted pretax operating income (loss) before corporate allocations 630,868 22,369 653,237 Allocation of corporate operating expenses 46,418 4,823 51,241 Allocation of interest expense 73,402 17,700 91,102 Adjusted pretax operating income (loss) $ 511,048 $ (154 ) $ 510,894 Total assets 5,290,422 351,678 5,642,100 NIW (in millions) $ 41,411 ______________________ (1) Net of ceded premiums written under the QSR Transactions. See Note 8 for additional information. (2) Excludes net gains on investments and other financial instruments of $35.7 million , not included in adjusted pretax operating income. (3) Includes inter-segment revenues and expenses as follows: December 31, 2015 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 5,924 Inter-segment expenses included in Mortgage Insurance segment 5,924 — The reconciliation of adjusted pretax operating income (loss) to consolidated pretax income from continuing operations is as follows: December 31, (In thousands) 2017 2016 2015 Adjusted pretax operating income (loss): Mortgage insurance (1) $ 651,015 $ 561,911 $ 511,048 Services (1) (33,840 ) (20,161 ) (154 ) Total adjusted pretax operating income $ 617,175 $ 541,750 $ 510,894 Net gains (losses) on investments and other financial instruments 3,621 30,751 35,693 Loss on induced conversion and debt extinguishment (51,469 ) (75,075 ) (94,207 ) Acquisition-related expenses (2) (105 ) (519 ) (1,565 ) Impairment of goodwill (184,374 ) — — Amortization and impairment of other intangible assets (27,671 ) (13,221 ) (12,986 ) Impairment of other long-lived assets (3) (10,440 ) — — Consolidated pretax income from continuing operations $ 346,737 $ 483,686 $ 437,829 ______________________ (1) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. (2) Acquisition-related expenses represent expenses incurred to effect the acquisition of a business, net of adjustments to accruals previously recorded for acquisition expenses. (3) Included within restructuring and other exit costs. See Note 2. On a consolidated basis, “adjusted pretax operating income” is a measure not determined in accordance with GAAP. Total adjusted pretax operating income is not a measure of total profitability, and therefore should not be considered in isolation or viewed as a substitute for GAAP pretax income. Our definition of adjusted pretax operating income may not be comparable to similarly-named measures reported by other companies. Concentration of Risk As of December 31, 2017 , California is the only state that accounted for more than 10% of our mortgage insurance business measured by primary RIF. California accounted for 12.4% of our Mortgage Insurance segment’s primary RIF at both December 31, 2017 and December 31, 2016 . California accounted for 14.1% of our Mortgage Insurance segment’s direct primary NIW for the year ended December 31, 2017 , compared to 14.8% and 15.2% for the years ended December 31, 2016 and 2015 , respectively. The largest single mortgage insurance customer (including branches and affiliates), measured by primary NIW, accounted for 6.8% of NIW during 2017 , compared to 5.7% and 4.6% from the largest single customer in 2016 and 2015 , respectively. Earned premiums from one mortgage insurance customer represented 15% , 15% and 16% of our consolidated revenues (excluding net gains (losses) on investments and other financial instruments) in 2017 , 2016 and 2015 , respectively. Net premiums earned attributable to foreign countries and long-lived assets located in foreign countries were immaterial for the periods presented. |
Note 5 - Fair Value of Financia
Note 5 - Fair Value of Financial Instruments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value of Financial Instruments The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2017 : December 31, 2017 (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 124,969 $ 8,023 $ 132,992 State and municipal obligations — 386,111 386,111 Money market instruments 213,357 — 213,357 Corporate bonds and notes — 2,304,017 2,304,017 RMBS — 216,749 216,749 CMBS — 503,955 503,955 Other ABS — 676,158 676,158 Foreign government and agency securities — 36,448 36,448 Equity securities 175,205 860 176,065 Other investments (1) — 25,720 25,720 Total Investments at Fair Value (2) 513,531 4,158,041 4,671,572 (3) Total Assets at Fair Value $ 513,531 $ 4,158,041 $ 4,671,572 (3) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets ( $0.3 million ), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Includes cash collateral held under securities lending agreements ( $19.4 million ) reinvested in money market instruments. (3) Includes $28.0 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 for more information. At December 31, 2017 , there were no Level III assets measured at fair value, and no Level III liabilities. There were no investment transfers between Level I, Level II or Level III for the year ended December 31, 2017 . The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2016 : December 31, 2016 (In thousands) Level I Level II Level III Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 237,479 $ — $ — $ 237,479 State and municipal obligations — 358,536 — 358,536 Money market instruments 431,472 — — 431,472 Corporate bonds and notes — 2,024,205 — 2,024,205 RMBS — 388,842 — 388,842 CMBS — 507,273 — 507,273 Other ABS — 450,128 — 450,128 Foreign government and agency securities — 32,807 — 32,807 Equity securities — 830 500 1,330 Other investments (1) — 28,663 500 29,163 Total Investments at Fair Value (2) 668,951 3,791,284 1,000 4,461,235 Total Assets at Fair Value $ 668,951 $ 3,791,284 $ 1,000 $ 4,461,235 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets ( $1.2 million ), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. At December 31, 2016 , total Level III assets of $1.0 million accounted for less than 0.1% of total assets measured at fair value. Within other investments is a Level III investment which was purchased during the second quarter of 2016, and there were no related gains or losses recorded during the year ended December 31, 2016 . Within equity securities is a Level III investment that was purchased during the second quarter of 2015, and there were no related gains or losses recorded during the year ended December 31, 2016 . There were no Level III liabilities at December 31, 2016 . There were no investment transfers between Level I, Level II or Level III for the year ended December 31, 2016 . Rollforward activity of Level III assets and liabilities (including realized and unrealized gains and losses, purchases, sales, issuances, settlements and transfers) was immaterial for the years ended December 31, 2017 and 2016 . Valuation Methodologies for Assets Measured at Fair Value The following are descriptions of our valuation methodologies for financial assets and liabilities measured at fair value. We are responsible for the determination of the value of all investments carried at fair value and the supporting methodologies and assumptions. To assist us in this responsibility, we utilize independent third-party valuation service providers to gather, analyze and interpret market information and estimate fair values based upon relevant methodologies and assumptions for various asset classes and individual securities. We perform monthly quantitative and qualitative analyses on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. Our analysis includes: (i) a review of the methodology used by third-party pricing services; (ii) a comparison of pricing services’ valuations to other independent sources; (iii) a review of month-to-month price fluctuations; and (iv) a comparison of actual purchase and sale transactions with valuations received from third parties. These processes are designed to ensure that our investment values are accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied and that the assumptions are reasonable and consistent with the objective of determining fair value. U.S. government and agency securities. The fair value of U.S. government and agency securities is estimated using observed market transactions, including broker-dealer quotes and actual trade activity as a basis for valuation. U.S. government and agency securities are categorized in either Level I or Level II of the fair value hierarchy. State and municipal obligations. The fair value of state and municipal obligations is estimated using recent transaction activity, including market observations. Valuation models are used, which incorporate bond structure, yield curve, credit spreads and other factors. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. Money market instruments. The fair value of money market instruments is based on daily prices, which are published and available to all potential investors and market participants. As such, these securities are categorized in Level I of the fair value hierarchy. Corporate bonds and notes. The fair value of corporate bonds and notes is estimated using recent transaction activity, including market observations. Spread models are used that incorporate issuer and structure characteristics, such as credit risk and early redemption features, where applicable. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. RMBS, CMBS, and Other ABS. The fair value of these instruments is estimated based on prices of comparable securities and spreads and observable prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. The fair value of any Level III securities is generally estimated by discounting estimated future cash flows. Foreign government and agency securities. The fair value of foreign government and agency securities is estimated using observed market yields used to create a maturity curve and observed credit spreads from market makers and broker-dealers. These securities are categorized in Level II of the fair value hierarchy. Equity securities. The fair value of these securities is generally estimated using observable market data in active markets or bid prices from market makers and broker-dealers. Generally, these securities are categorized in Level I or II of the fair value hierarchy, as observable market data are readily available. From time to time, certain equity securities may be categorized in Level III of the fair value hierarchy due to a lack of market-based transaction data or the use of model-based valuations. Other investments. These securities primarily consist of commercial paper and short-term certificates of deposit, which are categorized in Level II of the fair value hierarchy. Other investments also contains convertible notes of non-reporting issuers, which are categorized in Level III of the fair value hierarchy due to a lack of market-based transaction data. Other Fair Value Disclosure The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our consolidated balance sheets were as follows as of the dates indicated: December 31, 2017 December 31, 2016 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Other invested assets $ 334 $ 3,226 $ 1,195 $ 3,789 Liabilities: Long-term debt 1,027,074 1,093,934 1,069,537 1,214,471 Other Invested Assets. The fair value of these assets, primarily invested in limited partnerships, is estimated based on the equity recorded within the financial statements provided by the limited partnerships. These interests are accounted for and carried as cost-method investments. Long-Term Debt. At December 31, 2016, the carrying amount of long-term debt is net of the equity component of our convertible notes, which is accounted for under the accounting standard for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement). At December 31, 2017, none of our convertible notes remained outstanding. The fair value is estimated based on the quoted market prices for the same or similar instruments. See Note 12 for further information. |
Note 6 - Investments Level 1 (N
Note 6 - Investments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investments Available for Sale Securities Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated: December 31, 2017 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 69,668 $ 69,396 $ 96 $ 367 State and municipal obligations 156,587 161,722 5,834 699 Corporate bonds and notes 1,869,318 1,894,886 33,620 8,052 RMBS 189,455 187,229 636 2,862 CMBS 451,595 453,394 3,409 1,610 Other ABS 672,715 674,548 2,655 822 Foreign government and agency securities 31,416 32,207 823 33 Total fixed-maturities available for sale 3,440,754 3,473,382 (1) 47,073 14,445 Equity securities available for sale (2) 176,349 176,065 (1) 1,705 1,989 Total debt and equity securities $ 3,617,103 $ 3,649,447 $ 48,778 $ 16,434 ______________________ (1) Includes $14.7 million and $13.2 million of fixed maturities and equity securities, respectively, of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets, as further described below. (2) Primarily consists of investments in fixed-income and equity exchange-traded funds and publicly-traded business development company equities. December 31, 2016 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 78,931 $ 75,474 $ 2 $ 3,459 State and municipal obligations 66,124 67,171 1,868 821 Corporate bonds and notes 1,463,720 1,455,628 14,320 22,412 RMBS 358,262 350,628 197 7,831 CMBS 429,057 428,289 2,255 3,023 Other ABS 433,603 434,728 2,037 912 Foreign government and agency securities 24,771 24,594 148 325 Other investments 2,000 2,000 — — Total fixed-maturities available for sale 2,856,468 2,838,512 20,827 38,783 Equity securities available for sale (1) 1,330 1,330 — — Total debt and equity securities $ 2,857,798 $ 2,839,842 $ 20,827 $ 38,783 ______________________ (1) Primarily consists of investments in Federal Home Loan Bank stock as required in connection with the memberships of Radian Guaranty and Radian Reinsurance in the FHLB. Gross Unrealized Losses and Related Fair Values of Available for Sale Securities For securities deemed “available for sale” and that are in an unrealized loss position, the following tables show the gross unrealized losses and fair values, 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, 2017 , are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below. December 31, 2017 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 6 $ 23,309 $ 129 3 $ 9,799 $ 238 9 $ 33,108 $ 367 State and municipal obligations 21 65,898 699 — — — 21 65,898 699 Corporate bonds and notes 152 672,318 4,601 32 139,105 3,451 184 811,423 8,052 RMBS 8 19,943 204 26 101,812 2,658 34 121,755 2,862 CMBS 35 139,353 1,395 4 3,518 215 39 142,871 1,610 Other ABS 92 260,864 777 7 8,297 45 99 269,161 822 Foreign government and agency securities 5 7,397 33 — — — 5 7,397 33 Equity securities 13 149,785 1,989 — — — 13 149,785 1,989 Total 332 $ 1,338,867 $ 9,827 72 $ 262,531 $ 6,607 404 $ 1,601,398 $ 16,434 December 31, 2016 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 7 $ 73,160 $ 3,459 — $ — $ — 7 $ 73,160 $ 3,459 State and municipal obligations 7 30,901 821 — — — 7 30,901 821 Corporate bonds and notes 185 788,876 22,135 2 4,582 277 187 793,458 22,412 RMBS 56 311,031 7,822 1 1,398 9 57 312,429 7,831 CMBS 37 218,170 2,909 2 6,585 114 39 224,755 3,023 Other ABS 58 131,268 470 16 45,886 442 74 177,154 912 Foreign government and agency securities 12 13,034 325 — — — 12 13,034 325 Total 362 $ 1,566,440 $ 37,941 21 $ 58,451 $ 842 383 $ 1,624,891 $ 38,783 Impairments due to credit deterioration that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security are considered other-than-temporary. Other declines in fair value (for example, due to interest rate changes, sector credit rating changes or company-specific rating changes) that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security also may serve as a basis to conclude that an other-than-temporary impairment has occurred. To the extent we determine that a security is deemed to have had an other-than-temporary impairment, an impairment loss is recognized. For the year ended December 31, 2017 , we recorded other-than-temporary impairment losses in earnings of $1.4 million . These losses comprised $0.4 million due to our intent to sell certain corporate bonds at a loss and $1.0 million due to credit deterioration, which included $0.5 million related to a convertible note of a non-public company issuer included in debt securities and $0.5 million related to a privately-placed equity security. For the year ended December 31, 2016 , we recognized an other-than-temporary impairment loss in earnings of $0.5 million due to our intent to sell certain corporate bonds at a loss. For the year ended December 31, 2017 there were no credit-related impairment losses recognized in accumulated other comprehensive income (loss). For the years ended December 31, 2016 and 2015 , there were no credit-related impairment losses recognized in earnings or in accumulated other comprehensive income (loss). Although we had other securities in an unrealized loss position as of December 31, 2017 , we did not consider those securities to be other-than-temporarily impaired as of such date. For all investment categories, the unrealized losses of 12 months or greater duration as of December 31, 2017 , were generally caused by interest rate or credit spread movements since the purchase date, and as such, we expect the present value of cash flows to be collected from these securities to be sufficient to recover the amortized cost basis of these securities. As of December 31, 2017 , we did not have the intent to sell any debt securities in an unrealized loss position and we determined that it is more likely than not that we will not be required to sell the securities before recovery of their cost basis, which may be at maturity; therefore, we did not consider these investments to be other-than-temporarily impaired at December 31, 2017 . Trading Securities The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated: December 31, (In thousands) 2017 2016 Trading securities: U.S. government and agency securities $ — $ 33,042 State and municipal obligations 214,841 259,573 Corporate bonds and notes 307,271 453,617 RMBS 29,520 38,214 CMBS 50,561 78,984 Other ABS — 8,219 Foreign government and agency securities 4,241 8,213 Total $ 606,434 (1) $ 879,862 ______________________ (1) Includes a de minimis amount of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below. For trading securities held as of December 31 of each respective year, we had net unrealized gains of $8.8 million during 2017 , compared to net unrealized gains of $16.8 million during 2016 and net unrealized losses of $25.2 million during 2015. Securities Lending Agreements During the third quarter of 2017, we commenced participation in a securities lending program whereby we loan certain securities in our investment portfolio to 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. In all of our securities lending agreements, the securities we transfer to Borrowers (loaned securities) may be transferred or loaned by the Borrowers; however, we maintain effective control over all loaned securities, including: (i) retaining ownership of the securities; (ii) receiving the related investment or other income; and (iii) having the right to request the return of the loaned securities at any time. Although we report such securities at fair value within other assets on our consolidated balance sheets, the detailed information provided in this Note includes these securities. See Notes 2 and 9 for additional information. 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. The Borrower generally may return the loaned securities to us at any time, which would require us to return the collateral within the standard settlement period for the loaned securities on the principal exchange or market in which the securities are traded. We manage this liquidity risk associated with cash collateral by maintaining the cash collateral in a short-term money-market fund with daily availability. The credit risk under these programs is reduced by the amounts of collateral received. On a daily basis, the value of the underlying securities that we have loaned to the Borrowers is compared to the value of cash and securities collateral we received from the Borrowers, and additional cash or securities are requested or returned, as applicable. In addition, we are indemnified against counterparty credit risk by the intermediary. Key components of our securities lending agreements at December 31, 2017 , consisted of the following: (In thousands) December 31, 2017 Loaned securities: (1) Corporate bonds and notes $ 13,862 Foreign government and agency securities 867 Equity securities 13,235 Total loaned securities, at fair value $ 27,964 Total loaned securities, at amortized cost $ 27,846 Securities collateral on deposit from Borrowers (2) 9,342 Reinvested cash collateral, at estimated fair value (3) 19,357 ______________________ (1) Our securities loaned under securities lending agreements are included at fair value within other assets on our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. (2) Securities collateral on deposit with us from Borrowers may not be transferred or re-pledged unless the Borrower is in default, and is therefore not reflected in our consolidated financial statements. (3) All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities on our consolidated balance sheets. There were no securities lending transactions outstanding at December 31, 2016 . Net Investment Income Net investment income consisted of: Year Ended December 31, (In thousands) 2017 2016 2015 Investment income: Fixed-maturities $ 122,890 $ 115,880 $ 81,127 Equity securities 4,318 86 4,539 Short-term investments 5,453 3,086 745 Other 987 1,161 600 Gross investment income 133,648 120,213 87,011 Investment expenses (6,400 ) (6,747 ) (5,474 ) Net investment income $ 127,248 $ 113,466 $ 81,537 Net Gains (Losses) on Investments and Other Financial Instruments Net realized and unrealized gains (losses), including impairment losses, on investments and other financial instruments consisted of: Year Ended December 31, (In thousands) 2017 2016 2015 Net realized gains (losses) on investments: Fixed-maturities available for sale (1) $ (3,014 ) $ 4,160 $ (1,176 ) Equities available for sale (2) 368 (170 ) 69,150 (3) Trading securities (5,995 ) (237 ) (9,231 ) Short-term investments (16 ) (135 ) (24 ) Other invested assets 22 631 3,267 Other gains (losses) 32 64 110 Net realized gains (losses) on investments (8,603 ) 4,313 62,096 Other-than-temporary impairment losses (1,420 ) (526 ) — Unrealized gains (losses) on trading securities 13,230 27,217 (27,015 ) Total net gains (losses) on investments 3,207 31,004 35,081 Net gains (losses) on other financial instruments 414 (253 ) 612 Net gains (losses) on investments and other financial instruments $ 3,621 $ 30,751 $ 35,693 ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Year Ended December 31, (In thousands) 2017 2016 2015 Gross investment gains from sales and redemptions $ 6,052 $ 10,326 $ 64 Gross investment losses from sales and redemptions (9,066 ) (6,166 ) (1,240 ) (2) Net realized gains (losses) on equities available for sale is equal to the gross amount of gains and losses, respectively, realized for those periods. (3) During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million . Change in Unrealized Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) The change in unrealized gains (losses) recorded in accumulated other comprehensive income (loss) consisted of the following: Year Ended December 31, (In thousands) 2017 2016 2015 Fixed-maturities: Unrealized holding gains (losses) arising during the period, net of tax $ 32,147 $ 8,822 $ (24,246 ) Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax (2,556 ) 2,361 (764 ) Net unrealized gains (losses) on investments, net of tax $ 34,703 $ 6,461 $ (23,482 ) Equities: Unrealized holding gains (losses) arising during the period, net of tax $ (244 ) $ (40 ) $ 1,673 Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax (86 ) (110 ) 44,947 Net unrealized gains (losses) on investments, net of tax $ (158 ) $ 70 $ (43,274 ) Contractual Maturities The contractual maturities of fixed-maturity investments available for sale are as follows: December 31, 2017 (In thousands) Amortized Fair Due in one year or less $ 36,688 $ 36,645 Due after one year through five years (1) 705,484 705,958 Due after five years through ten years (1) 1,023,844 1,029,896 Due after ten years (1) 360,973 385,712 RMBS (2) 189,455 187,229 CMBS (2) 451,595 453,394 Other ABS (2) 672,715 674,548 Total (3) $ 3,440,754 $ 3,473,382 ______________________ (1) Actual maturities may differ as a result of calls before scheduled maturity. (2) RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date. (3) Includes securities loaned under securities lending agreements. Other As of December 31, 2017 and 2016 , our investment portfolio included no securities of countries that have obligations that have been under particular stress due to economic uncertainty, potential restructuring and ratings downgrades. For the years ended December 31, 2017 , 2016 and 2015 , we did not sell or transfer any fixed-maturity investments classified as held to maturity. For the years ended December 31, 2017 , 2016 and 2015 , we did not transfer any securities from the available for sale or trading categories. As of December 31, 2017 , we did not have any investment in any person (including affiliates thereof) that exceeded 10% of our total stockholders’ equity. Securities on deposit with various state insurance commissioners amounted to $11.8 million and $10.8 million at December 31, 2017 and 2016 , respectively. At December 31, 2016 , Radian Guaranty had $63.9 million in a collateral account invested in and classified as part of our trading securities and pledged to cover Loss Mitigation Activity on the loans subject to the Freddie Mac Agreement. During the third quarter of 2017, the scheduled final settlement date under the Freddie Mac Agreement occurred. As of December 31, 2017 , the remaining balance of $5.6 million in the collateral account was invested in and classified as short-term investments and pledged to cover Loss Mitigation Activity and pending claims activity already in process but not yet finalized. See Note 11 for additional information. |
Note 7 - Goodwill and Other Int
Note 7 - Goodwill and Other Intangible Assets, Net (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets, Net All of our goodwill and other intangible assets relate to our Services segment. The following table shows the changes in the carrying amount of goodwill as of and for the years ended December 31, 2017 and 2016 : (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2015 $ 197,265 $ (2,095 ) $ 195,170 Goodwill acquired — — — Impairment losses — — — Balance at December 31, 2016 197,265 (2,095 ) 195,170 Goodwill acquired 126 — 126 Impairment losses — (184,374 ) (184,374 ) Balance at December 31, 2017 $ 197,391 $ (186,469 ) $ 10,922 Accounting Policy Considerations For purposes of performing our goodwill impairment test, we have concluded that the Services segment constitutes one reporting unit to which all of our recorded goodwill is related. We generally perform our annual goodwill impairment test during the fourth quarter of each year, using balances as of the prior quarter. However, if there are events and circumstances that indicate that it is more likely than not that the fair value of a reporting unit is less than the carrying amount, we will perform a quantitative analysis on an interim basis. As part of our quantitative goodwill impairment assessment, we estimate the fair value of the reporting unit using primarily an income approach and, at a lower weighting, a market approach. The key driver in our fair value analysis is forecasted future cash flows. In the second quarter of 2017, we elected to early adopt the update to the accounting standard regarding goodwill and other intangibles, as discussed in Note 2 . In accordance with the updated standard, the fair value of the reporting unit is compared with its carrying amount, with any excess of the reporting unit’s carrying amount over its estimated fair value recognized as an impairment charge, up to the full amount of the goodwill allocated to the reporting unit, after adjusting the carrying value for any impairment of other intangibles or long-lived assets. For additional information on our accounting policies for goodwill and other intangible assets, see Note 2 . Impairment Analysis We performed an interim goodwill impairment test as of June 30, 2017, due to events and circumstances identified during our June 30, 2017 qualitative analysis that indicated that it was more likely than not that the fair value was less than the carrying amount. We performed our qualitative assessment of goodwill at June 30, 2017, focusing on the impact of certain key factors affecting our Services segment, including: (i) decisions related to changes in the business strategy for our Services segment determined in the second quarter of 2017, following our Chief Executive Officer’s evaluation of both existing products and new product development opportunities and (ii) second quarter 2017 results for our Services segment which were negatively impacted by market trends. Our expectation that these market trends will persist negatively impacted our projected future cash flows compared to the projections used in our prior valuation. Our Chief Executive Officer joined Radian in March 2017 and initiated a review to evaluate the strategic direction of the Services segment. Based on this strategic review, in the second quarter of 2017, we made several decisions with respect to business strategy for the segment in order to reposition the Services business to drive future growth and profitability. We determined to: (i) discontinue certain initiatives, as discussed below and (ii) shift the strategy of the Services segment to focus on core products and services that, in the current market environment, are expected to have higher growth potential, to produce more predictable, recurring revenue streams over time and to better align with our market expertise and the needs of our customers. Our recent strategic decisions include an intent to scale back or, in certain cases, discontinue certain planned or existing initiatives, such as discontinuing a new product line which, based on a market study received in the second quarter of 2017, would require significant additional investment to achieve the growth rates that had been expected. The impact of the strategic decisions determined during the second quarter resulted in a meaningful reduction in the fair value of the Services segment since the previous annual impairment test. During the second quarter of 2017, the Services segment performed below forecasted levels. In combination with the recent underperformance of the Services segment, the anticipated business and growth opportunities for certain business lines in our Services segment have been impacted by: (i) market demand, which was lower than anticipated; (ii) increased competition, including with respect to product alternatives and pricing; and (iii) delays in the realization of efficiencies and margin improvements associated with certain technology initiatives. The demand for certain products and services has decreased due to several factors. Given the decreased volume of refinancings in the mortgage market that began in the first half of 2017, our customers have excess internal capacity which they are choosing to utilize and as a result they are less reliant on outsourcing to us. Additionally, due to market and competitive pressures, we renewed the contract terms with one of our largest customers during the second quarter of 2017, with lower pricing and volumes than expected in order to retain the engagement. We also experienced lower than expected customer acceptance for certain of our current and proposed products and services. The impact of these factors, partially offset by related future expense reductions, constituted a majority of the decline in the fair value of the Services segment since the previous annual impairment test. Our quantitative valuation analysis, performed in connection with our annual goodwill impairment analysis in 2016, relied heavily on achieving the growth rates in our projected future cash flows. The impact of the market trends observed during the second quarter of 2017, which we currently expect to continue, together with our strategic decisions discussed above, resulted in changes to our expected product mix and the expected growth rates associated with various initiatives, which in turn generated material reductions to our forecasted net cash flows. Given the significant negative impact that the market trends and our strategic decisions would have on the timing and amount of our projected future cash flows in comparison to our original projections, we performed a quantitative analysis of the associated goodwill and other intangible assets as of June 30, 2017. As a result of the quantitative goodwill analysis, we recorded an impairment charge of $184.4 million for the three months ended June 30, 2017, to reduce the carrying amount of the Services segment to its estimated fair value. As discussed further below, prior to finalizing this amount, we also evaluated the recoverability of the segment’s other intangible assets and recorded impairment charges of $15.8 million related to the Services segment’s other intangible assets. See “—Other Intangible Assets,” below. Substantially all of our goodwill and other intangible assets will continue to be deductible for tax purposes in accordance with the originally scheduled amortization period of approximately 15 years . During the fourth quarter of 2017, we elected to perform a qualitative annual goodwill impairment analysis, which requires us to assess all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the reporting unit. We considered factors such as: (i) the increase in and timing of revenues during the third and fourth quarters of 2017 (as compared to the forecasted amounts for the same periods); (ii) the impact to projected cash flows, a significant input used to determine the fair value of the reporting unit, associated with the TCJA enacted in the fourth quarter of 2017; (iii) our recent interim goodwill impairment test and recognition of impairment charges; and (iv) the recent sale of a business line. Based on our qualitative assessment in the fourth quarter of 2017, we concluded that it is not “more likely than not” that the fair value of the Services reporting unit is less than its carrying amount as of December 31, 2017. Other Intangible Assets As of June 30, 2017, we also evaluated the recoverability of our other intangible assets. Factors affecting the estimated fair value of our goodwill, as described above, also affected the estimated recoverability of our other intangible assets. Based on our analysis in the second quarter of 2017, impairment was indicated for the Services segment’s client relationships and technology, related to certain product lines that were affected by the factors above. There was no impairment indicated for the remaining intangible assets, as the remaining carrying amounts were estimated to be recoverable despite the decline in projected earnings. Client relationships represent the value of the specifically acquired customer relationships and are valued using the excess earnings approach using estimated client revenues, attrition rates, implied royalty rates and discount rates. The excess earnings approach estimates the present value of expected earnings in excess of a traditional return on business assets. For the three months ended June 30, 2017, we recorded an impairment charge of $14.9 million related to the segment’s client relationships, primarily due to the changes in estimated client revenues based on the factors discussed above in “—Impairment Analysis.” The remaining carrying value of client relationships is supported by projected earnings. For the three months ended June 30, 2017, we also recorded an impairment charge of $0.9 million related to technology, representing the estimated unrecoverable value of a portion of the acquired proprietary software used to provide services in a product line impacted by the factors described above in “—Impairment Analysis.” The remaining carrying value of technology is supported by technology that we expect to continue to use in its current form, in either the same or an alternative capacity. The following is a summary of the gross and net carrying amounts and accumulated amortization of our other intangible assets as of and for the year to date periods indicated: December 31, 2017 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships (1) $ 82,530 $ (41,596 ) $ 40,934 Technology (2) 15,250 (8,922 ) 6,328 Trade name and trademarks 8,340 (3,003 ) 5,337 Client backlog 6,680 (6,006 ) 674 Non-competition agreements 185 (168 ) 17 Total $ 112,985 $ (59,695 ) $ 53,290 ______________________ (1) Includes an impairment charge of $14.9 million . (2) Includes an impairment charge of $0.9 million . December 31, 2016 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 83,316 $ (19,696 ) $ 63,620 Technology 15,250 (5,497 ) 9,753 Trade name and trademarks 8,340 (2,125 ) 6,215 Client backlog 6,680 (5,235 ) 1,445 Non-competition agreements 185 (160 ) 25 Total $ 113,771 $ (32,713 ) $ 81,058 For financial reporting purposes, other intangible assets with finite lives will be amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset, as follows: Estimated Useful Life Client relationships 3 years - 15 years Technology 3 years - 8 years Trade name and trademarks 6 years - 10 years Client backlog 3 years - 5 years Non-competition agreements 2 years - 3 years For the years ended December 31, 2017 , 2016 and 2015 , amortization expense was $11.8 million , $13.2 million and $13.0 million , respectively. The estimated aggregate amortization expense for 2018 and thereafter is as follows: (In thousands) 2018 $ 10,316 2019 8,790 2020 7,412 2021 5,833 2022 5,081 Thereafter 15,858 Total $ 53,290 |
Note 8 - Reinsurance
Note 8 - Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance [Text Block] | Reinsurance In our mortgage insurance business, from time to time we use reinsurance as a strategy to manage our capital position and risk profile, including, among other things, managing Radian Guaranty’s regulatory Risk-to-capital and compliance with the PMIERs financial requirements. Premiums are ceded under the QSR Transactions, the 2016 Single Premium QSR Transaction and captive arrangements. The effect of reinsurance on net premiums written and earned is as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Net premiums written—insurance: Direct $ 1,032,735 $ 1,000,111 $ 1,009,409 Assumed 25 29 104 Ceded (1) (214,343 ) (266,306 ) (41,008 ) Net premiums written—insurance $ 818,417 $ 733,834 $ 968,505 Net premiums earned—insurance: Direct $ 990,016 $ 999,093 $ 973,645 Assumed 28 35 43 Ceded (1) (57,271 ) (77,359 ) (57,780 ) Net premiums earned—insurance $ 932,773 $ 921,769 $ 915,908 ______________________ (1) Net of profit commission. QSR Transactions In 2012, Radian Guaranty entered into the QSR Transactions with a third-party reinsurance provider. Radian Guaranty has ceded the maximum amount permitted under the QSR Transactions; therefore, Radian Guaranty is no longer ceding NIW under these transactions. RIF ceded under the QSR Transactions was $1.2 billion , $1.6 billion and $2.1 billion as of December 31, 2017 , 2016 and 2015 , respectively. 2016 Single Premium QSR Transaction In the first quarter of 2016, in order to proactively manage the risk and return profile of Radian Guaranty’s insured portfolio and continue managing its position under the PMIERs financial requirements in a cost-effective manner, Radian Guaranty entered into the 2016 Single Premium QSR Transaction with a panel of third-party reinsurers. Under the 2016 Single Premium QSR Transaction, effective January 1, 2016, Radian Guaranty began ceding the following Single Premium IIF and NIW, subject to certain conditions: • 20% of its existing performing Single Premium Policies written between January 1, 2012 and March 31, 2013; • 35% of its existing performing Single Premium Policies written between April 1, 2013 and December 31, 2015; and • 35% of its Single Premium NIW from January 1, 2016 to December 31, 2017, subject to a limitation on ceded premiums written equal to $195 million for policies issued between January 1, 2016 and December 31, 2017. Radian Guaranty receives a 25% ceding commission for premiums ceded pursuant to this transaction. Radian Guaranty also receives a profit commission, provided that the loss ratio on the loans covered under the agreement generally remains below 55% . Losses on the ceded risk above this level reduce Radian Guaranty’s profit commission on a dollar-for-dollar basis. The agreement is scheduled to terminate on December 31, 2027; however, Radian Guaranty has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of January 1, 2020, or at the end of any calendar quarter thereafter, which would result in Radian Guaranty reassuming the related RIF in exchange for a net payment from the reinsurer calculated in accordance with the terms of the agreement. Effective December 31, 2017, we amended the 2016 Single Premium QSR Transaction to increase the amount of ceded risk on performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages. As of the effective date, the result of this amendment increases the amount of risk ceded on Single Premium Policies, including for the purposes of calculating any future ceding commissions and profit commissions that Radian Guaranty will earn. It will also increase the future amounts of our ceded premiums and ceded losses. RIF ceded under the 2016 Single Premium QSR Transaction was $6.9 billion and $3.8 billion as of December 31, 2017 and 2016 , respectively. Ceded Premiums, Commissions and Losses The following tables show the amounts related to the QSR Transactions and the 2016 Single Premium QSR Transaction for the periods indicated: QSR Transactions 2016 Single Premium QSR Transaction Year Ended December 31, Year Ended December 31, (In thousands) 2017 2016 2015 2017 2016 2015 Ceded premiums written (1) $ 19,356 $ 28,097 $ 30,213 $ 193,517 $ 233,206 $ — Ceded premiums earned (1) 28,503 42,515 46,975 27,284 29,808 — Ceding commissions written 5,536 8,019 11,443 55,333 66,153 — Ceding commissions earned (2) 13,122 16,573 14,453 13,774 15,303 — Ceded losses, net 771 1,858 1,187 2,490 2,262 — ______________________ (1) Net of profit commission. (2) Includes amounts reported in policy acquisition costs and other operating expenses. 2018 Single Premium QSR Transaction In October 2017, we entered into the 2018 Single Premium QSR Transaction with a panel of third-party reinsurers. Under the 2018 Single Premium QSR Transaction, beginning with the business written in January 2018, we expect to cede 65% of our Single Premium NIW, subject to certain conditions and a limitation on ceded premiums written equal to $335 million for policies issued between January 1, 2018 and December 31, 2019. Notwithstanding this limitation, the parties may mutually agree to increase the amount of ceded risk above this level. Radian Guaranty will receive a 25% ceding commission for premiums ceded pursuant to this transaction. Radian Guaranty will also receive an annual profit commission based on the performance of the loans subject to the agreement, provided that the loss ratio on the subject loans is below 56% for that calendar year. Radian Guaranty may discontinue ceding new policies under the agreement at the end of any calendar quarter. The agreement is scheduled to terminate on December 31, 2029. However, Radian Guaranty may terminate this agreement prior to the scheduled date if one or both of the GSEs no longer grant full credit for the reinsurance. Radian Guaranty also has the option, based on certain conditions and subject to a termination fee, to terminate the agreement as of January 1, 2022, or at the end of any calendar quarter thereafter. Termination of the agreement would result in Radian Guaranty reassuming the related RIF in exchange for a net payment from the reinsurer calculated in accordance with the terms of the agreement. Captive Reinsurance Arrangements In the past, we and other companies in the mortgage insurance industry also participated in reinsurance arrangements with mortgage lenders commonly referred to as “captive reinsurance arrangements.” Under captive reinsurance arrangements, a mortgage lender typically established a reinsurance company that assumed part of the risk associated with the portfolio of that lender’s mortgages insured by us on a Flow Basis. In return for the reinsurance company’s assumption of a portion of the risk, we ceded a portion of the mortgage insurance premiums paid to us to the reinsurance company. During the financial crisis, losses increased significantly and almost all captive reinsurance arrangements attached, thereby requiring our captive reinsurers to make payments to us. The reinsurance recoverable on loss reserves related to captive agreements was $0.3 million at December 31, 2017 , compared to $0.4 million as of December 31, 2016 . All of our existing captive reinsurance arrangements are operating on a run-off basis, meaning that no new business is being placed in these captives. We have not entered into any new captives since 2007 and, pursuant to consent orders with the CFPB and the Minnesota Department of Commerce, we have agreed not to enter into any new captives until 2025. During 2017, our RIF ceded under captive reinsurance arrangements declined to $9.9 million as of December 31, 2017 , compared to $12.7 million as of December 31, 2016 , as we terminated several captive reinsurance arrangements during the year. Collateral Although we use reinsurance as one of our risk management tools, reinsurance does not relieve us of our obligations to our policyholders. In the event the reinsurers are unable to meet their obligations to us, our insurance subsidiaries would be liable for any defaulted amounts. However, in all of our reinsurance transactions, the reinsurers have established a trust to help secure our potential cash recoveries. In addition, for the 2016 Single Premium QSR Transaction, Radian Guaranty holds amounts received from ceded premiums written to collateralize the reinsurers’ obligations, which is reported in reinsurance funds withheld on the consolidated balance sheets. Any loss recoveries and profit commissions to Radian Guaranty related to the 2016 Single Premium QSR Transaction are expected to be realized from this account. |
Note 9 - Other Assets (Notes)
Note 9 - Other Assets (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | Other Assets The following table shows the components of other assets for the periods indicated: December 31, (In thousands) 2017 2016 Deposit with the IRS (Note 10) $ 88,557 $ 88,557 Property and equipment (1) (2) 87,042 70,665 Company-owned life insurance 85,862 83,248 Loaned securities (Note 6) 27,964 — Accrued investment income 31,389 29,255 Deferred policy acquisition costs 16,987 14,127 Reinsurance recoverables 8,492 7,368 Other 61,556 50,615 Total other assets $ 407,849 $ 343,835 ______________________ (1) Property and equipment at cost, less accumulated depreciation of $106.0 million and $118.5 million at December 31, 2017 and 2016 , respectively. Depreciation expense was $17.4 million , $11.7 million and $6.7 million for the years ended December 31, 2017 , 2016 and 2015 respectively. (2) Includes $44.0 million and $49.7 million at December 31, 2017 and 2016 , respectively, related to our technology upgrade project and $15.5 million at December 31, 2017 of leasehold improvements related to our new corporate headquarters. |
Note 10 - Income Taxes Level 1
Note 10 - Income Taxes Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Income Tax Provision The components of our consolidated income tax provision from continuing operations are as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Current provision $ 59,122 $ 4,546 $ 120 Deferred provision 166,527 170,887 156,170 Total income tax provision $ 225,649 $ 175,433 $ 156,290 The reconciliation of taxes computed at the statutory tax rate of 35% to the provision for income taxes on continuing operations is as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Provision for income taxes computed at the statutory tax rate $ 121,358 $ 169,290 $ 153,240 Change in tax resulting from: Repurchase premium on convertible notes (96 ) 9,988 (6,674 ) State tax (benefit) (15,641 ) (8,974 ) (7,619 ) Valuation allowance 18,197 10,663 11,931 Remeasurement of net deferred tax assets due to the TCJA 102,617 — — Other, net (786 ) (5,534 ) 5,412 Provision for income taxes $ 225,649 $ 175,433 $ 156,290 Deferred Tax Assets and Liabilities The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows: December 31, (In thousands) 2017 2016 Deferred tax assets: Accrued expenses $ 30,267 $ 41,219 Unearned premiums 35,035 67,538 NOL — 179,128 Net unrealized loss on investments — 6,285 State income taxes 68,577 51,875 Partnership investments 47,991 73,918 Loss reserves 1,397 3,801 Alternative minimum tax credit carryforward 57,086 7,367 Goodwill and Intangibles 36,947 — Other 41,499 49,511 Total deferred tax assets 318,799 480,642 Deferred tax liabilities: Convertible and other long-term debt — 2,212 Differences in fair value of financial instruments 3,833 1,758 Net unrealized gain on investments 6,792 — Depreciation 11,138 10,626 Goodwill and Intangibles — 4,758 Other 2,446 2,598 Total deferred tax liabilities 24,209 21,952 Less: Valuation allowance 65,023 46,892 Net deferred tax asset $ 229,567 $ 411,798 Tax Reform On December 22, 2017, H.R.1, the TCJA, was signed into law. In accordance with the provisions of the accounting standard regarding accounting for income taxes, changes in tax rates and tax law are accounted for in the period of enactment, which, for federal legislation, is the date the President signed the bill into law. Effective January 1, 2018, the TCJA, among other things, reduces the federal corporate income tax rate from 35% to 21% , repeals the corporate alternative minimum tax and modifies certain limitations on executive compensation. Under GAAP, the effect of tax rate changes on deferred tax balances is recorded as a component of the income tax provision related to continuing operations for the period in which the new tax law is enacted. Because the TCJA was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next 12 months, as of December 31, 2017, we have not completed our accounting for the effects of the TCJA on certain deferred tax balances; however, we have made provisional estimates of those amounts in accordance with SAB 118. These provisional estimates primarily relate to NOLs, loss reserves, tax depreciation, share-based compensation and state taxes. We expect to complete our analysis of all deferred tax balances within the 12-month measurement period defined by SAB 118. Accordingly, we have recognized a non-cash, provisional income tax expense of $102.6 million , which is included as a component of the income tax provision for the year ended December 31, 2017. The ultimate impact of the TCJA may differ from our provisional estimates due to, among other things, future guidance that may be issued, changes in our interpretation or assumptions with respect to reversal periods, the outcome of our potential settlement of the IRS Matter and future actions that we may take as a result of the new tax law . For periods beginning after December 31, 2017, we will realize a significant reduction in our annualized effective tax rate, before considering Discrete Items, primarily due to the reduction in the federal corporate tax rate from 35% to 21% . Typically, when the statutory tax rate is constant between periods, our return-to-provision adjustments for temporary differences do not impact our overall effective tax rate. However, with the change in the corporate tax rate, our return-to-provision adjustments recorded during 2018 may affect our current provision at a 35% tax rate while affecting our deferred provision at a 21% tax rate. Our return-to-provision adjustments are accounted for as Discrete Items and are generally recorded in the three-month period ending December 31. Current and Deferred Taxes As of December 31, 2017 , we recorded a net current income tax payable of $95.6 million , which primarily consists of liabilities related to applying the standards of accounting for uncertainty in income taxes, and a current federal income tax recoverable of $48.4 million . Before consideration of uncertain tax positions, we have approximately $124.4 million of U.S. NOL carryforwards, $57.1 million of alternative minimum tax credit carryforwards and $6.5 million of research and development tax credit carryforwards as of December 31, 2017 . Our deferred tax asset relating to our U.S. NOL carryforward is reduced by the impact of uncertain tax positions in the above table of deferred tax assets and liabilities. To the extent not utilized, the U.S. NOL carryforwards will expire during tax years 2031 and 2032, and the research and development tax credit carryforwards will expire during tax years 2031 through 2037. We expect our alternative minimum tax credit carryforwards to be fully utilized or refunded in the near term. Certain entities within our consolidated group have also generated deferred tax assets of approximately $69.5 million , relating primarily to state and local NOL carryforwards which, if unutilized, will expire during various future tax periods. Valuation Allowances We are required to establish a valuation allowance against our deferred tax assets when it is more likely than not that all or some portion of our deferred tax assets will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our deferred tax assets will be realized in future periods. We have determined that certain non-insurance entities within Radian may continue to generate taxable losses on a separate company basis in the near term and may not be able to fully utilize certain state and local NOLs on their state and local tax returns. Therefore, with respect to deferred tax assets relating to these state and local NOLs and other state timing adjustments, we retained a valuation allowance of $65.0 million at December 31, 2017 and $46.9 million at December 31, 2016 . Tax Benefit Preservation Plan Our ability to fully use our tax assets such as NOLs and tax credit carryforwards could be limited if we experience an “ownership change” within the meaning of IRC Section 382. IRC Section 382 rules governing when a change in ownership occurs are complex and subject to interpretation; however, in general, an ownership change would occur if any “ five -percent shareholders,” as defined under IRC Section 382, collectively increase their ownership by more than 50 percentage points over a rolling three -year period. As of December 31, 2017 , we have not experienced an ownership change under IRC Section 382. However, if we were to experience a change in ownership under IRC Section 382 in a future period, then we may be delayed in our ability to utilize our NOL and tax credit carryforwards in future periods. In 2009, we adopted a Tax Benefit Preservation Plan (the “Plan”), which, as amended, was approved by our stockholders at our 2010, 2013 and 2016 annual meetings. We also adopted certain amendments to our amended and restated bylaws (the “Bylaw Amendment”) and at our 2010, 2013 and 2016 annual meetings, our stockholders approved certain amendments to our amended and restated certificate of incorporation (the “Charter Amendment”). These steps were taken to protect our ability to utilize our NOLs and other tax assets and to attempt to prevent an “ownership change” under U.S. federal income tax rules by discouraging and in most cases restricting certain transfers of our common stock that would: (i) create or result in a person becoming a five -percent shareholder under IRC Section 382 or (ii) increase the stock ownership of any existing five -percent shareholder under IRC Section 382. The continued effectiveness of the Plan, the Bylaw Amendment and the Charter Amendment are subject to periodic examination by Radian Group’s board of directors and the reapproval of the Plan and the Charter Amendment by our stockholders every three years. We currently expect that our tax benefit preservation measures will be terminated no later than 2019. IRS Matter As previously disclosed, we are contesting adjustments resulting from the examination by the IRS of our 2000 through 2007 consolidated federal income tax returns. The IRS opposes the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of non-economic REMIC residual interests and has proposed denying the associated tax benefits of these items. We appealed these proposed adjustments to the Internal Revenue Service Office of Appeals and made “qualified deposits” with the U.S. Treasury of $85 million in June 2008 relating to the 2000 through 2004 tax years and $4 million in May 2010 relating to the 2005 through 2007 tax years in order to avoid the accrual of incremental above-market-rate interest with respect to the proposed adjustments. We attempted to reach a compromised settlement with the Internal Revenue Service Office of Appeals, but in September 2014 we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties of $157 million . The Deficiency Amount has not been reduced to reflect our NOL carryback ability. As of December 31, 2017 , there also would be interest of approximately $149 million related to these matters. Depending on the outcome, additional state income taxes, penalties and interest (estimated in the aggregate to be approximately $37 million as of December 31, 2017) also may become due when a final resolution is reached. The Notices of Deficiency also reflected additional amounts due of $105 million , which are primarily associated with the disallowance of the previously filed carryback of our 2008 NOL to the 2006 and 2007 tax years. We currently believe that the disallowance of our 2008 NOL carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL carryback claim. On December 3, 2014, we petitioned the U.S. Tax Court (“Tax Court”) to litigate the Deficiency Amount. On September 1, 2015, we received a notice that the case had been scheduled for trial. However, the parties jointly filed, and the Tax Court approved, motions for continuance in this matter to postpone the trial date. Also, in February 2016, the Tax Court approved a joint motion to consolidate for trial, briefing and opinion our case with a similar case involving MGIC Investment Corporation. During 2016, we held several meetings with the IRS in an attempt to reach a compromised settlement on the issues presented in our dispute. In October 2017, the parties informed the Tax Court that they believe they have reached agreement in principle on all issues in the dispute. In November 2017, as required by law, the agreement was reported to the JCT for review. The agreement cannot be finalized until the IRS considers the views, if any, expressed by the JCT about the matter. If we are unable to complete a compromised settlement, then the ongoing litigation could take several years to resolve and may result in substantial legal expenses. We can provide no assurance regarding the outcome of any such litigation or whether a compromised settlement with the IRS will ultimately be reached. We currently believe that an adequate provision for income taxes has been made for the potential liabilities that may result from this matter. However, if the ultimate resolution of this matter produces a result that differs materially from our current expectations, there could be a material impact on our effective tax rate, results of operations and cash flows. Unrecognized Tax Benefits As of December 31, 2017 , we have $112.3 million of unrecognized tax benefits, including $65.7 million of interest and penalties, that would affect the effective tax rate, if recognized. Our policy for the recognition of interest and penalties associated with uncertain tax positions is to record such items as a component of our income tax provision, of which $2.2 million , $1.8 million and $0.8 million were recorded for the years ended December 31, 2017 , 2016 and 2015 , respectively. A reconciliation of the beginning and ending unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2017 2016 Balance at beginning of period $ 123,028 $ 124,246 Tax positions related to the current year: Increases 2,343 1,203 Decreases — (1,835 ) Tax positions related to prior years: Increases 24,122 22,389 Decreases (1,437 ) (1,406 ) Lapses of applicable statute of limitation (24,105 ) (21,569 ) Balance at end of period $ 123,951 $ 123,028 In previous years, we took a return position in various jurisdictions that we are not required to remit taxes with regard to the income generated from our investment in certain partnership interests. Although we believe that these tax positions are more likely than not to succeed if adjudicated, measurement of the potential amount of liability for state and local taxes and the potential for penalty and interest thereon is performed on a quarterly basis. Our net unrecognized tax benefits related to prior years increased by $22.7 million during 2017 . This net increase primarily reflects the impact of unrecognized tax benefits associated with our recognition of certain premium income. Although unrecognized tax benefits for this item decreased by $24.1 million due to the expiration of the applicable statute of limitations for the taxable period ended December 31, 2013, the related amounts continued to impact subsequent years, resulting in a corresponding increase to the unrecognized tax benefits related primarily to the 2014 taxable year. As discussed above, we believe we have reached a basis for a compromised settlement with the IRS on the issues present in our case. The resolution and computations of our adjusted tax liabilities for the 2000 through 2007 tax years have been presented to the JCT for review and cannot be finalized until the IRS considers the views, if any, expressed by the JCT about the matter. However, if we are able to achieve a compromised settlement with the IRS, then it is estimated that over the next 12 months approximately $70.0 million of unrecognized tax benefits in the above tabular reconciliation may be reversed pursuant to the accounting standard for uncertain tax positions. In the event we are not successful in defense of our tax positions taken for U.S. federal income tax purposes, and for which we have recorded unrecognized tax benefits, then such adjustments originating in NOL or NOL carryback years may reduce our existing NOL. The following calendar tax years, listed by major jurisdiction, remain subject to examination: U.S. Federal Corporation Income Tax (1) 2000 - 2007, 2014 - 2016 Significant State and Local Jurisdictions (2) 2000 - 2016 ______________________ (1) For the 2000 through 2007 calendar tax years, we petitioned the U.S. Tax Court to litigate the IRS Notices of Deficiency resulting from the examination of our 2000 through 2007 consolidated federal income tax returns. This litigation relates to the recognition of certain tax benefits associated with our investment in a portfolio of non-economic REMIC residual interests. (2) California, Florida, Georgia, New York, Ohio, Pennsylvania and New York City. |
Note 11 - Losses and Loss Adjus
Note 11 - Losses and Loss Adjustment Expenses Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Loss Reserves [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | Losses and Loss Adjustment Expenses All of the balance and activity of our consolidated reserve for losses and loss adjustment expense relate to the Mortgage Insurance segment. The following table shows our reserve for losses and LAE by category at the end of each period indicated: Year Ended December 31, (In thousands) 2017 2016 Reserves for losses by category: Prime $ 285,022 $ 379,845 Alt-A and A minus and below 170,873 249,659 IBNR and other (1) 16,021 71,107 LAE 13,349 18,630 Reinsurance recoverable (2) 8,315 6,816 Total primary reserves 493,580 726,057 Pool 12,794 31,853 IBNR and other 278 673 LAE 356 932 Reinsurance recoverable (2) 35 35 Total pool reserves 13,463 33,493 Total First-lien reserves 507,043 759,550 Other (3) 545 719 Total reserve for losses $ 507,588 $ 760,269 ______________________ (1) At December 31, 2016, primarily related to expected payments under the Freddie Mac Agreement. During the third quarter of 2017, the scheduled final settlement date under the Freddie Mac Agreement occurred and therefore, except for loans with loss mitigation and claims activity already in process, most of the loans subject to the Freddie Mac Agreement were removed from RIF and IIF because the insurance no longer remains in force. See “ —Agreements —Freddie Mac Agreement,” below for additional information. (2) Represents ceded losses on captive reinsurance transactions, the QSR Transactions and the 2016 Single Premium QSR Transaction. (3) Does not include our second-lien mortgage loan PDR that is included in other liabilities. For the periods indicated, the following table presents information relating to our reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan PDR: Year Ended December 31, (In thousands) 2017 2016 2015 Balance at January 1, $ 760,269 $ 976,399 $ 1,560,032 Less: Reinsurance recoverables (1) 6,851 8,286 26,665 Balance at January 1, net of reinsurance recoverables 753,418 968,113 1,533,367 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 185,486 206,383 229,061 Prior years (49,286 ) (3,516 ) (29,647 ) Total incurred 136,200 202,867 199,414 Deduct: Paid claims and LAE related to: Current year (2) 25,011 11,410 10,837 Prior years 365,369 406,152 753,831 Total paid 390,380 (3) 417,562 764,668 Balance at end of period, net of reinsurance recoverables 499,238 753,418 968,113 Add: reinsurance recoverables (1) 8,350 6,851 8,286 Balance at December 31, $ 507,588 $ 760,269 $ 976,399 ______________________ (1) Related to ceded losses recoverable, if any, on captive reinsurance transactions, the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. (2) Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. For 2017, includes payments made on pool commutations, in some cases for loans not previously in default. (3) Includes the payment of $54.8 million made in connection with the scheduled settlement of the Freddie Mac Agreement in the third quarter of 2017. Reserve Activity 2017 Activity Our loss reserves at December 31, 2017 declined as compared to December 31, 2016, primarily as a result of the amount of paid claims and Cures continuing to outpace losses incurred related to new default notices reported in the current year. Reserves established for new default notices were the primary driver of our total incurred loss for 2017, and they were primarily impacted by the number of new primary default notices received in the period and our related gross Default to Claim Rate assumption applied to those new defaults, which, except as discussed below for FEMA Designated Areas associated with Hurricanes Harvey and Irma, declined from 12% at December 31, 2016 to 10% at December 31, 2017. The provision for losses during 2017 was positively impacted by favorable reserve development on prior year defaults, which was primarily driven by a reduction during the period in certain Default to Claim Rate assumptions for these prior year defaults compared to the assumptions used at December 31, 2016. The reductions in Default to Claim Rate assumptions resulted from observed trends, primarily higher Cures than were previously estimated. During the third quarter of 2017, Hurricanes Harvey and Irma caused extensive property damage to areas of Texas, Florida and Georgia, as well as other general disruptions including power outages and flooding. At December 31, 2017 , our total primary mortgage insurance exposure to mortgages in counties affected by these storms and subsequently designated as FEMA Designated Areas is approximately $4.6 billion of RIF on approximately $17.4 billion of IIF. This exposure represents approximately 9% of our primary mortgage insurance RIF as of December 31, 2017 . Although the mortgage insurance we write protects the lenders from a portion of losses resulting from loan defaults, it does not provide protection against property loss or physical damage. Our Master Policies contain an exclusion against physical damage, including damage caused by floods or other natural disasters. Depending on the policy form and circumstances, we may, among other things, deduct the cost to repair or remedy physical damage above a de minimis amount from a claim payment and/or, under certain circumstances, deny a claim where (i) the property underlying a mortgage in default is subject to unrestored physical damage or (ii) the physical damage is deemed to be the principal cause of default. While we observed an increase in new primary defaults from FEMA Designated Areas associated with Hurricanes Harvey and Irma following those two natural disasters, we expect most of these to cure within the next 12 months, and at rates higher than our general population of defaults. We therefore assigned a 3% Default to Claim Rate assumption to the new primary defaults from FEMA Designated Areas associated with Hurricanes Harvey and Irma that were reported subsequent to those two natural disasters. These incremental defaults did not have a material impact on our provision for losses as of December 31, 2017 . However, the future reserve impact may be affected by various factors, including the pace of economic recovery in the FEMA Designated Areas. Total claims paid decreased for 2017, compared to 2016, consistent with the ongoing decline in outstanding default inventory, partially offset by payments that, as expected, were made in connection with the final settlement of the Freddie Mac Agreement in the third quarter of 2017. See “—Agreements— Freddie Mac Agreement ” below for additional information. 2016 Activity Our loss reserves at December 31, 2016 declined as compared to December 31, 2015, primarily as a result of the amount of paid claims continuing to exceed losses incurred related to new default notices reported in the current year. Reserves established for new default notices were the primary driver of our total incurred loss for 2016, and they were impacted primarily by the number of new primary default notices received in the period and our related gross Default to Claim Rate assumption applied to those new defaults, which declined from 13% at December 31, 2015 to 12% as of December 31, 2016. The impact to incurred losses from reserve development on default notices reported in prior years was not significant during 2016. Total claims paid decreased for 2016 compared to 2015, primarily due to the elevated claim payments in 2015 associated with the BofA Settlement Agreement (discussed below). 2015 Activity Our loss reserve declined in 2015 from December 31, 2014, primarily as a result of the volume of paid claims, Cures and Rescissions and Claim Denials having exceeded new default notices received. During the year ended December 31, 2015, we reduced our gross Default to Claim Rate assumption for new primary defaults from 16% to 13% , based on continued improvement observed in actual claim development trends. Favorable reserve development on prior year defaults partially mitigated the provision for losses from new default notices received in 2015. The $29.6 million favorable development on prior year defaults observed in 2015 was driven primarily by a decrease in our actual and estimated Default to Claim Rate assumptions on prior year defaults, as a result of higher Cures than were previously estimated, partially offset by a decline in our estimates for future Rescissions and Claim Denials. Reserve Assumptions Default to Claim Rate Our aggregate weighted-average Default to Claim Rate assumption (net of Claim Denials and Rescissions) used in estimating our primary reserve for losses was 31% ( 29% excluding pending claims) at December 31, 2017 compared to 42% ( 40% excluding pending claims) at December 31, 2016 . The change in our Default to Claim Rate in 2017 resulted primarily from: (i) the lower Default to Claim Rate of 3% on new primary defaults in FEMA Designated Areas associated with Hurricanes Harvey and Irma subsequent to those two natural disasters; (ii) a decrease in the proportion of pending claims, which have higher Default to Claim Rates; and (iii) a decrease in the assumed gross Default to Claim Rate for new primary defaults that were not located in FEMA Designated Areas associated with Hurricanes Harvey and Irma, from 12% to 10% , as of December 31, 2017 . As of December 31, 2017 , with the exception of new primary defaults in FEMA Designated Areas associated with Hurricanes Harvey and Irma, our gross Default to Claim Rates on our primary portfolio ranged from 10% for new defaults, to 62% for other defaults not in Foreclosure Stage, and 81% for Foreclosure Stage Defaults. As of December 31, 2016, these gross Default to Claim Rates ranged from 12% for new defaults, to 62% for other defaults not in Foreclosure Stage, and 81% for Foreclosure Stage Defaults. Our Default to Claim Rate estimates on defaulted loans are mainly developed based on the Stage of Default and Time in Default of the underlying defaulted loans grouped according to the period in which the default occurred, as measured by the progress toward foreclosure sale and the number of months in default. Our estimate of expected Rescissions and Claim Denials (net of expected Reinstatements) embedded in our estimated Default to Claim Rate is generally based on our recent experience. Consideration is also given for differences in characteristics between those rescinded policies and denied claims and the loans remaining in our defaulted inventory. Loss Mitigation Although our estimates of future Loss Mitigation Activities have been declining, they remain elevated compared to levels experienced before 2009. The elevated levels of our rate of Rescissions, Claim Denials and Claim Curtailments have significantly reduced our paid losses and have resulted in a reduction in our loss reserve. Our estimate of net future Loss Mitigation Activities reduced our loss reserve as of December 31, 2017 and 2016 by approximately $21 million and $39 million , respectively. The amount of estimated Loss Mitigation Activities incorporated into our reserve analysis at any point in time is affected by a number of factors, including not only our estimated rate of Rescissions, Claim Denials and Claim Curtailments on future claims, but also the volume and attributes of our defaulted insured loans, our estimated Default to Claim Rate and our estimated Claim Severity, among other assumptions. As our Legacy Portfolio has become a smaller percentage of our overall insured portfolio, we have undertaken a reduced amount of Loss Mitigation Activity with respect to the claims we receive, and we expect this trend to continue. As a result, our future Loss Mitigation Activity is not expected to mitigate our paid losses to the same extent as in recent years. Our reported Rescission, Claim Denial and Claim Curtailment activity in any given period is subject to challenge by our lender and servicer customers. We expect that a portion of previous Rescissions will be reinstated and previous Claim Denials will be resubmitted with the required documentation and ultimately paid; therefore, we have incorporated this expectation into our IBNR reserve estimate. Our IBNR reserve estimate of $10.4 million and $14.3 million at December 31, 2017 and 2016 , respectively, includes reserves for this activity. We also accrue for the premiums that we expect to refund to our lender customers in connection with our estimated Rescissions. Sensitivity Analysis We considered the sensitivity of first-lien loss reserve estimates at December 31, 2017 by assessing the potential changes resulting from a parallel shift in Claim Severity and Default to Claim Rate estimates for primary loans. For example, assuming all other factors remain constant, for every one percentage point change in primary Claim Severity (which we estimate to be 97.6% of risk exposure at December 31, 2017 ), we estimated that our loss reserves would change by approximately $4.8 million at December 31, 2017 . Assuming all other factors remain constant, for every one percentage point change in our overall primary net Default to Claim Rate (which we estimate to be 31% at December 31, 2017 , including our assumptions related to Rescissions and Claim Denials), we estimated a $14.2 million change in our loss reserves at December 31, 2017 . Agreements BofA Settlement Agreement On September 16, 2014, Radian Guaranty entered into the BofA Settlement Agreement in order to resolve various actual and potential claims or disputes related to the parties’ respective rights and duties as to mortgage insurance coverage on the specific population of loans covered by the agreement. Implementation of the BofA Settlement Agreement commenced on February 1, 2015 and cash payments under the BofA Settlement Agreement were effectively completed by December 31, 2015. The BofA Settlement Agreement finalized claims decisions (including claims paid, coverage Rescissions, Claim Denials and Claim Curtailments) on certain loans covered by the agreement (communicated on or before certain dates prior to 2015), such that they are not subject to future challenge or adjustment. For claims decisions on certain other loans (communicated after those dates), the BofA Settlement Agreement limits both prior and future Rescissions, Claim Denials or Claim Curtailments. Radian Guaranty further agreed not to assert any right to cancel coverage on certain loans for failure to initiate certain proceedings (most commonly foreclosure proceedings) within the timelines set forth in the applicable Master Policies. We do not expect a material impact to our results of operations from this agreement in the future. Freddie Mac Agreement In August 2013, Radian Guaranty entered into the Freddie Mac Agreement, related to a group of first-lien mortgage loans guaranteed by Freddie Mac that were insured by Radian Guaranty and were in default as of December 31, 2011. At December 31, 2016 , Radian Guaranty had $63.9 million in a collateral account invested in and classified as part of our trading securities and pledged to cover Loss Mitigation Activity on the loans subject to the Freddie Mac Agreement. During the third quarter of 2017, the scheduled final settlement date under the Freddie Mac Agreement occurred and, as expected, we paid $54.8 million to Freddie Mac, which reduced the remaining balance in the collateral account to $5.6 million at December 31, 2017 . These amounts were invested in and classified as short-term investments and pledged to cover Loss Mitigation Activity and pending claims activity already in process but not yet finalized. Additional Disclosures The following tables provide information as of and for the periods indicated about: (i) incurred losses, net of reinsurance; (ii) the total of IBNR liabilities plus expected development on reported claims, included within the net incurred loss amounts; (iii) the cumulative number of reported defaults; and (iv) cumulative paid claims, net of reinsurance. The default year represents the period that a new default notice is first reported to us by loan servicers, related to borrowers that missed two monthly payments. The information about net incurred losses and paid claims development for the years ended prior to 2017 is presented as supplementary information. Incurred Losses, Net of Reinsurance Year Ended December 31, As of December 31, 2017 ($ in thousands) Total of IBNR Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Defaults (2) Unaudited Default Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 1,957,510 $ 1,715,144 $ 1,969,581 $ 2,009,551 $ 2,018,794 $ 2,074,295 $ 2,088,719 $ 2,110,922 $ 2,115,083 $ 2,122,647 $ 2,370 215,837 2009 1,671,239 1,894,783 1,930,263 1,939,479 1,974,568 1,991,796 2,016,412 2,018,907 2,022,629 1,535 213,836 2010 1,102,856 1,215,136 1,192,482 1,195,056 1,207,774 1,220,289 1,218,264 1,219,469 958 146,324 2011 1,058,625 1,152,016 1,052,277 1,050,555 1,062,579 1,061,161 1,059,116 904 118,972 2012 803,831 763,969 711,213 720,502 715,646 714,783 756 89,845 2013 505,732 405,334 401,444 404,333 402,259 653 71,749 2014 337,784 247,074 265,891 264,620 776 58,215 2015 222,555 198,186 178,042 874 49,825 2016 201,016 165,440 2,185 46,264 2017 180,851 2,672 47,283 Total $ 8,329,856 ______________________ (1) Represents reserves as of December 31, 2017 related to IBNR liabilities. (2) Represents total number of new default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods. Included in this amount for the year ended December 31, 2017 and December 31, 2016 are 8,862 and 3,852 notices, respectively, of new primary defaults related to the FEMA Designated Areas associated with Hurricanes Harvey and Irma. Cumulative Paid Claims, Net of Reinsurance Year Ended December 31, (In thousands) Unaudited Default Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 189,458 $ 740,578 $ 1,297,867 $ 1,635,069 $ 1,744,559 $ 1,872,804 $ 1,932,283 $ 2,022,019 $ 2,051,495 $ 2,088,124 2009 136,413 619,496 1,236,210 1,471,264 1,711,019 1,807,031 1,921,134 1,958,660 1,986,076 2010 11,810 394,278 700,316 956,598 1,055,935 1,145,497 1,178,546 1,198,031 2011 40,392 323,216 756,820 892,959 982,830 1,016,855 1,038,582 2012 19,200 295,332 528,744 631,982 672,271 692,291 2013 34,504 191,040 307,361 357,087 379,036 2014 13,108 115,852 200,422 233,607 2015 10,479 84,271 142,421 2016 11,061 76,616 2017 24,653 Total $ 7,859,437 All outstanding liabilities before 2008, net of reinsurance 15,492 Liabilities for claims, net of reinsurance (1) $ 485,911 ______________________ (1) Calculated as follows: (In thousands) Incurred losses, net of reinsurance $ 8,329,856 Add: All outstanding liabilities before 2008, net of reinsurance 15,492 Less: Cumulative paid claims, net of reinsurance 7,859,437 Liabilities for claims, net of reinsurance $ 485,911 The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the reserve for losses and LAE in the consolidated balance sheet at December 31, 2017 : (In thousands) December 31, 2017 Net outstanding liabilities - Mortgage Insurance: Reserve for losses and LAE, net of reinsurance $ 485,911 Reinsurance recoverables on unpaid claims 8,350 Unallocated LAE 13,327 Total gross reserve for losses and LAE $ 507,588 The following is supplementary information about average historical claims duration as of December 31, 2017 , representing the average distribution of when claims are paid relative to the year of default: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 6 7 8 9 10 Mortgage Insurance 6.3% 33.9% 31.1% 14.4% 7.5% 4.8% 3.3% 2.6% 1.4% 1.7% |
Note 12 - Long-Term Debt Level
Note 12 - Long-Term Debt Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt [Text Block] | Long-Term Debt The carrying value of our long-term debt at December 31, 2017 and 2016 was as follows: December 31, ($ in thousands) 2017 2016 5.500% Senior Notes due 2019 $ 157,636 $ 296,907 5.250% Senior Notes due 2020 231,834 345,308 7.000% Senior Notes due 2021 195,146 344,362 4.500% Senior Notes due 2024 442,458 — 3.000% Convertible Senior Notes due 2017 — 20,947 2.250% Convertible Senior Notes due 2019 — 62,013 Total long-term debt $ 1,027,074 $ 1,069,537 Extinguishment of Debt 2017 Activity Repurchases of Senior Notes due 2019, 2020 and 2021. During the third quarter of 2017, pursuant to cash tender offers, we purchased aggregate principal amounts of $141.4 million , $115.9 million and $152.3 million of our Senior Notes due 2019, 2020 and 2021, respectively. We funded the purchases with $450.8 million in cash (plus accrued and unpaid interest due on the purchased notes). These purchases resulted in a loss on induced conversion and debt extinguishment of $45.8 million . At December 31, 2017, the remaining principal amounts of our outstanding Senior Notes due 2019, 2020 and 2021 were $158.6 million , $234.1 million and $197.7 million , respectively. Repurchases of Convertible Senior Notes due 2017. During the second quarter of 2017, we purchased an aggregate principal amount of $21.6 million of our outstanding Convertible Senior Notes due 2017. We funded the purchases with $31.6 million in cash (plus accrued and unpaid interest due on the purchased notes). These purchases of Convertible Senior Notes due 2017 resulted in a loss on induced conversion and debt extinguishment of $1.2 million . In connection with our purchases of Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. We received proceeds of $4.1 million for this termination. Conversion of Convertible Senior Notes due 2019. In November 2016, we announced our intent to exercise our redemption option for the remaining $68.0 million aggregate principal amount of our Convertible Senior Notes due 2019. As a result of the average closing price of our common stock exceeding the conversion price of $10.60 prior to the redemption date, all of the holders of these notes elected to exercise their conversion rights. Radian elected to settle all of the notes surrendered for conversion with cash. We settled our obligations with respect to these conversions on January 27, 2017, with a cash payment of $110.1 million . At the time of settlement, this transaction resulted in a pretax charge of $4.5 million , representing the difference between the fair value and the carrying value, net of unamortized issuance costs, of the liability component of the Convertible Senior Notes due 2019. This transaction also resulted in an aggregate decrease as of the settlement date of 6.4 million diluted shares for the purposes of determining diluted net income per share. 2016 Activity Repurchases of Convertible Senior Notes due 2017 and 2019. During 2016, we entered into privately negotiated agreements to purchase, for cash or a combination of cash and shares of Radian Group common stock, aggregate principal amounts of $30.1 million and $322.0 million , respectively, of our outstanding Convertible Senior Notes due 2017 and 2019. We funded the purchases with $235.0 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to certain of the sellers 17.0 million shares of Radian Group common stock. These purchases of Convertible Senior Notes due 2017 and 2019 resulted in a pretax charge of $60.1 million . This loss represents: • the $41.8 million market premium representing the excess of the fair value of the total consideration delivered to the sellers of the Convertible Senior Notes due 2017 and 2019 over the fair value of the common stock issuable pursuant to the original conversion terms of the purchased notes; • the $17.2 million difference between the fair value and the carrying value, net of unamortized issuance costs, of the liability component of the purchased notes; and • the $1.1 million impact of related transaction costs. In connection with our privately negotiated purchases of Convertible Senior Notes due 2017 in March 2016, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received consideration of 0.2 million shares of Radian Group common stock, which was valued at $2.6 million based on a stock price on the closing date of $11.86 . In accordance with the accounting standards regarding equity and contracts in an entity’s own equity, the total consideration received was recorded as an increase to additional paid-in capital. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares. Redemption of Senior Notes due 2017. On August 12, 2016, we redeemed the remaining $195.5 million aggregate principal amount of our Senior Notes due 2017 for the price established in accordance with the indenture governing the notes. We paid $211.3 million in cash (including accrued interest through the redemption date) to holders of the notes at redemption and recorded a loss on debt extinguishment of $15.0 million . 2015 Activity Repurchase of Convertible Senior Notes due 2017. In June 2015, we entered into privately negotiated agreements with certain holders of our Convertible Senior Notes due 2017 to purchase an aggregate principal amount of $389.1 million of our outstanding Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock. We funded the purchases with $126.8 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to the sellers 28.4 million shares of Radian Group common stock. These purchases of Convertible Senior Notes due 2017 resulted in a pretax charge of $91.9 million . In connection with our June 2015 purchases of our Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received total consideration of $54.9 million , consisting of 2.3 million shares of Radian Group common stock and $13.2 million in cash. In accordance with the accounting standards regarding equity and contracts in an entity’s own equity, the total consideration received was recorded as an increase to additional paid-in capital. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares. Senior Notes Senior Notes due 2019. In May 2014, in anticipation of the Clayton acquisition, we issued $300 million principal amount of Senior Notes due 2019 and received net proceeds of $293.8 million . These notes mature on June 1, 2019 and bear interest at a rate of 5.500% per annum, payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2014. Senior Notes due 2020. In June 2015, we issued $350 million aggregate principal amount of Senior Notes due 2020 and received net proceeds of $343.3 million . These notes mature on June 15, 2020 and bear interest at a rate of 5.250% per annum, payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2015. Senior Notes due 2021. In March 2016, we issued $350 million aggregate principal amount of Senior Notes due 2021 and received net proceeds of $343.4 million . These notes mature on March 15, 2021 and bear interest at a rate of 7.000% per annum, payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2016. Senior Notes due 2024. In September 2017, we issued $450 million aggregate principal amount of Senior Notes due 2024 and received net proceeds of $442.2 million . These notes mature on October 1, 2024 and bear interest at a rate of 4.500% per annum, payable semi-annually on April 1 and October 1 of each year, with interest payments commencing on April 1, 2018. Redemption Terms in Senior Notes. We have the option to redeem the Senior Notes due 2019, 2020, 2021 and 2024 in whole or in part, at any time or from time to time prior to maturity, at a redemption price equal to the greater of: (i) 100% of the aggregate principal amount of the notes to be redeemed or (ii) a “make-whole amount,” which is the sum of the present values of the remaining scheduled payments of principal and interest (excluding any portion of interest accrued to the redemption date) in respect of the notes to be redeemed, discounted to the redemption date at the applicable treasury rate plus 50 basis points, plus, in each case, accrued and unpaid interest thereon to, but excluding, the redemption date. Covenants in Senior Notes. The Senior Notes due 2019, 2020, 2021 and 2024 have covenants customary for securities of this nature, including covenants related to the payments of the notes, reports, compliance certificates and modification of the covenants. Additionally, the applicable indentures include covenants restricting us from encumbering the capital stock of a designated subsidiary (as defined in the respective indentures for the notes) or disposing of any capital stock of any designated subsidiary unless either all of the stock is disposed of or we retain more than 80% of the stock. Convertible Senior Notes due 2017 and 2019 Upon the original issuance of the Convertible Senior Notes due 2017 and 2019, in accordance with accounting standards related to convertible debt instruments that may be settled in cash upon conversion, the Company recorded pretax equity components, net of the capped call transaction (with respect to the Convertible Senior Notes due 2017) and related issuance costs (with respect to the Convertible Senior Notes due 2017 and 2019). Upon the elimination of the outstanding principal amounts of the Convertible Senior Notes due 2017 and 2019, the associated pretax equity components of $5.0 million and $13.1 million at December 31, 2016, respectively, were eliminated. Issuance and transaction costs incurred at the time of the issuance of the convertible notes were allocated to the liability and equity components in proportion to the allocation of proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. The convertible notes are reflected on our consolidated balance sheets as follows: Convertible Senior Notes due 2017 Convertible Senior Notes due 2019 December 31, December 31, (In thousands) 2017 2016 2017 2016 Liability component: Principal $ — $ 22,233 $ — $ 68,024 Debt discount, net (1) — (1,221 ) — (5,461 ) Debt issuance costs (1) — (65 ) — (550 ) Net carrying amount $ — $ 20,947 $ — $ 62,013 ______________________ (1) Included within long-term debt and is being amortized over the life of the convertible notes. The following table sets forth total interest expense recognized related to the convertible notes for the periods indicated: Convertible Senior Notes due 2017 Convertible Senior Notes due 2019 December 31, December 31, 2017 2016 2017 2016 (In thousands) Contractual interest expense (1) $ 310 $ 872 $ (510 ) $ 3,426 Amortization of debt discount 619 1,674 163 5,016 Amortization of debt issuance costs 33 88 16 505 Total interest expense (1) $ 962 $ 2,634 $ (331 ) $ 8,947 ______________________ (1) Interest expense (benefit) represents expense incurred, net of adjustments to accruals previously recorded. Revolving Credit Facility On October 16, 2017, Radian Group entered into a three-year, $225 million unsecured revolving credit facility with a syndicate of bank lenders. Terms of the credit facility include an option to increase the amount during the term of the agreement, subject to our obtaining the necessary increased commitments from the lenders, up to a total of $300 million . Borrowings under the credit facility may be used for working capital and general corporate purposes, including, without limitation, capital contributions to Radian Group’s insurance and reinsurance subsidiaries as well as growth initiatives. Any borrowings outstanding under the facility will accrue interest at a floating rate tied to a standard short-term borrowing index, selected at our option, plus an applicable margin. A commitment fee is due quarterly on the average daily amount of the undrawn commitment. The applicable margin and commitment fee vary based on the senior unsecured long-term debt rating of Radian Group. The credit facility contains customary representations, warranties, covenants, terms and conditions. Our ability to borrow under the credit facility is conditioned on the satisfaction of certain financial and other covenants, including covenants related to minimum net worth and statutory surplus, a maximum debt-to-capitalization level, limits on certain types of indebtedness and liens, minimum liquidity levels and Radian Guaranty’s eligibility as a private mortgage insurer with the GSEs. At December 31, 2017, Radian Group was in compliance with all the covenants, although there were no amounts outstanding under this revolving credit facility. |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Legal Proceedings We are routinely involved in a number of legal and regulatory claims, assertions, actions, reviews, audits, inquiries and investigations by various regulatory entities involving compliance with laws or other regulations, the outcome of which are uncertain. These legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. In accordance with applicable accounting standards and guidance, we establish accruals only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range. In the course of our regular review of pending legal and regulatory matters, we determine whether it is reasonably possible that a potential loss may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any. Loss estimates are inherently subjective, based on currently available information, and are subject to management’s judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and unpredictability surrounding the outcome of legal and other proceedings, actual results may differ materially from any amounts that have been accrued. As described in Note 10, on September 4, 2014 we received formal Notices of Deficiency from the IRS related to certain losses and deductions resulting from our investment in a portfolio of non-economic REMIC residual interests. We believe that an adequate provision for income taxes has been made for the potential liabilities that may result from this matter. However, if the ultimate resolution of this matter produces a result that differs materially from our current expectations, there could be a material impact on our effective tax rate, results of operations and cash flows. On December 22, 2016, Ocwen Loan Servicing, LLC and Homeward Residential, Inc. (collectively, “Ocwen”) filed a complaint against Radian Guaranty (the “Complaint”). Ocwen has also initiated legal proceedings against several other mortgage insurers. The action filed against Radian Guaranty, titled Ocwen, et al. v. Radian Guaranty, is pending in the U.S. District Court for the Eastern District of Pennsylvania (the “Court”). The Complaint alleged breach of contract and bad faith claims and sought monetary damages and declaratory relief regarding certain claims handling practices on future insurance claims. On December 17, 2016, Ocwen separately filed a parallel arbitration petition against Radian Guaranty (the “Petition”) before the American Arbitration Association (“AAA”) asserting substantially the same allegations as in the Complaint (the Complaint and the Petition are collectively referred to as the “Filings”). The Filings listed 9,420 mortgage insurance certificates (“Certificates”) issued under multiple insurance policies, including Pool Insurance Policies, as subject to the dispute. On March 3, 2017, Radian Guaranty filed with the Court: (i) a motion to dismiss Ocwen’s Complaint or, in the alternative, for a more definite statement and (ii) a motion to enjoin Ocwen’s parallel arbitration. On June 5, 2017, Ocwen filed an Amended Complaint and an Amended Petition (collectively, the “Amended Filings”) with the Court and the AAA, respectively, together listing 8,870 Certificates as subject to the dispute. In December 2017 and January 2018, Ocwen and Radian Guaranty filed motions for partial summary judgment in connection with a small number of bellwether certificates selected from the Certificates subject to the Court proceedings (“Bellwether Certificates”). On February 1, 2018, the Court issued an Order and Memorandum decision granting in part and denying in part both parties’ motions for partial summary judgment, and ordering the parties to proceed to trial on certain claims regarding a portion of the Bellwether Certificates. The trial regarding a portion of the Bellwether Certificates is currently scheduled to start in April 2018. Radian Guaranty believes that Ocwen’s allegations and claims in the legal proceedings described above are without merit and legally deficient, and plans to defend these claims vigorously. We are not able to estimate a reasonably possible loss, if any, or range of loss in this matter because of the preliminary stage of the proceedings. We also are periodically subject to reviews and audits, as well as inquiries, information-gathering requests and investigations. In connection with these matters, from time to time we receive requests and subpoenas seeking information and documents related to aspects of our business. In March 2017, Green River Capital, a subsidiary of Clayton, received a letter from the staff of the SEC stating that it is conducting an investigation captioned, “In the Matter of Certain Single Family Rental Securitizations,” and that it is requesting information from market participants. The letter requested that Green River Capital provide information regarding broker price opinions that Green River Capital provided on properties included in single family rental securitization transactions. Green River Capital is cooperating with the SEC. Our Master Policies establish the timeline within which any suit or action arising from any right of an insured under the policy generally must be commenced. In general, any suit or action arising from any right of an insured under the policy must be commenced within two years after such right first arose for primary insurance and within three years for certain other policies, including certain Pool Insurance policies. Although we believe that our Loss Mitigation Activities are justified under our policies, we continue to face challenges from certain lender and servicer customers regarding our Loss Mitigation Activities, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials or Claim Curtailments. We are currently in discussions with these customers regarding Loss Mitigation Activities and our claim payment practices, which if not resolved, could result in arbitration or judicial proceedings and we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. See Note 11 for further information. Further, there are loans in our total defaulted portfolio (in particular, our older defaulted portfolio) for which actions or proceedings (such as foreclosure that provide the insured with title to the property) may not have been commenced within the outermost deadline in our Prior Master Policy. We are evaluating these loans regarding this potential violation and our corresponding rights under the Prior Master Policy. While we can provide no assurance regarding the ultimate resolution of these issues, it is possible that arbitration or legal proceedings could result. Other Securities regulations became effective in 2005 that impose enhanced disclosure requirements on issuers of ABS (including mortgage-backed securities). To allow our customers to comply with these regulations at that time, we typically were required, depending on the amount of credit enhancement we were providing, to provide: (i) audited financial statements for the insurance subsidiary participating in the transaction or (ii) a full and unconditional holding company-level guarantee for our insurance subsidiaries’ obligations in such transactions. Radian Group has guaranteed two structured transactions for Radian Guaranty involving approximately $97.8 million of remaining credit exposure as of December 31, 2017 . We provide contract underwriting as an outsourced service to our customers. Under our current contract underwriting program the remedy we offer is limited indemnification to our contract underwriting customers only with respect to those loans that we simultaneously underwrite for both secondary market compliance and for potential mortgage insurance eligibility. In 2017 , payments for losses related to contract underwriting remedies were de minimis. In 2017 , our provision for contract underwriting expenses was de minimis and our reserve for contract underwriting obligations at December 31, 2017 was $0.5 million . We monitor this risk and negotiate our underwriting fee structure and recourse agreements on a client-by-client basis. We also routinely audit the performance of our contract underwriters. We lease office space for use in our operations. The lease agreements, which expire periodically through August 2032, contain provisions for scheduled periodic rent increases. Net rental expense in connection with these leases totaled $5.7 million in 2017 , $5.0 million in 2016 and $5.0 million in 2015 , excluding the net rental expense related to discontinued operations. The commitment for non-cancelable operating leases in future years is as follows: (In thousands) 2018 $ 6,482 2019 9,002 2020 8,929 2021 8,275 2022 8,162 Thereafter 58,396 Total $ 99,246 At December 31, 2017 , there were no future minimum receipts expected from sublease rental payments. |
Note 14 - Capital Stock (Notes)
Note 14 - Capital Stock (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Capital Stock 2017 Activity On June 29, 2016, Radian Group’s board of directors authorized a share repurchase program to spend up to $125 million to repurchase Radian Group common stock. In order to implement the program, Radian adopted a trading plan under Rule 10b5-1 of the Exchange Act during the third quarter of 2016. During the second quarter of 2017, 380 shares were purchased at an average price of $15.59 per share, which represented the only purchases made under the plan. This share repurchase program expired on June 30, 2017. On August 9, 2017, Radian Group’s board of directors renewed its share repurchase program and authorized the Company to spend up to $50 million to repurchase Radian Group common stock in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors. Radian has established a trading plan under Rule 10b5-1 of the Exchange Act to implement the program. As of December 31, 2017 , no shares had been purchased and therefore the full purchase authority of up to $50 million remained available under this program, which expires on July 31, 2018. 2016 Activity In the first quarter of 2016, we announced and completed a share repurchase program. Pursuant to this program, we purchased an aggregate of 9.4 million shares of Radian Group common stock for $100.2 million , at a weighted-average price per share of $10.62 , including commissions. No further purchase authority remains under this share repurchase program. As partial consideration for our March 2016 privately negotiated purchases of a portion of our Convertible Senior Notes due 2017 and 2019, we issued to the sellers 17.0 million shares of Radian Group common stock. In addition, in connection with our termination of the corresponding portion of the related capped call transactions, we received consideration of 0.2 million shares of Radian Group common stock. See Note 12 for additional information regarding these transactions. All shares of Radian Group common stock that we received from the above transactions were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares. 2015 Activity As partial consideration for our June 2015 privately negotiated purchases of a portion of our Convertible Senior Notes due 2017, we issued to the sellers 28.4 million shares of Radian Group common stock. In addition, in partial consideration for our termination of the corresponding portion of the related capped call transactions, we received 2.3 million shares of Radian Group common stock. See Note 12 for additional information regarding these transactions. On June 18, 2015, we authorized an accelerated share repurchase program to repurchase an aggregate of $202 million of Radian Group common stock. Under the accelerated share repurchase program, the total number of shares ultimately delivered to Radian Group was based on the average of the daily volume-weighted-average price of Radian Group common stock during the term of the transaction, less a negotiated discount and subject to certain other adjustments pursuant to the terms and conditions of the program. During the three-month period ended June 30, 2015, 9.2 million shares were repurchased under this program. The counterparty delivered to Radian Group 1.8 million additional shares of Radian Group common stock at final settlement of the accelerated share repurchase program in August 2015, based on the calculated price of $18.32 during the term of the transaction. The shares of Radian Group common stock received pursuant to the accelerated share repurchase and the termination of the capped call transactions were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares. All share repurchases pursuant to the accelerated share repurchase program were funded in the second quarter of 2015 from the proceeds of the Senior Notes due 2020. Other Purchases We may purchase shares on the open market to settle stock options exercised by employees and purchases under our Employee Stock Purchase Plan. Through December 31, 2017, from time to time we also purchased shares on the open market to fund certain 401(k) matches. In addition, upon the vesting of certain restricted stock awards under our equity compensation plans, we may withhold from such vested awards shares of our common stock to satisfy the tax liability of the award recipients. |
Note 15 - Share-Based and Other
Note 15 - Share-Based and Other Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based and Other Compensation Plans | Share-Based and Other Compensation Programs On May 10, 2017, our stockholders approved the Amended and Restated Equity Compensation Plan, which amended and restated the 2014 Equity Plan by increasing the number of shares that may be issued under the plan and making certain other changes. In addition to the Amended and Restated Equity Compensation Plan, we also have awards outstanding under our 2008 Equity Plan and 1995 Equity Plan. The last awards granted pursuant to the 2008 and 1995 Equity Plans were granted in 2014 and 2008, respectively. All awards granted under the Equity Plans have been performance-based or time-vested awards in the form of non-qualified stock options, restricted stock, RSUs, phantom stock, or SARs. The maximum contractual term for all awards under the Equity Plans is 10 years , although awards have been granted with shorter terms. The Amended and Restated Equity Compensation Plan authorizes the issuance of up to 8,954,109 shares, plus such number of shares of common stock subject to awards outstanding under the Amended and Restated Equity Compensation Plan and the 2008 Equity Plan that subsequently terminate, expire or are cancelled and become available for issuance under the Amended and Restated Equity Compensation Plan (“Prior Plan Shares”). There were 8,851,531 shares available for grant under the Amended and Restated Equity Compensation Plan as of December 31, 2017 (the “share reserve”), which includes Prior Plan Shares. Each grant of restricted stock, RSUs, or performance share awards under the Amended and Restated Equity Compensation Plan (other than those settled in cash) reduces the share reserve available for grant under the Amended and Restated Equity Compensation Plan by 1.31 shares for every share subject to such grant. Absent this share reserve adjustment for outstanding restricted stock, RSUs, phantom stock or performance share awards, our shares remaining available for grant under the Amended and Restated Equity Compensation Plan would have been 11,691,367 shares as of December 31, 2017 . Awards under the Amended and Restated Equity Compensation Plan that provide for settlement solely in cash (and not common shares) do not count against the share reserve. Most awards vest at the end of the performance or service period. In the event of a grantee’s death or disability, awards generally vest immediately. Upon retirement, awards generally vest immediately or at the end of the performance period, if any. Awards granted under the Equity Plans to officers provide for “double trigger” vesting in the event of a change of control, meaning that awards will vest in connection with a change of control only in the event the grantee’s employment is terminated by us without cause or the grantee terminates employment for “good reason,” in each case within 90 days before or one year after the change of control. In the event of a hypothetical change of control as of December 31, 2017 , we estimate that the vesting of awards, assuming for purposes of this hypothetical that “double trigger” vesting occurred, would have resulted in a pretax accounting charge to us of approximately $10.2 million , representing the acceleration of compensation expense. We use the Monte Carlo valuation model to determine the fair value of all cash-settled awards where stock price is a factor in determining the vesting, as well as for cash- or equity-settled performance awards where there exists a similar stock price-based market condition. The Monte Carlo valuation model incorporates multiple input variables, including expected life, volatility, risk-free rate of return and dividend yield for each award to estimate the probability that a vesting condition will be achieved. In determining these assumptions for the Monte Carlo valuations, we consider historic and observable market data. Depending on certain characteristics of the awards granted under the various Equity Plans noted above, they are accounted for as either liabilities or equity instruments. The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the years ended: December 31, ($ in thousands) 2017 2016 2015 Share-Based Compensation Programs Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liabilities: RSUs — Cash-Settled $ — $ 1 $ 18 $ (718 ) $ 3,595 $ 10,244 SARs — Cash-Settled — — — — — 159 Liabilities $ — $ 1 $ 18 $ (718 ) $ 3,595 $ 10,403 Equity: RSUs — Equity Settled 3,434,976 12,206 3,208,454 13,285 2,472,861 9,243 Non-Qualified Stock Options 1,692,743 851 2,839,738 3,286 2,692,457 2,984 Phantom Stock 234,302 2 234,174 2 230,196 2 Employee Stock Purchase Plan 432 449 396 Equity 13,491 17,022 12,625 Total all share-based plans $ 13,492 $ 16,304 $ 23,028 ______________________ (1) For purposes of calculating compensation cost recognized, we generally consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. The following table reflects additional information regarding all share-based awards for the years indicated: Year Ended December 31, (In thousands) 2017 2016 2015 Total compensation cost recognized $ 13,492 $ 16,304 $ 23,028 Less: Costs deferred as acquisition costs 269 206 500 Stock-based compensation expense $ 13,223 $ 16,098 $ 22,528 RSUs (Cash-Settled) Performance-Based RSUs — In 2012, a total of 2,211,640 performance-based RSUs (to be settled in cash) were granted to eligible officers under the 2008 Equity Plan. These performance-based RSUs entitled grantees to a cash amount equal to the fair market value of RSUs that vested at the end of a three -year performance period in 2015. Vesting of awards granted to both non-executives and executives in 2012 was dependent upon the performance of Radian Group’s total stockholder return (“TSR”) relative to the TSR of a performance peer group. Based on performance during the three -year performance period, grantees were entitled to a maximum payout of 200% of their target number of RSUs. There were no cash-settled performance-based RSUs granted after 2012. Time-Vested RSUs — At December 31, 2015, a total of 262,694 time-vested RSUs (to be settled in cash), originally granted to our non-employee directors during 2009 and 2010, remained outstanding. On February 10, 2016, these time-vested RSUs (to be settled in cash) were converted into time-vested RSUs to be settled in common stock. Upon the director’s termination of service with us, the non-employee director generally will be entitled to the equivalent number of shares of common stock. RSUs (Equity Settled) Information with regard to RSUs to be settled in stock for the periods indicated is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested, December 31, 2016 3,208,454 $ 12.08 Granted 1,020,832 $ 16.84 Vested (99,424 ) $ 14.39 Forfeited (694,886 ) $ 14.66 Unvested, December 31, 2017 3,434,976 $ 12.90 Performance-Based RSUs —In 2017 , 2016 and 2015 , executive and non-executive officers were granted a total of 456,510 ; 701,110 ; and 499,740 ; respectively, of performance-based RSUs to be settled in common stock. The maximum payout at the end of the three -year performance period is 200% of a grantee’s target number of RSUs. The maximum payout for awards based on the TSR Measures described below is generally subject to a maximum cap of six times the value of the grantee’s award on the grant date. The vesting of approximately 50% of the target performance-based RSUs granted to each executive officer in 2017 and 2016 is dependent upon (i) Radian Group’s TSR compared to the median TSR of a designated peer group of companies as of the date of grant (the “Relative TSR Measure”) and (ii) Radian Group’s absolute TSR (“Absolute TSR Measure,” and together with the Relative TSR Measure, the “TSR Measures”), in each case measured over a three -year performance period and subject to certain conditions. The remaining 50% of each executive officer’s target award will vest based on the cumulative growth in Radian’s book value per share, adjusted for certain defined items, over a three -year performance period. The vesting of performance-based RSUs granted to non-executives in 2017 is the same as described above for executive officers. The vesting of performance-based RSUs granted to non-executives in 2016 is entirely based on the TSR Measures described above and does not include a book value measure. The vesting of performance-based RSU awards granted to executive officers and non-executives in 2015 is entirely dependent upon Radian Group’s TSR Measures, as described above. The grant date fair value of the performance-based RSUs that are based on the cumulative growth in Radian’s book value per share is calculated based on the stock price as of the grant date, discounted for the lack of dividends earned over the vesting period and the one -year post-vesting holding period, as applicable. The compensation cost that is recognized over the remaining requisite service period is based on our expectations of the probable level of achievement of the performance condition. The grant date fair value of the performance-based RSUs that are based on TSR Measures is determined using a Monte Carlo valuation model. The following are assumptions used in our calculation of the grant date fair value of performance-based RSUs to be settled in common stock: 2017 2016 2015 Expected life 3 years 3 years 3 years Risk-free interest rate (1) 1.6 % 0.9 % 1.0 % Volatility of Radian’s stock (2) 28.0 % 29.7 % 40.6 % Average volatility of peer companies (3) 30.6 % 38.2 % 24.0 % Dividend yield 0.06 % 0.08 % 0.05 % Discount rate (4) 10.7 % 10.7 % 13.9 % ______________________ (1) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (2) Volatility of Radian’s stock is used in the calculation of the grant date fair value of the portion of the awards based on TSR Measures, as described above. Volatility of Radian’s stock is not an applicable assumption for valuing the portion of the awards based on the cumulative growth in Radian’s book value per share. Volatility is determined at the date of grant using the historical share price volatility and the expected life of each award. (3) Average volatility of peer companies is used in the calculation of the grant date fair value of the portion of the awards based on the Relative TSR Measure, as described above. (4) A discount is applied to executive officer awards to reflect illiquidity during the one -year post-vesting holding period. Also in 2017, 123,496 performance-based RSUs to be settled in common stock were granted to the Company’s former chief executive officer (“CEO”) pursuant to the terms of his retirement agreement. Vesting for these performance-based RSUs only occurs if a stock price hurdle is met during the performance period, which begins 10 days prior to the first anniversary of the grant date and ends on the fifth anniversary of the grant date, or upon the death of the grantee or a change in control of the Company. The stock price hurdle requires that the closing price of our common stock on the New York Stock Exchange equals or exceeds 120% of the grant date share price, or $22.46 , for 10 consecutive trading days during the performance period. Time-Vested RSUs — Information with regard to grants of time-vested RSUs to be settled in common stock is as follows for the periods indicated: Year Ended December 31, 2017 (1) 2016 (2) 2015 (2) Time-vested RSUs granted to certain executives and non-executive officers 372,489 180,380 56,970 Time-vested RSUs granted to non-employee directors 68,337 356,040 (3) 56,171 Total time-vested RSUs granted (4) 440,826 536,420 113,141 ______________________ (1) The time-vested RSU awards granted in 2017 are scheduled to vest in: (i) pro rata installments on each of the first three anniversaries of the grant date or (ii) generally at the end of three years. (2) The time-vested RSU awards granted in 2016 and 2015 generally are subject to three -year cliff vesting. (3) Includes 262,694 time-vested awards granted on February 10, 2016 to convert the outstanding fully-vested 2009 and 2010 time-vested RSUs (to be settled in cash) awarded to our non-employee directors into time-vested RSUs to be settled in shares of our common stock on the conversion date (generally defined as a director’s termination of service with us). (4) The grant date fair value of time-vested RSUs was calculated based on the closing price of our common stock on the New York Stock Exchange on the date of grant, discounted for the lack of dividends earned over the vesting period, and is recognized as compensation expense over the service period. Non-Qualified Stock Options Information with regard to stock options for the periods indicated is as follows: ($ in thousands, except per-share amounts) Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, December 31, 2016 2,839,738 $ 7.64 Granted — $ — Exercised (1,092,559 ) $ 6.53 Forfeited (54,436 ) $ 13.79 Expired — $ — Outstanding, December 31, 2017 1,692,743 $ 8.16 5.6 $ 21,075 Exercisable, December 31, 2017 1,162,943 $ 5.24 4.6 $ 17,878 Available for grant, December 31, 2017 8,851,531 The following table summarizes additional information concerning stock option activity for the periods indicated: Years Ended December 31, ($ in thousands, except per-share amounts) 2017 2016 2015 Granted (number of shares) — 342,090 212,230 Weighted-average grant date fair value per share (1) $ — $ 9.72 $ 14.68 Aggregate intrinsic value of options exercised $ 14,389 $ 1,519 $ 7,146 Tax benefit of options exercised $ 5,036 $ 532 $ 2,501 Cash received from options exercised $ 7,131 $ 717 $ 1,285 ______________________ (1) We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2016 2015 Derived service period (years) 3.02 - 4.00 3.02 - 4.00 Risk-free interest rate (a) 1.72 % 2.32 % Volatility (b) 94.20 % 93.70 % Dividend yield 0.08 % 0.05 % ______________________ (a) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (b) Volatility is determined at the date of grant using historical share price volatility and expected life of each award. Upon the exercise of stock options, we generally issue shares from the authorized, unissued share reserves when the exercise price is less than the treasury stock repurchase price and from treasury stock when the exercise price is greater than the treasury stock repurchase price. The following table summarizes information concerning outstanding and exercisable options at December 31, 2017 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $2.45 - $3.58 903,224 4.3 $ 2.64 903,224 $ 2.64 $5.76 - $7.06 17,676 0.2 $ 7.06 17,676 $ 7.06 $10.42 - $15.44 601,648 7.1 $ 13.57 224,603 $ 14.50 $18.42 170,195 7.5 $ 18.42 17,440 $ 18.42 1,692,743 5.6 $ 8.16 1,162,943 $ 5.24 Generally, the stock option awards have a four -year vesting period, with 50% of the award vesting on or after the third anniversary of the grant date and the remaining 50% of the award vesting on or after the fourth anniversary of the grant date, provided the applicable stock price performance hurdle is met, as described below. The fair value of stock options vested during the year ended December 31, 2017 was $3.3 million . There were no stock options granted in 2017. For stock option awards granted in 2016 and 2015 , in addition to the time-based vesting requirements, the options contain a performance hurdle whereby the options will only vest if the closing price of our common stock on the New York Stock Exchange exceeds approximately $15.20 and $23.03 (in each case, 125% of the option exercise price), respectively, for 10 consecutive trading days ending on or after the third anniversary of the date of grant. We elected to apply the short-cut method, under the accounting standard regarding share-based payment, to account for the windfall tax benefits that may result from the exercise of stock options. Effective January 1, 2017, upon the implementation of the update to the accounting standard regarding stock-based compensation, windfalls and shortfalls resulting from cancellations, expirations or exercises of stock options are reflected in the consolidated statements of operations as part of our income tax provision, as they occur. See Note 2 . Employee Stock Purchase Plan We have an Employee Stock Purchase Plan, the 2008 ESPP, under which 2,000,000 shares of our authorized but unissued common stock initially were reserved for issuance. Under the 2008 ESPP, we issued 105,476 ; 151,121 ; and 94,676 shares to employees during the years ended December 31, 2017 , 2016 and 2015 , respectively. In January 2018, we issued 52,464 shares from the shares available for issuance under our 2008 ESPP. As a result, 850,004 shares currently remain available for issuance under the 2008 ESPP. The 2008 ESPP is designed to allow eligible employees to purchase shares of our common stock at a discount of 15% off the lower of the fair market value of our common stock at the beginning or end of a six month offering period (each period being the first and second six months in a calendar year). The following assumptions were used in our calculation of Employee Stock Purchase Plan compensation expense during 2017 : January 1, 2017 July 1, 2017 Expected life 6 months 6 months Risk-free interest rate 1.04 % 1.35 % Volatility 34.68 % 29.37 % Dividend yield 0.06 % 0.06 % Unrecognized Compensation Expense As of December 31, 2017 , 2016 and 2015 , unrecognized compensation expense related to the unvested portion of all of our share-based awards was $16.3 million , $11.3 million and $11.7 million , respectively. Absent a change of control under the Equity Plans, this expense is expected to be recognized over a weighted-average period of approximately 2.1 years . |
Note 16 - Benefit Plans
Note 16 - Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Benefit Plans The Radian Group Inc. Savings Incentive Plan (“Savings Plan”) covers substantially all of our full-time and our part-time employees. Participants can contribute up to 100% of their base earnings as pretax and/or after-tax (Roth IRA) contributions up to a maximum amount of $18,000 for 2017 . The Savings Plan also includes a catch-up contribution provision whereby participants who are or will be age 50 and above during the Savings Plan year may contribute an additional contribution. The maximum catch-up contribution for the Savings Plan in 2017 was $6,000 . Effective January 1, 2016, we match up to 100% of the first 4.5% of base earnings contributed in any given year. Previously, the match was up to 100% of the first 6% of annual base earnings exclusive of Clayton, which had its own employee match of 25% of the first 6% of base earnings contributed in any given year. Beginning January 1, 2016, Clayton was merged into the Savings Plan. Our expense for matching funds for the years ended December 31, 2017 , 2016 and 2015 was $4.8 million , $4.9 million and $3.1 million , respectively. Certain of the benefits of this plan are as follows: • allows for the immediate eligibility of new hire participation and provides for the automatic enrollment of eligible employees; • provides for the immediate vesting of matching contributions (including existing unvested matching contributions attributable to prior periods) and the elimination of all restrictions (other than Radian Group’s Insider Trading Policy) on a participant’s ability to diversify his/her position in matching contributions; and • permits Radian Group to make discretionary, pro rata (based on eligible pay) cash allocations to each eligible participant’s account, with vesting upon completion of three years of service with us. Other Contributions We contributed immaterial amounts to other postretirement benefit plans in 2017 . |
Note 17 - Accumulated Other Com
Note 17 - Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Income (Loss) The following table shows the rollforward of accumulated other comprehensive income (loss) as of the periods indicated: Year Ended December 31, 2017 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (19,063 ) $ (6,668 ) $ (12,395 ) Other comprehensive income (loss) (“OCI”): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 46,235 14,332 31,903 Less: Reclassification adjustment for net gains (losses) included in net income (1) (4,065 ) (1,423 ) (2,642 ) Net unrealized gains (losses) on investments 50,300 15,755 34,545 Foreign currency translation adjustments: Unrealized foreign currency translation adjustments 225 75 150 Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income (2) (1,109 ) (388 ) (721 ) Net foreign currency translation adjustments 1,334 463 871 Net actuarial gains (losses) 98 34 64 OCI 51,732 16,252 35,480 Balance at end of period $ 32,669 $ 9,584 $ 23,085 Year Ended December 31, 2016 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (28,425 ) $ (9,948 ) $ (18,477 ) OCI: Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 13,510 4,728 8,782 Less: Reclassification adjustment for net gains (losses) included in net income (1) 3,463 1,212 2,251 Net unrealized gains (losses) on investments 10,047 3,516 6,531 Net foreign currency translation adjustments (724 ) (250 ) (474 ) Net actuarial gains (losses) 39 14 25 OCI 9,362 3,280 6,082 Balance at end of period $ (19,063 ) $ (6,668 ) $ (12,395 ) Year Ended December 31, 2015 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 79,208 $ 27,723 $ 51,485 OCI: Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period (34,728 ) (12,155 ) (22,573 ) Less: Reclassification adjustment for net gains (losses) included in net income (1) (3) 67,974 23,791 44,183 Net unrealized gains (losses) on investments (102,702 ) (35,946 ) (66,756 ) Net foreign currency translation adjustments (333 ) (116 ) (217 ) Activity related to investments recorded as assets held for sale (4) (5,006 ) (1,752 ) (3,254 ) Net actuarial gains (losses) 408 143 265 OCI (107,633 ) (37,671 ) (69,962 ) Balance at end of period $ (28,425 ) $ (9,948 ) $ (18,477 ) ______________________ (1) Included in net gains (losses) on investments and other financial instruments on our consolidated statements of operations. (2) Included in restructuring and other exit costs on our consolidated statements of operations. (3) During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million . (4) Represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in accumulated other comprehensive income (loss). |
Note 18 - Discontinued Operatio
Note 18 - Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations Radian Asset Assurance, Radian Group’s former financial guaranty subsidiary, was accounted for as a discontinued operation as of December 31, 2014, based on the applicable terms of the Radian Asset Assurance Stock Purchase Agreement. Pursuant to the agreement, on April 1, 2015, Radian Guaranty completed the sale of 100% of the issued and outstanding shares of Radian Asset Assurance for a purchase price of approximately $810 million . After closing costs and other adjustments, Radian Guaranty received net proceeds of $789 million . In 2015, we recorded total net income from discontinued operations of $5.4 million related to this sale, including: (i) $34.3 million of total revenue, primarily due to the recognition of investment gains previously deferred and recorded in accumulated other comprehensive income (loss) and recognized as a result of the completion of the sale; (ii) an impairment charge of $14.3 million and (iii) taxes and adjustments to estimated transaction costs. The operating results of Radian Asset Assurance are classified as discontinued operations. No general corporate overhead or interest expense was allocated to discontinued operations. |
Note 19 - Statutory Information
Note 19 - Statutory Information Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |
Insurance Disclosure [Text Block] | Statutory Information We prepare our statutory financial statements in accordance with the accounting practices required or permitted, if applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries. Required SAPP are established by a variety of NAIC publications, as well as state laws, regulations and general administrative rules. In addition, insurance departments have the right to permit other specific practices that may deviate from prescribed practices. As of December 31, 2017 , we did not have any prescribed or permitted statutory accounting practices that resulted in reported statutory surplus or risk-based capital being different from what would have been reported had NAIC statutory accounting practices been followed. Radian Group serves as the holding company for our insurance subsidiaries, through which we conduct our mortgage insurance business. These insurance subsidiaries are subject to comprehensive, detailed regulation by the insurance departments in the various states where our insurance subsidiaries are domiciled or licensed to transact business. Insurance laws vary from state to state, but generally grant broad supervisory powers to state agencies or officials to examine insurance companies and enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. The state insurance regulations include various capital requirements and dividend restrictions based on our insurance subsidiaries’ statutory financial position and results of operations, as described below. Our failure to maintain adequate levels of capital could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition. As of December 31, 2017 , the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $3.6 billion of our consolidated net assets. The ability of Radian’s insurance subsidiaries to pay dividends on their common stock is restricted by certain provisions of the insurance laws of Pennsylvania, their state of domicile. Under Pennsylvania’s insurance laws, dividends and other distributions may only be paid out of an insurer’s positive unassigned surplus, measured as of the end of the prior fiscal year, unless the Pennsylvania Insurance Commissioner approves the payment of dividends or other distributions from another source. In 2015 we effectuated a reorganization of our mortgage insurance subsidiaries, which included a significant redistribution of assets and RIF among our legal entities. As a result of these actions, substantially all of the RIF and assets previously held by Radian Guaranty Reinsurance, Radian Mortgage Assurance, Radian Insurance and Radian Mortgage Insurance were transferred to Radian Guaranty and Radian Reinsurance. None of the distributions from these entities were retained by Radian Group, as all proceeds were distributed to either Radian Guaranty or Radian Reinsurance. On March 31, 2017, we reallocated $175 million of capital, in the form of cash and marketable securities, from Radian Guaranty to Radian Reinsurance. The reallocation was accomplished by way of an Extraordinary Dividend, approved by the Pennsylvania Department of Insurance, from Radian Guaranty to Radian Group, and a simultaneous capital contribution from Radian Group to Radian Reinsurance in the same amount. These transactions resulted in a $175 million decrease in Radian Guaranty’s statutory policyholders’ surplus (i.e., statutory capital and surplus) and a corresponding increase in Radian Reinsurance’s statutory policyholders’ surplus. Until September 30, 2017, the reallocation of capital had no impact on Radian Guaranty’s Available Assets under the PMIERs, because Radian Reinsurance was considered an exclusive affiliated reinsurer of Radian Guaranty and, as such, Radian Guaranty’s Available Assets and Minimum Required Assets were determined on an aggregate basis, taking into account the assets and insured risk of Radian Guaranty and any exclusive affiliated reinsurers. However, effective in the third quarter of 2017, Radian Reinsurance is no longer considered an exclusive affiliated reinsurer of Radian Guaranty, due to its participation in the credit risk transfer programs with Fannie Mae and Freddie Mac. Although this change impacted Radian Guaranty’s Available Assets and Minimum Required Assets under the PMIERs, it did not affect Radian Guaranty’s compliance with the PMIERs financial requirements. At December 31, 2017 , Radian Guaranty had negative unassigned surplus of $765.0 million , compared to negative unassigned surplus of $691.3 million at December 31, 2016 . Radian Reinsurance, which began operations in December 2015, had negative unassigned surplus of $112.1 million at December 31, 2017 , compared to negative unassigned surplus of $118.4 million at December 31, 2016 as a result of the establishment of contingency reserves. If either of these insurers had positive unassigned surplus as of the end of the prior fiscal year, such insurer only may pay dividends or other distributions during any 12-month period in an aggregate amount less than or equal to the greater of: (i) 10% of the preceding year-end statutory policyholders’ surplus; or (ii) the preceding year’s statutory net income. Due to the negative unassigned surplus at the end of 2017 , no dividends or other distributions can be paid from Radian Guaranty or Radian Reinsurance without approval from the Pennsylvania Insurance Commissioner. Other than the payment of the Extraordinary Dividend by Radian Guaranty, as described above, neither Radian Guaranty nor Radian Reinsurance paid dividends in 2017 or 2016 . Radian Guaranty Radian Guaranty is domiciled and licensed in Pennsylvania as a stock casualty insurance company authorized to carry on the business of credit insurance, which includes the authority to write mortgage guaranty insurance. It is a monoline insurer, restricted to writing first-lien residential mortgage guaranty insurance. Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, a minimum ratio of statutory capital relative to the level of net RIF, or Risk-to-capital. There are 16 RBC States that currently impose a Statutory RBC Requirement. The most common Statutory RBC Requirement is that a mortgage insurer’s Risk-to-capital may not exceed 25 to 1. In certain of the RBC States, a mortgage insurer must satisfy a MPP Requirement. The statutory capital requirements for the non-RBC States are de minimis (ranging from $1 million to $5 million ); however, the insurance laws of these states generally grant broad supervisory powers to state agencies or officials to enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. Unless an RBC State grants a waiver or other form of relief, if a mortgage insurer, such as Radian Guaranty, is not in compliance with the Statutory RBC Requirement of that state, the mortgage insurer may be prohibited from writing new mortgage insurance business in that state. Radian Guaranty’s domiciliary state, Pennsylvania, is not one of the RBC States. Radian Guaranty was in compliance with the Statutory RBC Requirements or MPP Requirements, as applicable, in each of the RBC States as of December 31, 2017 . The NAIC is in the process of developing a new Model Act for mortgage insurers, which is expected to include, among other items, new capital adequacy requirements for mortgage insurers. In May 2016, a working group of state regulators released an exposure draft of a risk-based capital framework to establish capital requirements for mortgage insurers. While the outcome and timing of this process are uncertain, the new Model Act, if and when finalized by the NAIC, has the potential to increase capital requirements in those states that adopt the Model Act. However, we continue to believe the changes to the Model Act will not result in financial requirements that require greater capital than the level currently required under the PMIERs financial requirements. See Note 1 for information regarding the PMIERs, which set requirements for private mortgage insurers to remain eligible insurers of loans purchased by the GSEs. Radian Guaranty’s statutory net income, statutory policyholders’ surplus and contingency reserve as of or for the years ended December 31, 2017 , 2016 and 2015 were as follows: December 31, (In millions) 2017 2016 2015 Statutory net income $ 445.1 $ 480.8 $ 754.8 Statutory policyholders’ surplus 1,201.0 1,349.7 1,686.5 Contingency reserve 1,667.0 1,260.6 860.9 Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus plus statutory contingency reserves. December 31, ($ in millions) 2017 2016 RIF, net (1) $ 36,793.5 $ 35,357.8 Common stock and paid-in capital $ 1,866.0 $ 2,041.0 Surplus Note 100.0 — Unassigned earnings (deficit) (765.0 ) (691.3 ) Statutory policyholders’ surplus 1,201.0 1,349.7 Contingency reserve 1,667.0 1,260.6 Statutory capital $ 2,868.0 $ 2,610.3 Risk-to-capital 12.8:1 13.5:1 ______________________ (1) Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans. The net decrease in Radian Guaranty’s Risk-to-capital in 2017 was primarily due to statutory capital growing faster than net RIF. Radian Guaranty’s statutory capital increased during 2017 due to statutory net income earned during the year and the issuance of the Surplus Note, partially offset by the reallocation of $175 million of capital from Radian Guaranty to Radian Reinsurance, as described above, and a net decrease in Radian Guaranty’s net admitted deferred tax assets. Radian Guaranty’s net RIF increased during the year due to strong growth in NIW and IIF, partially offset by the increased reinsurance benefit pursuant to the 2016 Single Premium QSR Transaction. We have actively managed Radian Guaranty’s capital position in various ways, including: (i) through internal and external reinsurance arrangements; (ii) by seeking opportunities to reduce our risk exposure through commutations and other negotiated transactions; and (iii) by contributing additional capital from Radian Group. Radian Guaranty did not receive capital contributions from Radian Group in the years ended December 31, 2017 or 2016 . However, in December 2017, Radian Group transferred $100 million of cash and marketable securities to Radian Guaranty in exchange for a Surplus Note issued by Radian Guaranty. This Surplus Note has a 0% interest rate and is scheduled to mature on December 31, 2027. The Surplus Note may be redeemed at any time upon 30 days prior notice, subject to the approval of the Pennsylvania Insurance Department. In December 2015, Radian Group transferred $325 million of cash and marketable securities to Radian Guaranty in exchange for a Surplus Note issued by Radian Guaranty. This Surplus Note had a 0% interest rate and was scheduled to mature on December 31, 2025. However, Radian Guaranty repaid the Surplus Note in full on June 30, 2016. Radian Reinsurance Effective December 2015, Radian Reinsurance is domiciled and licensed in Pennsylvania as a stock casualty insurance company authorized to carry on the business of credit insurance, which includes the authority to reinsure policies of mortgage guaranty insurance. Radian Reinsurance is only licensed or authorized to write direct mortgage guaranty insurance in Pennsylvania. Radian Reinsurance is required to maintain a minimum statutory surplus of $20 million to remain an authorized reinsurer in all states. As discussed above, Radian Reinsurance received capital contributions from Radian Group of $175 million during the year ended December 31, 2017 . Radian Reinsurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2017 and 2016 were as follows: December 31, (In millions) 2017 2016 2015 Statutory net income (loss) $ 64.3 $ 60.3 $ (1.0 ) Statutory policyholders’ surplus 328.9 147.6 138.7 Contingency reserve 234.0 180.3 128.8 Combined Risk-to-Capital Ratio and Other Mortgage Insurance Subsidiaries The Risk-to-capital ratio for our combined mortgage insurance operations was 12.1 to 1 as of December 31, 2017 , compared to 13.6 to 1 as of December 31, 2016 . In addition to Radian Guaranty and Radian Reinsurance, this combined ratio also includes Radian Guaranty Reinsurance, Radian Mortgage Assurance, Radian Investor Surety Inc., Radian Insurance, Radian Mortgage Insurance, and Radian Mortgage Guaranty Inc. Radian Insurance is the only entity that had any remaining RIF as of December 31, 2017 , totaling $24.1 million . The aggregate statutory net income, statutory policyholders’ surplus and contingency reserve for these six subsidiaries as of and for the years ended December 31, 2017 , 2016 and 2015 were as follows: December 31, (In millions) 2017 2016 2015 Statutory net income (loss) $ 0.1 $ (6.1 ) $ 92.9 Statutory policyholders’ surplus 58.6 57.1 55.0 Contingency reserve 1.7 1.5 1.1 During 2015, Radian Mortgage Guaranty Inc. was newly established as a mortgage guaranty insurer domiciled in Pennsylvania, and received capital contributions from Radian Group totaling $20 million . Principal Differences between GAAP and SAPP The differences between the statutory financial statements and financial statements presented on a GAAP basis represent differences between GAAP and SAPP principally for the following reasons: (a) Under SAPP, mortgage guaranty insurance companies are required each year to establish a contingency reserve equal to 50% of premiums earned in such year. Such amount must be maintained in the contingency reserve for 10 years, after which time it is released to unassigned surplus. Prior to 10 years, the contingency reserve may be reduced with regulatory approval to the extent that losses in any calendar year exceed 35% of earned premiums for such year. (b) Under SAPP, insurance policy acquisition costs are charged against operations in the year incurred. Under GAAP, such costs, other than those incurred in connection with the origination of derivative contracts, are deferred and amortized. (c) Under SAPP, income tax expense is calculated on the basis of amounts currently payable. Generally, deferred tax assets are recognized under both SAPP and GAAP when it is more likely than not that the deferred tax asset will be realized. However, SAPP standards impose additional admissibility requirements whereby deferred tax assets are only recognized to the extent they are expected to be recovered within a one- to three-year period subject to a capital and surplus limitation. Changes in deferred tax assets and deferred tax liabilities are recognized as a direct benefit or charge to unassigned surplus, whereas under GAAP changes in deferred tax assets and deferred tax liabilities, except for changes in unrealized gains and losses on available-for-sale securities, are recorded as a component of income tax expense. (d) Under SAPP, investment grade fixed-maturity investments are valued at amortized cost and below-investment grade securities are carried at the lower of amortized cost or market value. Under GAAP, those investments that the statutory insurance entities do not have the ability or intent to hold to maturity are considered to be either available for sale or trading securities and are recorded at fair value, with the unrealized gain or loss recognized, net of tax, as an increase or decrease to stockholders’ equity or current operations, as applicable. (e) Under SAPP, certain assets, designated as non-admitted assets, are charged directly against statutory surplus. Such assets are reflected on our GAAP financial statements. (f) Prior to January 1, 2013, under SAPP, the accounting standard regarding share-based payments was not applicable, with regard to the recognition and measurement of stock option issuances. However, effective January 1, 2013, the NAIC adopted SSAP No. 104, Share-Based Payments (“SSAP 104”), on a prospective basis. Therefore, expenses related to stock options granted subsequent to the date of adoption of SSAP 104 are recognized under SAPP but expenses related to stock options granted prior to the date of adoption continue to not be recognized under SAPP. Expenses related to stock options, regardless of the date of grant, are reflected on our GAAP financial statements in accordance with this standard. (g) Under SAPP, premiums written on a multi-year basis are initially deferred as unearned premiums. A portion of the premium written, which corresponds to the insurance policy acquisition costs, is earned immediately and the remaining premiums written are earned over the policy term. Under GAAP, these premiums written on a multi-year basis are initially deferred as unearned premiums and are earned over the policy term. (h) Under SAPP, capital contributions satisfied by receipt of cash or readily marketable securities subsequent to the balance sheet date but prior to the filing of the statutory financial statement are treated as a recognized subsequent event and, as such, are considered an admitted asset based on the evidence of collection and approval of the domiciliary commissioner. Under GAAP, such capital contributions are treated as a non-recognized subsequent event. |
Note 20 - Quarterly Financial D
Note 20 - Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) 2017 Quarters (In thousands, except per-share amounts) First Second Third Fourth Year Net premiums earned—insurance $ 221,800 $ 229,096 $ 236,702 $ 245,175 $ 932,773 Services revenue 38,027 37,802 39,571 39,703 155,103 Net investment income 31,032 30,071 32,540 33,605 127,248 Net gains (losses) on investments and other financial instruments (2,851 ) 5,331 2,480 (1,339 ) 3,621 Provision for losses 46,913 17,222 35,841 35,178 135,154 Policy acquisition costs 6,729 6,123 5,554 5,871 24,277 Cost of services 28,375 25,635 27,240 23,349 104,599 Other operating expenses 68,377 68,750 64,195 65,999 267,321 Restructuring and other exit costs — — 12,038 5,230 17,268 Loss on induced conversion and debt extinguishment 4,456 1,247 45,766 — 51,469 Impairment of goodwill — 184,374 — — 184,374 Amortization and impairment of other intangible assets 3,296 18,856 2,890 2,629 27,671 Net income 76,472 (27,342 ) 65,142 6,816 (2) 121,088 Diluted net income (loss) per share (1) $ 0.34 $ (0.13 ) $ 0.30 $ 0.03 (2) $ 0.55 Weighted-average shares outstanding-diluted 221,497 215,152 219,391 220,250 220,406 2016 Quarters First Second Third Fourth Year Net premiums earned—insurance $ 220,950 $ 229,085 $ 238,149 $ 233,585 $ 921,769 Services revenue 32,849 40,263 45,877 49,905 168,894 Net investment income 27,201 28,839 28,430 28,996 113,466 Net gains (losses) on investments and other financial instruments 31,286 30,527 7,711 (38,773 ) 30,751 Provision for losses 42,991 49,725 55,785 54,287 202,788 Policy acquisition costs 6,389 5,393 6,119 5,579 23,480 Cost of services 23,550 27,365 29,447 33,812 114,174 Other operating expenses 57,188 63,173 62,119 62,416 244,896 Loss on induced conversion and debt extinguishment 55,570 2,108 17,397 — 75,075 Amortization and impairment of other intangible assets 3,328 3,311 3,292 3,290 13,221 Net income 66,249 98,112 82,803 61,089 308,253 Diluted net income per share (1) $ 0.29 $ 0.44 $ 0.37 $ 0.27 $ 1.37 Weighted-average shares outstanding-diluted 239,707 226,203 225,968 224,776 229,258 ______________________ (1) Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income. (2) The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. |
Schedule I Summary Of Investmen
Schedule I Summary Of Investments | 12 Months Ended |
Dec. 31, 2017 | |
Schedule I Summary of Investments [Abstract] | |
Summary of Investments, Other than Investments in Related Parties [Text Block] | Radian Group Inc. and Its Consolidated Subsidiaries Schedule I Summary of Investments—Other Than Investments in Related Parties December 31, 2017 Type of Investment Amortized Cost Fair Value Amount Reflected on the Consolidated Balance Sheet (In thousands) Fixed-maturities available for sale: Bonds: U.S. government and agency securities $ 69,668 $ 69,396 $ 69,396 State and municipal obligations 156,587 161,722 161,722 Corporate bonds and notes 1,869,318 1,894,886 1,894,886 RMBS 189,455 187,229 187,229 CMBS 451,595 453,394 453,394 Other ABS 672,715 674,548 674,548 Foreign government and agency securities 31,416 32,207 32,207 Total fixed-maturities available for sale (1) 3,440,754 3,473,382 3,473,382 Trading securities (1) (2) 588,061 606,434 606,434 Equity securities available for sale: Common stocks (1) 176,349 176,065 176,065 Total equity securities available for sale 176,349 176,065 176,065 Short-term investments (1) (3) 415,809 415,691 415,691 Other invested assets 334 3,226 334 Total investments other than investments in related parties $ 4,621,307 $ 4,674,798 $ 4,671,906 ______________________ (1) These classifications include a total of $28.0 million of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets. (2) Includes foreign government and agency securities. (3) Includes cash collateral held under securities lending agreements ( $19.4 million ) reinvested in money market instruments. |
Schedule II Financial Informati
Schedule II Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Statements Parent Only [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Radian Group Inc. Schedule II—Financial Information of Registrant Parent Company Only Supplemental Notes Note A The Radian Group Inc. (the “Parent Company”, “we” or “our”) financial statements represent the stand-alone financial statements of the Parent Company. These financial statements have been prepared on the same basis and using the same accounting policies as described in the consolidated financial statements included herein, except that the Parent Company uses the equity-method of accounting for its majority-owned subsidiaries. These financial statements should be read in conjunction with our consolidated financial statements and the accompanying notes thereto. Certain prior period amounts have been reclassified to conform to current period presentation, including the adoption of an update to the accounting standard for the treatment of restricted cash in the statement of cash flows. See Note 2 of Notes to Consolidated Financial Statements for additional information. On April 1, 2015, Radian Guaranty completed the sale of Radian Asset Assurance pursuant to the Radian Asset Assurance Stock Purchase Agreement. See Note 18 of Notes to Consolidated Financial Statements for additional information related to discontinued operations. As a result of our adoption on January 1, 2017 of the update issued by the FASB related to the accounting standards for share-based payment transactions, excess tax benefits are now classified along with other cash flows as an operating activity, rather than separated from other income tax cash flows as a financing activity. Note B We had restricted cash of $0.1 million at December 31, 2016 held as collateral for our insurance trust agreement for our health insurance policy. We had no restricted cash at December 31, 2017 . Note C During 2017, the Parent Company made total capital contributions of $521.0 million to its subsidiaries. This amount included a $175.0 million contribution to Radian Reinsurance, consisting of $21.4 million of cash and $153.6 million of marketable securities, and a $0.2 million cash contribution to Radian Mortgage Assurance. The Parent Company also made a $3.1 million capital contribution to Enhance Financial Services Group Inc. in lieu of receiving tax payments due under our tax sharing agreement. We also effectively contributed $342.7 million to Clayton Group Holdings Inc. to reflect the impairment of our $300 million intercompany note receivable and $42.7 million of interest receivable on the intercompany note as of December 31, 2017. During 2017, the Parent Company received a $175.0 million dividend from Radian Guaranty, which included $21.4 million of cash and $153.6 million of marketable securities, all of which was subsequently contributed to Radian Reinsurance. In addition, the Parent Company liquidated three of its subsidiaries and received liquidating dividends totaling $26.5 million . This amount reflected liquidating dividends from Radian Mortgage Insurance, Radian Mortgage Reinsurance Company and RDN Investments, Inc. of $24.9 million , $1.0 million and $0.6 million , respectively, and included cash dividends of $2.7 million , $0.6 million and $0.5 million , respectively, and the distribution of deferred and current tax recoverables of $22.2 million , $0.4 million and $0.1 million , respectively. The Parent Company also received tax payments of $50.7 million from its subsidiaries under our tax sharing agreement. During 2016, the Parent Company made total capital contributions of $2.5 million to its subsidiaries. This amount included a cash contribution of $1.5 million to RDN Investments, Inc. and a $1.0 million contribution of marketable securities to Clayton Group Holdings Inc. During 2016, the Parent Company purchased Radian Insurance, Radian Mortgage Insurance and Radian Mortgage Assurance from Radian Guaranty for $19.0 million , $2.8 million and $8.6 million , respectively. The purchase price of each subsidiary represented its total statutory capital and surplus as of September 30, 2016. During 2016, the Parent Company received dividends from its subsidiaries totaling $40.4 million in cash and marketable securities. This amount included cash of $15.0 million from Enhance Financial Services Group Inc. and marketable securities from RDN Investments, Inc. of $25.4 million . In addition, the Parent Company received a dividend from Radian MI Services Inc. of its full investment in Radian Investor Surety Inc., which was valued at $5.0 million at the date of transfer. The Parent Company also received tax payments of $51.2 million from its subsidiaries under our tax sharing agreement. During 2015, the Parent Company made total capital contributions of $398.3 million to its subsidiaries. This amount included a cash contribution of $100.0 million to Radian Guaranty, contributions of cash ( $50.0 million ) and marketable securities ( $216.0 million ) totaling $266.0 million to Radian Reinsurance, and cash contributions of $20.0 million , $12.1 million and $0.2 million to Radian Mortgage Guaranty Inc., Clayton Group Holdings Inc., and Radian Mortgage Reinsurance Company, respectively. During 2015, the Parent Company received dividends from its subsidiaries totaling $446.2 million in cash and marketable securities. This amount included marketable securities of $216.0 million from Enhance Financial Services Group Inc. and cash of $15.0 million from Radian MI Services Inc., which were used to partially fund the creation of Radian Reinsurance as part of an approved reorganization of our mortgage insurance subsidiaries. In addition, the Parent Company received a total of $215.2 million ( $98.7 million in cash and $116.5 million in marketable securities) from RDN Investments, Inc., to partially fund the acquisition of a Surplus Note from Radian Guaranty (see Note D for additional information). The Parent Company also received tax payments of $16.0 million from its subsidiaries in 2015 under our tax-sharing agreement. Note D Accounts and notes receivable included a $300 million note receivable from Clayton Group Holdings Inc. as of December 31, 2017 and 2016 . This represents the original principal amount related to the Senior Notes due 2019, which funded the acquisition of Clayton in June 2014. Interest on the note is payable semi-annually on June 1 and December 1. The interest payment represents coupon interest plus issuance costs (amortized on a straight line basis over the term of the note). The principal is due on June 1, 2019 although, in the event of non-payment, the note terms reflect that the note remains outstanding and continues to accrue interest at the coupon rate. The Services segment has not generated sufficient cash flow to reimburse the Parent Company for its share of its direct and allocated operating expenses and interest expense, and we do not expect that the Services segment will be able to bring its reimbursement obligations current in the foreseeable future as relates to the intercompany note. Therefore, we have recorded an allowance against the outstanding balance of the $300 million note receivable at December 31, 2017 . Accounts and notes receivable also included, as of December 31, 2017 , a $100 million Surplus Note from Radian Guaranty. In December 2017, the Parent Company transferred $100 million of primarily marketable securities and a small amount of cash to Radian Guaranty in exchange for a Surplus Note issued by Radian Guaranty. See Note 19 of Notes to Consolidated Financial Statements for additional information related to the Surplus Note. Note E Other assets remained relatively unchanged as of December 31, 2017, compared to December 31, 2016, primarily as a result of a small net decrease in the intercompany receivable balance related to the reimbursement from the Services segment (See Notes D and G for additional information), offset by increases in other assets. In particular, as disclosed above in Note D, the Services segment has not generated sufficient cash flow to reimburse the Parent Company for its share of its direct and allocated operating expenses and interest expense related to the $300 million note receivable. Therefore, at December 31, 2017, we recorded an allowance of $42.7 million against the outstanding balance of the interest receivable. Offsetting the interest receivable allowance was an increase in the balance due related to the Services segment’s share of direct and allocated operating expenses of $39.9 million . Other assets also includes an $88.6 million deposit with the IRS. See Note 10 of Notes to Consolidated Financial Statements for additional information related to this “qualified deposit” and the status of the IRS Matter. Note F During 2017 , the Parent Company successfully completed a series of transactions to strengthen its capital position, including reducing its overall cost of capital and improving the maturity profile of its debt. See Notes 12 and 14 of Notes to Consolidated Financial Statements for additional information on our loss on induced conversion and debt extinguishment, long-term debt and capital stock. At December 31, 2017 , the maturities of the principal amount of our long-term debt in future years are as follows: (In thousands) 2019 $ 158,623 2020 234,126 2021 197,661 2024 450,000 Total $ 1,040,410 Note G The Parent Company provides certain services to its subsidiaries. The Parent Company allocates to its subsidiaries expenses it incurs in the capacity of supporting those subsidiaries, including operating expenses, which are allocated based on a percentage of time spent, and interest expense, which is allocated based on relative capital. These expenses are presented net of allocations in the Statements of Operations. Substantially all operating expenses and most of our interest expense, except for discount amortization on our long-term debt, have been allocated to the subsidiaries for 2017 , 2016 and 2015 . Amounts allocated to the subsidiaries for expenses are based on actual cost, without any mark-up. The Parent Company considers these charges fair and reasonable. The subsidiaries generally reimburse the Parent Company for these costs in a timely manner, which has the impact of temporarily improving the cash flows of the Parent Company, if accrued expenses are reimbursed prior to actual payment. See Note E for additional information. The following table shows the components of our Parent Company expenses that have been allocated to our subsidiaries for the periods indicated: Year Ended December 31, (in thousands) 2017 2016 2015 Allocated operating expenses $ 72,764 $ 56,446 $ 53,738 Allocated interest expenses 44,686 52,092 35,300 Total allocated expenses $ 117,450 $ 108,538 $ 89,038 Note H Net investment income increased in 2017 compared to 2016 , primarily due to an increase in the average of the Parent Company’s investment portfolio invested in higher yielding bonds during the year. Interest expense reflects the discount amortization on our long-term debt, as well as coupon interest attributable to the Convertible Senior Notes due 2019 and the Senior Notes due 2019. The reduction in interest expense in 2017 was primarily attributable to lower expense following the induced conversion and extinguishment of $21.6 million of our remaining Convertible Senior Notes due 2017 in the second quarter of 2017 and the redemption of the remaining $68.0 million of our Convertible Senior Notes due 2019 during January 2017. Note I We and certain of our subsidiaries have entered into the following intercompany guarantees: • Radian Group and Radian Mortgage Assurance are parties to a guaranty agreement, which provides that Radian Group will make sufficient funds available to Radian Mortgage Assurance to ensure that Radian Mortgage Assurance has a minimum of $5 million of statutory policyholders’ surplus every calendar quarter. Radian Mortgage Assurance had $8.7 million of statutory policyholders’ surplus and no RIF exposure as of December 31, 2017. • To allow our mortgage insurance customers to comply with applicable securities regulations for issuers of ABS (including mortgage-backed securities), we have been required, depending on the amount of credit enhancement we were providing, to provide: (i) audited financial statements for the insurance subsidiary participating in these transactions or (ii) a full and unconditional holding-company level guarantee for our insurance subsidiaries’ obligations in such transactions. Radian Group has guaranteed two structured transactions for Radian Guaranty with approximately $97.8 million of aggregate remaining credit exposure as of December 31, 2017. • Radian Group and Radian Guaranty Reinsurance are parties to an Assumption and Indemnification Agreement with regard to Radian Guaranty Reinsurance’s portion of the Deficiency Amounts relating to the IRS Matter. This indemnification agreement was made in lieu of an immediate capital contribution to Radian Guaranty Reinsurance that otherwise would have been required for Radian Guaranty Reinsurance to maintain its minimum statutory policyholders’ surplus requirements in light of the remeasurement as of December 31, 2011 of uncertain tax positions related to the portfolio of REMIC residual interests. See Note E for additional information. |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Insurance Premiums Earned [Abstract] | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Text Block] | Radian Group Inc. Schedule IV—Reinsurance Insurance Premiums Earned Years Ended December 31, 2017 , 2016 and 2015 ($ in thousands) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Assumed 2017 $ 990,016 $ 57,271 $ 28 $ 932,773 0.00 % 2016 $ 999,093 $ 77,359 $ 35 $ 921,769 0.00 % 2015 $ 973,645 $ 57,780 $ 43 $ 915,908 0.00 % |
Note 2 - Significant Accounti31
Note 2 - Significant Accounting Policies Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our consolidated financial statements are prepared in accordance with GAAP and include the accounts of Radian Group Inc. and its subsidiaries. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our consolidated financial statements include our best estimates and assumptions, actual results may vary materially. |
Liability Reserve Estimate, Policy [Policy Text Block] | Reserve for Losses and LAE We establish reserves to provide for losses and LAE, which include the estimated costs of settling claims in our Mortgage Insurance segment, in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, because there is no specific guidance for mortgage insurance, we establish reserves for mortgage insurance as described below, using the guidance contained in this standard supplemented with other accounting guidance. Estimating our loss reserves involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss, including an estimate of the impact of our Loss Mitigation Activities. The models, assumptions and estimates we use to establish loss reserves may prove to be inaccurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty. As such, we cannot be certain that our reserve estimate will be adequate to cover ultimate losses on incurred defaults. For example, our mortgage insurance loss reserves generally increase as defaulted loans age, because historically, as defaulted loans age, they have been more likely to result in foreclosure, and therefore, have been more likely to result in a claim payment. While we believe this remains accurate, following the financial crisis, there are a significant number of loans in our defaulted portfolio that have been in default for an extended period of time, but which have not been subject to foreclosure, and therefore, have not resulted in claims. As a result, significant uncertainty remains with respect to the ultimate resolution of these aged defaults. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. Commutations and other negotiated terminations of our insured risks in our Mortgage Insurance segment provide us with an opportunity to exit exposures for an agreed upon payment, or payments, sometimes at an amount less than the previously estimated ultimate liability. Once all exposures relating to such policies are extinguished, all reserves for losses and LAE and other balances relating to the insured policies are generally reversed, with any remaining net gain or loss typically recorded through provision for losses. We take into consideration the specific contractual and economic terms for each individual agreement when accounting for our commutations or other negotiated terminations, which may result in differences in the accounting for these transactions. In our Mortgage Insurance business, the default and claim cycle begins with the receipt of a default notice from the loan servicer. Reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We maintain an extensive database of claim payment history, and use models based on a variety of loan characteristics to determine the likelihood that a default will reach claim status. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. The attributes currently used to define the groups for purposes of developing various assumptions include, but are not limited to, the Stage of Default, the Time in Default and type of insurance (i.e., primary or pool). We use an actuarial projection methodology referred to as a “roll rate” analysis that uses historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default and Time in Default as well as the date that a loan goes into default. With respect to new defaults in FEMA Designated Areas associated with Hurricanes Harvey and Irma received subsequent to those two disasters, we assume a lower gross Default to Claim Rate than for new defaults with similar characteristics from other areas, due to our expectations based on past experience with other natural disasters, that a significant portion of these defaults will not result in claims. The Default to Claim Rate also includes our estimates with respect to expected Rescissions and Claim Denials, which have the effect of reducing our Default to Claim Rates. We forecast the impact of our Loss Mitigation Activity in protecting us against fraud, underwriting negligence, breach of representation and warranties, inadequate documentation of submitted claims and other items that may give rise to Rescissions or cancellations and Claim Denials, to help determine the Default to Claim Rate. Our Loss Mitigation Activities have resulted in challenges from certain lender and servicer customers, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials and Claim Curtailments in the ordinary course. Although we believe that our Loss Mitigation Activities are justified under our policies, certain challenges have resulted in disputes and litigation, which if resolved unfavorably to us, could require us to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. See Note 7 for additional information. Our Master Policies specify the time period during which a suit or action arising from any right of the insured under the policy must be commenced. The assumptions embedded in our estimated Default to Claim Rate on our in-force default inventory include an adjustment to our estimated Rescissions and Claim Denials to account for the fact that we expect a certain number of policies to be reinstated and ultimately to be paid, as a result of valid challenges by such policy holders. After estimating the Default to Claim Rate, we estimate Claim Severity based on the average of recently observed severity rates within product type, type of insurance, and Time in Default cohorts. These average severity estimates are then applied to individual loan coverage amounts to determine reserves. Similar to the Default to Claim Rate, Claim Severity also is impacted by the length of time that loans are in default and by our Loss Mitigation Activity. For claims under our primary mortgage insurance, the coverage percentage is applied to the claim amount, which consists of the unpaid loan principal, plus past due interest (for which our liability is contractually capped in accordance with the terms of our Master Policies) and certain expenses associated with the default, to determine our maximum liability. Therefore, Claim Severity generally increases the longer that a loan is in default. In addition, we estimate the impact that the amount that Claim Curtailments due to servicer noncompliance with our insurance policies and servicing guidelines have on the amount that we ultimately will have to pay with respect to claims. As part of our claims review process, we assess whether defaulted loans were serviced appropriately in accordance with our insurance policies and servicing guidelines. If a servicer failed to satisfy its servicing obligations, our insurance policies provide that we may curtail the claim payment for such default, and in some circumstances, cancel coverage or deny the claim. We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default unless a reserve for premium deficiency is required. We generally do not establish loss reserves for expected future claims on insured mortgages that are not in default. See “— Reserve for Premium Deficiency” below for an exception to this general principle. IBNR and Other Reserves We also establish reserves for defaults that we estimate have been incurred but have not been reported to us on a timely basis by the servicer, as well as for previous Rescissions, Claim Denials and Claim Curtailments that we estimate will be reinstated and subsequently paid. We generally give the policyholder up to 30 days to challenge our decision to rescind coverage before we consider a policy to be rescinded and remove it from our defaulted inventory; therefore, we currently expect only a limited percentage of policies that were rescinded to be reinstated. We currently expect a significant percentage of claims that were denied to be resubmitted as a perfected claim and ultimately paid. Most often, a Claim Denial is the result of a servicer’s inability to provide the loan origination file or other servicing documents for review. Under the terms of our Master Policies with our lending customers, our policyholders have up to one year after the acquisition of borrower’s title to provide to us the necessary documents to perfect a claim. All estimates are periodically reviewed and adjustments are made as they become necessary. The impact to our reserve due to estimated future Loss Mitigation Activities incorporates our expectations regarding the number of policies that we expect to be reinstated as a result of our claims rebuttal process. Rescissions, Claim Denials and Claim Curtailments may occur for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties and inadequate documentation, primarily related to our Legacy Portfolio. The level of Rescissions, Claim Denials and Claim Curtailments has been declining in recent periods as our defaulted Legacy Portfolio continues to decline, and we expect this trend to continue. Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we consider our claim payments and our Rescissions, Claim Denials and Claim Curtailments to be resolved for financial reporting purposes. Under the accounting standard regarding contingencies, an estimated loss is accrued only if we determine that the loss is probable and can be reasonably estimated. For populations of disputed Rescissions, Claim Denials and Claim Curtailments where we determine that a settlement is probable and that a loss can be reasonably estimated, we reflect our best estimate of the expected loss related to the populations under discussion in our financial statements, primarily as a component of our IBNR reserve. While our reserves include our best estimate of such losses, the outcome of the discussions or potential legal proceedings that could ensue is uncertain, and it is reasonably possible that a loss exists in excess of the amount accrued. Included in our loss reserves is an estimate related to a potential additional payment to Freddie Mac under the Freddie Mac Agreement, which is dependent upon the Loss Mitigation Activity on the population of loans subject to that agreement. Our reserve related to this potential additional payment is based on the estimated Rescissions, Claim Denials, Claim Curtailments and cancellations for this population of loans, determined using assumptions that are consistent with those utilized to determine our overall loss reserves. During the third quarter of 2017, the scheduled final settlement date under the Freddie Mac Agreement occurred, although an immaterial amount remains outstanding due to Loss Mitigation Activity and pending claims activity already in process but not yet finalized. See Note 11 for additional information about the Freddie Mac Agreement. Senior management regularly reviews the modeled frequency, Rescission, Claim Denial, Claim Curtailments and Claim Severity estimates, which are based on historical trends, as described above. If recent emerging or projected trends differ significantly from the historical trends used to develop the modeled estimates, management evaluates these trends and determines how they should be considered in its reserve estimates. |
Reserve For Premium Deficiency | Reserve for Premium Deficiency Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product line. We reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and update our premium deficiency analyses accordingly. For our mortgage insurance business, we group our mortgage insurance products into two categories: first-lien and second-lien mortgage loans. As of December 31, 2017 and 2016, the combination of the net present value of our expected future premiums and existing reserves (net of reinsurance recoverables) significantly exceeded the net present value of our future expected losses and expenses associated with our first lien mortgage insurance portfolio. Our second-lien PDR is recorded as a component of other liabilities. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and changes in the value of underlying collateral, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with GAAP, we established a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below: Level I — Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level II — Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and Level III — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available. For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment necessary, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy. Available for sale securities, trading securities, and certain other assets are recorded at fair value as described in Note 5. All changes in fair value of trading securities and certain other assets are included in our consolidated statements of operations. All changes in the fair value of available for sale securities are recorded in accumulated other comprehensive income (loss) . |
Insurance Premiums-Revenue Recognition | Insurance Premiums—Revenue Recognition Mortgage insurance premiums written on an annual or multi-year basis are initially recorded as unearned premiums and earned over time. Annual premiums are amortized on a monthly, straight-line basis. Multi-year premiums are amortized over the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Premiums written on a monthly basis are earned over the period that coverage is provided. When we rescind insurance coverage on a loan, we refund all premiums received in connection with such coverage. Premium revenue is recognized net of our accrual for estimated premium refunds due to Rescissions or other factors. With respect to our reinsurance transactions, ceded premiums written are initially set up as prepaid reinsurance and are amortized in a manner consistent with the recognition of income on direct premiums. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Incremental, direct costs associated with the successful acquisition of mortgage insurance business, consisting of compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Amortization of these costs for each underwriting year book of business is expensed in proportion to estimated gross profits over the estimated life of the policies. This includes accruing interest on the unamortized balance of deferred policy acquisition costs. Ceding commissions received under our reinsurance arrangements related to these costs are also deferred and accounted for using similar assumptions, including certain amounts received under our reinsurance transactions. See Notes 8 and 9 for additional details. Estimates of expected gross profit, including the Persistency Rate and loss development assumptions for each underwriting year used as a basis for amortization, are evaluated quarterly and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that previous estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions may have a significant effect on the amortization of deferred policy acquisition costs. |
Revenue Recognition, Sales of Services [Policy Text Block] | Revenue Recognition—Services Revenue Services revenue is recognized when pervasive evidence of an arrangement exists, the service has been performed, the fee is fixed and determinable and collection of the resulting receivable is reasonably assured. The Services segment derives most of its revenue from professional service activities. A portion of these activities are provided under “time-and-materials” billing arrangements. Services revenue consisting of billed fees and pass-through expenses is recorded as work is performed and expenses are incurred. Services revenue also includes expenses billed to clients, which includes travel and other out-of-pocket expenses, and other reimbursable expenses. The Services segment also derives revenue from REO management activities, and is generally paid a fixed fee or a percentage of the sale proceeds upon the sale of a property. Services revenue is recognized when the sale of a property closes and the client has confirmed receipt of the sale proceeds from a buyer. In certain instances, fees are received at the time that an asset is assigned to Radian for REO management. These fees are recorded as deferred revenue and are recognized on a straight-line basis over the average period of time required to sell an asset and complete the earnings process. The Services segment also generates additional revenue utilizing a percentage-of-sales contract. Through the use of Services’ proprietary technology, property leads are sent to select clients. Services recognizes revenue for these transactions based on a percentage of the sale, upon the client’s successful closing on the property. The Services segment also provides certain services under multiple element arrangements, including valuations, title reviews and tax lien reviews. Contracts for these services include provisions requiring the client to pay a per-unit price for services that have been performed if the client cancels the contract. Each service qualifies as a separate unit of accounting on a per-unit basis, and we recognize revenue as each individual service is performed. We do not recognize revenue or expense related to amounts advanced by us and subsequently reimbursed by clients for maintenance or repairs of REO properties because we are not the primary obligor and we have minimal credit risk. We record an expense if an advance is made that is not in accordance with a client contract and the client is not obligated to reimburse us. Cost of Services Cost of services consists primarily of employee compensation and related payroll benefits, the cost of billable labor assigned to revenue-generating activities, as well as corresponding travel and related expenses incurred in providing such services to clients in our Services segment. Cost of services also includes costs paid to outside vendors, including real estate agents that provide valuation and related services, as well as data acquisition costs and other compensation-related expenses to maintain software application platforms that directly support our businesses. Cost of services does not include an allocation of overhead costs. |
Income Taxes | Income Taxes We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our deferred tax assets and deferred tax liabilities are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. Deferred tax assets and deferred tax liabilities are measured using the enacted tax rates that are expected to apply to taxable income in the periods in which the deferred tax asset or deferred tax liability is expected to be realized or settled. We are required to establish a valuation allowance against our deferred tax assets when it is more likely than not that all or some portion of our deferred tax assets will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our deferred tax assets will be realized in future periods. Our provision for income taxes for interim financial periods is based on an estimate of our annual effective tax rate for the full year of 2017 and 2016. When estimating our full year 2017 and 2016 effective tax rates, we adjust our forecasted pre-tax income for gains and losses on our investments, changes in the accounting for uncertainty in income taxes, changes in our beginning of year valuation allowance, and other adjustments. The impact of these items is accounted for as Discrete Items at the applicable federal tax rate. |
Commitments and Contingencies, Policy [Policy Text Block] | We are routinely involved in a number of legal and regulatory claims, assertions, actions, reviews, audits, inquiries and investigations by various regulatory entities involving compliance with laws or other regulations, the outcome of which are uncertain. These legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. In accordance with applicable accounting standards and guidance, we establish accruals only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range. In the course of our regular review of pending legal and regulatory matters, we determine whether it is reasonably possible that a potential loss may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any. |
Foreign Currency Revaluation/Translation | Foreign Currency Revaluation/Translation Assets and liabilities denominated in foreign currencies are revalued or translated at year-end exchange rates. Operating results are translated at average rates of exchange prevailing during the year. Unrealized gains and losses, net of deferred taxes, resulting from translation are included in accumulated other comprehensive income (loss) in stockholders’ equity. Realized gains and losses resulting from transactions in foreign currency are recorded in our statements of operations. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Restricted Cash Included in our restricted cash balances as of December 31, 2017 were: (i) funds for a mortgage insurance reserve policy held in escrow for any future duties, rights and liabilities; (ii) funds held in trust for the benefit of certain policyholders; (iii) escrow funds held for servicer liabilities; and (iv) escrow funds held for title services obligations. Total cash and restricted cash shown in the consolidated statement of cash flows as of December 31, 2017 of $96.2 million comprise cash and restricted cash of $80.6 million and $15.7 million , respectively, as shown on the consolidated balance sheet as of December 31, 2017 . Total cash and restricted cash shown in the consolidated statement of cash flows as of December 31, 2016 of $61.8 million comprise cash and restricted cash of $52.1 million and $9.7 million , respectively, as shown on the consolidated balance sheet as of December 31, 2016 . Within our consolidated statements of cash flows, we classify cash receipts and cash payments related to items measured at fair value according to their nature and purpose. Because our investment activity for trading securities relates to overall strategic initiatives and is not trading related, it is recorded as cash flows from investing activities. |
Investments | Investments We group assets in our investment portfolio into one of three main categories: held to maturity, available for sale or trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity, if any, are classified as held to maturity and are reported at amortized cost. Trading securities are securities that are purchased and held primarily for the purpose of selling them in the near term, and are reported at fair value, with unrealized gains and losses reported as a separate component of income. Investments in securities not classified as held to maturity or trading securities are classified as available for sale and are reported at fair value, with unrealized gains and losses (net of tax) reported as a separate component of stockholders’ equity as accumulated other comprehensive income (loss). Short-term investments consist of money market instruments, certificates of deposit and highly liquid, interest-bearing instruments with an original maturity of three months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Notes 5 and 6 for further discussion on the fair value of investments. We record an other-than-temporary impairment adjustment on a security with an unrealized loss if we intend to sell the impaired security, if it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the present value of cash flows we expect to collect is less than the amortized cost basis of the security. If a sale is likely, the security is classified as other-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, losses on securities that are other-than-temporarily impaired are separated into: (i) the portion of loss that represents the credit loss and (ii) the portion that is due to other factors. The credit loss portion is recognized as a loss in the statement of operations, while the loss due to other factors is recognized in accumulated other comprehensive income (loss), net of taxes. A credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less than the cost basis of the security. The present value of discounted cash flows is determined using the original yield of the security. In evaluating whether a decline in value is other-than-temporary, we consider several factors in addition to the above, including, but not limited to, the following: • the extent and the duration of the decline in value; • the reasons for the decline in value (e.g., credit event, interest related or market fluctuations); and • the financial position, access to capital and near term prospects of the issuer, including the current and future impact of any specific events. |
Securities Borrowed and Loaned Policy [Policy Text Block] | Securities Lending Agreements Securities lending agreements, in which we loan certain securities in our investment portfolio to third parties for short periods of time in exchange for collateral consisting of cash and other securities, are treated as collateralized financing arrangements on our consolidated balance sheets. In all of our securities lending agreements, the securities that we transfer to Borrowers (loaned securities) may be transferred or loaned by the Borrowers; however, we maintain effective control over all loaned securities, including: (i) retaining ownership of the securities; (ii) receiving the related investment or other income; and (iii) having the right to request the return of the loaned securities at any time. We report such securities within other assets in our consolidated balance sheets. We receive cash or other securities as collateral for such loaned securities. Any cash collateral 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 to the Borrower. Securities collateral we receive from Borrowers 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. See Note 6 for additional information. Fees received and paid in connection with securities lending agreements are recorded in net investment income and interest expense, respectively, on the consolidated statements of operations. |
Accounts and Notes Receivable | Accounts and Notes Receivable Accounts and notes receivable primarily consist of accrued premiums receivable due from our mortgage insurance customers, amounts billed and due from our Services customers for services our Services segment has performed, and profit commission receivable, if any, related to our reinsurance transactions. See Note 8 for details. Accounts and notes receivable are carried at their estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability based on past payment history and current economic conditions. |
Company-Owned Life Insurance | Company-Owned Life Insurance (“COLI”) We are the beneficiary of insurance policies on the lives of certain of our current and past officers and employees. We have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our consolidated balance sheets. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost, net of depreciation. For financial statement reporting purposes, computer hardware and software is generally depreciated over three or five years and furniture, fixtures and office equipment is depreciated over seven years. Leasehold improvements are depreciated over the lesser of the estimated useful life of the asset improved or the remaining term of the lease. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets, Net Goodwill and other intangible assets were established primarily in connection with our acquisition of Clayton. Goodwill is an asset representing the estimated future economic benefits arising from the assets we have acquired that were not individually identified and separately recognized, and includes the value of discounted expected future cash flows of Clayton, Clayton’s workforce, expected synergies with our other affiliates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, whenever circumstances indicate potential impairment at the reporting unit level. A reporting unit represents a business for which discrete financial information is available; more than one reporting unit may be aggregated into a single reporting unit if they have similar economic characteristics. Events that could result in an interim assessment of goodwill impairment and/or a potential impairment charge include, but are not limited to: (i) significant under-performance relative to historical or projected future operating results; (ii) significant changes in the strategy for the Services segment; (iii) significant negative industry or economic trends; and (iv) a decline in Radian’s market capitalization below book value if such decline is attributable to the Services segment. Management regularly updates certain assumptions related to our projections, including the likelihood of achieving the assumed potential revenues from new initiatives and business strategies, and if these or other items have a significant negative impact on the reporting unit’s projections we may perform additional analysis to determine whether an impairment charge is needed. Lower earnings over sustained periods also can lead to impairment of goodwill, which could result in a charge to earnings. The value of goodwill is primarily supported by revenue projections, which are mostly driven by projected transaction volume and margins. In performing the quantitative analysis for our goodwill impairment test as of June 30, 2017, we elected to early adopt the update to the accounting standard regarding goodwill and other intangibles, as discussed in “Recent Accounting Pronouncements— Accounting Standards Adopted During 2017 , ” below. This update simplifies the subsequent measurement of goodwill by eliminating step two of the goodwill impairment test. Under the new guidance, if indicators for impairment are present, we perform a quantitative analysis to evaluate our long-lived assets for potential impairment, and then determine the amount of the goodwill impairment by comparing a reporting unit’s fair value to its carrying amount. After adjusting the carrying value for any impairment of other intangibles or long-lived assets, an impairment charge is recognized for any excess of the reporting unit’s carrying amount over the reporting unit’s estimated fair value, up to the full amount of the goodwill allocated to the reporting unit. Intangible assets, other than goodwill, primarily consist of customer relationships, technology, trade name and trademarks, client backlog and non-competition agreements. Customer relationships represent the value of the specifically acquired customer relationships and are valued using the excess earnings approach using estimated client revenues, attrition rates, implied royalty rates and discount rates. The excess earnings approach estimates the present value of expected earnings in excess of a traditional return on business assets. Technology represents proprietary software used for loan review, underwriting and due diligence, managing the REO disposition process, performing surveillance of mortgage loan servicers, real estate valuations and client workflow solutions. Trade name and trademarks reflect the value inherent in the recognition of the “Clayton” name and its reputation. For purposes of our intangible assets, we use the term client backlog to refer to the estimated present value of fees to be earned for services performed on loans currently under surveillance or REO assets under management. The value of a non-competition agreement is an appraisal of potential lost revenues that would arise from an individual leaving to work for a competitor or initiating a competing enterprise. For financial reporting purposes, intangible assets with finite lives are amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset. The calculation of the estimated fair value of goodwill and other intangibles is performed primarily using an income approach and requires the use of significant estimates and assumptions that are highly subjective in nature, such as attrition rates, discount rates, future expected cash flows and market conditions. The most significant assumptions relate to the valuation of customer relationships. Our estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. |
Accounting for Stock-Based Compensation | Accounting for Share-Based Compensation The stock-based compensation cost related to share-based liability awards is based on the fair value as of the measurement date. The compensation cost for equity instruments is measured based on the grant-date fair value at the date of issuance. For share-based awards with performance conditions related to our own operations, the expense recognized is dependent on the probability of the performance measure being achieved. Compensation cost is generally recognized over the periods that an employee provides service in exchange for the award. See Note 15 for further information. |
Debt, Policy [Policy Text Block] | Purchases of Convertible Debt Prior to Maturity We account for the purchases of our outstanding convertible debt as induced conversions of convertible debt in accordance with the accounting standard regarding derecognition of debt with conversion and other options, and the accounting standard regarding debt modifications and extinguishments. The accounting standards require the recognition through earnings of an inducement charge equal to the fair value of the consideration delivered in excess of the consideration issuable under the original conversion terms. The remaining consideration delivered and transaction costs incurred are required to be allocated between the extinguishment of the liability component and the reacquisition of the equity component. Therefore, we recognize a loss on induced conversion and debt extinguishment equal to the sum of: (i) the inducement charge; (ii) the difference between the fair value and the carrying value of the liability component of the purchased debt; (iii) transaction costs allocated to the debt component; and (iv) unamortized debt issuance costs related to the purchased debt. |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance In accordance with the terms of the 2016 Single Premium QSR Transaction, rather than making a cash payment or transferring investments for ceded premiums written, Radian Guaranty holds the related amounts to collateralize the reinsurers’ obligations and has established a corresponding funds withheld liability. Any loss recoveries and any potential profit commission to Radian Guaranty will be realized from this account. The reinsurers’ share of earned premiums is paid from this account on a quarterly basis. This liability also includes an interest credit on funds withheld, which is recorded as ceded premiums at a rate specified in the agreement and, depending on experience under the contract, may be paid to either Radian Guaranty or the reinsurers. Ceded premiums written are recorded on the balance sheet as prepaid reinsurance premiums and amortized to ceded premiums earned in a manner consistent with the recognition of income on direct premiums. The ceding commission received for premiums ceded pursuant to this transaction is attributable to other underwriting costs. The unamortized portion of the ceding commission is reflected in other liabilities. See Note 8 for further discussion of our reinsurance transactions. |
Stockholders' Equity, Policy [Policy Text Block] | Accelerated Share Repurchase In 2015, we had an accelerated share repurchase program that consisted of the combination of the purchase of Radian Group common stock from an investment bank and a forward contract with that investment bank indexed to Radian Group common stock. We accounted for the accelerated share repurchase program in accordance with the provisions of the accounting standards regarding derivatives and hedging for contracts indexed to an entity’s own stock, and the accounting standard regarding equity. The up-front payment to the investment bank as part of the accelerated share repurchase program was accounted for as a reduction to stockholders’ equity in our consolidated balance sheets in the second quarter of 2015, the period in which the payment was made. We reflect the accelerated share repurchase program as a repurchase of common stock in the periods delivered for purposes of calculating earnings per share and as forward contracts indexed to the Company’s own common stock. The accelerated share repurchase program met all of the applicable criteria for equity classification, and therefore, was not accounted for as a derivative instrument. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Restructuring and Other Exit Costs Restructuring and other exit costs include items such as asset impairment charges (including loss from the sale of a business line), employee severance and benefit costs, facility and lease termination costs, contract terminations and other costs of restructuring or exiting activities. The timing of the future expense and associated cash payments for restructuring and other exit costs is dependent on the type of exit cost and is expected to be completed within the next 12 months. We review assets for impairment in accordance with the accounting guidance for long-lived assets. The loss on sale of a business line is calculated by the excess of its carry amount over the sale price. Generally, our employee severance and benefit costs are part of the Company’s ongoing benefit arrangement and are recognized when probable and estimable. A liability for facility and lease contract termination costs is recognized at the date we cease the use of rights conveyed by the contract and is measured at its fair value, which is determined based on the remaining contractual lease rentals reduced by estimated sublease rentals. Other contract termination and exit costs include future costs that will be incurred, which are recognized in total when they no longer will benefit the Company. The liabilities for restructuring and other exit costs are recorded in other liabilities. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Accounting Standards Adopted During 2017 In March 2016, the FASB issued an update to the accounting standards for share-based payment transactions, including: (i) accounting for income taxes; (ii) classification of excess tax benefits on the statement of cash flows; (iii) forfeitures; (iv) minimum statutory tax withholding requirements; (v) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax withholding purposes; (vi) the practical expedient for estimating the expected term; and (vii) intrinsic value. Among other things, the update requires: (i) all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement as they occur; (ii) recognition of excess tax benefits, regardless of whether the benefits reduce taxes payable in the current period; and (iii) excess tax benefits to be classified along with other cash flows as an operating activity, rather than separated from other income tax cash flows as a financing activity. This update is effective for public companies for fiscal years beginning after December 15, 2016. Our adoption of this update, effective January 1, 2017, had an immaterial impact on our financial statements at implementation. As a result of implementing this new standard, however, we expect the potential for limited increased volatility in our effective tax rate and net earnings, and possible additional dilution in earnings per share calculations. In January 2017, the FASB issued an update to the accounting standard regarding goodwill and other intangibles. This update simplifies the subsequent measurement of goodwill by eliminating step two of the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any excess of the reporting unit’s carrying amount over the reporting unit’s estimated fair value, after adjusting the carrying value for any impairment of other intangibles or long-lived assets. The provisions of this update are effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. We elected to early adopt this update to perform the quantitative analysis for our goodwill impairment test as of June 30, 2017. See “—Goodwill and Other Intangible Assets, Net” above and Note 7 for additional information. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Accounting Standards Not Yet Adopted In May 2014, the FASB issued an update to the accounting standard regarding revenue recognition. In accordance with the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This update is not expected to change revenue recognition principles related to our investments and insurance products, which together represent the majority of our total revenues. This update is primarily applicable to revenues from our Services segment. In July 2015, the FASB delayed the effective date for this updated standard for public companies to interim and annual periods beginning after December 15, 2017, and subsequently issued various clarifying updates. Early adoption is permitted. This standard permits the use of either the full retrospective or the modified retrospective transition method. We currently anticipate using the modified retrospective method of adoption, with the cumulative effect of initially applying the guidance recognized at the date of adoption. We have reviewed current accounting policies and key contracts that are representative of our various products and services within the Services segment and are in the process of comparing our historical accounting policies and practices to the requirements of the new guidance. We have identified immaterial differences resulting from applying the new requirements to our contracts which mainly affect timing of revenue recognition. Given that most of our contracts are short-term in nature, we do not expect the impact to be material to our financial statements. We have also identified appropriate changes to our business processes, systems and controls to support recognition and disclosure under the new guidance. In January 2016, the FASB issued an update that makes certain changes to the standard for the accounting of financial instruments. Among other things, the update requires: (i) equity investments to be measured at fair value with changes in fair value recognized in net income (loss); (ii) the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iii) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset; and (iv) separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The update also eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. This update is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted, with the exception of the “own credit” provision. Our adoption of this update effective January 1, 2018 had an immaterial impact to our financial statements and expected disclosures. As a result of implementing this standard, we expect the potential for increased volatility in earnings. In February 2016, the FASB issued an update that replaces the existing accounting and disclosure requirements for leases of property, plant and equipment. The update requires lessees to recognize, as of the lease commencement date, assets and liabilities for all leases with lease terms of more than 12 months, which is a change from the current GAAP requirement to recognize only capital leases on the balance sheet. Pursuant to the new standard, the liability initially recognized for the lease obligation is equal to the present value of the lease payments not yet made, discounted over the lease term at the implicit interest rate of the lease, if available, or otherwise at the lessee’s incremental borrowing rate. The lessee is also required to recognize an asset for its right to use the underlying asset for the lease term, based on the liability subject to certain adjustments, such as for initial direct costs. Leases are required to be classified as either operating or finance, with expense on operating leases recorded as a single lease cost on a straight-line basis. For finance leases, interest expense on the lease liability is required to be recognized separately from the straight-line amortization of the right-of-use asset. Quantitative disclosures are required for certain items, including the cost of leases, the weighted-average remaining lease term, the weighted-average discount rate and a maturity analysis of lease liabilities. Additional qualitative disclosures are also required regarding the nature of the leases, such as basis, terms and conditions of: (i) variable interest payments; (ii) extension and termination options; and (iii) residual value guarantees. This update is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted by applying the new guidance as of the beginning of the earliest comparative period presented, using a modified retrospective transition approach with certain optional practical expedients. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update. See Note 13 for additional information. In June 2016, the FASB issued an update to the accounting standard regarding the measurement of credit losses on financial instruments. This update requires that financial assets measured at their amortized cost basis be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities are to be recorded through an allowance for credit losses, rather than a write-down of the asset, with the amount of the allowance limited to the amount by which fair value is less than amortized cost. This update is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update. In October 2016, the FASB issued an update to the accounting standard regarding the accounting for income taxes. This update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This update will be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. This update is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in the first interim period of the adoption year. We have concluded there is currently no impact to our financial statements and future disclosures as a result of this update. In March 2017, the FASB issued an update to the accounting standard regarding receivables. The new standard requires certain premiums on purchased callable debt securities to be amortized to the earliest call date. The amortization period for callable debt securities purchased at a discount will not be impacted. The provisions of this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update. In February 2018, the FASB issued an update to the accounting standard regarding income statement reporting of comprehensive income and reclassification of certain tax effects from accumulated other comprehensive income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. The provisions of this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period, for reporting periods for which financial statements have not been available for issuance. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update. |
Note 3 - Net Income (Loss) Pe32
Note 3 - Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation of the basic and diluted net income per share was as follows: Year Ended December 31, 2017 2016 2015 (In thousands, except per-share amounts) Net income from continuing operations: Net income from continuing operations — basic $ 121,088 $ 308,253 $ 281,539 Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) (215 ) 5,816 14,758 Net income from continuing operations — diluted $ 120,873 $ 314,069 $ 296,297 Net income: Net income from continuing operations — basic $ 121,088 $ 308,253 $ 281,539 Income from discontinued operations, net of tax — — 5,385 Net income — basic 121,088 308,253 286,924 Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) (215 ) 5,816 14,758 Net income — diluted $ 120,873 $ 314,069 $ 301,682 Average common shares outstanding — basic 215,321 211,789 199,910 Dilutive effect of Convertible Senior Notes due 2017 (2) 323 207 6,293 Dilutive effect of Convertible Senior Notes due 2019 457 14,263 37,736 Dilutive effect of stock-based compensation arrangements (2) 4,305 2,999 2,393 Adjusted average common shares outstanding—diluted 220,406 229,258 246,332 Net income per share: Basic: Net income from continuing operations $ 0.56 $ 1.46 $ 1.41 Income from discontinued operations, net of tax — — 0.03 Net income $ 0.56 $ 1.46 $ 1.44 Diluted: Net income from continuing operations $ 0.55 $ 1.37 $ 1.20 Income from discontinued operations, net of tax — — 0.02 Net income $ 0.55 $ 1.37 $ 1.22 ______________________ (1) As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. Included in the year ended December 31, 2017 is a benefit related to our adjustment of estimated accrued expense to actual amounts, resulting from the January 2017 settlement of our obligations on the remaining Convertible Senior Notes due 2019. (2) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements and convertible debt, if any, were not included in the calculation of diluted net income per share because they were anti-dilutive: Year Ended December 31, (in thousands) 2017 2016 2015 Shares of common stock equivalents 353 1,042 728 |
Note 4 - Segment Reporting Le33
Note 4 - Segment Reporting Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Summarized operating results for our segments as of and for the years ended, as applicable, were as follows: December 31, 2017 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance (1) (2) $ 818,417 $ — $ 818,417 (Increase) decrease in unearned premiums (2) 114,356 — 114,356 Net premiums earned—insurance 932,773 — 932,773 Services revenue — 161,833 161,833 Net investment income 127,248 — 127,248 Other income 2,886 — 2,886 Total (3) (4) 1,062,907 161,833 1,224,740 Provision for losses 136,183 — 136,183 Policy acquisition costs 24,277 — 24,277 Cost of services — 105,812 105,812 Other operating expenses before corporate allocations 150,975 50,969 201,944 Restructuring and other exit costs (5) — 6,828 6,828 Total (4) 311,435 163,609 475,044 Adjusted pretax operating income (loss) before corporate allocations 751,472 (1,776 ) 749,696 Allocation of corporate operating expenses 55,441 14,319 69,760 Allocation of interest expense 45,016 17,745 62,761 Adjusted pretax operating income (loss) $ 651,015 $ (33,840 ) $ 617,175 Total assets $ 5,733,918 $ 166,963 (6) $ 5,900,881 NIW (in millions) $ 53,905 ______________________ (1) Net of ceded premiums written under the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. (2) Effective December 31, 2017, we amended the 2016 Single Premium QSR Transaction to increase the amount of ceded risk for performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages, resulting in a reduction of $145.7 million in net premiums written. (3) Excludes net gains on investments and other financial instruments of $3.6 million , not included in adjusted pretax operating income. (4) Includes inter-segment revenues and expenses as follows: December 31, 2017 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 6,730 Inter-segment expenses included in Mortgage Insurance segment 6,730 — (5) Primarily includes employee severance and related benefit costs. Does not include impairment of long-lived assets, which is not a component of adjusted pretax operating income. (6) The decrease in total assets for the Services segment at December 31, 2017, as compared to December 31, 2016, is primarily due to the impairment of goodwill and other intangible assets. See Note 7 for further details. December 31, 2016 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance (1) $ 733,834 $ — $ 733,834 (Increase) decrease in unearned premiums 187,935 — 187,935 Net premiums earned—insurance 921,769 — 921,769 Services revenue — 177,249 177,249 Net investment income 113,466 — 113,466 Other income 3,572 — 3,572 Total (2) (3) 1,038,807 177,249 1,216,056 Provision for losses 204,175 — 204,175 Policy acquisition costs 23,480 — 23,480 Cost of services — 115,369 115,369 Other operating expenses before corporate allocations 140,624 55,815 196,439 Total (3) 368,279 171,184 539,463 Adjusted pretax operating income (loss) before corporate allocations 670,528 6,065 676,593 Allocation of corporate operating expenses 45,178 8,533 53,711 Allocation of interest expense 63,439 17,693 81,132 Adjusted pretax operating income (loss) $ 561,911 $ (20,161 ) $ 541,750 Total assets $ 5,506,338 $ 356,836 $ 5,863,174 NIW (in millions) $ 50,530 ______________________ (1) Net of ceded premiums written under the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. (2) Excludes net gains on investments and other financial instruments of $30.8 million , not included in adjusted pretax operating income. (3) Includes inter-segment revenues and expenses as follows: December 31, 2016 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 8,355 Inter-segment expenses included in Mortgage Insurance segment 8,355 — December 31, 2015 Mortgage Insurance Services Total (In thousands) Net premiums written—insurance (1) $ 968,505 $ — $ 968,505 (Increase) decrease in unearned premiums (52,597 ) — (52,597 ) Net premiums earned—insurance 915,908 — 915,908 Services revenue — 163,140 163,140 Net investment income 81,537 — 81,537 Other income 2,899 — 2,899 Total (2) (3) 1,000,344 163,140 1,163,484 Provision for losses 198,433 — 198,433 Policy acquisition costs 22,424 — 22,424 Cost of services — 97,256 97,256 Other operating expenses before corporate allocations 148,619 43,515 192,134 Total (3) 369,476 140,771 510,247 Adjusted pretax operating income (loss) before corporate allocations 630,868 22,369 653,237 Allocation of corporate operating expenses 46,418 4,823 51,241 Allocation of interest expense 73,402 17,700 91,102 Adjusted pretax operating income (loss) $ 511,048 $ (154 ) $ 510,894 Total assets 5,290,422 351,678 5,642,100 NIW (in millions) $ 41,411 ______________________ (1) Net of ceded premiums written under the QSR Transactions. See Note 8 for additional information. (2) Excludes net gains on investments and other financial instruments of $35.7 million , not included in adjusted pretax operating income. (3) Includes inter-segment revenues and expenses as follows: December 31, 2015 (In thousands) Mortgage Insurance Services Inter-segment revenues included in Services segment $ — $ 5,924 Inter-segment expenses included in Mortgage Insurance segment 5,924 — |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The reconciliation of adjusted pretax operating income (loss) to consolidated pretax income from continuing operations is as follows: December 31, (In thousands) 2017 2016 2015 Adjusted pretax operating income (loss): Mortgage insurance (1) $ 651,015 $ 561,911 $ 511,048 Services (1) (33,840 ) (20,161 ) (154 ) Total adjusted pretax operating income $ 617,175 $ 541,750 $ 510,894 Net gains (losses) on investments and other financial instruments 3,621 30,751 35,693 Loss on induced conversion and debt extinguishment (51,469 ) (75,075 ) (94,207 ) Acquisition-related expenses (2) (105 ) (519 ) (1,565 ) Impairment of goodwill (184,374 ) — — Amortization and impairment of other intangible assets (27,671 ) (13,221 ) (12,986 ) Impairment of other long-lived assets (3) (10,440 ) — — Consolidated pretax income from continuing operations $ 346,737 $ 483,686 $ 437,829 ______________________ (1) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. (2) Acquisition-related expenses represent expenses incurred to effect the acquisition of a business, net of adjustments to accruals previously recorded for acquisition expenses. (3) Included within restructuring and other exit costs. See Note 2. |
Note 5 - Fair Value of Financ34
Note 5 - Fair Value of Financial Instruments Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2017 : December 31, 2017 (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 124,969 $ 8,023 $ 132,992 State and municipal obligations — 386,111 386,111 Money market instruments 213,357 — 213,357 Corporate bonds and notes — 2,304,017 2,304,017 RMBS — 216,749 216,749 CMBS — 503,955 503,955 Other ABS — 676,158 676,158 Foreign government and agency securities — 36,448 36,448 Equity securities 175,205 860 176,065 Other investments (1) — 25,720 25,720 Total Investments at Fair Value (2) 513,531 4,158,041 4,671,572 (3) Total Assets at Fair Value $ 513,531 $ 4,158,041 $ 4,671,572 (3) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets ( $0.3 million ), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Includes cash collateral held under securities lending agreements ( $19.4 million ) reinvested in money market instruments. (3) Includes $28.0 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 for more information. At December 31, 2017 , there were no Level III assets measured at fair value, and no Level III liabilities. There were no investment transfers between Level I, Level II or Level III for the year ended December 31, 2017 . The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2016 : December 31, 2016 (In thousands) Level I Level II Level III Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 237,479 $ — $ — $ 237,479 State and municipal obligations — 358,536 — 358,536 Money market instruments 431,472 — — 431,472 Corporate bonds and notes — 2,024,205 — 2,024,205 RMBS — 388,842 — 388,842 CMBS — 507,273 — 507,273 Other ABS — 450,128 — 450,128 Foreign government and agency securities — 32,807 — 32,807 Equity securities — 830 500 1,330 Other investments (1) — 28,663 500 29,163 Total Investments at Fair Value (2) 668,951 3,791,284 1,000 4,461,235 Total Assets at Fair Value $ 668,951 $ 3,791,284 $ 1,000 $ 4,461,235 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets ( $1.2 million ), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our consolidated balance sheets were as follows as of the dates indicated: December 31, 2017 December 31, 2016 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Other invested assets $ 334 $ 3,226 $ 1,195 $ 3,789 Liabilities: Long-term debt 1,027,074 1,093,934 1,069,537 1,214,471 |
Note 6 - Investments Level 3 (T
Note 6 - Investments Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |
Schedule of Securities Financing Transactions [Table Text Block] | Key components of our securities lending agreements at December 31, 2017 , consisted of the following: (In thousands) December 31, 2017 Loaned securities: (1) Corporate bonds and notes $ 13,862 Foreign government and agency securities 867 Equity securities 13,235 Total loaned securities, at fair value $ 27,964 Total loaned securities, at amortized cost $ 27,846 Securities collateral on deposit from Borrowers (2) 9,342 Reinvested cash collateral, at estimated fair value (3) 19,357 ______________________ (1) Our securities loaned under securities lending agreements are included at fair value within other assets on our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. (2) Securities collateral on deposit with us from Borrowers may not be transferred or re-pledged unless the Borrower is in default, and is therefore not reflected in our consolidated financial statements. (3) All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities on our consolidated balance sheets. |
Available-for-sale Securities [Table Text Block] | Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated: December 31, 2017 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 69,668 $ 69,396 $ 96 $ 367 State and municipal obligations 156,587 161,722 5,834 699 Corporate bonds and notes 1,869,318 1,894,886 33,620 8,052 RMBS 189,455 187,229 636 2,862 CMBS 451,595 453,394 3,409 1,610 Other ABS 672,715 674,548 2,655 822 Foreign government and agency securities 31,416 32,207 823 33 Total fixed-maturities available for sale 3,440,754 3,473,382 (1) 47,073 14,445 Equity securities available for sale (2) 176,349 176,065 (1) 1,705 1,989 Total debt and equity securities $ 3,617,103 $ 3,649,447 $ 48,778 $ 16,434 ______________________ (1) Includes $14.7 million and $13.2 million of fixed maturities and equity securities, respectively, of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets, as further described below. (2) Primarily consists of investments in fixed-income and equity exchange-traded funds and publicly-traded business development company equities. December 31, 2016 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 78,931 $ 75,474 $ 2 $ 3,459 State and municipal obligations 66,124 67,171 1,868 821 Corporate bonds and notes 1,463,720 1,455,628 14,320 22,412 RMBS 358,262 350,628 197 7,831 CMBS 429,057 428,289 2,255 3,023 Other ABS 433,603 434,728 2,037 912 Foreign government and agency securities 24,771 24,594 148 325 Other investments 2,000 2,000 — — Total fixed-maturities available for sale 2,856,468 2,838,512 20,827 38,783 Equity securities available for sale (1) 1,330 1,330 — — Total debt and equity securities $ 2,857,798 $ 2,839,842 $ 20,827 $ 38,783 ______________________ (1) Primarily consists of investments in Federal Home Loan Bank stock as required in connection with the memberships of Radian Guaranty and Radian Reinsurance in the FHLB. |
Unrealized Gain (Loss) on Investments [Table Text Block] | The change in unrealized gains (losses) recorded in accumulated other comprehensive income (loss) consisted of the following: Year Ended December 31, (In thousands) 2017 2016 2015 Fixed-maturities: Unrealized holding gains (losses) arising during the period, net of tax $ 32,147 $ 8,822 $ (24,246 ) Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax (2,556 ) 2,361 (764 ) Net unrealized gains (losses) on investments, net of tax $ 34,703 $ 6,461 $ (23,482 ) Equities: Unrealized holding gains (losses) arising during the period, net of tax $ (244 ) $ (40 ) $ 1,673 Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax (86 ) (110 ) 44,947 Net unrealized gains (losses) on investments, net of tax $ (158 ) $ 70 $ (43,274 ) |
Schedule Of Unrealized Losses [Table Text Block] | the following tables show the gross unrealized losses and fair values, 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, 2017 , are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below. December 31, 2017 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 6 $ 23,309 $ 129 3 $ 9,799 $ 238 9 $ 33,108 $ 367 State and municipal obligations 21 65,898 699 — — — 21 65,898 699 Corporate bonds and notes 152 672,318 4,601 32 139,105 3,451 184 811,423 8,052 RMBS 8 19,943 204 26 101,812 2,658 34 121,755 2,862 CMBS 35 139,353 1,395 4 3,518 215 39 142,871 1,610 Other ABS 92 260,864 777 7 8,297 45 99 269,161 822 Foreign government and agency securities 5 7,397 33 — — — 5 7,397 33 Equity securities 13 149,785 1,989 — — — 13 149,785 1,989 Total 332 $ 1,338,867 $ 9,827 72 $ 262,531 $ 6,607 404 $ 1,601,398 $ 16,434 December 31, 2016 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 7 $ 73,160 $ 3,459 — $ — $ — 7 $ 73,160 $ 3,459 State and municipal obligations 7 30,901 821 — — — 7 30,901 821 Corporate bonds and notes 185 788,876 22,135 2 4,582 277 187 793,458 22,412 RMBS 56 311,031 7,822 1 1,398 9 57 312,429 7,831 CMBS 37 218,170 2,909 2 6,585 114 39 224,755 3,023 Other ABS 58 131,268 470 16 45,886 442 74 177,154 912 Foreign government and agency securities 12 13,034 325 — — — 12 13,034 325 Total 362 $ 1,566,440 $ 37,941 21 $ 58,451 $ 842 383 $ 1,624,891 $ 38,783 |
Trading Securities (and Certain Trading Assets) [Table Text Block] | The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated: December 31, (In thousands) 2017 2016 Trading securities: U.S. government and agency securities $ — $ 33,042 State and municipal obligations 214,841 259,573 Corporate bonds and notes 307,271 453,617 RMBS 29,520 38,214 CMBS 50,561 78,984 Other ABS — 8,219 Foreign government and agency securities 4,241 8,213 Total $ 606,434 (1) $ 879,862 ______________________ (1) Includes a de minimis amount of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below. |
Investment Income [Table Text Block] | Net investment income consisted of: Year Ended December 31, (In thousands) 2017 2016 2015 Investment income: Fixed-maturities $ 122,890 $ 115,880 $ 81,127 Equity securities 4,318 86 4,539 Short-term investments 5,453 3,086 745 Other 987 1,161 600 Gross investment income 133,648 120,213 87,011 Investment expenses (6,400 ) (6,747 ) (5,474 ) Net investment income $ 127,248 $ 113,466 $ 81,537 |
Gain (Loss) on Investments [Table Text Block] | Net realized and unrealized gains (losses), including impairment losses, on investments and other financial instruments consisted of: Year Ended December 31, (In thousands) 2017 2016 2015 Net realized gains (losses) on investments: Fixed-maturities available for sale (1) $ (3,014 ) $ 4,160 $ (1,176 ) Equities available for sale (2) 368 (170 ) 69,150 (3) Trading securities (5,995 ) (237 ) (9,231 ) Short-term investments (16 ) (135 ) (24 ) Other invested assets 22 631 3,267 Other gains (losses) 32 64 110 Net realized gains (losses) on investments (8,603 ) 4,313 62,096 Other-than-temporary impairment losses (1,420 ) (526 ) — Unrealized gains (losses) on trading securities 13,230 27,217 (27,015 ) Total net gains (losses) on investments 3,207 31,004 35,081 Net gains (losses) on other financial instruments 414 (253 ) 612 Net gains (losses) on investments and other financial instruments $ 3,621 $ 30,751 $ 35,693 ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Year Ended December 31, (In thousands) 2017 2016 2015 Gross investment gains from sales and redemptions $ 6,052 $ 10,326 $ 64 Gross investment losses from sales and redemptions (9,066 ) (6,166 ) (1,240 ) (2) Net realized gains (losses) on equities available for sale is equal to the gross amount of gains and losses, respectively, realized for those periods. (3) During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million . |
Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturities of fixed-maturity investments available for sale are as follows: December 31, 2017 (In thousands) Amortized Fair Due in one year or less $ 36,688 $ 36,645 Due after one year through five years (1) 705,484 705,958 Due after five years through ten years (1) 1,023,844 1,029,896 Due after ten years (1) 360,973 385,712 RMBS (2) 189,455 187,229 CMBS (2) 451,595 453,394 Other ABS (2) 672,715 674,548 Total (3) $ 3,440,754 $ 3,473,382 ______________________ (1) Actual maturities may differ as a result of calls before scheduled maturity. (2) RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date. (3) Includes securities loaned under securities lending agreements. |
Note 7 - Goodwill and Other I36
Note 7 - Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table shows the changes in the carrying amount of goodwill as of and for the years ended December 31, 2017 and 2016 : (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2015 $ 197,265 $ (2,095 ) $ 195,170 Goodwill acquired — — — Impairment losses — — — Balance at December 31, 2016 197,265 (2,095 ) 195,170 Goodwill acquired 126 — 126 Impairment losses — (184,374 ) (184,374 ) Balance at December 31, 2017 $ 197,391 $ (186,469 ) $ 10,922 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | The following is a summary of the gross and net carrying amounts and accumulated amortization of our other intangible assets as of and for the year to date periods indicated: December 31, 2017 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships (1) $ 82,530 $ (41,596 ) $ 40,934 Technology (2) 15,250 (8,922 ) 6,328 Trade name and trademarks 8,340 (3,003 ) 5,337 Client backlog 6,680 (6,006 ) 674 Non-competition agreements 185 (168 ) 17 Total $ 112,985 $ (59,695 ) $ 53,290 ______________________ (1) Includes an impairment charge of $14.9 million . (2) Includes an impairment charge of $0.9 million . December 31, 2016 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 83,316 $ (19,696 ) $ 63,620 Technology 15,250 (5,497 ) 9,753 Trade name and trademarks 8,340 (2,125 ) 6,215 Client backlog 6,680 (5,235 ) 1,445 Non-competition agreements 185 (160 ) 25 Total $ 113,771 $ (32,713 ) $ 81,058 For financial reporting purposes, other intangible assets with finite lives will be amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset, as follows: Estimated Useful Life Client relationships 3 years - 15 years Technology 3 years - 8 years Trade name and trademarks 6 years - 10 years Client backlog 3 years - 5 years Non-competition agreements 2 years - 3 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated aggregate amortization expense for 2018 and thereafter is as follows: (In thousands) 2018 $ 10,316 2019 8,790 2020 7,412 2021 5,833 2022 5,081 Thereafter 15,858 Total $ 53,290 |
Note 8 - Reinsurance (Tables)
Note 8 - Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance [Table Text Block] | The effect of reinsurance on net premiums written and earned is as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Net premiums written—insurance: Direct $ 1,032,735 $ 1,000,111 $ 1,009,409 Assumed 25 29 104 Ceded (1) (214,343 ) (266,306 ) (41,008 ) Net premiums written—insurance $ 818,417 $ 733,834 $ 968,505 Net premiums earned—insurance: Direct $ 990,016 $ 999,093 $ 973,645 Assumed 28 35 43 Ceded (1) (57,271 ) (77,359 ) (57,780 ) Net premiums earned—insurance $ 932,773 $ 921,769 $ 915,908 ______________________ (1) Net of profit commission. |
Ceded Credit Risk [Table Text Block] | The following tables show the amounts related to the QSR Transactions and the 2016 Single Premium QSR Transaction for the periods indicated: QSR Transactions 2016 Single Premium QSR Transaction Year Ended December 31, Year Ended December 31, (In thousands) 2017 2016 2015 2017 2016 2015 Ceded premiums written (1) $ 19,356 $ 28,097 $ 30,213 $ 193,517 $ 233,206 $ — Ceded premiums earned (1) 28,503 42,515 46,975 27,284 29,808 — Ceding commissions written 5,536 8,019 11,443 55,333 66,153 — Ceding commissions earned (2) 13,122 16,573 14,453 13,774 15,303 — Ceded losses, net 771 1,858 1,187 2,490 2,262 — ______________________ (1) Net of profit commission. (2) Includes amounts reported in policy acquisition costs and other operating expenses. |
Note 9 - Other Assets (Tables)
Note 9 - Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets [Table Text Block] | The following table shows the components of other assets for the periods indicated: December 31, (In thousands) 2017 2016 Deposit with the IRS (Note 10) $ 88,557 $ 88,557 Property and equipment (1) (2) 87,042 70,665 Company-owned life insurance 85,862 83,248 Loaned securities (Note 6) 27,964 — Accrued investment income 31,389 29,255 Deferred policy acquisition costs 16,987 14,127 Reinsurance recoverables 8,492 7,368 Other 61,556 50,615 Total other assets $ 407,849 $ 343,835 ______________________ (1) Property and equipment at cost, less accumulated depreciation of $106.0 million and $118.5 million at December 31, 2017 and 2016 , respectively. Depreciation expense was $17.4 million , $11.7 million and $6.7 million for the years ended December 31, 2017 , 2016 and 2015 respectively. (2) Includes $44.0 million and $49.7 million at December 31, 2017 and 2016 , respectively, related to our technology upgrade project and $15.5 million at December 31, 2017 of leasehold improvements related to our new corporate headquarters. |
Note 10 - Income Taxes Level 3
Note 10 - Income Taxes Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense [Table Text Block] | The components of our consolidated income tax provision from continuing operations are as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Current provision $ 59,122 $ 4,546 $ 120 Deferred provision 166,527 170,887 156,170 Total income tax provision $ 225,649 $ 175,433 $ 156,290 |
Reconciliation of Taxes at Statutory Rate to Provision (Benefit) for Income Taxes [Table Text Block] | The reconciliation of taxes computed at the statutory tax rate of 35% to the provision for income taxes on continuing operations is as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Provision for income taxes computed at the statutory tax rate $ 121,358 $ 169,290 $ 153,240 Change in tax resulting from: Repurchase premium on convertible notes (96 ) 9,988 (6,674 ) State tax (benefit) (15,641 ) (8,974 ) (7,619 ) Valuation allowance 18,197 10,663 11,931 Remeasurement of net deferred tax assets due to the TCJA 102,617 — — Other, net (786 ) (5,534 ) 5,412 Provision for income taxes $ 225,649 $ 175,433 $ 156,290 |
Schedule of Components of Deferred Tax Assets and Liabilities [Table Text Block] | The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows: December 31, (In thousands) 2017 2016 Deferred tax assets: Accrued expenses $ 30,267 $ 41,219 Unearned premiums 35,035 67,538 NOL — 179,128 Net unrealized loss on investments — 6,285 State income taxes 68,577 51,875 Partnership investments 47,991 73,918 Loss reserves 1,397 3,801 Alternative minimum tax credit carryforward 57,086 7,367 Goodwill and Intangibles 36,947 — Other 41,499 49,511 Total deferred tax assets 318,799 480,642 Deferred tax liabilities: Convertible and other long-term debt — 2,212 Differences in fair value of financial instruments 3,833 1,758 Net unrealized gain on investments 6,792 — Depreciation 11,138 10,626 Goodwill and Intangibles — 4,758 Other 2,446 2,598 Total deferred tax liabilities 24,209 21,952 Less: Valuation allowance 65,023 46,892 Net deferred tax asset $ 229,567 $ 411,798 |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2017 2016 Balance at beginning of period $ 123,028 $ 124,246 Tax positions related to the current year: Increases 2,343 1,203 Decreases — (1,835 ) Tax positions related to prior years: Increases 24,122 22,389 Decreases (1,437 ) (1,406 ) Lapses of applicable statute of limitation (24,105 ) (21,569 ) Balance at end of period $ 123,951 $ 123,028 |
Summary of Income Tax Examinations [Table Text Block] | The following calendar tax years, listed by major jurisdiction, remain subject to examination: U.S. Federal Corporation Income Tax (1) 2000 - 2007, 2014 - 2016 Significant State and Local Jurisdictions (2) 2000 - 2016 ______________________ (1) For the 2000 through 2007 calendar tax years, we petitioned the U.S. Tax Court to litigate the IRS Notices of Deficiency resulting from the examination of our 2000 through 2007 consolidated federal income tax returns. This litigation relates to the recognition of certain tax benefits associated with our investment in a portfolio of non-economic REMIC residual interests. (2) California, Florida, Georgia, New York, Ohio, Pennsylvania and New York City. |
Note 11 - Losses and Loss Adj40
Note 11 - Losses and Loss Adjustment Expenses Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Future Policy Benefits, by Product Segment [Table Text Block] | The following table shows our reserve for losses and LAE by category at the end of each period indicated: Year Ended December 31, (In thousands) 2017 2016 Reserves for losses by category: Prime $ 285,022 $ 379,845 Alt-A and A minus and below 170,873 249,659 IBNR and other (1) 16,021 71,107 LAE 13,349 18,630 Reinsurance recoverable (2) 8,315 6,816 Total primary reserves 493,580 726,057 Pool 12,794 31,853 IBNR and other 278 673 LAE 356 932 Reinsurance recoverable (2) 35 35 Total pool reserves 13,463 33,493 Total First-lien reserves 507,043 759,550 Other (3) 545 719 Total reserve for losses $ 507,588 $ 760,269 ______________________ (1) At December 31, 2016, primarily related to expected payments under the Freddie Mac Agreement. During the third quarter of 2017, the scheduled final settlement date under the Freddie Mac Agreement occurred and therefore, except for loans with loss mitigation and claims activity already in process, most of the loans subject to the Freddie Mac Agreement were removed from RIF and IIF because the insurance no longer remains in force. See “ —Agreements —Freddie Mac Agreement,” below for additional information. (2) Represents ceded losses on captive reinsurance transactions, the QSR Transactions and the 2016 Single Premium QSR Transaction. (3) Does not include our second-lien mortgage loan PDR that is included in other liabilities. |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | the following table presents information relating to our reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan PDR: Year Ended December 31, (In thousands) 2017 2016 2015 Balance at January 1, $ 760,269 $ 976,399 $ 1,560,032 Less: Reinsurance recoverables (1) 6,851 8,286 26,665 Balance at January 1, net of reinsurance recoverables 753,418 968,113 1,533,367 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 185,486 206,383 229,061 Prior years (49,286 ) (3,516 ) (29,647 ) Total incurred 136,200 202,867 199,414 Deduct: Paid claims and LAE related to: Current year (2) 25,011 11,410 10,837 Prior years 365,369 406,152 753,831 Total paid 390,380 (3) 417,562 764,668 Balance at end of period, net of reinsurance recoverables 499,238 753,418 968,113 Add: reinsurance recoverables (1) 8,350 6,851 8,286 Balance at December 31, $ 507,588 $ 760,269 $ 976,399 ______________________ (1) Related to ceded losses recoverable, if any, on captive reinsurance transactions, the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. (2) Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. For 2017, includes payments made on pool commutations, in some cases for loans not previously in default. (3) Includes the payment of $54.8 million made in connection with the scheduled settlement of the Freddie Mac Agreement in the third quarter of 2017. |
Short-duration Insurance Contracts, Claims Development [Table Text Block] | The information about net incurred losses and paid claims development for the years ended prior to 2017 is presented as supplementary information. Incurred Losses, Net of Reinsurance Year Ended December 31, As of December 31, 2017 ($ in thousands) Total of IBNR Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Defaults (2) Unaudited Default Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 1,957,510 $ 1,715,144 $ 1,969,581 $ 2,009,551 $ 2,018,794 $ 2,074,295 $ 2,088,719 $ 2,110,922 $ 2,115,083 $ 2,122,647 $ 2,370 215,837 2009 1,671,239 1,894,783 1,930,263 1,939,479 1,974,568 1,991,796 2,016,412 2,018,907 2,022,629 1,535 213,836 2010 1,102,856 1,215,136 1,192,482 1,195,056 1,207,774 1,220,289 1,218,264 1,219,469 958 146,324 2011 1,058,625 1,152,016 1,052,277 1,050,555 1,062,579 1,061,161 1,059,116 904 118,972 2012 803,831 763,969 711,213 720,502 715,646 714,783 756 89,845 2013 505,732 405,334 401,444 404,333 402,259 653 71,749 2014 337,784 247,074 265,891 264,620 776 58,215 2015 222,555 198,186 178,042 874 49,825 2016 201,016 165,440 2,185 46,264 2017 180,851 2,672 47,283 Total $ 8,329,856 ______________________ (1) Represents reserves as of December 31, 2017 related to IBNR liabilities. (2) Represents total number of new default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods. Included in this amount for the year ended December 31, 2017 and December 31, 2016 are 8,862 and 3,852 notices, respectively, of new primary defaults related to the FEMA Designated Areas associated with Hurricanes Harvey and Irma. Cumulative Paid Claims, Net of Reinsurance Year Ended December 31, (In thousands) Unaudited Default Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 189,458 $ 740,578 $ 1,297,867 $ 1,635,069 $ 1,744,559 $ 1,872,804 $ 1,932,283 $ 2,022,019 $ 2,051,495 $ 2,088,124 2009 136,413 619,496 1,236,210 1,471,264 1,711,019 1,807,031 1,921,134 1,958,660 1,986,076 2010 11,810 394,278 700,316 956,598 1,055,935 1,145,497 1,178,546 1,198,031 2011 40,392 323,216 756,820 892,959 982,830 1,016,855 1,038,582 2012 19,200 295,332 528,744 631,982 672,271 692,291 2013 34,504 191,040 307,361 357,087 379,036 2014 13,108 115,852 200,422 233,607 2015 10,479 84,271 142,421 2016 11,061 76,616 2017 24,653 Total $ 7,859,437 All outstanding liabilities before 2008, net of reinsurance 15,492 Liabilities for claims, net of reinsurance (1) $ 485,911 ______________________ (1) Calculated as follows: (In thousands) Incurred losses, net of reinsurance $ 8,329,856 Add: All outstanding liabilities before 2008, net of reinsurance 15,492 Less: Cumulative paid claims, net of reinsurance 7,859,437 Liabilities for claims, net of reinsurance $ 485,911 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Table Text Block] | The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the reserve for losses and LAE in the consolidated balance sheet at December 31, 2017 : (In thousands) December 31, 2017 Net outstanding liabilities - Mortgage Insurance: Reserve for losses and LAE, net of reinsurance $ 485,911 Reinsurance recoverables on unpaid claims 8,350 Unallocated LAE 13,327 Total gross reserve for losses and LAE $ 507,588 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration [Table Text Block] | The following is supplementary information about average historical claims duration as of December 31, 2017 , representing the average distribution of when claims are paid relative to the year of default: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 6 7 8 9 10 Mortgage Insurance 6.3% 33.9% 31.1% 14.4% 7.5% 4.8% 3.3% 2.6% 1.4% 1.7% |
Note 12 - Long-Term Debt Leve41
Note 12 - Long-Term Debt Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The carrying value of our long-term debt at December 31, 2017 and 2016 was as follows: December 31, ($ in thousands) 2017 2016 5.500% Senior Notes due 2019 $ 157,636 $ 296,907 5.250% Senior Notes due 2020 231,834 345,308 7.000% Senior Notes due 2021 195,146 344,362 4.500% Senior Notes due 2024 442,458 — 3.000% Convertible Senior Notes due 2017 — 20,947 2.250% Convertible Senior Notes due 2019 — 62,013 Total long-term debt $ 1,027,074 $ 1,069,537 |
Convertible Debt [Table Text Block] | The convertible notes are reflected on our consolidated balance sheets as follows: Convertible Senior Notes due 2017 Convertible Senior Notes due 2019 December 31, December 31, (In thousands) 2017 2016 2017 2016 Liability component: Principal $ — $ 22,233 $ — $ 68,024 Debt discount, net (1) — (1,221 ) — (5,461 ) Debt issuance costs (1) — (65 ) — (550 ) Net carrying amount $ — $ 20,947 $ — $ 62,013 ______________________ (1) Included within long-term debt and is being amortized over the life of the convertible notes. |
Schedule of Interest Expense Recognized Related to Convertible Debt [Table Text Block] | The following table sets forth total interest expense recognized related to the convertible notes for the periods indicated: Convertible Senior Notes due 2017 Convertible Senior Notes due 2019 December 31, December 31, 2017 2016 2017 2016 (In thousands) Contractual interest expense (1) $ 310 $ 872 $ (510 ) $ 3,426 Amortization of debt discount 619 1,674 163 5,016 Amortization of debt issuance costs 33 88 16 505 Total interest expense (1) $ 962 $ 2,634 $ (331 ) $ 8,947 |
Note 13 - Commitments and Con42
Note 13 - Commitments and Contingencies Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The commitment for non-cancelable operating leases in future years is as follows: (In thousands) 2018 $ 6,482 2019 9,002 2020 8,929 2021 8,275 2022 8,162 Thereafter 58,396 Total $ 99,246 |
Note 15 - Share-Based and Oth43
Note 15 - Share-Based and Other Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of outstanding awards and compensation expense recognized for each type of share-based award | The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the years ended: December 31, ($ in thousands) 2017 2016 2015 Share-Based Compensation Programs Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liabilities: RSUs — Cash-Settled $ — $ 1 $ 18 $ (718 ) $ 3,595 $ 10,244 SARs — Cash-Settled — — — — — 159 Liabilities $ — $ 1 $ 18 $ (718 ) $ 3,595 $ 10,403 Equity: RSUs — Equity Settled 3,434,976 12,206 3,208,454 13,285 2,472,861 9,243 Non-Qualified Stock Options 1,692,743 851 2,839,738 3,286 2,692,457 2,984 Phantom Stock 234,302 2 234,174 2 230,196 2 Employee Stock Purchase Plan 432 449 396 Equity 13,491 17,022 12,625 Total all share-based plans $ 13,492 $ 16,304 $ 23,028 ______________________ (1) For purposes of calculating compensation cost recognized, we generally consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. |
Schedule of additional information regarding all share-based awards | The following table reflects additional information regarding all share-based awards for the years indicated: Year Ended December 31, (In thousands) 2017 2016 2015 Total compensation cost recognized $ 13,492 $ 16,304 $ 23,028 Less: Costs deferred as acquisition costs 269 206 500 Stock-based compensation expense $ 13,223 $ 16,098 $ 22,528 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Information with regard to RSUs to be settled in stock for the periods indicated is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested, December 31, 2016 3,208,454 $ 12.08 Granted 1,020,832 $ 16.84 Vested (99,424 ) $ 14.39 Forfeited (694,886 ) $ 14.66 Unvested, December 31, 2017 3,434,976 $ 12.90 |
Schedule of valuation assumptions of performance based RSU | The following are assumptions used in our calculation of the grant date fair value of performance-based RSUs to be settled in common stock: 2017 2016 2015 Expected life 3 years 3 years 3 years Risk-free interest rate (1) 1.6 % 0.9 % 1.0 % Volatility of Radian’s stock (2) 28.0 % 29.7 % 40.6 % Average volatility of peer companies (3) 30.6 % 38.2 % 24.0 % Dividend yield 0.06 % 0.08 % 0.05 % Discount rate (4) 10.7 % 10.7 % 13.9 % ______________________ (1) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (2) Volatility of Radian’s stock is used in the calculation of the grant date fair value of the portion of the awards based on TSR Measures, as described above. Volatility of Radian’s stock is not an applicable assumption for valuing the portion of the awards based on the cumulative growth in Radian’s book value per share. Volatility is determined at the date of grant using the historical share price volatility and the expected life of each award. (3) Average volatility of peer companies is used in the calculation of the grant date fair value of the portion of the awards based on the Relative TSR Measure, as described above. (4) A discount is applied to executive officer awards to reflect illiquidity during the one -year post-vesting holding period. |
Schedule of information with regard to stock options | Information with regard to stock options for the periods indicated is as follows: ($ in thousands, except per-share amounts) Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, December 31, 2016 2,839,738 $ 7.64 Granted — $ — Exercised (1,092,559 ) $ 6.53 Forfeited (54,436 ) $ 13.79 Expired — $ — Outstanding, December 31, 2017 1,692,743 $ 8.16 5.6 $ 21,075 Exercisable, December 31, 2017 1,162,943 $ 5.24 4.6 $ 17,878 Available for grant, December 31, 2017 8,851,531 |
Schedule of fully vested share options | The following table summarizes additional information concerning stock option activity for the periods indicated: Years Ended December 31, ($ in thousands, except per-share amounts) 2017 2016 2015 Granted (number of shares) — 342,090 212,230 Weighted-average grant date fair value per share (1) $ — $ 9.72 $ 14.68 Aggregate intrinsic value of options exercised $ 14,389 $ 1,519 $ 7,146 Tax benefit of options exercised $ 5,036 $ 532 $ 2,501 Cash received from options exercised $ 7,131 $ 717 $ 1,285 ______________________ (1) We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2016 2015 Derived service period (years) 3.02 - 4.00 3.02 - 4.00 Risk-free interest rate (a) 1.72 % 2.32 % Volatility (b) 94.20 % 93.70 % Dividend yield 0.08 % 0.05 % ______________________ (a) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (b) Volatility is determined at the date of grant using historical share price volatility and expected life of each award. |
Schedule of valuation assumptions of stock options granted | We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2016 2015 Derived service period (years) 3.02 - 4.00 3.02 - 4.00 Risk-free interest rate (a) 1.72 % 2.32 % Volatility (b) 94.20 % 93.70 % Dividend yield 0.08 % 0.05 % ______________________ (a) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. (b) Volatility is determined at the date of grant using historical share price volatility and expected life of each award. |
Schedule of outstanding and exercisable options | The following table summarizes information concerning outstanding and exercisable options at December 31, 2017 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $2.45 - $3.58 903,224 4.3 $ 2.64 903,224 $ 2.64 $5.76 - $7.06 17,676 0.2 $ 7.06 17,676 $ 7.06 $10.42 - $15.44 601,648 7.1 $ 13.57 224,603 $ 14.50 $18.42 170,195 7.5 $ 18.42 17,440 $ 18.42 1,692,743 5.6 $ 8.16 1,162,943 $ 5.24 |
Schedule of valuation assumptions of ESPP | The following assumptions were used in our calculation of Employee Stock Purchase Plan compensation expense during 2017 : January 1, 2017 July 1, 2017 Expected life 6 months 6 months Risk-free interest rate 1.04 % 1.35 % Volatility 34.68 % 29.37 % Dividend yield 0.06 % 0.06 % |
Share-based Compensation Arrangement by Share-based Payment Award, Time-Vested Units, Grants in Period [Table Text Block] | Information with regard to grants of time-vested RSUs to be settled in common stock is as follows for the periods indicated: Year Ended December 31, 2017 (1) 2016 (2) 2015 (2) Time-vested RSUs granted to certain executives and non-executive officers 372,489 180,380 56,970 Time-vested RSUs granted to non-employee directors 68,337 356,040 (3) 56,171 Total time-vested RSUs granted (4) 440,826 536,420 113,141 ______________________ (1) The time-vested RSU awards granted in 2017 are scheduled to vest in: (i) pro rata installments on each of the first three anniversaries of the grant date or (ii) generally at the end of three years. (2) The time-vested RSU awards granted in 2016 and 2015 generally are subject to three -year cliff vesting. (3) Includes 262,694 time-vested awards granted on February 10, 2016 to convert the outstanding fully-vested 2009 and 2010 time-vested RSUs (to be settled in cash) awarded to our non-employee directors into time-vested RSUs to be settled in shares of our common stock on the conversion date (generally defined as a director’s termination of service with us). (4) The grant date fair value of time-vested RSUs was calculated based on the closing price of our common stock on the New York Stock Exchange on the date of grant, discounted for the lack of dividends earned over the vesting period, and is recognized as compensation expense over the service period. |
Note 17 - Accumulated Other C44
Note 17 - Accumulated Other Comprehensive Income Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table shows the rollforward of accumulated other comprehensive income (loss) as of the periods indicated: Year Ended December 31, 2017 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (19,063 ) $ (6,668 ) $ (12,395 ) Other comprehensive income (loss) (“OCI”): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 46,235 14,332 31,903 Less: Reclassification adjustment for net gains (losses) included in net income (1) (4,065 ) (1,423 ) (2,642 ) Net unrealized gains (losses) on investments 50,300 15,755 34,545 Foreign currency translation adjustments: Unrealized foreign currency translation adjustments 225 75 150 Less: Reclassification adjustment for liquidation of foreign subsidiary and other adjustments included in net income (2) (1,109 ) (388 ) (721 ) Net foreign currency translation adjustments 1,334 463 871 Net actuarial gains (losses) 98 34 64 OCI 51,732 16,252 35,480 Balance at end of period $ 32,669 $ 9,584 $ 23,085 Year Ended December 31, 2016 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (28,425 ) $ (9,948 ) $ (18,477 ) OCI: Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 13,510 4,728 8,782 Less: Reclassification adjustment for net gains (losses) included in net income (1) 3,463 1,212 2,251 Net unrealized gains (losses) on investments 10,047 3,516 6,531 Net foreign currency translation adjustments (724 ) (250 ) (474 ) Net actuarial gains (losses) 39 14 25 OCI 9,362 3,280 6,082 Balance at end of period $ (19,063 ) $ (6,668 ) $ (12,395 ) Year Ended December 31, 2015 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 79,208 $ 27,723 $ 51,485 OCI: Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period (34,728 ) (12,155 ) (22,573 ) Less: Reclassification adjustment for net gains (losses) included in net income (1) (3) 67,974 23,791 44,183 Net unrealized gains (losses) on investments (102,702 ) (35,946 ) (66,756 ) Net foreign currency translation adjustments (333 ) (116 ) (217 ) Activity related to investments recorded as assets held for sale (4) (5,006 ) (1,752 ) (3,254 ) Net actuarial gains (losses) 408 143 265 OCI (107,633 ) (37,671 ) (69,962 ) Balance at end of period $ (28,425 ) $ (9,948 ) $ (18,477 ) ______________________ (1) Included in net gains (losses) on investments and other financial instruments on our consolidated statements of operations. (2) Included in restructuring and other exit costs on our consolidated statements of operations. (3) During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million . (4) Represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in accumulated other comprehensive income (loss). |
Note 19 - Statutory Informati45
Note 19 - Statutory Information Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |
Risk To Capital Calculation [Table Text Block] | Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus plus statutory contingency reserves. December 31, ($ in millions) 2017 2016 RIF, net (1) $ 36,793.5 $ 35,357.8 Common stock and paid-in capital $ 1,866.0 $ 2,041.0 Surplus Note 100.0 — Unassigned earnings (deficit) (765.0 ) (691.3 ) Statutory policyholders’ surplus 1,201.0 1,349.7 Contingency reserve 1,667.0 1,260.6 Statutory capital $ 2,868.0 $ 2,610.3 Risk-to-capital 12.8:1 13.5:1 ______________________ (1) Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans. |
Radian Guaranty [Member] | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices Disclosure [Table Text Block] | Radian Guaranty’s statutory net income, statutory policyholders’ surplus and contingency reserve as of or for the years ended December 31, 2017 , 2016 and 2015 were as follows: December 31, (In millions) 2017 2016 2015 Statutory net income $ 445.1 $ 480.8 $ 754.8 Statutory policyholders’ surplus 1,201.0 1,349.7 1,686.5 Contingency reserve 1,667.0 1,260.6 860.9 |
Radian Reinsurance [Member] | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices Disclosure [Table Text Block] | Radian Reinsurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2017 and 2016 were as follows: December 31, (In millions) 2017 2016 2015 Statutory net income (loss) $ 64.3 $ 60.3 $ (1.0 ) Statutory policyholders’ surplus 328.9 147.6 138.7 Contingency reserve 234.0 180.3 128.8 |
Other MI Companies [Member] | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices Disclosure [Table Text Block] | The aggregate statutory net income, statutory policyholders’ surplus and contingency reserve for these six subsidiaries as of and for the years ended December 31, 2017 , 2016 and 2015 were as follows: December 31, (In millions) 2017 2016 2015 Statutory net income (loss) $ 0.1 $ (6.1 ) $ 92.9 Statutory policyholders’ surplus 58.6 57.1 55.0 Contingency reserve 1.7 1.5 1.1 |
Note 20 - Quarterly Financial46
Note 20 - Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | 2017 Quarters (In thousands, except per-share amounts) First Second Third Fourth Year Net premiums earned—insurance $ 221,800 $ 229,096 $ 236,702 $ 245,175 $ 932,773 Services revenue 38,027 37,802 39,571 39,703 155,103 Net investment income 31,032 30,071 32,540 33,605 127,248 Net gains (losses) on investments and other financial instruments (2,851 ) 5,331 2,480 (1,339 ) 3,621 Provision for losses 46,913 17,222 35,841 35,178 135,154 Policy acquisition costs 6,729 6,123 5,554 5,871 24,277 Cost of services 28,375 25,635 27,240 23,349 104,599 Other operating expenses 68,377 68,750 64,195 65,999 267,321 Restructuring and other exit costs — — 12,038 5,230 17,268 Loss on induced conversion and debt extinguishment 4,456 1,247 45,766 — 51,469 Impairment of goodwill — 184,374 — — 184,374 Amortization and impairment of other intangible assets 3,296 18,856 2,890 2,629 27,671 Net income 76,472 (27,342 ) 65,142 6,816 (2) 121,088 Diluted net income (loss) per share (1) $ 0.34 $ (0.13 ) $ 0.30 $ 0.03 (2) $ 0.55 Weighted-average shares outstanding-diluted 221,497 215,152 219,391 220,250 220,406 2016 Quarters First Second Third Fourth Year Net premiums earned—insurance $ 220,950 $ 229,085 $ 238,149 $ 233,585 $ 921,769 Services revenue 32,849 40,263 45,877 49,905 168,894 Net investment income 27,201 28,839 28,430 28,996 113,466 Net gains (losses) on investments and other financial instruments 31,286 30,527 7,711 (38,773 ) 30,751 Provision for losses 42,991 49,725 55,785 54,287 202,788 Policy acquisition costs 6,389 5,393 6,119 5,579 23,480 Cost of services 23,550 27,365 29,447 33,812 114,174 Other operating expenses 57,188 63,173 62,119 62,416 244,896 Loss on induced conversion and debt extinguishment 55,570 2,108 17,397 — 75,075 Amortization and impairment of other intangible assets 3,328 3,311 3,292 3,290 13,221 Net income 66,249 98,112 82,803 61,089 308,253 Diluted net income per share (1) $ 0.29 $ 0.44 $ 0.37 $ 0.27 $ 1.37 Weighted-average shares outstanding-diluted 239,707 226,203 225,968 224,776 229,258 ______________________ (1) Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income. (2) The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. |
Schedule I Summary Of Investm47
Schedule I Summary Of Investments Summary of Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Investments [Abstract] | |
Summary Investment Holdings [Table Text Block] | Radian Group Inc. and Its Consolidated Subsidiaries Schedule I Summary of Investments—Other Than Investments in Related Parties December 31, 2017 Type of Investment Amortized Cost Fair Value Amount Reflected on the Consolidated Balance Sheet (In thousands) Fixed-maturities available for sale: Bonds: U.S. government and agency securities $ 69,668 $ 69,396 $ 69,396 State and municipal obligations 156,587 161,722 161,722 Corporate bonds and notes 1,869,318 1,894,886 1,894,886 RMBS 189,455 187,229 187,229 CMBS 451,595 453,394 453,394 Other ABS 672,715 674,548 674,548 Foreign government and agency securities 31,416 32,207 32,207 Total fixed-maturities available for sale (1) 3,440,754 3,473,382 3,473,382 Trading securities (1) (2) 588,061 606,434 606,434 Equity securities available for sale: Common stocks (1) 176,349 176,065 176,065 Total equity securities available for sale 176,349 176,065 176,065 Short-term investments (1) (3) 415,809 415,691 415,691 Other invested assets 334 3,226 334 Total investments other than investments in related parties $ 4,621,307 $ 4,674,798 $ 4,671,906 ______________________ (1) These classifications include a total of $28.0 million of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets. (2) Includes foreign government and agency securities. (3) Includes cash collateral held under securities lending agreements ( $19.4 million ) reinvested in money market instruments. |
Schedule II Financial Informa48
Schedule II Financial Information of Registrant Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information Statement Of Condition Of Parent Company [Table Text Block] | Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Balance Sheet Parent Company Only December 31, ($ in thousands, except share and per-share amounts) 2017 2016 Assets Investments Fixed-maturities available for sale—at fair value $ 10,785 $ 79,336 Short-term investments—at fair value 83,356 311,418 Total investments 94,141 390,754 Cash 13,173 8,256 Restricted cash (Note B) — 124 Investment in subsidiaries, at equity in net assets (Note C) 3,764,865 3,383,089 Accounts and notes receivable (Note D) 103,561 305,316 Federal income taxes recoverable, net—current 35,741 — Other assets (Note E) 166,051 166,098 Total assets $ 4,177,532 $ 4,253,637 Liabilities and Stockholders’ Equity Long-term debt (Note F) $ 1,027,074 $ 1,069,537 Federal income taxes—current — 78,980 Federal income taxes—deferred 97,067 187,309 Other liabilities 53,353 45,525 Total liabilities 1,177,494 1,381,351 Common stockholders’ equity Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2017 and 2016; 233,416,989 and 232,091,921 shares issued at December 31, 2017 and 2016, respectively; 215,814,188 and 214,521,079 shares outstanding at December 31, 2017 and 2016, respectively 233 232 Treasury stock, at cost: 17,602,801 and 17,570,842 shares at December 31, 2017 and 2016, respectively (893,888 ) (893,332 ) Additional paid-in capital 2,754,275 2,779,891 Retained earnings 1,116,333 997,890 Accumulated other comprehensive income (loss) 23,085 (12,395 ) Total common stockholders’ equity 3,000,038 2,872,286 Total liabilities and stockholders’ equity $ 4,177,532 $ 4,253,637 |
Condensed Financial Information Statement Of Income Of Parent Company [Table Text Block] | Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Statements of Operations Parent Company Only Year Ended December 31, (In thousands) 2017 2016 2015 Revenues: Net investment income $ 22,528 $ 20,834 $ 17,917 Net gains (losses) on investments and other financial instruments (328 ) (150 ) 2,975 Other income 80 49 — Total revenues 22,280 20,733 20,892 Expenses: Loss on induced conversion and debt extinguishment 51,469 75,075 94,207 Interest expense 18,033 29,002 55,768 Total expenses (Note G) 69,502 104,077 149,975 Pretax loss from continuing operations (47,222 ) (83,344 ) (129,083 ) Income tax benefit (141,437 ) (8,676 ) (43,854 ) Equity in net income of affiliates 26,873 382,921 371,949 Net income from continuing operations 121,088 308,253 286,720 Income from discontinued operations, net of taxes — — 204 Net income 121,088 308,253 286,924 Other comprehensive income (loss), net of tax 35,480 6,082 (69,962 ) Comprehensive income $ 156,568 $ 314,335 $ 216,962 |
Condensed Financial Information Statement of Cash Flows of Parent Company [Table Text Block] | Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Statements of Cash Flows Parent Company Only Year Ended December 31, (In thousands) 2017 2016 2015 Net cash provided by (used in) operating activities, continuing operations $ (23,654 ) $ 38,902 $ (128,879 ) Net cash provided by (used in) operating activities, discontinued operations — — — Net cash provided by (used in) operating activities (23,654 ) 38,902 (128,879 ) Cash flows from investing activities: Proceeds from sales of: Fixed-maturity investments available for sale 58,007 47,058 — Equity securities available for sale — 24,992 — Trading securities — 30,350 — Proceeds from redemptions of: Fixed-maturity investments available for sale 60,414 49,578 — Trading securities — 10,000 — Purchases of : Fixed-maturity investments available for sale (134,456 ) (137,431 ) (39,667 ) Equity securities available for sale — — (25,545 ) Sales, redemptions and (purchases) of : Short-term investments, net 210,529 (40,288 ) 473,350 Other assets, net (1,107 ) 239 (688 ) Capital distributions from subsidiaries 924 15,000 113,784 Capital contributions to subsidiaries (21,643 ) (1,500 ) (182,307 ) Acquisition of subsidiaries — (30,443 ) — (Issuance) repayment of note receivable from affiliate (Note D) (44 ) 201,631 (208,527 ) Net cash provided by (used in) investing activities 172,624 169,186 130,400 Cash flows from financing activities: Dividends paid (2,154 ) (2,105 ) (1,996 ) Issuance of long-term debt, net 442,163 343,417 343,334 Purchases and redemptions of long-term debt (593,527 ) (445,072 ) (156,172 ) Proceeds from termination of capped calls 4,208 — 13,150 Issuance of common stock 7,132 717 1,285 Purchase of common shares (6 ) (100,188 ) (202,000 ) Credit facility commitment fees paid (1,993 ) — — Excess tax benefits from stock-based awards (Note A) — 98 2,228 Net cash provided by (used in) financing activities (144,177 ) (203,133 ) (171 ) Increase (decrease) in cash and restricted cash 4,793 4,955 1,350 Cash and restricted cash, beginning of period 8,380 3,425 2,075 Cash and restricted cash, end of period $ 13,173 $ 8,380 $ 3,425 |
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 31, 2017 , the maturities of the principal amount of our long-term debt in future years are as follows: (In thousands) 2019 $ 158,623 2020 234,126 2021 197,661 2024 450,000 Total $ 1,040,410 |
Components of Parent Company Expenses Allocated to Subsidiaries [Table Text Block] | The following table shows the components of our Parent Company expenses that have been allocated to our subsidiaries for the periods indicated: Year Ended December 31, (in thousands) 2017 2016 2015 Allocated operating expenses $ 72,764 $ 56,446 $ 53,738 Allocated interest expenses 44,686 52,092 35,300 Total allocated expenses $ 117,450 $ 108,538 $ 89,038 |
Note 1 - Description of Busin49
Note 1 - Description of Business and Recent Developments Organization, Consolidation and Presentation of Financial Statements (Details) $ in Thousands | Dec. 31, 2017USD ($) | Jan. 27, 2017USD ($) | Apr. 01, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2013 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Oct. 16, 2017USD ($) | Aug. 09, 2017USD ($) | |
Insurance Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||
Number of Reportable Segments | segment | 2 | |||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Restructuring Charges | $ 5,230 | $ 12,038 | $ 0 | $ 0 | $ 17,268 | $ 0 | $ 0 | |||||||||||||
Payments for Restructuring | 6,800 | |||||||||||||||||||
Goodwill, Impairment Loss | 0 | 0 | 184,374 | $ 0 | 184,374 | 0 | 0 | |||||||||||||
Finite-Lived Intangible Assets, Net | $ 53,290 | $ 53,290 | $ 53,290 | 81,058 | $ 53,290 | $ 53,290 | ||||||||||||||
Mortgage Insurance Segment | ||||||||||||||||||||
Insurance Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||
Private Mortgage Insurance Protects Lenders For Loans Made With This Maximum Downpayment Percentage | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||||
Private Mortgage Insurance Protects Lenders For Refinancings Made to Home Buyers With Less Than This Maximum Equity-Ownership Percentage | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||||
Risk In Force | $ 51,300,000 | $ 51,300,000 | $ 51,300,000 | $ 51,300,000 | $ 51,300,000 | |||||||||||||||
Mortgage and Real Estate Services Segment [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Restructuring Charges | [1] | 6,828 | ||||||||||||||||||
Goodwill, Impairment Loss | 184,400 | 184,374 | 0 | |||||||||||||||||
Impairment of Intangible Assets, Finite-lived | 15,800 | |||||||||||||||||||
Goodwill | 10,922 | 10,922 | 10,922 | 195,170 | $ 195,170 | 10,922 | $ 195,170 | 10,922 | ||||||||||||
Discontinued Operations, Disposed of by Sale [Member] | Radian Asset Assurance [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | |||||||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 810,000 | |||||||||||||||||||
Equity Method Investment, Net Sales Proceeds | $ 789,000 | |||||||||||||||||||
Convertible Senior Notes Due 2017 [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Repayments of Convertible Debt | $ 126,800 | 31,600 | ||||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ (91,900) | |||||||||||||||||||
Convertible Senior Notes Due 2019 [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 68,000 | |||||||||||||||||||
Repayments of Convertible Debt | 110,100 | |||||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ (4,500) | |||||||||||||||||||
Senior Notes due 2019, 2020, and 2021 [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Repayments of Senior Debt | 450,800 | |||||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 225,000 | |||||||||||||||||||
Convertible Debt [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Repayments of Convertible Debt | 235,000 | |||||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | (60,100) | |||||||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2017 [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | 21,600 | 30,100 | ||||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ (1,200) | |||||||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2019 [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | 322,000 | |||||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2019 [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | 141,400 | |||||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2020 [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | 115,900 | |||||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2021 [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | 152,300 | |||||||||||||||||||
Senior Notes [Member] | Senior Notes due 2019, 2020, and 2021 [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ (45,800) | |||||||||||||||||||
Third Quarter 2017 Repurchase Program [Member] | ||||||||||||||||||||
Basis of Presentation and Business Overview [Line Items] | ||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | |||||||||||||||||||
Scenario, Forecast [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Restructuring Charges | $ 3,800 | $ 21,100 | ||||||||||||||||||
Payments for Restructuring | $ 3,000 | |||||||||||||||||||
Contract Termination and Other Restructuring Costs [Member] | Scenario, Forecast [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Restructuring Charges | 900 | |||||||||||||||||||
Asset Impairment Charges [Member] | Scenario, Forecast [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Restructuring Charges | 11,300 | |||||||||||||||||||
Employee Severance and Benefit Costs [Member] | Scenario, Forecast [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Restructuring Charges | 7,100 | |||||||||||||||||||
Facility and Lease Termination Costs [Member] | Scenario, Forecast [Member] | ||||||||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Restructuring Charges | $ 1,800 | |||||||||||||||||||
Radian Guaranty [Member] | Reinsurer Concentration Risk [Member] | Single Premium QSR Transaction [Member] | ||||||||||||||||||||
Insurance Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||
Risk In Force | $ 6,900,000 | $ 6,900,000 | $ 6,900,000 | $ 3,800,000 | $ 6,900,000 | $ 6,900,000 | ||||||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | ||||||||||||||||||||
Concentration Risk, Percentage | 65.00% | 20.00% | 35.00% | 35.00% | 35.00% | |||||||||||||||
[1] | Primarily includes employee severance and related benefit costs. Does not include impairment of long-lived assets, which is not a component of adjusted pretax operating income. |
Note 2 - Significant Accounti50
Note 2 - Significant Accounting Policies Accounting Policy (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)incidentgrouppaymentdays | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)incidentgroupyearspaymentdays | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Significant Accounting Policies Line Items [Line Items] | |||||||||||
Unbilled Contracts Receivable | $ 22,300 | $ 22,300 | |||||||||
Services revenue | 39,703 | $ 39,571 | $ 37,802 | $ 38,027 | $ 49,905 | $ 45,877 | $ 40,263 | $ 32,849 | 155,103 | $ 168,894 | $ 157,216 |
Cost of services | 23,349 | 27,240 | 25,635 | 28,375 | 33,812 | 29,447 | 27,365 | 23,550 | 104,599 | 114,174 | 93,715 |
Other income | 2,886 | 3,572 | 2,899 | ||||||||
Other operating expenses | $ 65,999 | $ 64,195 | $ 68,750 | $ 68,377 | 62,416 | $ 62,119 | $ 63,173 | $ 57,188 | $ 267,321 | 244,896 | 242,405 |
Losses and LAE Mortgage Insurance [Abstract] | |||||||||||
Number of Natural Disasters | incident | 2 | 2 | |||||||||
Period That the Policyholder Has to Challenge a Notice of Rescission | days | 30 | 30 | |||||||||
Cash and Restricted Cash [Abstract] | |||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 96,200 | 61,800 | $ 96,200 | 61,800 | |||||||
Cash and Cash Equivalents, at Carrying Value | 80,569 | 52,149 | 80,569 | 52,149 | |||||||
Restricted cash | $ 15,675 | $ 9,665 | $ 15,675 | 9,665 | |||||||
Investments [Abstract] | |||||||||||
Number of Investment Categories | group | 3 | 3 | |||||||||
Maximum Maturity Duration for Short Term Investment Grouping | 3 months | ||||||||||
Minimum [Member] | |||||||||||
Losses and LAE Mortgage Insurance [Abstract] | |||||||||||
Number Of Payments Missed For Insured Loans | payment | 2 | 2 | |||||||||
Maximum [Member] | |||||||||||
Reserve for Premium Deficiency [Abstract] | |||||||||||
Number Of Years That The Measurement Period Of The TCJA Is Not To Exceed | years | 1 | ||||||||||
Computer Equipment [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Property, Plant and Equipment, Useful Life, Maximum | 3 years | ||||||||||
Computer Equipment [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Property, Plant and Equipment, Useful Life, Maximum | 5 years | ||||||||||
Furniture, Fixtures and Office Equipment [Member] | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Property, Plant and Equipment, Useful Life, Maximum | 7 years | ||||||||||
Mortgage Insurance Segment | |||||||||||
Significant Accounting Policies Line Items [Line Items] | |||||||||||
Services revenue | $ 0 | ||||||||||
Cost of services | 0 | 0 | 0 | ||||||||
Other income | 2,886 | 3,572 | 2,899 | ||||||||
Other operating expenses | $ 150,975 | $ 140,624 | $ 148,619 | ||||||||
Losses and LAE Mortgage Insurance [Abstract] | |||||||||||
Period of Time Insureds Have After Foreclosure To Provide Documents To Perfect Claim | 1 year | ||||||||||
Reserve for Premium Deficiency [Abstract] | |||||||||||
Number of Mortgage Insurance Product Categories | group | 2 |
Note 3 - Net Income (Loss) Pe51
Note 3 - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | $ 121,088 | $ 308,253 | $ 281,539 | ||||||||||||||||||
Income (Loss) From Continuing Operations, Diluted, Amount | 120,873 | 314,069 | 296,297 | ||||||||||||||||||
Less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 5,385 | ||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 121,088 | 308,253 | 286,924 | ||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 120,873 | $ 314,069 | $ 301,682 | ||||||||||||||||||
Average common shares outstanding | 215,321 | 211,789 | 199,910 | ||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 4,305 | 2,999 | 2,393 | ||||||||||||||||||
Adjusted shares outstanding-diluted | 220,250 | 219,391 | 215,152 | 221,497 | 224,776 | 225,968 | 226,203 | 239,707 | 220,406 | 229,258 | 246,332 | ||||||||||
Net income (loss) from continuing operations, per basic share | $ 0.56 | $ 1.46 | $ 1.41 | ||||||||||||||||||
Net income (loss) from discontinued operations, per basic share | 0 | 0 | 0.03 | ||||||||||||||||||
Net (loss) income per share—basic | 0.56 | 1.46 | 1.44 | ||||||||||||||||||
Net income (loss) from continuing operations, per diluted share | 0.55 | 1.37 | 1.20 | ||||||||||||||||||
Net income (loss) from discontinued operations and disposal of discontinued operations, net of tax, per diluted share | 0 | 0 | 0.02 | ||||||||||||||||||
Net (loss) income per share—diluted | $ 0.03 | [1],[2] | $ 0.30 | [1] | $ (0.13) | [1] | $ 0.34 | [1] | $ 0.27 | [1] | $ 0.37 | [1] | $ 0.44 | [1] | $ 0.29 | [1] | $ 0.55 | [1] | $ 1.37 | [1] | $ 1.22 |
Stock Compensation Plan [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 353 | 1,042 | 728 | ||||||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2017 [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 323 | 207 | 6,293 | ||||||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2019 [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Interest on Convertible Debt, Net of Tax | $ (215) | $ 5,816 | $ 14,758 | ||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 457 | 14,263 | 37,736 | ||||||||||||||||||
[1] | Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income. | ||||||||||||||||||||
[2] | The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. |
Note 4 - Segment Reporting Sche
Note 4 - Segment Reporting Schedule of Segment Reporting Information by Segment (Details) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2013 | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | May 31, 2014USD ($) | ||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Net gains (losses) on investments and other financial instruments | $ 3,621 | $ 35,693 | |||||||||||||||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||||||||||||||||
Net premiums earned—insurance | $ 245,175 | $ 236,702 | $ 229,096 | $ 221,800 | $ 233,585 | $ 238,149 | $ 229,085 | $ 220,950 | $ 932,773 | $ 921,769 | 915,908 | ||||||||||||||
Services revenue | 39,703 | 39,571 | 37,802 | 38,027 | 49,905 | 45,877 | 40,263 | 32,849 | 155,103 | 168,894 | 157,216 | ||||||||||||||
Net investment income | 33,605 | 32,540 | 30,071 | 31,032 | 28,996 | 28,430 | 28,839 | 27,201 | 127,248 | 113,466 | 81,537 | ||||||||||||||
Other Income | 2,886 | 3,572 | 2,899 | ||||||||||||||||||||||
Provision for losses | 35,178 | 35,841 | 17,222 | 46,913 | 54,287 | 55,785 | 49,725 | 42,991 | 135,154 | 202,788 | 198,585 | ||||||||||||||
Policy acquisition costs | 5,871 | 5,554 | 6,123 | 6,729 | 5,579 | 6,119 | 5,393 | 6,389 | 24,277 | 23,480 | 22,424 | ||||||||||||||
Cost of services | 23,349 | 27,240 | 25,635 | 28,375 | 33,812 | 29,447 | 27,365 | 23,550 | 104,599 | 114,174 | 93,715 | ||||||||||||||
Other operating expenses | 65,999 | 64,195 | 68,750 | 68,377 | 62,416 | 62,119 | 63,173 | 57,188 | 267,321 | 244,896 | 242,405 | ||||||||||||||
Restructuring Charges | 5,230 | 12,038 | 0 | 0 | 17,268 | 0 | 0 | ||||||||||||||||||
Total Operating Expenses Allocated to Subsidiaries From Parent Company | 72,764 | 56,446 | 53,738 | ||||||||||||||||||||||
Total Interest Expense Allocated to Subsidiaries From Parent Company | 44,686 | 52,092 | 35,300 | ||||||||||||||||||||||
Total assets | $ 5,900,881 | 5,900,881 | 5,863,174 | 5,900,881 | 5,863,174 | $ 5,900,881 | $ 5,900,881 | ||||||||||||||||||
Net gains on investments and other financial instruments | (1,339) | $ 2,480 | $ 5,331 | $ (2,851) | (38,773) | $ 7,711 | $ 30,527 | $ 31,286 | 3,621 | 30,751 | 35,693 | ||||||||||||||
Mortgage Insurance Segment | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 145,700 | 145,700 | 145,700 | 145,700 | 145,700 | ||||||||||||||||||||
Net premiums written—insurance | 818,417 | [1],[2] | 733,834 | [3] | 968,505 | [4] | |||||||||||||||||||
(Increase) decrease in unearned premiums | 114,356 | [1] | 187,935 | (52,597) | |||||||||||||||||||||
Net premiums earned—insurance | 932,773 | 921,769 | 915,908 | ||||||||||||||||||||||
Services revenue | 0 | ||||||||||||||||||||||||
Net investment income | 127,248 | 113,466 | 81,537 | ||||||||||||||||||||||
Other Income | 2,886 | 3,572 | 2,899 | ||||||||||||||||||||||
Revenue Non GAAP Basis | 1,062,907 | [5],[6] | 1,038,807 | [7],[8] | 1,000,344 | [9],[10] | |||||||||||||||||||
Provision for losses | 136,183 | 204,175 | 198,433 | ||||||||||||||||||||||
Policy acquisition costs | 24,277 | 23,480 | 22,424 | ||||||||||||||||||||||
Cost of services | 0 | 0 | 0 | ||||||||||||||||||||||
Other operating expenses | 150,975 | 140,624 | 148,619 | ||||||||||||||||||||||
Total Expenses Non-GAAP | 311,435 | [6] | 368,279 | [8] | 369,476 | [10] | |||||||||||||||||||
Operating Income (Loss) Pretax Non GAAP Before Corporate Allocations | 751,472 | 670,528 | 630,868 | ||||||||||||||||||||||
Total Operating Expenses Allocated to Subsidiaries From Parent Company | 55,441 | 45,178 | 46,418 | ||||||||||||||||||||||
Total Interest Expense Allocated to Subsidiaries From Parent Company | 45,016 | 63,439 | 73,402 | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [11] | 651,015 | 561,911 | 511,048 | |||||||||||||||||||||
Total assets | 5,733,918 | 5,733,918 | 5,506,338 | 5,733,918 | 5,506,338 | 5,290,422 | 5,733,918 | $ 5,290,422 | 5,733,918 | ||||||||||||||||
New Insurance Written | 53,905,000 | 50,530,000 | 41,411,000 | ||||||||||||||||||||||
Revenue from Related Parties | 0 | 0 | 0 | ||||||||||||||||||||||
Costs and Expenses, Related Party | 6,730 | 8,355 | 5,924 | ||||||||||||||||||||||
Mortgage and Real Estate Services Segment [Member] | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Net premiums written—insurance | [1],[2] | 0 | |||||||||||||||||||||||
(Increase) decrease in unearned premiums | [1] | 0 | |||||||||||||||||||||||
Net premiums earned—insurance | 0 | ||||||||||||||||||||||||
Services revenue | 161,833 | 177,249 | 163,140 | ||||||||||||||||||||||
Net investment income | 0 | 0 | 0 | ||||||||||||||||||||||
Other Income | 0 | 0 | 0 | ||||||||||||||||||||||
Revenue Non GAAP Basis | 161,833 | [5],[6] | 177,249 | [7],[8] | 163,140 | [9],[10] | |||||||||||||||||||
Provision for losses | 0 | ||||||||||||||||||||||||
Policy acquisition costs | 0 | ||||||||||||||||||||||||
Cost of services | 105,812 | 115,369 | 97,256 | ||||||||||||||||||||||
Other operating expenses | 50,969 | 55,815 | 43,515 | ||||||||||||||||||||||
Restructuring Charges | [12] | 6,828 | |||||||||||||||||||||||
Total Expenses Non-GAAP | 163,609 | [6] | 171,184 | [8] | 140,771 | [10] | |||||||||||||||||||
Operating Income (Loss) Pretax Non GAAP Before Corporate Allocations | (1,776) | 6,065 | 22,369 | ||||||||||||||||||||||
Total Operating Expenses Allocated to Subsidiaries From Parent Company | 14,319 | 8,533 | 4,823 | ||||||||||||||||||||||
Total Interest Expense Allocated to Subsidiaries From Parent Company | 17,745 | 17,693 | 17,700 | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [11] | (33,840) | (20,161) | (154) | |||||||||||||||||||||
Total assets | 166,963 | [13] | 166,963 | [13] | 356,836 | 166,963 | [13] | 356,836 | 351,678 | 166,963 | [13] | 351,678 | 166,963 | [13] | |||||||||||
Revenue from Related Parties | 6,730 | 8,355 | 5,924 | ||||||||||||||||||||||
Costs and Expenses, Related Party | 0 | 0 | 0 | ||||||||||||||||||||||
Mortgage Insurance and Mortgage and Real Estate Services Segments [Member] | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Net premiums written—insurance | 818,417 | [1],[2] | 733,834 | [3] | 968,505 | [4] | |||||||||||||||||||
(Increase) decrease in unearned premiums | 114,356 | [1] | 187,935 | (52,597) | |||||||||||||||||||||
Net premiums earned—insurance | 932,773 | 921,769 | 915,908 | ||||||||||||||||||||||
Services revenue | 161,833 | 177,249 | 163,140 | ||||||||||||||||||||||
Net investment income | 127,248 | 113,466 | 81,537 | ||||||||||||||||||||||
Other Income | 2,886 | 3,572 | 2,899 | ||||||||||||||||||||||
Revenue Non GAAP Basis | 1,224,740 | [5],[6] | 1,216,056 | [7],[8] | 1,163,484 | [9],[10] | |||||||||||||||||||
Provision for losses | 136,183 | 204,175 | 198,433 | ||||||||||||||||||||||
Policy acquisition costs | 24,277 | 23,480 | 22,424 | ||||||||||||||||||||||
Cost of services | 105,812 | 115,369 | 97,256 | ||||||||||||||||||||||
Other operating expenses | 201,944 | 196,439 | 192,134 | ||||||||||||||||||||||
Restructuring Charges | [12] | 6,828 | |||||||||||||||||||||||
Total Expenses Non-GAAP | 475,044 | [6] | 539,463 | [8] | 510,247 | [10] | |||||||||||||||||||
Operating Income (Loss) Pretax Non GAAP Before Corporate Allocations | 749,696 | 676,593 | 653,237 | ||||||||||||||||||||||
Total Operating Expenses Allocated to Subsidiaries From Parent Company | 69,760 | 53,711 | 51,241 | ||||||||||||||||||||||
Total Interest Expense Allocated to Subsidiaries From Parent Company | 62,761 | 81,132 | 91,102 | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 617,175 | 541,750 | 510,894 | ||||||||||||||||||||||
Total assets | $ 5,900,881 | $ 5,900,881 | $ 5,863,174 | $ 5,900,881 | $ 5,863,174 | $ 5,642,100 | $ 5,900,881 | $ 5,642,100 | $ 5,900,881 | ||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2019 [Member] | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Debt Instrument, Face Amount | $ 300,000 | ||||||||||||||||||||||||
Reinsurer Concentration Risk [Member] | Single Premium QSR Transaction [Member] | Radian Guaranty [Member] | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Concentration Risk, Percentage | 65.00% | 20.00% | 35.00% | 35.00% | 35.00% | ||||||||||||||||||||
Primary Risk In Force [Member] | CALIFORNIA | Geographic Concentration Risk [Member] | Mortgage Insurance Segment | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||
Concentration Risk, Percentage | 12.40% | ||||||||||||||||||||||||
[1] | Effective December 31, 2017, we amended the 2016 Single Premium QSR Transaction to increase the amount of ceded risk for performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages, resulting in a reduction of $145.7 million in net premiums written. | ||||||||||||||||||||||||
[2] | Net of ceded premiums written under the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. | ||||||||||||||||||||||||
[3] | Net of ceded premiums written under the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. | ||||||||||||||||||||||||
[4] | Net of ceded premiums written under the QSR Transactions. See Note 8 for additional information. | ||||||||||||||||||||||||
[5] | Excludes net gains on investments and other financial instruments of $3.6 million, not included in adjusted pretax operating income. | ||||||||||||||||||||||||
[6] | Includes inter-segment revenues and expenses as follows: December 31, 2017(In thousands)Mortgage Insurance ServicesInter-segment revenues included in Services segment$— $6,730Inter-segment expenses included in Mortgage Insurance segment6,730 — | ||||||||||||||||||||||||
[7] | Excludes net gains on investments and other financial instruments of $30.8 million, not included in adjusted pretax operating income. | ||||||||||||||||||||||||
[8] | Includes inter-segment revenues and expenses as follows: December 31, 2016(In thousands)Mortgage Insurance ServicesInter-segment revenues included in Services segment$— $8,355Inter-segment expenses included in Mortgage Insurance segment8,355 — | ||||||||||||||||||||||||
[9] | Excludes net gains on investments and other financial instruments of $35.7 million, not included in adjusted pretax operating income. | ||||||||||||||||||||||||
[10] | Includes inter-segment revenues and expenses as follows: December 31, 2015(In thousands)Mortgage Insurance ServicesInter-segment revenues included in Services segment$— $5,924Inter-segment expenses included in Mortgage Insurance segment5,924 — | ||||||||||||||||||||||||
[11] | Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. | ||||||||||||||||||||||||
[12] | Primarily includes employee severance and related benefit costs. Does not include impairment of long-lived assets, which is not a component of adjusted pretax operating income. | ||||||||||||||||||||||||
[13] | The decrease in total assets for the Services segment at December 31, 2017, as compared to December 31, 2016, is primarily due to the impairment of goodwill and other intangible assets. See Note 7 for further details. |
Note 4 - Segment Reporting Reco
Note 4 - Segment Reporting Reconciliation of Segment to Consolidated Results Pretax (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($)customer | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)customer | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)customer | Dec. 31, 2016USD ($)customer | Dec. 31, 2015USD ($)customer | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Net gains (losses) on investments and other financial instruments | $ 3,621 | $ 35,693 | ||||||||||
Net gains on investments and other financial instruments | $ (1,339) | $ 2,480 | $ 5,331 | $ (2,851) | $ (38,773) | $ 7,711 | $ 30,527 | $ 31,286 | 3,621 | $ 30,751 | 35,693 | |
Loss on induced conversion and debt extinguishment (Note 12) | 0 | (45,766) | (1,247) | (4,456) | 0 | (17,397) | (2,108) | (55,570) | (51,469) | (75,075) | (94,207) | |
Business Combination, Acquisition Related Costs | [1] | (105) | (519) | (1,565) | ||||||||
Goodwill, Impairment Loss | 0 | 0 | (184,374) | 0 | (184,374) | 0 | 0 | |||||
Increase (Decrease) in Goodwill and Intangible Assets | $ (2,629) | $ (2,890) | (18,856) | $ (3,296) | $ (3,290) | $ (3,292) | $ (3,311) | $ (3,328) | (27,671) | (13,221) | (12,986) | |
Impairment of Long-Lived Assets Held-for-use | [2] | (10,440) | 0 | 0 | ||||||||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | 346,737 | 483,686 | 437,829 | |||||||||
Mortgage Insurance Segment | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [3] | $ 651,015 | $ 561,911 | $ 511,048 | ||||||||
Mortgage Insurance Segment | Primary Risk In Force [Member] | CALIFORNIA | Geographic Concentration Risk [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Concentration Risk, Percentage | 12.40% | |||||||||||
Mortgage Insurance Segment | Primary Risk In Force [Member] | Minimum [Member] | CALIFORNIA | Geographic Concentration Risk [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Concentration Risk, Percentage | 10.00% | |||||||||||
Mortgage Insurance Segment | New Insurance Written [Member] | Customer A [Member] | Customer Concentration Risk [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Concentration Risk, Percentage | 6.80% | 5.70% | 4.60% | |||||||||
Mortgage Insurance Segment | New Insurance Written [Member] | CALIFORNIA | Geographic Concentration Risk [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Concentration Risk, Percentage | 14.10% | 14.80% | 15.20% | |||||||||
Mortgage Insurance Segment | Earned Premium Benchmark, Amount [Member] | Customer B [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Entity Wide Revenue, Major Customer, Number of Customers | customer | 1 | 1 | 1 | 1 | 1 | |||||||
Mortgage Insurance Segment | Earned Premium Benchmark, Amount [Member] | Customer B [Member] | Customer Concentration Risk [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Concentration Risk, Percentage | 15.00% | 15.00% | 16.00% | |||||||||
Mortgage and Real Estate Services Segment [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [3] | $ (33,840) | $ (20,161) | $ (154) | ||||||||
Goodwill, Impairment Loss | $ (184,400) | (184,374) | 0 | |||||||||
Mortgage Insurance and Mortgage and Real Estate Services Segments [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | $ 617,175 | $ 541,750 | $ 510,894 | |||||||||
[1] | Acquisition-related expenses represent expenses incurred to effect the acquisition of a business, net of adjustments to accruals previously recorded for acquisition expenses. | |||||||||||
[2] | Included within restructuring and other exit costs. See Note 2. | |||||||||||
[3] | Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. |
Note 5 - Fair Value of Financ54
Note 5 - Fair Value of Financial Instruments Fair Value Assets Liabilities by Hierarchy Level (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Securities Received as Collateral | $ 19,357,000 | $ 0 | ||||
Securities Loaned, Asset | 27,964,000 | |||||
Net gains (losses) on investments and other financial instruments | 3,207,000 | 31,004,000 | $ 35,081,000 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | ||||
Total liabilities | 2,900,843,000 | 2,990,888,000 | ||||
Reported Value Measurement [Member] | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Cost Method Investments | 334,000 | 1,195,000 | ||||
Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 4,671,572,000 | [1],[2] | 4,461,235,000 | [3] | ||
Total Assets at Fair Value | 4,671,572,000 | [2] | 4,461,235,000 | |||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | ||||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | 0 | ||||
US government and agency securities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 132,992,000 | 237,479,000 | ||||
State and municipal obligations | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 386,111,000 | 358,536,000 | ||||
Money market instruments | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 213,357,000 | 431,472,000 | ||||
Corporate bonds and notes | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 2,304,017,000 | 2,024,205,000 | ||||
RMBS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 216,749,000 | 388,842,000 | ||||
CMBS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 503,955,000 | 507,273,000 | ||||
Other ABS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 676,158,000 | 450,128,000 | ||||
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 36,448,000 | 32,807,000 | ||||
Equity securities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 176,065,000 | 1,330,000 | ||||
Other investments | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 25,720,000 | [4] | 29,163,000 | [5] | ||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 513,531,000 | [1] | 668,951,000 | [3] | ||
Total Assets at Fair Value | 513,531,000 | 668,951,000 | ||||
Fair Value, Inputs, Level 1 | US government and agency securities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 124,969,000 | 237,479,000 | ||||
Fair Value, Inputs, Level 1 | State and municipal obligations | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | Money market instruments | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 213,357,000 | 431,472,000 | ||||
Fair Value, Inputs, Level 1 | Corporate bonds and notes | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | RMBS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | CMBS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | Other ABS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | Equity securities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 175,205,000 | 0 | ||||
Fair Value, Inputs, Level 1 | Other investments | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | [4] | 0 | [5] | ||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 4,158,041,000 | [1] | 3,791,284,000 | [3] | ||
Total Assets at Fair Value | 4,158,041,000 | 3,791,284,000 | ||||
Fair Value, Inputs, Level 2 | US government and agency securities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 8,023,000 | 0 | ||||
Fair Value, Inputs, Level 2 | State and municipal obligations | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 386,111,000 | 358,536,000 | ||||
Fair Value, Inputs, Level 2 | Money market instruments | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 2 | Corporate bonds and notes | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 2,304,017,000 | 2,024,205,000 | ||||
Fair Value, Inputs, Level 2 | RMBS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 216,749,000 | 388,842,000 | ||||
Fair Value, Inputs, Level 2 | CMBS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 503,955,000 | 507,273,000 | ||||
Fair Value, Inputs, Level 2 | Other ABS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 676,158,000 | 450,128,000 | ||||
Fair Value, Inputs, Level 2 | Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 36,448,000 | 32,807,000 | ||||
Fair Value, Inputs, Level 2 | Equity securities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 860,000 | 830,000 | ||||
Fair Value, Inputs, Level 2 | Other investments | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 25,720,000 | [4] | 28,663,000 | [5] | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | [3] | 1,000,000 | ||||
Total Assets at Fair Value | $ 1,000,000 | |||||
Total Level III Assets as a Percentage of Total Assets Measured at Fair Value is Less Than | 0.10% | |||||
Total liabilities | 0 | $ 0 | ||||
Fair Value, Inputs, Level 3 | US government and agency securities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | |||||
Fair Value, Inputs, Level 3 | State and municipal obligations | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | |||||
Fair Value, Inputs, Level 3 | Money market instruments | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | |||||
Fair Value, Inputs, Level 3 | Corporate bonds and notes | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | |||||
Fair Value, Inputs, Level 3 | RMBS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | |||||
Fair Value, Inputs, Level 3 | CMBS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | |||||
Fair Value, Inputs, Level 3 | Other ABS | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | |||||
Fair Value, Inputs, Level 3 | Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | |||||
Fair Value, Inputs, Level 3 | Equity securities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 500,000 | |||||
Total Assets at Fair Value | 0 | 1,000,000 | ||||
Net gains (losses) on investments and other financial instruments | 0 | |||||
Fair Value, Inputs, Level 3 | Other investments | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | [5] | 500,000 | ||||
Net gains (losses) on investments and other financial instruments | $ 0 | |||||
Securities Financing Transaction, Fair Value [Member] | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Securities Received as Collateral | [6] | 19,357,000 | ||||
Securities Loaned, Asset | [7] | $ 27,964,000 | ||||
[1] | Does not include certain other invested assets ($0.3 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Includes cash collateral held under securities lending agreements ($19.4 million) reinvested in money market instruments. | |||||
[2] | Includes $28.0 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets. See Note 6 for more information. | |||||
[3] | Does not include certain other invested assets ($1.2 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. | |||||
[4] | Comprising short-term certificates of deposit and commercial paper. | |||||
[5] | Comprising short-term certificates of deposit and commercial paper. | |||||
[6] | All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities on our consolidated balance sheets. | |||||
[7] | Our securities loaned under securities lending agreements are included at fair value within other assets on our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. |
Note 5 - Fair Value of Financ55
Note 5 - Fair Value of Financial Instruments Other Fair Value Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,027,074 | $ 1,069,537 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost Method Investments | 334 | 1,195 |
Long-term debt | 1,027,074 | 1,069,537 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost Method Investments, Fair Value Disclosure | 3,226 | 3,789 |
Long-term Debt, Fair Value | 1,093,934 | $ 1,214,471 |
Convertible Senior Notes Due 2017 and 2019 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 0 |
Note 6 - Investments Total Debt
Note 6 - Investments Total Debt and Equity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |||
Schedule of Available-for-sale Securities [Line Items] | |||||
Securities Loaned, Asset | $ 27,964 | ||||
Fixed maturities available for sale securities | |||||
Fair value | 3,649,447 | $ 2,839,842 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 48,778 | 20,827 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 16,434 | 38,783 | |||
Amortized Cost Debt and Equity Securities | 3,617,103 | 2,857,798 | |||
Debt Securities [Member] | |||||
Fixed maturities available for sale securities | |||||
Amortized cost - Debt Securities | 3,440,754 | 2,856,468 | |||
Fair value | 3,473,382 | [1] | 2,838,512 | ||
Gross unrealized gains | 47,073 | 20,827 | |||
Gross unrealized losses | 14,445 | 38,783 | |||
US government and agency securities | |||||
Fixed maturities available for sale securities | |||||
Amortized cost - Debt Securities | 69,668 | 78,931 | |||
Fair value | 69,396 | 75,474 | |||
Gross unrealized gains | 96 | 2 | |||
Gross unrealized losses | 367 | 3,459 | |||
State and municipal obligations | |||||
Fixed maturities available for sale securities | |||||
Amortized cost - Debt Securities | 156,587 | 66,124 | |||
Fair value | 161,722 | 67,171 | |||
Gross unrealized gains | 5,834 | 1,868 | |||
Gross unrealized losses | 699 | 821 | |||
Corporate bonds and notes | |||||
Fixed maturities available for sale securities | |||||
Amortized cost - Debt Securities | 1,869,318 | 1,463,720 | |||
Fair value | 1,894,886 | 1,455,628 | |||
Gross unrealized gains | 33,620 | 14,320 | |||
Gross unrealized losses | 8,052 | 22,412 | |||
RMBS | |||||
Fixed maturities available for sale securities | |||||
Amortized cost - Debt Securities | 189,455 | 358,262 | |||
Fair value | 187,229 | 350,628 | |||
Gross unrealized gains | 636 | 197 | |||
Gross unrealized losses | 2,862 | 7,831 | |||
CMBS | |||||
Fixed maturities available for sale securities | |||||
Amortized cost - Debt Securities | 451,595 | 429,057 | |||
Fair value | 453,394 | 428,289 | |||
Gross unrealized gains | 3,409 | 2,255 | |||
Gross unrealized losses | 1,610 | 3,023 | |||
Asset-backed Securities [Member] | |||||
Fixed maturities available for sale securities | |||||
Amortized cost - Debt Securities | 672,715 | 433,603 | |||
Fair value | 674,548 | 434,728 | |||
Gross unrealized gains | 2,655 | 2,037 | |||
Gross unrealized losses | 822 | 912 | |||
Foreign Government Debt Securities [Member] | |||||
Fixed maturities available for sale securities | |||||
Amortized cost - Debt Securities | 31,416 | 24,771 | |||
Fair value | 32,207 | 24,594 | |||
Gross unrealized gains | 823 | 148 | |||
Gross unrealized losses | 33 | 325 | |||
Other than Securities Investment [Member] | |||||
Fixed maturities available for sale securities | |||||
Amortized cost - Debt Securities | 2,000 | ||||
Fair value | 2,000 | ||||
Gross unrealized gains | 0 | ||||
Gross unrealized losses | 0 | ||||
Equity securities | |||||
Equity securities available for sale | |||||
Available-for-sale Equity Securities, Amortized Cost Basis | 176,349 | [2] | 1,330 | [3] | |
Equity securities available for sale—at fair value | 176,065 | [1],[2] | 1,330 | [3] | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 1,705 | [2] | 0 | [3] | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 1,989 | [2] | 0 | [3] | |
2013 Freddie Mac Agreement [Member] | Radian Guaranty Inc [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Marketable Securities, Restricted | 5,600 | $ 63,900 | |||
Securities Financing Transaction, Fair Value [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Securities Loaned, Asset | [4] | 27,964 | |||
Securities Financing Transaction, Fair Value [Member] | Fixed Maturities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Securities Loaned, Asset | [4] | 14,700 | |||
Securities Financing Transaction, Fair Value [Member] | Corporate bonds and notes | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Securities Loaned, Asset | [4] | 13,862 | |||
Securities Financing Transaction, Fair Value [Member] | Foreign Government Debt Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Securities Loaned, Asset | [4] | 867 | |||
Securities Financing Transaction, Fair Value [Member] | Equity securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Securities Loaned, Asset | [4] | $ 13,235 | |||
[1] | Includes $14.7 million and $13.2 million of fixed maturities and equity securities, respectively, of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets, as further described below. | ||||
[2] | Primarily consists of investments in fixed-income and equity exchange-traded funds and publicly-traded business development company equities. | ||||
[3] | Primarily consists of investments in Federal Home Loan Bank stock as required in connection with the memberships of Radian Guaranty and Radian Reinsurance in the FHLB. | ||||
[4] | Our securities loaned under securities lending agreements are included at fair value within other assets on our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. |
Note 6 - Investments Schedule o
Note 6 - Investments Schedule of Unrealized Losses (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($) | |
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 332 | 362 | |
Fair value available-for-sale securities | $ 1,338,867 | $ 1,566,440 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 9,827 | $ 37,941 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 72 | 21 | |
Fair value available-for-sale securities | $ 262,531 | $ 58,451 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 6,607 | $ 842 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 404 | 383 | |
Fair value available-for-sale securities | $ 1,601,398 | $ 1,624,891 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 16,434 | 38,783 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 1,420 | 526 | $ 0 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Period Increase (Decrease) | 0 | 0 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 0 | $ 0 | $ 0 |
Convertible Debt Securities [Member] | |||
Continuous Loss Position, Total | |||
Other than Temporary Impairment Losses, Investments | $ 500 | ||
US government and agency securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 6 | 7 | |
Fair value available-for-sale securities | $ 23,309 | $ 73,160 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 129 | $ 3,459 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 3 | 0 | |
Fair value available-for-sale securities | $ 9,799 | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 238 | $ 0 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 9 | 7 | |
Fair value available-for-sale securities | $ 33,108 | $ 73,160 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 367 | $ 3,459 | |
Debt Securities [Member] | |||
Continuous Loss Position, Total | |||
Other than Temporary Impairment Losses, Investments | $ 400 | ||
State and municipal obligations | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 21 | 7 | |
Fair value available-for-sale securities | $ 65,898 | $ 30,901 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 699 | $ 821 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 0 | 0 | |
Fair value available-for-sale securities | $ 0 | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | $ 0 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 21 | 7 | |
Fair value available-for-sale securities | $ 65,898 | $ 30,901 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 699 | $ 821 | |
Corporate bonds and notes | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 152 | 185 | |
Fair value available-for-sale securities | $ 672,318 | $ 788,876 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 4,601 | $ 22,135 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 32 | 2 | |
Fair value available-for-sale securities | $ 139,105 | $ 4,582 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 3,451 | $ 277 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 184 | 187 | |
Fair value available-for-sale securities | $ 811,423 | $ 793,458 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 8,052 | $ 22,412 | |
Residential Mortgage Backed Securities [Member] | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 8 | 56 | |
Fair value available-for-sale securities | $ 19,943 | $ 311,031 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 204 | $ 7,822 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 26 | 1 | |
Fair value available-for-sale securities | $ 101,812 | $ 1,398 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 2,658 | $ 9 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 34 | 57 | |
Fair value available-for-sale securities | $ 121,755 | $ 312,429 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 2,862 | $ 7,831 | |
CMBS | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 35 | 37 | |
Fair value available-for-sale securities | $ 139,353 | $ 218,170 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 1,395 | $ 2,909 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 4 | 2 | |
Fair value available-for-sale securities | $ 3,518 | $ 6,585 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 215 | $ 114 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 39 | 39 | |
Fair value available-for-sale securities | $ 142,871 | $ 224,755 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 1,610 | $ 3,023 | |
Other ABS | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 92 | 58 | |
Fair value available-for-sale securities | $ 260,864 | $ 131,268 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 777 | $ 470 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 7 | 16 | |
Fair value available-for-sale securities | $ 8,297 | $ 45,886 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 45 | $ 442 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 99 | 74 | |
Fair value available-for-sale securities | $ 269,161 | $ 177,154 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 822 | $ 912 | |
Foreign Government Debt Securities [Member] | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 5 | 12 | |
Fair value available-for-sale securities | $ 7,397 | $ 13,034 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 33 | $ 325 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 0 | 0 | |
Fair value available-for-sale securities | $ 0 | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | $ 0 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 5 | 12 | |
Fair value available-for-sale securities | $ 7,397 | $ 13,034 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 33 | $ 325 | |
Equity securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 13 | ||
Fair value available-for-sale securities | $ 149,785 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 1,989 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 0 | ||
Fair value available-for-sale securities | $ 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 13 | ||
Fair value available-for-sale securities | $ 149,785 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 1,989 | ||
Other than Temporary Impairment Losses, Investments | $ 500 |
Note 6 - Investments Investment
Note 6 - Investments Investments Trading Securities (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Securities Loaned, Asset | $ 27,964,000 | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 0 | $ 0 | $ 0 | ||
Trading Securities | 606,434,000 | [1] | 879,862,000 | ||
Trading Securities, Change in Unrealized Holding Gain (Loss) | 13,230,000 | 27,217,000 | (27,015,000) | ||
Investments | 4,643,942,000 | 4,462,430,000 | |||
Securities (Assets) | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Trading Securities, Change in Unrealized Holding Gain (Loss) | 8,800,000 | 16,800,000 | $ (25,200,000) | ||
US government and agency securities | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Trading Securities | 0 | 33,042,000 | |||
State and municipal obligations | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Trading Securities | 214,841,000 | 259,573,000 | |||
Corporate bonds and notes | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Trading Securities | 307,271,000 | 453,617,000 | |||
RMBS | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Trading Securities | 29,520,000 | 38,214,000 | |||
CMBS | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Trading Securities | 50,561,000 | 78,984,000 | |||
Other ABS | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Trading Securities | 0 | 8,219,000 | |||
Foreign Government Debt Securities [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Trading Securities | 4,241,000 | 8,213,000 | |||
Foreign Government Debt Securities [Member] | Portugal, Ireland, Italy, Greece, Spain and Hungary Government Securities [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Investments | 0 | $ 0 | |||
Securities Financing Transaction, Fair Value [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Securities Loaned, Asset | [2] | 27,964,000 | |||
Securities Financing Transaction, Fair Value [Member] | Corporate bonds and notes | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Securities Loaned, Asset | [2] | 13,862,000 | |||
Securities Financing Transaction, Fair Value [Member] | Foreign Government Debt Securities [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Securities Loaned, Asset | [2] | 867,000 | |||
Securities Financing Transaction, Fair Value [Member] | Equity securities | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Securities Loaned, Asset | [2] | $ 13,235,000 | |||
[1] | Includes a de minimis amount of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below. | ||||
[2] | Our securities loaned under securities lending agreements are included at fair value within other assets on our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. |
Note 6 - Investments Investme59
Note 6 - Investments Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | $ 133,648 | $ 120,213 | $ 87,011 |
Investment Income, Investment Expense | (6,400) | (6,747) | (5,474) |
Investment Income, Net | 127,248 | 113,466 | 81,537 |
Fixed Maturities [Member] | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 122,890 | 115,880 | 81,127 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 4,318 | 86 | 4,539 |
Short-term Investments [Member] | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 5,453 | 3,086 | 745 |
Other Security Investments [Member] | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | $ 987 | $ 1,161 | $ 600 |
Note 6 - Investments Gain (Loss
Note 6 - Investments Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Gain (Loss) on Investments [Line Items] | ||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 0 | $ 0 | $ 0 | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Period Increase (Decrease) | 0 | 0 | ||||||
Fixed-maturities available for sale | [1] | (3,014) | 4,160 | (1,176) | ||||
Equities available for sale | $ 69,200 | 368 | [2] | (170) | [2] | 69,150 | [2],[3] | |
Trading securities | (5,995) | (237) | (9,231) | |||||
Short-term investments | (16) | (135) | (24) | |||||
Other invested assets | 22 | 631 | 3,267 | |||||
Gain (Loss) on Disposition of Other Assets | 32 | 64 | 110 | |||||
Net realized gains (losses) on investments | (8,603) | 4,313 | 62,096 | |||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | (1,420) | (526) | 0 | |||||
Unrealized gains (losses) on trading securities | 13,230 | 27,217 | (27,015) | |||||
Net gains (losses) on investments | 3,207 | 31,004 | 35,081 | |||||
Net gains (losses) on other financial instruments | 414 | (253) | 612 | |||||
Net Gains/Losses on All Financial Instruments | 3,621 | 30,751 | 35,693 | |||||
Other Comprehensive Income (Loss) [Member] | ||||||||
Gain (Loss) on Investments [Line Items] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities Continuing Operations, before Tax | $ 69,200 | |||||||
Debt Securities [Member] | ||||||||
Gain (Loss) on Investments [Line Items] | ||||||||
Other than Temporary Impairment Losses, Investments | 400 | |||||||
Debt and Equity Securities [Member] | ||||||||
Gain (Loss) on Investments [Line Items] | ||||||||
Other than Temporary Impairment Losses, Investments | 1,000 | |||||||
Fixed Maturities [Member] | ||||||||
Gain (Loss) on Investments [Line Items] | ||||||||
Available-for-sale Securities, Gross Realized Gains | 6,052 | 10,326 | 64 | |||||
Available-for-sale Securities, Gross Realized Losses | (9,066) | $ (6,166) | $ (1,240) | |||||
Convertible Debt Securities [Member] | ||||||||
Gain (Loss) on Investments [Line Items] | ||||||||
Other than Temporary Impairment Losses, Investments | 500 | |||||||
Equity securities | ||||||||
Gain (Loss) on Investments [Line Items] | ||||||||
Other than Temporary Impairment Losses, Investments | $ 500 | |||||||
[1] | Components of net realized gains (losses) on fixed-maturities available for sale include: Year Ended December 31,(In thousands)2017 2016 2015Gross investment gains from sales and redemptions$6,052 $10,326 $64Gross investment losses from sales and redemptions(9,066) (6,166) (1,240) | |||||||
[2] | Net realized gains (losses) on equities available for sale is equal to the gross amount of gains and losses, respectively, realized for those periods. | |||||||
[3] | During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million. |
Note 6 - Investments Change in
Note 6 - Investments Change in Unrealized Gains (Losses) Recorded in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | |||
Unrealized holding gains (losses) arising during the period, net of tax | $ 31,903 | $ 8,782 | $ (22,573) |
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | (2,642) | 2,251 | 44,183 |
Fixed Maturities [Member] | |||
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | |||
Unrealized holding gains (losses) arising during the period, net of tax | 32,147 | 8,822 | (24,246) |
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | (2,556) | 2,361 | (764) |
Net unrealized gains on investments | 34,703 | 6,461 | (23,482) |
Equity securities | |||
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | |||
Unrealized holding gains (losses) arising during the period, net of tax | (244) | (40) | 1,673 |
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | (86) | (110) | 44,947 |
Net unrealized gains on investments | $ (158) | $ 70 | $ (43,274) |
Note 6 - Investments Schedule62
Note 6 - Investments Schedule of Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Available-for-sale Securities, Amortized Cost | |||
Amortized cost - Debt Securities | $ 3,426,217 | $ 2,856,468 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | 3,458,719 | $ 2,838,512 | |
Debt Securities [Member] | |||
Available-for-sale Securities, Amortized Cost | |||
Amortized cost - Debt Securities | [1] | 3,440,754 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | [1] | 3,473,382 | |
Non Asset Backed Security Investments, Contractual Maturities | |||
Available-for-sale Securities, Amortized Cost | |||
Due in one year or less | 36,688 | ||
Due after one year through five years | [2] | 705,484 | |
Due after five years through ten years | [2] | 1,023,844 | |
Due after ten years | [2] | 360,973 | |
Available-for-sale Securities, Fair Value | |||
Due in one year or less | 36,645 | ||
Due after one year through five years | [2] | 705,958 | |
Due after five years through ten years | [2] | 1,029,896 | |
Due after ten years | [2] | 385,712 | |
RMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | [3] | 189,455 | |
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | [3] | 187,229 | |
CMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | [3] | 451,595 | |
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | [3] | 453,394 | |
Other ABS | |||
Available-for-sale Securities, Amortized Cost | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | [3] | 672,715 | |
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | [3] | $ 674,548 | |
Minimum [Member] | |||
Total Debt Securities [Line Items] | |||
Investment as a Percentage of Total Stockholder's Equity | 10.00% | ||
[1] | Includes securities loaned under securities lending agreements. | ||
[2] | Actual maturities may differ as a result of calls before scheduled maturity. | ||
[3] | RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date. |
Note 6 - Investments Investme63
Note 6 - Investments Investments In Any Person And Its Affiliates That Exceed 10% of Total Stockholders' Equity (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Securities [Member] | ||
Investment Holdings [Line Items] | ||
Assets Held by Insurance Regulators | $ 11.8 | $ 10.8 |
Minimum [Member] | ||
Investment Holdings [Line Items] | ||
Investment as a Percentage of Total Stockholder's Equity | 10.00% |
Note 6 - Investments Securities
Note 6 - Investments Securities Lending Activity (Details) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016USD ($)transaction | Dec. 31, 2017USD ($) | ||
Securities Financing Transaction [Line Items] | ||||
Securities Lending Rate of Collateral Required | 1.02 | |||
Securities Loaned, Asset | $ 27,964,000 | |||
Securities Held as Collateral, at Fair Value | 0 | |||
Securities Received as Collateral | $ 0 | 19,357,000 | ||
Number of Securities Lending Transactions | transaction | 0 | |||
Repurchase Agreements, Securities Lending Transactions, and Repurchase-to-Maturity Transactions Accounted for as Secured Borrowings, Description of Potential Risks | The Borrower generally may return the loaned securities to us at any time, which would require us to return the collateral within the standard settlement period for the loaned securities on the principal exchange or market in which the securities are traded. We manage this liquidity risk associated with cash collateral by maintaining the cash collateral in a short-term money-market fund with daily availability. The credit risk under these programs is reduced by the amounts of collateral received. On a daily basis, the value of the underlying securities that we have loaned to the Borrowers is compared to the value of cash and securities collateral we received from the Borrowers, and additional cash or securities are requested or returned, as applicable. In addition, we are indemnified against counterparty credit risk by the intermediary. | |||
Securities Financing Transaction, Fair Value [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Securities Lending Rate of Collateral Required | 1 | |||
Securities Loaned, Asset | [1] | 27,964,000 | ||
Securities Borrowed, Fair Value of Collateral | [2] | 9,342,000 | ||
Securities Received as Collateral | [3] | 19,357,000 | ||
Securities Financing Transaction, Fair Value [Member] | Equity securities | ||||
Securities Financing Transaction [Line Items] | ||||
Securities Loaned, Asset | [1] | 13,235,000 | ||
Securities Financing Transaction, Fair Value [Member] | Corporate bonds and notes | ||||
Securities Financing Transaction [Line Items] | ||||
Securities Loaned, Asset | [1] | 13,862,000 | ||
Securities Financing Transaction, Fair Value [Member] | Foreign Government Debt Securities [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Securities Loaned, Asset | [1] | 867,000 | ||
Securities Financing Transaction, Cost [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Securities Loaned, Asset | $ 27,846,000 | |||
Foreign Government Debt Securities [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Securities Lending Rate of Collateral Required | 1.05 | |||
[1] | Our securities loaned under securities lending agreements are included at fair value within other assets on our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. | |||
[2] | Securities collateral on deposit with us from Borrowers may not be transferred or re-pledged unless the Borrower is in default, and is therefore not reflected in our consolidated financial statements. | |||
[3] | All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities on our consolidated balance sheets. |
Note 7 - Goodwill and Other I65
Note 7 - Goodwill and Other Intangible Assets, Net Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill [Line Items] | |||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 15 years | ||||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ (184,374) | $ 0 | $ (184,374) | $ 0 | $ 0 |
Mortgage and Real Estate Services Segment [Member] | |||||||
Goodwill [Line Items] | |||||||
Impairment of Intangible Assets, Finite-lived | 15,800 | ||||||
Beginning Balance, Goodwill, Gross | 197,265 | 197,265 | 197,265 | ||||
Beginning Balance, Accumulated Impairment Loss | (2,095) | (2,095) | (2,095) | ||||
Goodwill, Net | $ 195,170 | 195,170 | 195,170 | ||||
Goodwill, Acquired During Period | 126 | 0 | |||||
Goodwill, Impairment Loss | $ (184,400) | (184,374) | 0 | ||||
Ending Balance, Goodwill, Gross | 197,391 | 197,391 | 197,265 | 197,265 | |||
Ending Balance, Accumulated Impairment Loss | (186,469) | (186,469) | (2,095) | (2,095) | |||
Goodwill, Net | $ 10,922 | $ 10,922 | $ 195,170 | $ 195,170 | |||
Number of Reporting Units | segment | 1 |
Note 7 - Goodwill and Other I66
Note 7 - Goodwill and Other Intangible Assets, Net Schedule of Acquired Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 11,800 | $ 13,200 | $ 13,000 | ||
Finite-Lived Intangible Assets, Gross | 112,985 | 113,771 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (59,695) | (32,713) | |||
Finite-Lived Intangible Assets, Net | 53,290 | 81,058 | |||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 82,530 | [1] | 83,316 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (41,596) | [1] | (19,696) | ||
Finite-Lived Intangible Assets, Net | $ 40,934 | [1] | 63,620 | ||
Customer relationships | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||
Customer relationships | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Technology-based intangible assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 15,250 | [2] | 15,250 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (8,922) | [2] | (5,497) | ||
Finite-Lived Intangible Assets, Net | $ 6,328 | [2] | 9,753 | ||
Technology-based intangible assets | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||
Technology-based intangible assets | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | ||||
Trademarks and Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 8,340 | 8,340 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (3,003) | (2,125) | |||
Finite-Lived Intangible Assets, Net | $ 5,337 | 6,215 | |||
Trademarks and Trade Names [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | ||||
Trademarks and Trade Names [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Client backlog | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 6,680 | 6,680 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (6,006) | (5,235) | |||
Finite-Lived Intangible Assets, Net | $ 674 | 1,445 | |||
Client backlog | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||
Client backlog | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||
Noncompete agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 185 | 185 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (168) | (160) | |||
Finite-Lived Intangible Assets, Net | $ 17 | $ 25 | |||
Noncompete agreements | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | ||||
Noncompete agreements | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||||
Mortgage and Real Estate Services Segment [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of Intangible Assets, Finite-lived | $ 15,800 | ||||
Mortgage and Real Estate Services Segment [Member] | Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of Intangible Assets, Finite-lived | 14,900 | ||||
Mortgage and Real Estate Services Segment [Member] | Technology-based intangible assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of Intangible Assets, Finite-lived | $ 900 | ||||
[1] | Includes an impairment charge of $14.9 million. | ||||
[2] | Includes an impairment charge of $0.9 million. |
Note 7 - Goodwill and Other I67
Note 7 - Goodwill and Other Intangible Assets, Net Schedule of Finite Lived Assets Future Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 11,800 | $ 13,200 | $ 13,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 10,316 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 8,790 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 7,412 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 5,833 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 5,081 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 15,858 | ||
Finite-Lived Intangible Assets, Net | $ 53,290 | $ 81,058 |
Note 8 - Reinsurance Reinsuranc
Note 8 - Reinsurance Reinsurance Premiums (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Premiums Earned, Net [Abstract] | |||||||||||||||
Direct Premiums Earned | $ 990,016 | $ 999,093 | $ 973,645 | ||||||||||||
Assumed Premiums Earned | 28 | 35 | 43 | ||||||||||||
Ceded Premiums Earned | (57,271) | (77,359) | (57,780) | ||||||||||||
Net premiums earned—insurance | $ 245,175 | $ 236,702 | $ 229,096 | $ 221,800 | $ 233,585 | $ 238,149 | $ 229,085 | $ 220,950 | 932,773 | 921,769 | 915,908 | ||||
Mortgage Insurance Segment | |||||||||||||||
Premiums Written, Net [Abstract] | |||||||||||||||
Direct Premiums Written | 1,032,735 | 1,000,111 | 1,009,409 | ||||||||||||
Assumed Premiums Written | 25 | 29 | 104 | ||||||||||||
Ceded Premiums Written | [1] | (214,343) | (266,306) | (41,008) | |||||||||||
Net premiums written—insurance | 818,417 | [2],[3] | 733,834 | [4] | 968,505 | [5] | |||||||||
Premiums Earned, Net [Abstract] | |||||||||||||||
Direct Premiums Earned | 990,016 | 999,093 | 973,645 | ||||||||||||
Assumed Premiums Earned | 28 | 35 | 43 | ||||||||||||
Ceded Premiums Earned | [1] | (57,271) | (77,359) | (57,780) | |||||||||||
Net premiums earned—insurance | $ 932,773 | $ 921,769 | $ 915,908 | ||||||||||||
[1] | Net of profit commission. | ||||||||||||||
[2] | Effective December 31, 2017, we amended the 2016 Single Premium QSR Transaction to increase the amount of ceded risk for performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages, resulting in a reduction of $145.7 million in net premiums written. | ||||||||||||||
[3] | Net of ceded premiums written under the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. | ||||||||||||||
[4] | Net of ceded premiums written under the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. | ||||||||||||||
[5] | Net of ceded premiums written under the QSR Transactions. See Note 8 for additional information. |
Note 8 - Reinsurance Reinsura69
Note 8 - Reinsurance Reinsurance Transaction Details (Details) $ in Thousands | Dec. 31, 2017USD ($)group | Oct. 31, 2017USD ($) | Dec. 31, 2017USD ($)group | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2013 | Dec. 31, 2017USD ($)group | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)group | ||||
Ceded Credit Risk [Line Items] | |||||||||||||
Ceded Premiums Earned | $ 57,271 | $ 77,359 | $ 57,780 | ||||||||||
2018 Single Premium QSR [Member] | |||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||
Percentage of NIW Able to be Ceded Under QSA | 65.00% | ||||||||||||
Ceded Insurance Commission Percentage | 25.00% | ||||||||||||
Ceded Premiums Written | $ 335,000 | ||||||||||||
Number of GSEs | group | 1 | 1 | 1 | 1 | |||||||||
2018 Single Premium QSR [Member] | Maximum [Member] | |||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||
Loss Ratio | 56.00% | ||||||||||||
Radian Guaranty [Member] | Single Premium QSR Transaction [Member] | Reinsurer Concentration Risk [Member] | |||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||
Ceded Insurance Commission Percentage | 25.00% | ||||||||||||
Concentration Risk, Percentage | 65.00% | 20.00% | 35.00% | 35.00% | 35.00% | ||||||||
Ceded Premiums Written | $ 193,517 | [1] | 233,206 | [1] | 0 | [2] | |||||||
Risk In Force | $ 6,900,000 | 6,900,000 | 3,800,000 | $ 6,900,000 | $ 6,900,000 | ||||||||
Ceded Premiums Earned | 27,284 | [1] | 29,808 | [1] | 0 | [2] | |||||||
Ceding Commissions Written | 55,333 | 66,153 | 0 | ||||||||||
Fees and Commissions | [3] | 13,774 | 15,303 | 0 | |||||||||
Radian Guaranty [Member] | Single Premium QSR Transaction [Member] | Reinsurer Concentration Risk [Member] | First Lien Mortgage Insurance Products [Member] | |||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 2,490 | $ 2,490 | 2,262 | 0 | 2,490 | $ 0 | 2,490 | ||||||
Radian Guaranty [Member] | Single Premium QSR Transaction [Member] | Reinsurer Concentration Risk [Member] | Maximum [Member] | |||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||
Ceded Premiums Written | 195,000 | ||||||||||||
Loss Ratio | 55.00% | ||||||||||||
Radian Guaranty [Member] | Quota Share Reinsurance Transactions [Member] | Reinsurer Concentration Risk [Member] | First Lien Mortgage Insurance Products [Member] | |||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||
Ceded Premiums Written | [1] | $ 19,356 | 28,097 | 30,213 | |||||||||
Ceded Premiums Earned | [1] | 28,503 | 42,515 | 46,975 | |||||||||
Ceding Commissions Written | 5,536 | 8,019 | 11,443 | ||||||||||
Fees and Commissions | [3] | 13,122 | 16,573 | 14,453 | |||||||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 771 | 771 | 1,858 | 1,187 | 771 | 1,187 | 771 | ||||||
First Lien Mortgage Insurance Products [Member] | Radian Guaranty [Member] | Quota Share Reinsurance Transactions [Member] | Reinsurer Concentration Risk [Member] | |||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||
Risk In Force | $ 1,200,000 | $ 1,200,000 | $ 1,600,000 | $ 2,100,000 | $ 1,200,000 | $ 2,100,000 | $ 1,200,000 | ||||||
[1] | Net of profit commission. | ||||||||||||
[2] | Net of profit commission. | ||||||||||||
[3] | Includes amounts reported in policy acquisition costs and other operating expenses. |
Note 8 - Reinsurance Captive an
Note 8 - Reinsurance Captive and Smart Home Transactions (Details) - Radian Guaranty [Member] - Captives [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Ceded Credit Risk [Line Items] | ||
Amount of New Business Being Placed Into Captive Reinsurance Arrangements | $ 0 | |
Reinsurer Concentration Risk [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 300 | $ 400 |
Risk In Force | $ 9,900 | $ 12,700 |
Note 9 - Other Assets Schedule
Note 9 - Other Assets Schedule of Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Qualified Deposit With The U.S. Department Of Treasury Relating To Prior Examinations | $ 88,557 | |||
Deposit with the IRS (Note 14) | $ 88,557 | |||
Life Insurance, Corporate or Bank Owned, Amount | 85,862 | 83,248 | ||
Property and Equipment, Owned, Net | [1],[2] | 87,042 | 70,665 | |
Securities Loaned, Asset | 27,964 | |||
Accrued investment income | 31,389 | 29,255 | ||
Deferred policy acquisition costs | 16,987 | 14,127 | ||
Reinsurance recoverables | 8,492 | 7,368 | ||
Other Assets, Miscellaneous | 61,556 | 50,615 | ||
Other assets | 407,849 | 343,835 | ||
Property and Equipment, Owned, Accumulated Depreciation | 106,000 | 118,500 | ||
Depreciation | 17,400 | 11,700 | $ 6,700 | |
Technology Upgrade Related Costs [Member] | ||||
Property and Equipment, Owned, Net | 44,000 | 49,700 | ||
Leasehold Improvements [Member] | ||||
Property and Equipment, Owned, Net | 15,500 | |||
Securities Financing Transaction, Fair Value [Member] | ||||
Securities Loaned, Asset | [3] | $ 27,964 | ||
Securities Held as Collateral, at Fair Value | $ 0 | |||
[1] | Includes $44.0 million and $49.7 million at December 31, 2017 and 2016, respectively, related to our technology upgrade project and $15.5 million at December 31, 2017 of leasehold improvements related to our new corporate headquarters. | |||
[2] | Property and equipment at cost, less accumulated depreciation of $106.0 million and $118.5 million at December 31, 2017 and 2016, respectively. Depreciation expense was $17.4 million, $11.7 million and $6.7 million for the years ended December 31, 2017, 2016 and 2015 respectively. | |||
[3] | Our securities loaned under securities lending agreements are included at fair value within other assets on our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. |
Note 10 - Income Taxes Schedule
Note 10 - Income Taxes Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Valuation Allowance | $ 65,023 | $ 46,892 | |
Effective Income Tax Rate Reconciliation, Remeasurement of Net DTA, Amount | 102,617 | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (786) | (5,534) | $ 5,412 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (96) | 9,988 | (6,674) |
Current (benefit) provision | 59,122 | 4,546 | 120 |
Deferred income tax (benefit) expense | 166,527 | 170,887 | 156,170 |
Income tax (benefit) provision | $ 225,649 | $ 175,433 | $ 156,290 |
Note 10 - Income Taxes Reconcil
Note 10 - Income Taxes Reconciliation of Taxes from Statutory Rate to Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | 35.00% | 35.00% | |
(Benefit) provision for income taxes computed at the statutory tax rate | $ 121,358 | $ 169,290 | $ 153,240 | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (96) | 9,988 | (6,674) | |
State tax expense (benefit) | (15,641) | (8,974) | (7,619) | |
Valuation allowance | 18,197 | 10,663 | 11,931 | |
Effective Income Tax Rate Reconciliation, Remeasurement of Net DTA, Amount | 102,617 | |||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (786) | (5,534) | 5,412 | |
Income tax (benefit) provision | $ 225,649 | $ 175,433 | $ 156,290 | |
Subsequent Event [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 21.00% |
Note 10 - Income Taxes Schedu74
Note 10 - Income Taxes Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Components of Deferred Tax Assets [Abstract] | ||
Accrued expenses | $ 30,267 | $ 41,219 |
Unearned premiums | 35,035 | 67,538 |
NOL | 0 | 179,128 |
Deferred Tax Assets, Unrealized Losses on Trading Securities | 0 | 6,285 |
State and Local NOL Carryforwards | 68,577 | 51,875 |
Partnership Investments | 47,991 | 73,918 |
Loss reserves | 1,397 | 3,801 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 57,086 | 7,367 |
Deferred Tax Assets, Goodwill and Intangible Assets | 36,947 | |
Other | 41,499 | 49,511 |
Total deferred tax assets | 318,799 | 480,642 |
Components of Deferred Tax Liabilities [Abstract] | ||
Convertible and other long-term debt | 0 | 2,212 |
Deferred Tax Liabilities, Differences in FV of Derivative and Other Financial Instruments | 3,833 | 1,758 |
Deferred Tax Liabilities, Property, Plant and Equipment | 11,138 | 10,626 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | 4,758 | |
Other | 2,446 | 2,598 |
Total deferred tax liabilities | 24,209 | 21,952 |
Deferred Tax Assets, Valuation Allowance | 65,023 | 46,892 |
Deferred Tax Assets, Net | 229,567 | 411,798 |
Deferred Tax Liabilities, Other Comprehensive Income | $ 6,792 | $ 0 |
Note 10 - Income Taxes Income T
Note 10 - Income Taxes Income Tax Details (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)percentagepoint | Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | ||
Accrued Income Taxes, Current | $ 95,600 | |
Income Taxes Receivable, Current | 48,400 | |
Operating Loss Carryforwards | 124,400 | |
Alternative minimum tax credit carryforward | 57,086 | $ 7,367 |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | 6,500 | |
State net operating loss carryforward | 69,500 | |
Deferred Tax Assets, Valuation Allowance | $ 65,023 | $ 46,892 |
Percentage of Stock Ownership Needed to Be Included in Calculation of Change in Control Under Section 382 of Internal Revenue Code of 1986 | 5.00% | |
Number of Basis Point Increase in Ownership Over Three Year Period Needed By the Entity's Five Percent Shareholders | percentagepoint | 50 | |
Number of Years (Rolling) Used for Calculating Percentage Change in Ownership for Change in Control | 3 years |
Note 10 - Income Taxes Summary
Note 10 - Income Taxes Summary of Income Tax Examinations (Details) - Internal Revenue Service (IRS) [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 04, 2014 | May 03, 2010 | Jun. 30, 2008 |
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Amount of Claimed Income Tax Refund Being Disallowed for Tax Years 2006 and 2007 | $ 105 | |||
REMIC Residual [Member] | ||||
Income Tax Examination [Line Items] | ||||
Qualified Deposit With The U.S. Department Of Treasury Relating to Tax Years 2000 Through 2004 | $ 85 | |||
Qualified Deposit With The U.S. Department Of Treasury Relating To Tax Years 2005 Through 2007 | $ 4 | |||
Income Tax Examination, Notice of Deficiency, Amounts Related to Unpaid Taxes and Penalties | $ 157 | |||
Income Tax Examination, Estimated Interest on Notice of Deficiency Amounts | $ 149 | |||
Income Tax Examination, Proposed State Liabilities Resulting from IRS Examination of Tax Years 2000 Through 2007 | $ 37 |
Note 10 - Income Taxes Effect o
Note 10 - Income Taxes Effect of Unrecognized Tax Benefits on Consolidated Balance Sheets and Results of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 112,300 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 65,700 | |||
Unrecognized Tax Benefits, Interest and Penalties Charged to Income | 2,200 | $ 1,800 | $ 800 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at beginning of period | 123,028 | 124,246 | ||
Tax positions related to the current year [Abstract] | ||||
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 2,343 | 1,203 | ||
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | 0 | 1,835 | ||
Tax positions related to prior years [Abstract] | ||||
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 24,122 | 22,389 | ||
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | (1,437) | (1,406) | ||
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (24,105) | (21,569) | ||
Balance at end of period | 123,951 | $ 123,028 | $ 124,246 | |
Unrecognized Tax Benefits, Net Amount Related to Prior Period Tax Positions | 22,700 | |||
Recognition of Insurance Premium Income [Member] | ||||
Tax positions related to prior years [Abstract] | ||||
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | $ (24,100) | |||
Scenario, Forecast [Member] | ||||
Tax positions related to prior years [Abstract] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 70,000 |
Note 11 - Losses and Loss Adj78
Note 11 - Losses and Loss Adjustment Expenses Mortgage Insurance Reserves by Product (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Reinsurance recoverables | $ 8,492 | $ 7,368 | |||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 11) | 507,588 | 760,269 | |||
Mortgage Insurance Segment | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 11) | 507,588 | 760,269 | $ 976,399 | $ 1,560,032 | |
Mortgage Insurance Segment | First Lien Mortgage Insurance Products [Member] | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 11) | 507,043 | 759,550 | |||
Mortgage Insurance Segment | Total Primary Insurance Mortgage Insurance Products [Member] | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 11) | 493,580 | 726,057 | |||
Mortgage Insurance Segment | Prime Mortgage Insurance Product [Member] | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Unpaid Claims | 285,022 | 379,845 | |||
Mortgage Insurance Segment | Alt-A and A minus and Below Mortgage Insurance Product [Member] | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Unpaid Claims | 170,873 | 249,659 | |||
Mortgage Insurance Segment | Primary Mortgage Product [Member] | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Incurred but Not Reported Claims | [1] | 16,021 | 71,107 | ||
Liability for Claims Adjustment Expense | 13,349 | 18,630 | |||
Reinsurance recoverables | [2] | 8,315 | 6,816 | ||
Mortgage Insurance Segment | Pool Insurance Mortgage Insurance Product [Member] | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Liability for Unpaid Claims | 12,794 | 31,853 | |||
Liability for Incurred but Not Reported Claims | 278 | 673 | |||
Liability for Claims Adjustment Expense | 356 | 932 | |||
Reinsurance recoverables | [2] | 35 | 35 | ||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 11) | 13,463 | 33,493 | |||
Mortgage Insurance Segment | Second Lien Mortgage Insurance Product [Member] | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 11) | [3] | $ 545 | $ 719 | ||
[1] | At December 31, 2016, primarily related to expected payments under the Freddie Mac Agreement. During the third quarter of 2017, the scheduled final settlement date under the Freddie Mac Agreement occurred and therefore, except for loans with loss mitigation and claims activity already in process, most of the loans subject to the Freddie Mac Agreement were removed from RIF and IIF because the insurance no longer remains in force. See “—Agreements—Freddie Mac Agreement,” below for additional information. | ||||
[2] | Represents ceded losses on captive reinsurance transactions, the QSR Transactions and the 2016 Single Premium QSR Transaction. | ||||
[3] | Does not include our second-lien mortgage loan PDR that is included in other liabilities. |
Note 11 - Losses and Loss Adj79
Note 11 - Losses and Loss Adjustment Expenses Mortgage Insurance Loss Reserves Rollforward (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | 36 Months Ended | |||||
Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)incidentpercentagepoint | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)incidentpercentagepoint | Dec. 31, 2017USD ($)incidentpercentagepoint | Dec. 31, 2014USD ($) | |||
Loss reserve [Roll Forward] | |||||||||
Balance at January 1 | $ 760,269 | ||||||||
Deduct paid claims and LAE related to [Abstract] | |||||||||
Balance at December 31 | $ 507,588 | $ 760,269 | $ 507,588 | $ 507,588 | |||||
Number of Natural Disasters | incident | 2 | 2 | 2 | ||||||
Mortgage Insurance Segment | |||||||||
Loss reserve [Roll Forward] | |||||||||
Balance at January 1 | $ 760,269 | 976,399 | $ 1,560,032 | $ 976,399 | $ 1,560,032 | ||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | [1] | 8,350 | 6,851 | 8,286 | 8,350 | 8,350 | $ 26,665 | ||
Balance at beginning of period, net of reinsurance recoverables | 753,418 | 968,113 | 1,533,367 | 968,113 | 1,533,367 | ||||
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract] | |||||||||
Current year | [2] | 185,486 | 206,383 | 229,061 | |||||
Prior years | (49,286) | (3,516) | (29,647) | ||||||
Total incurred losses and LAE | 136,200 | 202,867 | 199,414 | ||||||
Deduct paid claims and LAE related to [Abstract] | |||||||||
Paid Losses and LAE Current year | [2] | 25,011 | 11,410 | 10,837 | |||||
Paid losses and LAE Prior years | 365,369 | 406,152 | 753,831 | ||||||
Total paid losses and LAE | 390,380 | [3] | 417,562 | 764,668 | |||||
Balance at end of period, net of reinsurance recoverables | 499,238 | 753,418 | 968,113 | 499,238 | 499,238 | ||||
Balance at December 31 | 507,588 | $ 760,269 | $ 976,399 | 507,588 | 507,588 | ||||
Risk In Force | $ 51,300,000 | $ 51,300,000 | $ 51,300,000 | ||||||
Default To Claim Rate Detail [Abstract] | |||||||||
Percentage Point Change In Severity Used In Assumption Shift Analysis | percentagepoint | 1 | 1 | 1 | ||||||
Mortgage Insurance Segment | Primary Mortgage Product [Member] | |||||||||
Deduct paid claims and LAE related to [Abstract] | |||||||||
Default To Claim Rate Estimate, Gross, For New Defaults | 10.00% | 12.00% | 13.00% | 10.00% | 10.00% | 16.00% | |||
Default To Claim Rate Estimate, Gross, For Pre-Foreclosure Stage Defaults | 62.00% | 62.00% | 62.00% | 62.00% | |||||
Default To Claim Rate Detail [Abstract] | |||||||||
Weighted Average Default To Claim Rate Assumption Net Of Denials Rescissions and Reinstatements | 31.00% | 42.00% | |||||||
Weighted Average Default To Claim Rate Assumption Excluding Pending Claims Net Of Denials And Rescissions | 29.00% | 40.00% | |||||||
Default To Claim Estimate, Gross, For Foreclosure Stage Defaults | 81.00% | 81.00% | 81.00% | 81.00% | |||||
Radian Guaranty Inc [Member] | 2013 Freddie Mac Agreement [Member] | |||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||||
Marketable Securities, Restricted | $ 5,600 | $ 63,900 | $ 5,600 | $ 5,600 | |||||
Deduct paid claims and LAE related to [Abstract] | |||||||||
Paid losses and LAE Prior years | $ 54,800 | ||||||||
Hurricanes Harvey and Irma [Member] | Mortgage Insurance Segment | |||||||||
Deduct paid claims and LAE related to [Abstract] | |||||||||
Risk In Force | 4,600,000 | 4,600,000 | 4,600,000 | ||||||
Participating Policies, Amount in Force | $ 17,400,000 | $ 17,400,000 | $ 17,400,000 | ||||||
Concentration Risk, Percentage | 9.00% | ||||||||
Hurricanes Harvey and Irma [Member] | Mortgage Insurance Segment | Primary Mortgage Product [Member] | |||||||||
Deduct paid claims and LAE related to [Abstract] | |||||||||
Default To Claim Rate Estimate, Gross, For New Defaults | 3.00% | 3.00% | 3.00% | ||||||
[1] | Related to ceded losses recoverable, if any, on captive reinsurance transactions, the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. | ||||||||
[2] | Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. For 2017, includes payments made on pool commutations, in some cases for loans not previously in default. | ||||||||
[3] | Includes the payment of $54.8 million made in connection with the scheduled settlement of the Freddie Mac Agreement in the third quarter of 2017. |
Note 11 - Losses and Loss Adj80
Note 11 - Losses and Loss Adjustment Expenses Rescissions And Denials (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)percentagepoint | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for Claims and Claims Adjustment Expense | $ 507,588 | $ 760,269 | ||
2013 Freddie Mac Agreement [Member] | Radian Guaranty Inc [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Marketable Securities, Restricted | 5,600 | 63,900 | ||
Mortgage Insurance Segment | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Decrease To Our Loss Reserves Due To Estimated Rescissions And Denials | 21,000 | 39,000 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | $ 10,400 | 14,300 | ||
Percentage Point Change In Severity Used In Assumption Shift Analysis | percentagepoint | 1 | |||
Percentage Point Change In Severity Used In Assumption Shift Analysis | percentagepoint | 1 | |||
First Lien Primary Claim Severity | 97.60% | |||
Impact To Loss Reserves Based On One Percentage Change In Primary Claim Severity | $ 4,800 | |||
Impact To Loss Reserves Based On One Percentage Change in Default To Claim Rate | 14,200 | |||
Liability for Claims and Claims Adjustment Expense | $ 507,588 | $ 760,269 | $ 976,399 | $ 1,560,032 |
Mortgage Insurance Segment | Primary Mortgage Product [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Weighted Average Default To Claim Rate Assumption Net Of Denials And Rescissions | 31.00% | 42.00% |
Note 11 - Losses and Loss Adj81
Note 11 - Losses and Loss Adjustment Expenses Claims Development (Details) $ in Thousands | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($)transactiondefault | Dec. 31, 2016USD ($)default | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | ||
Claims Development [Line Items] | |||||||||||
Number of Guaranteed Structured Transactions For Radian Guaranty | transaction | 2 | ||||||||||
Primary Mortgage Product [Member] | Mortgage Insurance Segment | |||||||||||
Claims Development [Line Items] | |||||||||||
Default To Claim Rate Estimate, Gross, For New Defaults | 10.00% | 12.00% | 13.00% | 16.00% | |||||||
Default To Claim Rate Estimate, Gross, For Pre-Foreclosure Stage Defaults | 62.00% | 62.00% | |||||||||
Weighted Average Default To Claim Rate Assumption Excluding Pending Claims Net Of Denials And Rescissions | 29.00% | 40.00% | |||||||||
Default To Claim Estimate, Gross, For Foreclosure Stage Defaults | 81.00% | 81.00% | |||||||||
Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 7,859,437 | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 8,329,856 | ||||||||||
Property, Liability and Casualty Insurance Product Line [Member] | Mortgage Insurance Segment | |||||||||||
Claims Development [Line Items] | |||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | [1] | 485,911 | |||||||||
Short-duration Insurance Contracts, Accident Year 2008 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 2,088,124 | $ 2,051,495 | $ 2,022,019 | $ 1,932,283 | $ 1,872,804 | $ 1,744,559 | $ 1,635,069 | $ 1,297,867 | $ 740,578 | $ 189,458 | |
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,122,647 | 2,115,083 | 2,110,922 | 2,088,719 | 2,074,295 | 2,018,794 | 2,009,551 | 1,969,581 | 1,715,144 | $ 1,957,510 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 2,370 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 215,837,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2009 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 1,986,076 | 1,958,660 | 1,921,134 | 1,807,031 | 1,711,019 | 1,471,264 | 1,236,210 | 619,496 | 136,413 | ||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,022,629 | 2,018,907 | 2,016,412 | 1,991,796 | 1,974,568 | 1,939,479 | 1,930,263 | 1,894,783 | $ 1,671,239 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 1,535 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 213,836,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2010 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 1,198,031 | 1,178,546 | 1,145,497 | 1,055,935 | 956,598 | 700,316 | 394,278 | 11,810 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,219,469 | 1,218,264 | 1,220,289 | 1,207,774 | 1,195,056 | 1,192,482 | 1,215,136 | $ 1,102,856 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 958 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 146,324,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2011 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 1,038,582 | 1,016,855 | 982,830 | 892,959 | 756,820 | 323,216 | 40,392 | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,059,116 | 1,061,161 | 1,062,579 | 1,050,555 | 1,052,277 | 1,152,016 | $ 1,058,625 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 904 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 118,972,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 692,291 | 672,271 | 631,982 | 528,744 | 295,332 | 19,200 | |||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 714,783 | 715,646 | 720,502 | 711,213 | 763,969 | $ 803,831 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 756 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 89,845,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 379,036 | 357,087 | 307,361 | 191,040 | 34,504 | ||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 402,259 | 404,333 | 401,444 | 405,334 | $ 505,732 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 653 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 71,749,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 233,607 | 200,422 | 115,852 | 13,108 | |||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 264,620 | 265,891 | 247,074 | $ 337,784 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 776 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 58,215,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 142,421 | 84,271 | 10,479 | ||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 178,042 | 198,186 | $ 222,555 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 874 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 49,825,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 76,616 | 11,061 | |||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 165,440 | $ 201,016 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 2,185 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 46,264,000 | |||||||||
Short-duration Insurance Contracts, Accident Year Prior to 2007 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 15,492 | ||||||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 24,653 | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 180,851 | ||||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | [2] | $ 2,672 | |||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 47,283,000 | |||||||||
Hurricanes Harvey and Irma [Member] | Primary Mortgage Product [Member] | Mortgage Insurance Segment | |||||||||||
Claims Development [Line Items] | |||||||||||
Default To Claim Rate Estimate, Gross, For New Defaults | 3.00% | ||||||||||
Hurricanes Harvey and Irma [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Property, Liability and Casualty Insurance Product Line [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Short-duration Insurance Contracts, Number of Reported Claims | default | [3] | 8,862 | 3,852 | ||||||||
Indirect Guarantee of Indebtedness [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Number of Guaranteed Structured Transactions For Radian Guaranty | transaction | 2 | ||||||||||
[1] | Calculated as follows:(In thousands) Incurred losses, net of reinsurance$8,329,856Add: All outstanding liabilities before 2008, net of reinsurance15,492Less: Cumulative paid claims, net of reinsurance7,859,437Liabilities for claims, net of reinsurance$485,911 | ||||||||||
[2] | Represents reserves as of December 31, 2017 related to IBNR liabilities. | ||||||||||
[3] | Represents total number of new default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods. Included in this amount for the year ended December 31, 2017 and December 31, 2016 are 8,862 and 3,852 notices, respectively, of new primary defaults related to the FEMA Designated Areas associated with Hurricanes Harvey and Irma. |
Note 11 - Losses and Loss Adj82
Note 11 - Losses and Loss Adjustment Expenses Reconciliation of Outstanding Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Liability for Claims and Claims Adjustment Expense | $ 507,588 | $ 760,269 | |||
Property, Liability and Casualty Insurance Product Line [Member] | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 7,859,437 | ||||
Mortgage Insurance Segment | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | [1] | 8,350 | 6,851 | $ 8,286 | $ 26,665 |
Short-duration Insurance Contracts, Liability for Unpaid Claims and Claims Adjustment Expense, Accumulated Unallocated Claim Adjustment Expense | 13,327 | ||||
Liability for Claims and Claims Adjustment Expense | 507,588 | $ 760,269 | $ 976,399 | $ 1,560,032 | |
Mortgage Insurance Segment | Property, Liability and Casualty Insurance Product Line [Member] | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | [2] | $ 485,911 | |||
[1] | Related to ceded losses recoverable, if any, on captive reinsurance transactions, the QSR Transactions and the 2016 Single Premium QSR Transaction. See Note 8 for additional information. | ||||
[2] | Calculated as follows:(In thousands) Incurred losses, net of reinsurance$8,329,856Add: All outstanding liabilities before 2008, net of reinsurance15,492Less: Cumulative paid claims, net of reinsurance7,859,437Liabilities for claims, net of reinsurance$485,911 |
Note 11 - Losses and Loss Adj83
Note 11 - Losses and Loss Adjustment Expenses Historical Claims Duration (Details) - Property, Liability and Casualty Insurance Product Line [Member] | Dec. 31, 2017 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 6.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 33.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 31.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 14.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 7.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 4.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 3.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 2.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 1.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.70% |
Note 12 - Long-Term Debt Schedu
Note 12 - Long-Term Debt Schedule of Long Term Debt (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Jan. 27, 2017 | Sep. 30, 2017 | Mar. 31, 2016 | Jun. 30, 2015 | May 31, 2014 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 16, 2017 | Nov. 30, 2016 | Aug. 12, 2016 |
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term debt | $ 1,027,074 | $ 1,069,537 | $ 1,027,074 | $ 1,069,537 | ||||||||||||||||
Proceeds from termination of capped calls | 4,208 | 0 | $ 13,150 | |||||||||||||||||
Loss on induced conversion and debt extinguishment | 0 | $ (45,766) | $ (1,247) | $ (4,456) | 0 | $ (17,397) | $ (2,108) | $ (55,570) | (51,469) | (75,075) | $ (94,207) | |||||||||
Senior Notes Due 2017 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 195,500 | |||||||||||||||||||
Loss on induced conversion and debt extinguishment | $ (15,000) | |||||||||||||||||||
Repayments of Senior Debt | $ 211,300 | |||||||||||||||||||
Senior Notes Due 2019 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |||||||||||||||||||
Long-term debt | 157,636 | 296,907 | 157,636 | 296,907 | ||||||||||||||||
Proceeds from Issuance of Long-term Debt | $ 293,800 | |||||||||||||||||||
Senior Notes Due 2020 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||||||||||||||||
Long-term debt | 231,834 | 345,308 | 231,834 | 345,308 | ||||||||||||||||
Debt Instrument, Face Amount | $ 350,000 | |||||||||||||||||||
Proceeds from Issuance of Long-term Debt | 343,300 | |||||||||||||||||||
Senior Notes Due 2021 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | ||||||||||||||||||
Long-term debt | $ 195,146 | 344,362 | $ 195,146 | 344,362 | ||||||||||||||||
Debt Instrument, Face Amount | $ 350,000 | $ 350,000 | ||||||||||||||||||
Proceeds from Issuance of Long-term Debt | 343,400 | |||||||||||||||||||
Senior Notes due 2019, 2020, and 2021 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayments of Senior Debt | $ 450,800 | |||||||||||||||||||
Convertible Senior Notes Due 2017 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | ||||||||||||||||||
Long-term debt | $ 0 | 20,947 | $ 0 | 20,947 | ||||||||||||||||
Repayments of Convertible Debt | 126,800 | 31,600 | ||||||||||||||||||
Extinguishment of Debt, Amount | $ 389,100 | |||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 28.4 | |||||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ (91,900) | |||||||||||||||||||
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received | 2.3 | |||||||||||||||||||
Convertible Debt, Termination of Capped Call Transaction, Total Consideration | $ 2,600 | $ 54,900 | ||||||||||||||||||
Convertible Debt, Termination of Capped Call Transaction, Closing Stock Price | $ 11.86 | $ 11.86 | ||||||||||||||||||
Convertible Debt, Termination of Capped Call Transaction, Total Cash Received | $ 13,200 | |||||||||||||||||||
Senior Notes Due 2024 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||||||||||||||||||
Long-term debt | $ 442,458 | 0 | $ 442,458 | 0 | ||||||||||||||||
Convertible Senior Notes Due 2019 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | ||||||||||||||||||
Long-term debt | $ 0 | 62,013 | $ 0 | 62,013 | ||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 68,000 | |||||||||||||||||||
Repayments of Convertible Debt | 110,100 | |||||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ (4,500) | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Price | $ 10.60 | |||||||||||||||||||
Senior Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||||||||
Percent of Stock With Ordinary Voting Rights That the Company Must Retain In Order to Make Any Capital Stock Transactions Under Debt Covenant Agreement | 80.00% | 80.00% | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2019 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 141,400 | $ 141,400 | ||||||||||||||||||
Long-term Debt, Gross | 158,600 | 158,600 | ||||||||||||||||||
Debt Instrument, Face Amount | $ 300,000 | |||||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2020 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | 115,900 | 115,900 | ||||||||||||||||||
Long-term Debt, Gross | 234,100 | 234,100 | ||||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2021 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | 152,300 | 152,300 | ||||||||||||||||||
Long-term Debt, Gross | 197,700 | 197,700 | ||||||||||||||||||
Senior Notes [Member] | Senior Notes due 2019, 2020, and 2021 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | (45,800) | |||||||||||||||||||
Senior Notes [Member] | Senior Notes Due 2024 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Face Amount | 450,000 | $ 450,000 | ||||||||||||||||||
Proceeds from Issuance of Long-term Debt | $ 442,200 | |||||||||||||||||||
Convertible Debt [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayments of Convertible Debt | 235,000 | |||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 17 | |||||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | (60,100) | |||||||||||||||||||
Induced Conversion of Convertible Debt Expense | 41,800 | |||||||||||||||||||
Loss on induced conversion and debt extinguishment | (17,200) | |||||||||||||||||||
Write off of Deferred Debt Issuance Cost | 1,100 | |||||||||||||||||||
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received | 0.2 | |||||||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2017 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term debt | $ 0 | 20,947 | $ 0 | 20,947 | ||||||||||||||||
Debt Instrument, Repurchased Face Amount | 21,600 | 30,100 | 30,100 | |||||||||||||||||
Long-term Debt, Gross | 0 | 22,233 | 0 | 22,233 | ||||||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ (1,200) | |||||||||||||||||||
Proceeds from termination of capped calls | 4,100 | |||||||||||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 5,000 | 5,000 | ||||||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2019 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term debt | 0 | 62,013 | 0 | 62,013 | ||||||||||||||||
Debt Instrument, Repurchased Face Amount | 322,000 | 322,000 | ||||||||||||||||||
Long-term Debt, Gross | 0 | 68,024 | 0 | 68,024 | ||||||||||||||||
Reduction in Dilutive Shares Attributable to Redemption of Conversion of Debt Securities | 6.4 | |||||||||||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 13,100 | $ 13,100 | ||||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 225,000 | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000 | |||||||||||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | $ 0 |
Note 12 - Long-Term Debt Sche85
Note 12 - Long-Term Debt Schedule of Liability and Equity Components of Convertible Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,027,074 | $ 1,069,537 | |
Convertible Senior Notes Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 20,947 | |
Convertible Senior Notes Due 2017 [Member] | Convertible Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of convertible debt in liabilities | 0 | 22,233 | |
Less: debt discount, net (1) | [1] | 0 | (1,221) |
Unamortized Debt Issuance Expense | [1] | 0 | (65) |
Long-term debt | 0 | 20,947 | |
Convertible Senior Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | 62,013 | |
Convertible Senior Notes Due 2019 [Member] | Convertible Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of convertible debt in liabilities | 0 | 68,024 | |
Less: debt discount, net (1) | [1] | 0 | (5,461) |
Unamortized Debt Issuance Expense | [1] | 0 | (550) |
Long-term debt | $ 0 | $ 62,013 | |
[1] | Included within long-term debt and is being amortized over the life of the convertible notes. |
Note 12 - Long-Term Debt Intere
Note 12 - Long-Term Debt Interest Expense Recognized Related to Convertible Debt (Details) - Convertible Debt [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Convertible Senior Notes Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense of convertible debt | [1] | $ 310 | $ 872 |
Amortization of debt discount | 619 | 1,674 | |
Amortization of debt issuance costs | 33 | 88 | |
Total interest expense for convertible debt | [1] | 962 | 2,634 |
Convertible Senior Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense of convertible debt | [1] | (510) | 3,426 |
Amortization of debt discount | 163 | 5,016 | |
Amortization of debt issuance costs | 16 | 505 | |
Total interest expense for convertible debt | [1] | $ (331) | $ 8,947 |
[1] | Interest expense (benefit) represents expense incurred, net of adjustments to accruals previously recorded. |
Note 13 - Commitments and Con87
Note 13 - Commitments and Contingencies Legal Proceedings (Details) | 12 Months Ended | ||
Dec. 31, 2017matter | Jun. 05, 2017Certificates | Dec. 17, 2016Certificates | |
Loss Contingencies [Line Items] | |||
Minimum Number of Pending or Threatened Matters That Could Effect Our Results | matter | 1 | ||
Insurance Claims [Member] | Total Primary Insurance Mortgage Insurance Products [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Legal Actions Commencement, Period | 2 years | ||
Insurance Claims [Member] | Pool Insurance Mortgage Insurance Product [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Legal Actions Commencement, Period | 3 years | ||
Initial [Member] | |||
Loss Contingencies [Line Items] | |||
Insurance Certificates Issued Under Multiple Insurance Policies | 9,420 | ||
Amended [Member] | |||
Loss Contingencies [Line Items] | |||
Insurance Certificates Issued Under Multiple Insurance Policies | 8,870 |
Note 13 - Commitments and Con88
Note 13 - Commitments and Contingencies Guarantor Obligations (Details) $ in Millions | Dec. 31, 2017USD ($)transaction |
Guaranteed Structure Transactions [Abstract] | |
Number of Guaranteed Structured Transactions For Radian Guaranty | 2 |
Indirect Guarantee of Indebtedness [Member] | |
Guaranteed Structure Transactions [Abstract] | |
Number of Guaranteed Structured Transactions For Radian Guaranty | 2 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ | $ 97.8 |
Note 13 - Commitments and Con89
Note 13 - Commitments and Contingencies Contract Underwriting (Details) $ in Millions | Dec. 31, 2017USD ($)transaction |
Contract Underwriting [Line Items] | |
Number of Guaranteed Structured Transactions For Radian Guaranty | 2 |
Mortgage Insurance Segment | |
Contract Underwriting [Line Items] | |
Reserve For Contract Underwriting Obligations | $ | $ 0.5 |
Indirect Guarantee of Indebtedness [Member] | |
Contract Underwriting [Line Items] | |
Number of Guaranteed Structured Transactions For Radian Guaranty | 2 |
Note 13 - Commitments and Con90
Note 13 - Commitments and Contingencies Commitment for Non Cancelable Operating Leases in Future Years (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | $ 5,700 | $ 5,000 | $ 5,000 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 6,482 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 9,002 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 8,929 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 8,275 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 8,162 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 58,396 | ||
Operating Leases, Future Minimum Payments Due | 99,246 | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 0 |
Note 14 - Capital Stock (Detail
Note 14 - Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Aug. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2017 | Mar. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 09, 2017 | Jun. 29, 2016 | Jun. 18, 2015 | |
Class of Stock [Line Items] | ||||||||||||
Payments for Repurchase of Common Stock | $ 6 | $ 100,188 | $ 202,000 | |||||||||
Convertible Senior Notes Due 2017 [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 28,400,000 | |||||||||||
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received | 2,300,000 | |||||||||||
Convertible Debt [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 17,000,000 | |||||||||||
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received | 200,000 | |||||||||||
First Quarter 2016 Repurchase Program [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Repurchased During Period, Shares | 9,400,000 | |||||||||||
Payments for Repurchase of Common Stock | $ 100,200 | |||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 10.62 | |||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0 | |||||||||||
Second Quarter 2016 Repurchase Program [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Repurchased During Period, Shares | 380 | |||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 15.59 | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 125,000 | |||||||||||
Third Quarter 2017 Repurchase Program [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Repurchased During Period, Shares | 0 | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | |||||||||||
Second Quarter 2015 Repurchase Program [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Repurchased During Period, Shares | 1,800,000 | 9,200,000 | ||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 18.32 | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 202,000 |
Note 15 - Share-Based and Oth92
Note 15 - Share-Based and Other Compensation Plans (Awards Summary - Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares remaining available for grant (shares reserve) | 8,851,531 | ||
Equity Compensation Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum contractual term for all awards | 10 years | ||
Change of control, estimated pre-tax accounting charge, acceleration of compensation expense | $ 11.3 | $ 11.7 | |
Equity Compensation Plans [Member] | Pro Forma [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Change of control, estimated pre-tax accounting charge, acceleration of compensation expense | $ 16.3 | ||
Employee Service Share-based Compensation, Nonvested Awards, Acceleration of Compensation Expense | $ 10.2 | ||
Equity Compensation Plans [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Post-Vesting Holding Period | 1 year | ||
Equity Compensation Plans [Member] | Grants Awarded From May 13 2009 and Forward [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Change of control, grantee employment termination, vesting period range (in days and years) | 90 days | ||
Equity Compensation Plans [Member] | Grants Awarded From May 13 2009 and Forward [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Change of control, grantee employment termination, vesting period range (in days and years) | 1 year | ||
Amended and Restated Equity Compensation Plan, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock authorized for issuance | 8,954,109 | ||
Number of shares remaining available for grant (shares reserve) | 8,851,531 | ||
Share-based Compensation Arrangement By Share-based Payment Award Number of Shares Available for Grant Excluding Adjustments | 11,691,367 | ||
Amended and Restated Equity Compensation Plan, 2017 [Member] | Restricted Stock, Restricted Stock Units and Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, Reduction of Shares Available for Grant by Each Grant of Equity Award | 1.31 |
Note 15 - Share-Based and Oth93
Note 15 - Share-Based and Other Compensation Plans (Awards Summary - Tables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 13,492 | $ 16,304 | $ 23,028 |
Less: Costs deferred as acquisition costs | 269 | 206 | 500 | |
Stock-based compensation expense impact on net loss before income taxes - increase | 13,223 | 16,098 | 22,528 | |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 432 | 449 | 396 |
Restricted Stock Units (RSUs) Cash Settled [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Liability Recorded | 0 | 18 | 3,595 | |
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 1 | (718) | 10,244 |
Stock Appreciation Rights (SARs) Cash Settled [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Liability Recorded | 0 | 0 | 0 | |
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 0 | 0 | 159 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 851 | $ 3,286 | $ 2,984 |
Share-based Compensation Programs, Options, Equity Instruments Outstanding | 1,692,743 | 2,839,738 | 2,692,457 | |
Phantom Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 2 | $ 2 | $ 2 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 234,302 | 234,174 | 230,196 | |
Restricted Stock Units (RSUs) Equity Settled [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 12,206 | $ 13,285 | $ 9,243 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 3,434,976 | 3,208,454 | 2,472,861 | |
Cash Settled [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Liability Recorded | $ 0 | $ 18 | $ 3,595 | |
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 1 | (718) | 10,403 |
Equity Settled [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 13,491 | $ 17,022 | $ 12,625 |
[1] | For purposes of calculating compensation cost recognized, we generally consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. |
Note 15 - Share-Based and Oth94
Note 15 - Share-Based and Other Compensation Plans (RSUs - Cash Settled) (Details) | 12 Months Ended | 60 Months Ended | ||||
Dec. 31, 2017shares | Dec. 31, 2016daysshares | Dec. 31, 2015daysshares | Dec. 31, 2013 | Dec. 31, 2012shares | Dec. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement | days | 10 | |||||
Performance Based RSUs Equity Settled [Member] | 2017 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants by Compensation Committee | 456,510 | |||||
Award Requisite Service Period | 3 years | |||||
Maximum Payout Percentage of Target Award | 200.00% | |||||
Performance Based RSUs Equity Settled [Member] | 2016 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants by Compensation Committee | 701,110 | |||||
Award Requisite Service Period | 3 years | |||||
Maximum Payout Percentage of Target Award | 200.00% | |||||
Performance Based RSUs Equity Settled [Member] | 2015 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants by Compensation Committee | 499,740 | |||||
Award Requisite Service Period | 3 years | |||||
Maximum Payout Percentage of Target Award | 200.00% | |||||
Restricted Stock Units (RSUs) Equity Settled [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants by Compensation Committee | 1,020,832 | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement | days | 10 | |||||
Equity Compensation Plan, 2008 [Member] | Performance Based RSUs Cash Settled [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants by Compensation Committee | 0 | |||||
Equity Compensation Plan, 2008 [Member] | Performance Based RSUs Cash Settled [Member] | 2012 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants by Compensation Committee | 2,211,640 | |||||
Award Requisite Service Period | 3 years | |||||
Maximum Payout Percentage of Target Award | 200.00% | |||||
Equity Compensation Plan, 2008 [Member] | Timed-Vested RSUs Cash Settled [Member] | 2013 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Minimum [Member] | Performance Based RSUs Equity Settled [Member] | 2017 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Grants to Former CEO, Award Requisite Service Period | 1 year | |||||
Maximum [Member] | Performance Based RSUs Equity Settled [Member] | 2017 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Grants to Former CEO, Award Requisite Service Period | 5 years |
Note 15 - Share-Based and Oth95
Note 15 - Share-Based and Other Compensation Plans (RSUs - Equity Settled) (Details) | 12 Months Ended | |||||
Dec. 31, 2017anniversary$ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Anniversaries of the Grant Date | anniversary | 3 | |||||
Performance Based RSUs Equity Settled [Member] | 2015 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 499,740 | |||||
Award Requisite Service Period | 3 years | |||||
Grants by Compensation Committee | 499,740 | |||||
Maximum Payout Percentage of Target Award | 200.00% | |||||
Share Based Compensation, Maximum Multiplier for Target Payout | 6 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Performance period | 3 years | |||||
Risk-free interest rate | 1.00% | [1] | ||||
Volatility | 40.60% | [2] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 24.00% | [3] | ||||
Dividend yield | 0.05% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 13.90% | [4] | ||||
Performance Based RSUs Equity Settled [Member] | 2017 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 456,510 | |||||
Award Requisite Service Period | 3 years | |||||
Grants by Compensation Committee | 456,510 | |||||
Maximum Payout Percentage of Target Award | 200.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Performance period | 3 years | |||||
Risk-free interest rate | 1.60% | [1] | ||||
Volatility | 28.00% | [2] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 30.60% | [3] | ||||
Dividend yield | 0.06% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 10.70% | [4] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period to Former CEO | 123,496 | |||||
Number of Days Prior to the First Anniversary of the Grant Date Upon Which the Performance Period Begins | 10 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 120.00% | |||||
Performance Based RSUs Equity Settled [Member] | 2016 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 701,110 | |||||
Award Requisite Service Period | 3 years | |||||
Grants by Compensation Committee | 701,110 | |||||
Maximum Payout Percentage of Target Award | 200.00% | |||||
Share Based Compensation, Maximum Multiplier for Target Payout | 6 | 6 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Performance period | 3 years | |||||
Risk-free interest rate | 0.90% | [1] | ||||
Volatility | 29.70% | [2] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 38.20% | [3] | ||||
Dividend yield | 0.08% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 10.70% | [4] | ||||
Timed-Vested RSUs Cash Settled [Member] | 2009 and 2010 Award Years [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 262,694 | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Risk-free interest rate | 1.72% | [5] | 2.32% | [5] | ||
Volatility | 94.20% | [6] | 93.70% | [6] | ||
Dividend yield | 0.08% | 0.05% | ||||
Stock Options [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||
Stock Options [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||
Stock Options [Member] | 2015 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | |||||
Stock Options [Member] | 2016 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | |||||
Timed-Vested RSUs Equity Settled [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years | |||
Timed-Vested RSUs Equity Settled [Member] | 2015 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 113,141 | [7],[8] | ||||
Grants by Compensation Committee | 113,141 | [7],[8] | ||||
Timed-Vested RSUs Equity Settled [Member] | 2017 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 440,826 | [7],[9] | ||||
Grants by Compensation Committee | 440,826 | [7],[9] | ||||
Timed-Vested RSUs Equity Settled [Member] | 2016 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 536,420 | [7],[8] | ||||
Grants by Compensation Committee | 536,420 | [7],[8] | ||||
Timed-Vested RSUs Equity Settled [Member] | Key Employee [Member] | 2015 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 56,970 | [8] | ||||
Grants by Compensation Committee | 56,970 | [8] | ||||
Timed-Vested RSUs Equity Settled [Member] | Key Employee [Member] | 2017 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 372,489 | [9] | ||||
Grants by Compensation Committee | 372,489 | [9] | ||||
Timed-Vested RSUs Equity Settled [Member] | Key Employee [Member] | 2016 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 180,380 | [8] | ||||
Grants by Compensation Committee | 180,380 | [8] | ||||
Timed-Vested RSUs Equity Settled [Member] | Non-Employee Directors [Member] | 2015 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 56,171 | [8] | ||||
Grants by Compensation Committee | 56,171 | [8] | ||||
Timed-Vested RSUs Equity Settled [Member] | Non-Employee Directors [Member] | 2017 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 68,337 | [9] | ||||
Grants by Compensation Committee | 68,337 | [9] | ||||
Timed-Vested RSUs Equity Settled [Member] | Non-Employee Directors [Member] | 2016 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, Number of Shares | 356,040 | [8],[10] | ||||
Grants by Compensation Committee | 356,040 | [8],[10] | ||||
Restricted Stock Units (RSUs) Equity Settled [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 3,434,976 | 3,208,454 | 2,472,861 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Unvested, Beginning of Period, Number of Shares | 3,208,454 | |||||
Unvested, Beginning of Period, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 12.08 | |||||
Granted, Number of Shares | 1,020,832 | |||||
Granted, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 16.84 | |||||
Vested, Number of Shares | (99,424) | |||||
Vested, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 14.39 | |||||
Forfeited, Number of Shares | (694,886) | |||||
Forfeited, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 14.66 | |||||
Unvested, End of Period, Number of Shares | 3,434,976 | 3,208,454 | ||||
Unvested, End of Period, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 12.90 | $ 12.08 | ||||
Grants by Compensation Committee | 1,020,832 | |||||
Restricted Stock Units (RSUs) Equity Settled [Member] | 2017 Award Year [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||
Restricted Stock Units (RSUs) Equity Settled [Member] | 2017 Award Year [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||
Restricted Stock Units (RSUs) Equity Settled [Member] | 2016 Award Year [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||
Restricted Stock Units (RSUs) Equity Settled [Member] | 2016 Award Year [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||
Minimum [Member] | Performance Based RSUs Equity Settled [Member] | 2017 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Closing Price of Common Stock Vesting Criteria | $ / shares | $ 22.46 | |||||
Minimum [Member] | Stock Options [Member] | 2015 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Closing Price of Common Stock Vesting Criteria | $ / shares | $ 23.03 | |||||
Minimum [Member] | Stock Options [Member] | 2016 Award Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Closing Price of Common Stock Vesting Criteria | $ / shares | $ 15.20 | |||||
Minimum [Member] | Equity Compensation Plans [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Post-Vesting Holding Period | 1 year | |||||
[1] | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||
[2] | Volatility of Radian’s stock is used in the calculation of the grant date fair value of the portion of the awards based on TSR Measures, as described above. Volatility of Radian’s stock is not an applicable assumption for valuing the portion of the awards based on the cumulative growth in Radian’s book value per share. Volatility is determined at the date of grant using the historical share price volatility and the expected life of each award. | |||||
[3] | Average volatility of peer companies is used in the calculation of the grant date fair value of the portion of the awards based on the Relative TSR Measure, as described above. | |||||
[4] | A discount is applied to executive officer awards to reflect illiquidity during the one-year post-vesting holding period. | |||||
[5] | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||
[6] | Volatility is determined at the date of grant using historical share price volatility and expected life of each award. | |||||
[7] | The grant date fair value of time-vested RSUs was calculated based on the closing price of our common stock on the New York Stock Exchange on the date of grant, discounted for the lack of dividends earned over the vesting period, and is recognized as compensation expense over the service period. | |||||
[8] | The time-vested RSU awards granted in 2016 and 2015 generally are subject to three-year cliff vesting. | |||||
[9] | The time-vested RSU awards granted in 2017 are scheduled to vest in: (i) pro rata installments on each of the first three anniversaries of the grant date or (ii) generally at the end of three years. | |||||
[10] | Includes 262,694 time-vested awards granted on February 10, 2016 to convert the outstanding fully-vested 2009 and 2010 time-vested RSUs (to be settled in cash) awarded to our non-employee directors into time-vested RSUs to be settled in shares of our common stock on the conversion date (generally defined as a director’s termination of service with us). |
Note 15 - Share-Based and Oth96
Note 15 - Share-Based and Other Compensation Plans (Non-Qualified Stock Options) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)days$ / sharesshares | Dec. 31, 2015USD ($)days$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement | days | 10 | |||
Restricted Stock Units (RSUs) Equity Settled [Member] | Share-based Compensation Award, Tranche One [Member] | 2016 Award Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||
Restricted Stock Units (RSUs) Equity Settled [Member] | Share-based Compensation Award, Tranche Two [Member] | 2016 Award Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, Beginning of Period, Number of Shares | shares | 2,839,738 | 2,692,457 | ||
Outstanding, Beginning of Period, Weighted Average Exercise Price Per Share | $ 7.64 | |||
Granted, Number of Shares | shares | 0 | 342,090 | 212,230 | |
Granted, Weighted Average Exercise Price Per Share | $ 0 | |||
Exercised, Number of Shares | shares | (1,092,559) | |||
Exercised, Weighted Average Exercise Price Per Share | $ 6.53 | |||
Forfeited, Number of Shares | shares | (54,436) | |||
Forfeited, Weighted Average Exercise Price Per Share | $ 13.79 | |||
Expired, Number of Shares | shares | 0 | |||
Expired, Weighted Average Exercise Price Per Share | $ 0 | |||
Outstanding, End of Period, Number of Shares | shares | 1,692,743 | 2,839,738 | 2,692,457 | |
Outstanding, End of Period, Weighted Average Exercise Price Per Share | $ 8.16 | $ 7.64 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 7 months | |||
Total intrinsic value of options outstanding | $ | $ 21,075 | |||
Exercisable, Number of Shares | shares | 1,162,943 | |||
Exercisable, Weighted Average Exercise Price Per Share | $ 5.24 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 4 years 7 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 17,878 | |||
Available for grant | shares | 8,851,531 | |||
Weighted average fair value per share of stock options granted | [1] | $ 0 | $ 9.72 | $ 14.68 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 14,389 | $ 1,519 | $ 7,146 | |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options (Deprecated 2017-01-31) | $ | 5,036 | 532 | 2,501 | |
Proceeds from Stock Options Exercised | $ | $ 7,131 | $ 717 | $ 1,285 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life (years) | 4 years | |||
Risk-free interest rate | [2] | 1.72% | 2.32% | |
Volatility | [3] | 94.20% | 93.70% | |
Dividend yield | 0.08% | 0.05% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 3,300 | |||
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement | days | 10 | |||
Stock Options [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life (years) | 3 years 9 days | 3 years 9 days | ||
Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life (years) | 4 years | 4 years | ||
Stock Options [Member] | 2016 Award Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | |||
Stock Options [Member] | 2016 Award Year [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Closing Price of Common Stock Vesting Criteria | $ 15.20 | |||
Stock Options [Member] | 2015 Award Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | |||
Stock Options [Member] | 2015 Award Year [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Closing Price of Common Stock Vesting Criteria | $ 23.03 | |||
Stock Options [Member] | Share-based Compensation Award, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||
Stock Options [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||
[1] | We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2016 2015Derived service period (years)3.02 - 4.00 3.02 - 4.00Risk-free interest rate (a) 1.72% 2.32%Volatility (b) 94.20% 93.70%Dividend yield0.08% 0.05%______________________(a)The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant.(b)Volatility is determined at the date of grant using historical share price volatility and expected life of each award. | |||
[2] | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. | |||
[3] | Volatility is determined at the date of grant using historical share price volatility and expected life of each award. |
Note 15 - Share-Based and Oth97
Note 15 - Share-Based and Other Compensation Plans (Non-Qualified Stock Options - Range of Exercise Prices) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016days$ / shares | Dec. 31, 2015days$ / shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement | days | 10 | ||
$2.45 - $3.58 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit | $ 2.45 | ||
Range of Exercise Prices, Upper Range Limit | 3.58 | ||
$5.76 - $7.06 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit | 5.76 | ||
Range of Exercise Prices, Upper Range Limit | 7.06 | ||
$10.42 - $15.44 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit | 10.42 | ||
Range of Exercise Prices, Upper Range Limit | 15.44 | ||
$18.42 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit | $ 18.42 | ||
Timed-Vested RSUs Equity Settled [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years |
Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | shares | 1,692,743 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 7 months | ||
Options Outstanding, Weighted Average Exercise Price | $ 8.16 | ||
Options Exercisable, Number Exercisable | shares | 1,162,943 | ||
Options Exercisable, Weighted Average Exercise Price | $ 5.24 | ||
Expected life (years) | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 3.3 | ||
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement | days | 10 | ||
Stock Options [Member] | 2016 Award Year [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | ||
Stock Options [Member] | 2015 Award Year [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | ||
Stock Options [Member] | $2.45 - $3.58 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | shares | 903,224 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 3 months | ||
Options Outstanding, Weighted Average Exercise Price | $ 2.64 | ||
Options Exercisable, Number Exercisable | shares | 903,224 | ||
Options Exercisable, Weighted Average Exercise Price | $ 2.64 | ||
Stock Options [Member] | $5.76 - $7.06 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | shares | 17,676 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 months | ||
Options Outstanding, Weighted Average Exercise Price | $ 7.06 | ||
Options Exercisable, Number Exercisable | shares | 17,676 | ||
Options Exercisable, Weighted Average Exercise Price | $ 7.06 | ||
Stock Options [Member] | $10.42 - $15.44 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | shares | 601,648 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years 1 month | ||
Options Outstanding, Weighted Average Exercise Price | $ 13.57 | ||
Options Exercisable, Number Exercisable | shares | 224,603 | ||
Options Exercisable, Weighted Average Exercise Price | $ 14.50 | ||
Stock Options [Member] | $18.42 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | shares | 170,195 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years 6 months | ||
Options Outstanding, Weighted Average Exercise Price | $ 18.42 | ||
Options Exercisable, Number Exercisable | shares | 17,440 | ||
Options Exercisable, Weighted Average Exercise Price | $ 18.42 | ||
Share-based Compensation Award, Tranche One [Member] | Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Share-based Compensation Award, Tranche Two [Member] | Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Expected life (years) | 3 years 9 days | 3 years 9 days | |
Minimum [Member] | Stock Options [Member] | 2016 Award Year [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Closing Price of Common Stock Vesting Criteria | $ 15.20 | ||
Minimum [Member] | Stock Options [Member] | 2015 Award Year [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Granted in Period, Closing Price of Common Stock Vesting Criteria | $ 23.03 |
Note 15 - Share-Based and Oth98
Note 15 - Share-Based and Other Compensation Plans (Employee Stock Purchase Plan) (Details) - Employee Stock Purchase Plan 2008 [Member] - Employee Stock Purchase Plan [Member] - shares | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 2,000,000 | 2,000,000 | ||||
Shares sold to employees under ESPP Plans | 105,476 | 151,121 | 94,676 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected life (months) | 6 months | 6 months | 6 months | |||
Risk-free interest rate | 1.35% | 1.04% | ||||
Volatility | 29.37% | 34.68% | ||||
Dividend yield | 0.06% | 0.06% | ||||
Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares sold to employees under ESPP Plans | 52,464 | |||||
Employee Stock Ownership Plan (ESOP), Number of Shares Available for Issuance | 850,004 |
Note 15 - Share-Based and Oth99
Note 15 - Share-Based and Other Compensation Plans (Unrecognized Compensation Expense) (Details) - Equity Compensation Plans [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to unvested portion of all stock-based awards | $ 11.3 | $ 11.7 | |
Unrecognized compensation expense weighted average recognition period (in years) | 2 years 21 days | ||
Pro Forma [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to unvested portion of all stock-based awards | $ 16.3 |
Note 16 - Benefit Plans (Detail
Note 16 - Benefit Plans (Details) - Other Postretirement Benefits Plan [Member] - USD ($) | Jan. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan Maximum Percentage Of Base Earnings Qualifying For Pre-Tax Contributions | 100.00% | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount | $ 18,000 | |||
Defined Benefit Plan, Employee Discretionary Contribution Maximum Amount | $ 6,000 | |||
Defined Contribution Plan Parent Company Matching Contribution Percentage | 100.00% | 100.00% | ||
Defined Contribution Plan Percentage Of Base Earnings Qualifying For Parent Company Matching Contribution | 4.50% | 6.00% | ||
Defined Contribution Plan, Cost | $ 4,800,000 | $ 4,900,000 | $ 3,100,000 | |
Defined Contribution Plan, Employer Matching Contribution, Arrangement with Individual Requisite Service Period | 3 years | |||
Clayton Holdings, LLC [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan Parent Company Matching Contribution Percentage | 25.00% |
Note 17 - Accumulated Other 101
Note 17 - Accumulated Other Comprehensive Income Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ 150 | $ (474) | $ (217) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (12,395) | |||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 31,903 | 8,782 | (22,573) | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (2,642) | 2,251 | 44,183 | |||||
Net foreign currency translation adjustments | 871 | (474) | (217) | |||||
Net actuarial gain (loss) | 64 | 25 | 265 | |||||
Other comprehensive income (loss), net of tax | 35,480 | 6,082 | (69,962) | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | (721) | 0 | 0 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 23,085 | (12,395) | ||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | $ 69,200 | 368 | [1] | (170) | [1] | 69,150 | [1],[2] | |
Other Comprehensive Income (Loss) [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 150 | |||||||
Accumulated Other Comprehensive Income (Loss), before Tax | (19,063) | (28,425) | 79,208 | |||||
Accumulated Other Comprehensive Income, Tax (Benefit) | (6,668) | (9,948) | 27,723 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (12,395) | (18,477) | 51,485 | |||||
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 46,235 | 13,510 | (34,728) | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | [3] | (4,065) | 3,463 | 67,974 | [4] | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | 50,300 | 10,047 | (102,702) | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 1,334 | (724) | (333) | |||||
Other Comprehensive Income (Loss), Before Tax, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | [5] | (5,006) | ||||||
Net actuarial gain (loss), before Tax | 98 | 39 | 408 | |||||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 51,732 | 9,362 | (107,633) | |||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 14,332 | 4,728 | (12,155) | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | [3] | (1,423) | 1,212 | 23,791 | [4] | |||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 15,755 | 3,516 | (35,946) | |||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 463 | (250) | (116) | |||||
Other Comprehensive Income (Loss), Tax Effect, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | [5] | (1,752) | ||||||
Net actuarial gain (loss), Tax | 34 | 14 | 143 | |||||
Other Comprehensive Income (Loss), Tax | 16,252 | 3,280 | (37,671) | |||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 31,903 | 8,782 | (22,573) | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | [3] | (2,642) | 2,251 | 44,183 | [4] | |||
Net unrealized gains on investments | 34,545 | 6,531 | (66,756) | |||||
Net foreign currency translation adjustments | 871 | (474) | (217) | |||||
Other Comprehensive Income (Loss), Net of Tax, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | [5] | (3,254) | ||||||
Net actuarial gain (loss) | 64 | 25 | 265 | |||||
Other comprehensive income (loss), net of tax | 35,480 | 6,082 | (69,962) | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | [6] | (1,109) | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | [6] | (388) | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | [6] | (721) | ||||||
Accumulated Other Comprehensive Income (Loss), before Tax | 32,669 | (19,063) | (28,425) | |||||
Accumulated Other Comprehensive Income, Tax (Benefit) | 9,584 | (6,668) | (9,948) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 23,085 | $ (12,395) | $ (18,477) | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | 225 | |||||||
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | $ 75 | |||||||
[1] | Net realized gains (losses) on equities available for sale is equal to the gross amount of gains and losses, respectively, realized for those periods. | |||||||
[2] | During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million. | |||||||
[3] | Included in net gains (losses) on investments and other financial instruments on our consolidated statements of operations. | |||||||
[4] | During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million. | |||||||
[5] | Represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in accumulated other comprehensive income (loss). | |||||||
[6] | Included in restructuring and other exit costs on our consolidated statements of operations. |
Note 18 - Discontinued Opera102
Note 18 - Discontinued Operations Disposal Group, Income Statement, Balance Sheet and Additional Disclosures (Details) - USD ($) | Apr. 01, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Net investment income | $ 33,605,000 | $ 32,540,000 | $ 30,071,000 | $ 31,032,000 | $ 28,996,000 | $ 28,430,000 | $ 28,839,000 | $ 27,201,000 | $ 127,248,000 | $ 113,466,000 | $ 81,537,000 | |
Other Income | 2,886,000 | 3,572,000 | 2,899,000 | |||||||||
Total revenues | 1,221,631,000 | 1,238,452,000 | 1,193,253,000 | |||||||||
Policy acquisition costs | 5,871,000 | 5,554,000 | 6,123,000 | 6,729,000 | 5,579,000 | 6,119,000 | 5,393,000 | 6,389,000 | 24,277,000 | 23,480,000 | 22,424,000 | |
Other operating expenses | $ 65,999,000 | $ 64,195,000 | $ 68,750,000 | $ 68,377,000 | $ 62,416,000 | $ 62,119,000 | $ 63,173,000 | $ 57,188,000 | 267,321,000 | 244,896,000 | 242,405,000 | |
Total expenses | 874,894,000 | 754,766,000 | 755,424,000 | |||||||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | 5,385,000 | |||||||||
Discontinued Operations, Held-for-sale [Member] | Radian Asset Assurance [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | (14,300,000) | |||||||||||
Total Operating Expenses and Interest Expense Allocated to Subsidiaries From Parent Company | 0 | |||||||||||
Total revenues | 34,300,000 | |||||||||||
Income (loss) from discontinued operations, net of tax | $ 5,400,000 | |||||||||||
Discontinued Operations, Disposed of by Sale [Member] | Radian Asset Assurance [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | |||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 810,000,000 | |||||||||||
Equity Method Investment, Net Sales Proceeds | $ 789,000,000 |
Note 19 - Statutory Informat103
Note 19 - Statutory Information Statutory Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)yearsstate | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Statutory Accounting Practices [Line Items] | ||||
Risk To Capital Ratio, Regulatory Maximum | 25 | |||
Restricted Net Assets Held by Consolidated Subsidiaries | $ 3,600,000 | |||
Differences Between GAAP Basis and STAT Basis [Member] | ||||
STAT Accounting Information [Abstract] | ||||
Mortgage Guaranty Insurance Companies Are Required Each Year To Establish A Contingency Reserve Equal To This Percentage Of Premiums Earned In Such Year | 50.00% | |||
Number Of Years A Fifty Percent Contingency Reserve Is Required To Be Maintained | years | 10 | |||
Mortgage Guaranty Insurance Companies Contingency Reserve May Be Reduced With Regulatory Approval To The Extent That Losses In Any Calendar Year Exceed This Percentage Of Earned Premiums For Such Year | 35.00% | |||
PENNSYLVANIA | ||||
Statutory Accounting Practices [Line Items] | ||||
Policyholder Dividends, Rate on Policy Earnings | 10.00% | |||
State Insurance Regulations [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement | state | 16 | |||
Minimum [Member] | Non RBC States [Member] | ||||
STAT Accounting Information [Abstract] | ||||
Capital Required for Capital Adequacy | $ 1,000 | |||
Maximum [Member] | Non RBC States [Member] | ||||
STAT Accounting Information [Abstract] | ||||
Capital Required for Capital Adequacy | 5,000 | |||
Radian Reinsurance [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | 175,000 | $ 266,000 | ||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | 328,900 | $ 147,600 | 138,700 | |
Statutory Unassigned Negative Surplus | 112,100 | 118,400 | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 0 | |||
STAT Accounting Information [Abstract] | ||||
Statutory Accounting Practices, Statutory Capital and Surplus, Increase (Decrease) | $ (175,000) | |||
Capital Contributions | 175,000 | |||
Radian Guaranty [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | 100,000 | |||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | 1,201,000 | 1,349,700 | 1,686,500 | |
Surplus Notes | 100,000 | 0 | 325,000 | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 0 | |||
STAT Accounting Information [Abstract] | ||||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | 175,000 | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Increase (Decrease) | $ (175,000) | |||
Cumulative Earnings (Deficit) | 765,000 | 691,300 | ||
Other MI Companies [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | 58,600 | 57,100 | 55,000 | |
Parent Company [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | 521,000 | 2,500 | $ 398,300 | |
Restricted Net Assets Held by Consolidated Subsidiaries | $ 3,764,865 | $ 3,383,089 | ||
STAT Accounting Information [Abstract] | ||||
Related Party Transaction, Rate | 0.00% | 0.00% | ||
Parent Company [Member] | Minimum [Member] | ||||
STAT Accounting Information [Abstract] | ||||
Surplus Note, Notice of Redemption Period | 30 days |
Note 19 - Statutory Informat104
Note 19 - Statutory Information Risk To Capital Calculation (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)statesubsidiaries | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Risk to Capital Line Items [Line Items] | ||||
Risk To Capital Ratio, Regulatory Maximum | 25 | |||
Number of Subsidiaries | subsidiaries | 6 | |||
Risk-to-capital | 12.1 | 13.6 | ||
Parent Company [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Related Party Transaction, Rate | 0.00% | 0.00% | ||
Other MI Companies [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Statutory Accounting Practices, Statutory Net Income Amount | $ 0.1 | $ (6.1) | $ 92.9 | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 58.6 | 57.1 | 55 | |
Contingency reserve | 1.7 | 1.5 | 1.1 | |
Radian Insurance [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
RIF, net | 24.1 | |||
Radian Guaranty [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Statutory Accounting Practices, Statutory Net Income Amount | 445.1 | 480.8 | 754.8 | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 1,201 | 1,349.7 | 1,686.5 | |
Contingency reserve | 1,667 | 1,260.6 | 860.9 | |
RIF, net | [1] | 36,793.5 | 35,357.8 | |
Capital | 1,866 | 2,041 | ||
Surplus Notes | 100 | 0 | 325 | |
Cumulative Earnings (Deficit) | (765) | (691.3) | ||
Statutory Accounting Practice, Statutory Position | $ 2,868 | $ 2,610.3 | ||
Risk-to-capital | 12.8 | 13.5 | ||
Radian Reinsurance [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Statutory Accounting Practices, Statutory Net Income Amount | $ 64.3 | $ 60.3 | (1) | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 328.9 | 147.6 | 138.7 | |
Contingency reserve | 234 | $ 180.3 | 128.8 | |
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 20 | |||
Radian Mortgage Guaranty Inc. [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Proceeds from Contributions from Parent | $ 20 | |||
State Insurance Regulations [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement | state | 16 | |||
Minimum [Member] | Non RBC States [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Capital Required for Capital Adequacy | $ 1 | |||
Maximum [Member] | Non RBC States [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Capital Required for Capital Adequacy | $ 5 | |||
[1] | Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans. |
Note 20 - Quarterly Financia105
Note 20 - Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||||
Net premiums earned—insurance | $ 245,175 | $ 236,702 | $ 229,096 | $ 221,800 | $ 233,585 | $ 238,149 | $ 229,085 | $ 220,950 | $ 932,773 | $ 921,769 | $ 915,908 | ||||||||||
Services revenue | 39,703 | 39,571 | 37,802 | 38,027 | 49,905 | 45,877 | 40,263 | 32,849 | 155,103 | 168,894 | 157,216 | ||||||||||
Net investment income | 33,605 | 32,540 | 30,071 | 31,032 | 28,996 | 28,430 | 28,839 | 27,201 | 127,248 | 113,466 | 81,537 | ||||||||||
Net gains on investments and other financial instruments | (1,339) | 2,480 | 5,331 | (2,851) | (38,773) | 7,711 | 30,527 | 31,286 | 3,621 | 30,751 | 35,693 | ||||||||||
Provision for losses | 35,178 | 35,841 | 17,222 | 46,913 | 54,287 | 55,785 | 49,725 | 42,991 | 135,154 | 202,788 | 198,585 | ||||||||||
Policy acquisition costs | 5,871 | 5,554 | 6,123 | 6,729 | 5,579 | 6,119 | 5,393 | 6,389 | 24,277 | 23,480 | 22,424 | ||||||||||
Cost of services | 23,349 | 27,240 | 25,635 | 28,375 | 33,812 | 29,447 | 27,365 | 23,550 | 104,599 | 114,174 | 93,715 | ||||||||||
Other operating expenses | 65,999 | 64,195 | 68,750 | 68,377 | 62,416 | 62,119 | 63,173 | 57,188 | 267,321 | 244,896 | 242,405 | ||||||||||
Restructuring Charges | 5,230 | 12,038 | 0 | 0 | 17,268 | 0 | 0 | ||||||||||||||
Loss on induced conversion and debt extinguishment | 0 | 45,766 | 1,247 | 4,456 | 0 | 17,397 | 2,108 | 55,570 | 51,469 | 75,075 | 94,207 | ||||||||||
Goodwill, Impairment Loss | 0 | 0 | 184,374 | 0 | 184,374 | 0 | 0 | ||||||||||||||
Amortization and impairment of other intangible assets | 2,629 | 2,890 | 18,856 | 3,296 | 3,290 | 3,292 | 3,311 | 3,328 | 27,671 | 13,221 | 12,986 | ||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 121,088 | 308,253 | 281,539 | ||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 5,385 | ||||||||||||||||||
Net income | $ 6,816 | [1] | $ 65,142 | $ (27,342) | $ 76,472 | $ 61,089 | $ 82,803 | $ 98,112 | $ 66,249 | $ 121,088 | $ 308,253 | $ 286,924 | |||||||||
Net (loss) income per share—diluted | $ 0.03 | [1],[2] | $ 0.30 | [2] | $ (0.13) | [2] | $ 0.34 | [2] | $ 0.27 | [2] | $ 0.37 | [2] | $ 0.44 | [2] | $ 0.29 | [2] | $ 0.55 | [2] | $ 1.37 | [2] | $ 1.22 |
Weighted-average number of common and common equivalent shares outstanding—diluted | 220,250 | 219,391 | 215,152 | 221,497 | 224,776 | 225,968 | 226,203 | 239,707 | 220,406 | 229,258 | 246,332 | ||||||||||
[1] | The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. | ||||||||||||||||||||
[2] | Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income. |
Schedule I Summary Of Invest106
Schedule I Summary Of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Securities Loaned, Asset | $ 27,964 | ||
Securities Received as Collateral | 19,357 | $ 0 | |
Summary of Investments, Other than Investments in Related Parties, Cost | 4,621,307 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 4,674,798 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 4,671,906 | ||
US government and agency securities | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | 69,668 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 69,396 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 69,396 | ||
State and municipal obligations | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | 156,587 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 161,722 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 161,722 | ||
Corporate bonds and notes | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | 1,869,318 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,894,886 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 1,894,886 | ||
RMBS | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | 189,455 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 187,229 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 187,229 | ||
CMBS | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | 451,595 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 453,394 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 453,394 | ||
Other ABS | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | 672,715 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 674,548 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 674,548 | ||
Foreign government and agency securities | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | 31,416 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 32,207 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 32,207 | ||
Total fixed-maturities available for sale (1) | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | [1] | 3,440,754 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | [1] | 3,473,382 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | [1] | 3,473,382 | |
Trading securities (1) (2) | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | [1],[2] | 588,061 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | [1],[2] | 606,434 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | [1],[2] | 606,434 | |
Common stocks (1) | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | [1] | 176,349 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | [1] | 176,065 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | [1] | 176,065 | |
Total equity securities available for sale | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | 176,349 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 176,065 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 176,065 | ||
Short-term investments (1) (3) | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | [1],[3] | 415,809 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | [1],[3] | 415,691 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | [1],[3] | 415,691 | |
Other invested assets | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Summary of Investments, Other than Investments in Related Parties, Cost | 334 | ||
Summary of Investments, Other than Investments in Related Parties, Fair Value | 3,226 | ||
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 334 | ||
Securities Financing Transaction, Fair Value [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Securities Loaned, Asset | [4] | 27,964 | |
Securities Received as Collateral | [5] | $ 19,357 | |
[1] | These classifications include a total of $28.0 million of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets. | ||
[2] | Includes foreign government and agency securities. | ||
[3] | Includes cash collateral held under securities lending agreements ($19.4 million) reinvested in money market instruments. | ||
[4] | Our securities loaned under securities lending agreements are included at fair value within other assets on our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting. | ||
[5] | All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities on our consolidated balance sheets. |
Schedule II Financial Inform107
Schedule II Financial Information of Registrant Parent Company Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed-maturities available for sale—at fair value | $ 3,458,719 | $ 2,838,512 |
Short-term investments—at fair value | 415,658 | 741,531 |
Total investments | 4,643,942 | 4,462,430 |
Cash | 80,569 | 52,149 |
Restricted cash (Note B) | 15,675 | 9,665 |
Investment in subsidiaries, at equity in net assets (Note C) | 3,600,000 | |
Federal income taxes recoverable, net—current | 48,400 | |
Other assets (Note E) | 407,849 | 343,835 |
Total assets | 5,900,881 | 5,863,174 |
Liabilities and Stockholders’ Equity | ||
Long-term debt (Note F) | 1,027,074 | 1,069,537 |
Other liabilities | 353,845 | 321,859 |
Total liabilities | 2,900,843 | 2,990,888 |
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2017 and 2016; 233,416,989 and 232,091,921 shares issued at December 31, 2017 and 2016, respectively; 215,814,188 and 214,521,079 shares outstanding at December 31, 2017 and 2016, respectively | 233 | 232 |
Treasury stock, at cost: 17,602,801 and 17,570,842 shares at December 31, 2017 and 2016, respectively | (893,888) | (893,332) |
Additional paid-in capital | 2,754,275 | 2,779,891 |
Retained earnings | 1,116,333 | 997,890 |
Accumulated other comprehensive income (loss) | 23,085 | (12,395) |
Total common stockholders’ equity | 3,000,038 | 2,872,286 |
Liabilities and Equity | 5,900,881 | 5,863,174 |
Balance Sheet Parentheticals [Abstract] | ||
Property and Equipment, Owned, Accumulated Depreciation | 106,000 | 118,500 |
Parent Company [Member] | ||
Assets | ||
Fixed-maturities available for sale—at fair value | 10,785 | 79,336 |
Short-term investments—at fair value | 83,356 | 311,418 |
Total investments | 94,141 | 390,754 |
Cash | 13,173 | 8,256 |
Restricted cash (Note B) | 0 | 124 |
Investment in subsidiaries, at equity in net assets (Note C) | 3,764,865 | 3,383,089 |
Accounts and notes receivable (Note D) | 103,561 | 305,316 |
Federal income taxes recoverable, net—current | 35,741 | 0 |
Other assets (Note E) | 166,051 | 166,098 |
Total assets | 4,177,532 | 4,253,637 |
Liabilities and Stockholders’ Equity | ||
Long-term debt (Note F) | 1,027,074 | 1,069,537 |
Federal income taxes—current | 0 | 78,980 |
Federal income taxes—deferred | 97,067 | 187,309 |
Other liabilities | 53,353 | 45,525 |
Total liabilities | 1,177,494 | 1,381,351 |
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2017 and 2016; 233,416,989 and 232,091,921 shares issued at December 31, 2017 and 2016, respectively; 215,814,188 and 214,521,079 shares outstanding at December 31, 2017 and 2016, respectively | 233 | 232 |
Treasury stock, at cost: 17,602,801 and 17,570,842 shares at December 31, 2017 and 2016, respectively | (893,888) | (893,332) |
Additional paid-in capital | 2,754,275 | 2,779,891 |
Retained earnings | 1,116,333 | 997,890 |
Accumulated other comprehensive income (loss) | 23,085 | (12,395) |
Total common stockholders’ equity | 3,000,038 | 2,872,286 |
Liabilities and Equity | $ 4,177,532 | $ 4,253,637 |
Balance Sheet Parentheticals [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 |
Common Stock, Shares, Issued | 233,416,989 | 232,091,921 |
Common Stock, Shares, Outstanding | 215,814,188 | 214,521,079 |
Treasury Stock, Shares | 17,602,801 | 17,570,842 |
Schedule II Financial Inform108
Schedule II Financial Information of Registrant Parent Company Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues: | ||||||||||||
Net investment income | $ 33,605 | $ 32,540 | $ 30,071 | $ 31,032 | $ 28,996 | $ 28,430 | $ 28,839 | $ 27,201 | $ 127,248 | $ 113,466 | $ 81,537 | |
Net gains (losses) on investments and other financial instruments | 3,207 | 31,004 | 35,081 | |||||||||
Other income | 2,886 | 3,572 | 2,899 | |||||||||
Total revenues | 1,221,631 | 1,238,452 | 1,193,253 | |||||||||
Expenses: | ||||||||||||
Loss on induced conversion and debt extinguishment | 0 | (45,766) | (1,247) | (4,456) | 0 | (17,397) | (2,108) | (55,570) | (51,469) | (75,075) | (94,207) | |
Interest expense | 62,761 | 81,132 | 91,102 | |||||||||
Total expenses (Note G) | 874,894 | 754,766 | 755,424 | |||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 346,737 | 483,686 | 437,829 | |||||||||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | 346,737 | 483,686 | 437,829 | |||||||||
Income tax benefit | 225,649 | 175,433 | 156,290 | |||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 121,088 | 308,253 | 281,539 | |||||||||
Less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 5,385 | |||||||||
Net income | $ 6,816 | [1] | $ 65,142 | $ (27,342) | $ 76,472 | $ 61,089 | $ 82,803 | $ 98,112 | $ 66,249 | 121,088 | 308,253 | 286,924 |
Other comprehensive income (loss), net of tax | 35,480 | 6,082 | (69,962) | |||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 156,568 | 314,335 | 216,962 | |||||||||
Parent Company [Member] | ||||||||||||
Revenues: | ||||||||||||
Net investment income | 22,528 | 20,834 | 17,917 | |||||||||
Net gains (losses) on investments and other financial instruments | (328) | (150) | 2,975 | |||||||||
Other income | 80 | 49 | 0 | |||||||||
Total revenues | 22,280 | 20,733 | 20,892 | |||||||||
Expenses: | ||||||||||||
Loss on induced conversion and debt extinguishment | 51,469 | 75,075 | 94,207 | |||||||||
Interest expense | 18,033 | 29,002 | 55,768 | |||||||||
Total expenses (Note G) | 69,502 | 104,077 | 149,975 | |||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (47,222) | (83,344) | (129,083) | |||||||||
Income tax benefit | (141,437) | (8,676) | (43,854) | |||||||||
Equity in net income (loss) of affiliates | 26,873 | 382,921 | 371,949 | |||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 121,088 | 308,253 | 286,720 | |||||||||
Less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 204 | |||||||||
Net income | 121,088 | 308,253 | 286,924 | |||||||||
Other comprehensive income (loss), net of tax | 35,480 | 6,082 | (69,962) | |||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 156,568 | $ 314,335 | $ 216,962 | |||||||||
[1] | The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. |
Schedule II Financial Inform109
Schedule II Financial Information of Registrant Parent Company Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities: | ||||||||||||
Net income | $ 6,816 | [1] | $ 65,142 | $ (27,342) | $ 76,472 | $ 61,089 | $ 82,803 | $ 98,112 | $ 66,249 | $ 121,088 | $ 308,253 | $ 286,924 |
Less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 5,385 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Net (gains) losses on investments and other financial instruments | 1,339 | (2,480) | (5,331) | 2,851 | 38,773 | (7,711) | (30,527) | (31,286) | (3,621) | (30,751) | (35,693) | |
Loss on induced conversion and debt extinguishment (Note 12) | 0 | $ 45,766 | $ 1,247 | 4,456 | 0 | $ 17,397 | $ 2,108 | 55,570 | 51,469 | 75,075 | 94,207 | |
Deferred income tax provision | 166,527 | 170,887 | 156,170 | |||||||||
Change in other assets | (16,491) | (7,662) | 7,799 | |||||||||
Change in other liabilities | 4,405 | 57,136 | (66,786) | |||||||||
Net cash provided by (used in) operating activities, continuing operations | 360,575 | 381,724 | 13,480 | |||||||||
Net cash provided by (used in) operating activities, discontinued operations | 0 | 0 | (1,759) | |||||||||
Net cash (used in) provided by operating activities | 360,575 | 381,724 | 11,721 | |||||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from Sale and Maturity of Available-for-sale Securities | 888,219 | 687,173 | 20,100 | |||||||||
Proceeds from Sale of Available-for-sale Securities, Equity | 38,318 | 74,868 | 146,049 | |||||||||
Proceeds from Sale of Trading Securities Held-for-investment | 194,784 | 290,855 | 78,826 | |||||||||
Proceeds from redemptions of fixed-maturity investments available for sale | 463,548 | 337,630 | 103,595 | |||||||||
Proceeds from redemptions of fixed-maturity investments held to maturity | 79,296 | 123,645 | 221,914 | |||||||||
Purchases of Available-for-sale Securities | (1,947,916) | (1,990,652) | (1,486,318) | |||||||||
Purchases of equity securities available for sale | (213,469) | (830) | (75,538) | |||||||||
Sales, redemptions and (purchases) of short-term investments, net | 324,258 | 334,456 | 222,882 | |||||||||
Sales, redemptions and (purchases) of other assets and other invested assets, net | 882 | 2,489 | 16,717 | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (86) | (150) | (9,834) | |||||||||
Net cash provided by (used in) investing activities | (201,492) | (176,058) | 2,792 | |||||||||
Cash flows from financing activities: | ||||||||||||
Dividends paid | (2,154) | (2,105) | (1,996) | |||||||||
Issuance of long-term debt, net | 442,163 | 343,417 | 343,334 | |||||||||
Purchases and redemptions of long-term debt | (593,527) | (445,072) | (156,172) | |||||||||
Proceeds from Hedge, Financing Activities | 4,208 | 0 | 13,150 | |||||||||
Issuance of common stock | 7,132 | 717 | 1,285 | |||||||||
Purchase of common shares | (6) | (100,188) | (202,000) | |||||||||
Excess tax benefits from stock-based awards (Note 2) | 0 | 333 | 3,000 | |||||||||
Net cash provided by (used in) financing activities | (125,084) | (203,269) | 601 | |||||||||
Cash and Restricted Cash, Period Increase (Decrease) Including Discontinued Operations | 34,430 | 1,916 | 14,981 | |||||||||
Cash and restricted cash, beginning of period | 61,814 | 59,898 | 61,814 | 59,898 | 44,496 | |||||||
Cash and restricted cash, end of period | 96,244 | 61,814 | 96,244 | 61,814 | 59,898 | |||||||
Parent Company [Member] | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | 121,088 | 308,253 | 286,924 | |||||||||
Less: Income (loss) from discontinued operations, net of tax | 0 | 0 | 204 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Loss on induced conversion and debt extinguishment (Note 12) | (51,469) | (75,075) | (94,207) | |||||||||
Net cash provided by (used in) operating activities, continuing operations | (23,654) | 38,902 | (128,879) | |||||||||
Net cash provided by (used in) operating activities, discontinued operations | 0 | 0 | 0 | |||||||||
Net cash (used in) provided by operating activities | (23,654) | 38,902 | (128,879) | |||||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from Sale and Maturity of Available-for-sale Securities | 58,007 | 47,058 | 0 | |||||||||
Proceeds from Sale of Available-for-sale Securities, Equity | 0 | 24,992 | 0 | |||||||||
Proceeds from Sale of Trading Securities Held-for-investment | 0 | 30,350 | 0 | |||||||||
Proceeds from redemptions of fixed-maturity investments available for sale | 60,414 | 49,578 | 0 | |||||||||
Proceeds from redemptions of fixed-maturity investments held to maturity | 0 | 10,000 | 0 | |||||||||
Purchases of Available-for-sale Securities | (134,456) | (137,431) | (39,667) | |||||||||
Purchases of equity securities available for sale | 0 | 0 | 25,545 | |||||||||
Sales, redemptions and (purchases) of short-term investments, net | 210,529 | (40,288) | 473,350 | |||||||||
Payments for (Proceeds from) Productive Assets | (1,107) | 239 | (688) | |||||||||
Proceeds from Contributions from Affiliates | 924 | 15,000 | 113,784 | |||||||||
Capital contributions to subsidiaries and affiliates | (21,643) | (1,500) | (182,307) | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (30,443) | 0 | |||||||||
Issuance of notes receivable from affiliates | (44) | 201,631 | 208,527 | |||||||||
Net cash provided by (used in) investing activities | 172,624 | 169,186 | 130,400 | |||||||||
Cash flows from financing activities: | ||||||||||||
Dividends paid | (2,154) | (2,105) | (1,996) | |||||||||
Issuance of long-term debt, net | 442,163 | 343,417 | 343,334 | |||||||||
Purchases and redemptions of long-term debt | (593,527) | (445,072) | (156,172) | |||||||||
Proceeds from Hedge, Financing Activities | 4,208 | 0 | 13,150 | |||||||||
Issuance of common stock | 7,132 | 717 | 1,285 | |||||||||
Purchase of common shares | (6) | (100,188) | (202,000) | |||||||||
Credit facility commitment fees paid | (1,993) | 0 | 0 | |||||||||
Excess tax benefits from stock-based awards (Note 2) | 0 | 98 | 2,228 | |||||||||
Net cash provided by (used in) financing activities | (144,177) | (203,133) | (171) | |||||||||
Cash and Restricted Cash, Period Increase (Decrease) Including Discontinued Operations | 4,793 | 4,955 | 1,350 | |||||||||
Cash and restricted cash, beginning of period | $ 8,380 | $ 3,425 | 8,380 | 3,425 | 2,075 | |||||||
Cash and restricted cash, end of period | $ 13,173 | $ 8,380 | $ 13,173 | $ 8,380 | $ 3,425 | |||||||
[1] | The fourth quarter of 2017 reflects an incremental tax provision related to the remeasurement of our net deferred tax assets as a result of the enactment of the TCJA. |
Schedule II Financial Inform110
Schedule II Financial Information of Registrant Parent Company Only Financial Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2015USD ($) | May 31, 2014USD ($) | Dec. 31, 2017USD ($)transaction | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)transactionsubsidiaries | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 27, 2017USD ($) | Aug. 12, 2016USD ($) | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Total Operating Expenses Allocated to Subsidiaries From Parent Company | $ 72,764 | $ 56,446 | $ 53,738 | |||||||||||||
Total Interest Expense Allocated to Subsidiaries From Parent Company | 44,686 | 52,092 | 35,300 | |||||||||||||
Investments | $ 4,643,942 | $ 4,462,430 | 4,643,942 | 4,462,430 | ||||||||||||
Fixed-maturities available for sale—at fair value | 3,458,719 | 2,838,512 | 3,458,719 | 2,838,512 | ||||||||||||
Short-term investments—at fair value (includes $19,357 and $0 of reinvested cash collateral held under securities lending agreements) | 415,658 | 741,531 | 415,658 | 741,531 | ||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Loss on induced conversion and debt extinguishment (Note 12) | 0 | $ (45,766) | $ (1,247) | $ (4,456) | 0 | $ (17,397) | $ (2,108) | $ (55,570) | (51,469) | (75,075) | (94,207) | |||||
Repayments of Long-term Debt | 593,527 | 445,072 | 156,172 | |||||||||||||
Issuance of common stock | 7,132 | 717 | 1,285 | |||||||||||||
Available-for-sale Securities, Equity Securities | 162,830 | 1,330 | 162,830 | 1,330 | ||||||||||||
Qualified Deposit With The U.S. Department Of Treasury Relating To Prior Examinations | $ 88,557 | $ 88,557 | ||||||||||||||
Number of Guaranteed Structured Transactions For Radian Guaranty | transaction | 2 | 2 | ||||||||||||||
Convertible Debt [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Loss on induced conversion and debt extinguishment (Note 12) | (17,200) | |||||||||||||||
Senior Notes Due 2020 [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Debt Instrument, Face Amount | $ 350,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||||||||||||
Proceeds/payments related to issuance or exchange of debt, net | $ 343,300 | |||||||||||||||
Senior Notes Due 2017 | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Loss on induced conversion and debt extinguishment (Note 12) | $ (15,000) | |||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 195,500 | |||||||||||||||
Convertible Senior Notes Due 2017 [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Redemption of long-term debt | $ 389,100 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | ||||||||||||||
Convertible Senior Notes Due 2017 [Member] | Convertible Debt [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Long-term Debt, Gross | $ 0 | 22,233 | $ 0 | 22,233 | ||||||||||||
Debt Instrument, Repurchased Face Amount | $ 21,600 | 30,100 | 30,100 | |||||||||||||
Convertible Senior Notes Due 2019 [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | ||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 68,000 | |||||||||||||||
Convertible Senior Notes Due 2019 [Member] | Convertible Debt [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Long-term Debt, Gross | $ 0 | 68,024 | $ 0 | 68,024 | ||||||||||||
Debt Instrument, Repurchased Face Amount | 322,000 | 322,000 | ||||||||||||||
Senior Notes Due 2019 [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |||||||||||||||
Proceeds/payments related to issuance or exchange of debt, net | $ 293,800 | |||||||||||||||
Parent Company [Member] | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Restricted Cash Held As Collateral For Insurance Trust Agreement | 0 | 100 | 0 | 100 | ||||||||||||
Investments | 94,141 | 390,754 | 94,141 | 390,754 | ||||||||||||
Fixed-maturities available for sale—at fair value | 10,785 | 79,336 | 10,785 | 79,336 | ||||||||||||
Short-term investments—at fair value (includes $19,357 and $0 of reinvested cash collateral held under securities lending agreements) | 83,356 | 311,418 | 83,356 | 311,418 | ||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Total Operating Expenses and Interest Expense Allocated to Subsidiaries From Parent Company | 117,450 | 108,538 | 89,038 | |||||||||||||
Dividends Received From Consolidated Subsidiaries | 26,500 | 40,400 | 446,200 | |||||||||||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | 521,000 | 2,500 | 398,300 | |||||||||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 21,643 | 1,500 | 182,307 | |||||||||||||
Proceeds from Contributions from Affiliates | 924 | 15,000 | 113,784 | |||||||||||||
Tax Payments to Parent from Subsidiaries | 50,700 | 51,200 | 16,000 | |||||||||||||
Loss on induced conversion and debt extinguishment (Note 12) | 51,469 | 75,075 | 94,207 | |||||||||||||
Repayments of Long-term Debt | 593,527 | 445,072 | 156,172 | |||||||||||||
Issuance of common stock | 7,132 | 717 | $ 1,285 | |||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 158,623 | 158,623 | ||||||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 450,000 | 450,000 | ||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 234,126 | 234,126 | ||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 197,661 | 197,661 | ||||||||||||||
Long-term Debt, Gross | 1,040,410 | $ 1,040,410 | ||||||||||||||
Related Party Transaction, Rate | 0.00% | 0.00% | ||||||||||||||
Qualified Deposit With The U.S. Department Of Treasury Relating To Prior Examinations | 88,600 | $ 88,600 | ||||||||||||||
Parent Company [Member] | Convertible Senior Notes Due 2017 [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Debt Instrument, Repurchased Face Amount | 21,600 | 21,600 | ||||||||||||||
Parent Company [Member] | Convertible Senior Notes Due 2019 [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Debt Instrument, Repurchased Face Amount | 68,000 | 68,000 | ||||||||||||||
Clayton Group Holdings Inc. [Member] | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes Receivable, Related Parties | 300,000 | 300,000 | 300,000 | 300,000 | ||||||||||||
Interest Receivable | 42,700 | 42,700 | ||||||||||||||
Allowance for Doubtful Accounts Receivable | 42,700 | 42,700 | ||||||||||||||
Increase (Decrease) Due from Other Related Parties | 39,900 | |||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 342,700 | |||||||||||||||
Transfer from Investments | 1,000 | |||||||||||||||
Radian Guaranty [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Dividends Received From Consolidated Subsidiaries | 175,000 | |||||||||||||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | 100,000 | |||||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | $ 100,000 | |||||||||||||||
Transfer from Investments | 100,000 | |||||||||||||||
Transfer to Investments | 153,600 | |||||||||||||||
Proceeds from Contributions from Affiliates | 21,400 | |||||||||||||||
Surplus Notes | 100,000 | 0 | 100,000 | 0 | 325,000 | |||||||||||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | 1,201,000 | 1,349,700 | $ 1,201,000 | 1,349,700 | 1,686,500 | |||||||||||
Radian Mortgage Insurance Inc., Radian Mortgage Reinsurance Company and RDN Investments, Inc. [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Number of Subsidiaries | subsidiaries | 3 | |||||||||||||||
Radian Reinsurance [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | $ 175,000 | 266,000 | ||||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 21,400 | 50,000 | ||||||||||||||
Transfer from Investments | 153,600 | 216,000 | ||||||||||||||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 20,000 | 20,000 | ||||||||||||||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | 328,900 | $ 147,600 | 328,900 | 147,600 | 138,700 | |||||||||||
Radian Mortgage Guaranty Inc. [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 20,000 | |||||||||||||||
RDN Investments [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Dividends Received From Consolidated Subsidiaries | 600 | 215,200 | ||||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 1,500 | |||||||||||||||
Transfer from Investments | 116,500 | |||||||||||||||
Transfer to Investments | 25,400 | |||||||||||||||
Proceeds from Contributions from Affiliates | 500 | 98,700 | ||||||||||||||
Distribution of Deferred and Current Tax Recoverables | 100 | |||||||||||||||
Radian MI Services Inc. [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Dividends Received From Consolidated Subsidiaries | 5,000 | |||||||||||||||
Proceeds from Contributions from Affiliates | 15,000 | |||||||||||||||
Radian Clayton Holdings Inc. [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 12,100 | |||||||||||||||
Radian Insurance [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 19,000 | |||||||||||||||
Radian Mortgage Reinsurance [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Dividends Received From Consolidated Subsidiaries | 1,000 | |||||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 200 | |||||||||||||||
Proceeds from Contributions from Affiliates | 600 | |||||||||||||||
Distribution of Deferred and Current Tax Recoverables | 400 | |||||||||||||||
Enhance Financial Services Group, Inc. [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 3,100 | |||||||||||||||
Transfer from Investments | $ 216,000 | |||||||||||||||
Proceeds from Contributions from Affiliates | 15,000 | |||||||||||||||
Radian Mortgage Assurance [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 8,600 | |||||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 200 | |||||||||||||||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 5,000 | 5,000 | ||||||||||||||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | 8,700 | 8,700 | ||||||||||||||
Risk In Force | $ 0 | 0 | ||||||||||||||
Radian Mortgage Insurance Inc [Member] | ||||||||||||||||
Supplemental Notes [Abstract] | ||||||||||||||||
Dividends Received From Consolidated Subsidiaries | 24,900 | |||||||||||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 2,800 | |||||||||||||||
Proceeds from Contributions from Affiliates | 2,700 | |||||||||||||||
Distribution of Deferred and Current Tax Recoverables | $ 22,200 |
Schedule II Financial Inform111
Schedule II Financial Information of Registrant Parent Company Parenthetical - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 |
Common Stock, Shares, Issued | 233,416,989 | 232,091,921 |
Common Stock, Shares, Outstanding | 215,814,188 | 214,521,079 |
Treasury Stock, Shares | 17,602,801 | 17,570,842 |
Clayton Group Holdings Inc. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes Receivable, Related Parties | $ 300 | $ 300 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct Premiums Earned | $ 990,016 | $ 999,093 | $ 973,645 | ||||||||
Ceded Premiums Earned | 57,271 | 77,359 | 57,780 | ||||||||
Assumed Premiums Earned | 28 | 35 | 43 | ||||||||
Net premiums earned—insurance | $ 245,175 | $ 236,702 | $ 229,096 | $ 221,800 | $ 233,585 | $ 238,149 | $ 229,085 | $ 220,950 | $ 932,773 | $ 921,769 | $ 915,908 |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Securities Lending Activity (De
Securities Lending Activity (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Offsetting Liabilities [Line Items] | |
Securities Lending Rate of Collateral Required | 1.02 |