Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Radian Group Inc. | |
Entity Central Index Key | 0000890926 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 208,020,528 | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) Statement - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Fixed-maturities available for sale—at fair value (amortized cost $3,875,919 and $4,098,962) | $ 3,897,584 | $ 4,021,575 |
Trading Securities—at fair value | 383,992 | 469,071 |
Equity securities—at fair value (cost of $125,153 and $139,377) | 125,025 | 130,565 |
Short-term investments—at fair value (includes $6,233 and $11,699 of reinvested cash collateral held under securities lending agreements) | 1,066,110 | 528,403 |
Other invested assets—at fair value | 3,059 | 3,415 |
Total investments | 5,475,770 | 5,153,029 |
Cash | 118,668 | 95,393 |
Restricted cash | 9,086 | 11,609 |
Accounts and notes receivable | 89,237 | 78,652 |
Deferred income taxes, net (Note 9) | 67,697 | 131,643 |
Goodwill and other acquired intangible assets, net (Note 6) | 56,811 | 58,998 |
Prepaid reinsurance premium | 408,622 | 417,628 |
Other assets (Note 8) | 373,678 | 367,700 |
Total assets | 6,599,569 | 6,314,652 |
Liabilities and Stockholders’ Equity | ||
Unearned premiums | 720,159 | 739,357 |
Reserve for losses and loss adjustment expense (Note 10) | 388,784 | 401,361 |
Senior notes (Note 11) | 1,031,197 | 1,030,348 |
Reinsurance funds withheld | 329,868 | 321,212 |
Other liabilities (Note 12) | 419,470 | 333,659 |
Total liabilities | 2,889,478 | 2,825,937 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Common stock: par value $0.001 per share; 485,000 shares authorized at March 31, 2019 and December 31, 2018; 229,817 and 231,132 shares issued at March 31, 2019 and December 31, 2018, respectively; 212,136 and 213,473 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 230 | 231 |
Treasury stock, at cost: 17,681 and 17,660 shares at March 31, 2019 and December 31, 2018, respectively | (895,321) | (894,870) |
Additional paid-in capital | 2,697,724 | 2,724,733 |
Retained earnings | 1,889,964 | 1,719,541 |
Accumulated other comprehensive income (loss) (Note 15) | 17,494 | (60,920) |
Total stockholders’ equity | 3,710,091 | 3,488,715 |
Total liabilities and stockholders’ equity | $ 6,599,569 | $ 6,314,652 |
Balance Sheet Parenthetical (Pa
Balance Sheet Parenthetical (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fixed-maturities available for sale—at amortized cost | $ 3,875,919 | $ 4,098,962 |
Equity securities—at cost | 125,153 | 139,377 |
Reinvested cash collateral held under securities lending agreements | $ 6,233 | $ 11,699 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 485,000 | 485,000 |
Common Stock, Shares, Issued | 229,817 | 231,132 |
Common Stock, Shares, Outstanding | 212,136 | 213,473 |
Treasury Stock, Shares | 17,681 | 17,660 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Net premiums earned—insurance | $ 263,512 | $ 242,550 |
Services revenue | 32,753 | 33,164 |
Net investment income | 43,847 | 33,956 |
Net gains (losses) on investments and other financial instruments | 21,913 | (18,887) |
Other income | 1,604 | 807 |
Total revenues | 363,629 | 291,590 |
Expenses: | ||
Provision for losses | 20,754 | 37,283 |
Policy acquisition costs | 5,893 | 7,117 |
Cost of services | 24,157 | 23,126 |
Other operating expenses | 78,805 | 63,243 |
Restructuring and other exit costs (Note 1) | 0 | 551 |
Interest expense | 15,697 | 15,080 |
Amortization and impairment of other acquired intangible assets | 2,187 | 2,748 |
Total expenses | 147,493 | 149,148 |
Consolidated pretax income (loss) | 216,136 | 142,442 |
Income tax provision | 45,179 | 27,956 |
Net income | $ 170,957 | $ 114,486 |
Earnings Per Share, Basic [Abstract] | ||
Basic net income (loss) per share | $ 0.80 | $ 0.53 |
Earnings Per Share, Diluted [Abstract] | ||
Diluted net income (loss) per share | $ 0.78 | $ 0.52 |
Weighted-average number of common shares outstanding—basic | 213,537 | 215,967 |
Weighted-average number of common and common equivalent shares outstanding—diluted | 218,343 | 219,883 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 170,957 | $ 114,486 |
Unrealized gains (losses) on investments: | ||
Unrealized holding gains (losses) arising during the period | 78,023 | (60,643) |
Less: Reclassification adjustment for net gains (losses) included in net income | (391) | (3,132) |
Net unrealized gains (losses) on investments | 78,414 | (57,511) |
Foreign Currency Translation Adjustments | ||
Unrealized foreign currency translation adjustments | 0 | 3 |
Other comprehensive income (loss), net of tax | 78,414 | (57,508) |
Comprehensive income | $ 249,371 | $ 56,978 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Common Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Parent | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | ASU 2016-01Retained Earnings | ASU 2016-01Accumulated Other Comprehensive Income (Loss) | ASU 2018-02Retained Earnings | ASU 2018-02Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adopting accounting standard update | $ 2,061 | $ 224 | $ (2,724) | $ 2,724 | |||||||
Balance, beginning of period at Dec. 31, 2017 | $ 233 | $ (893,888) | $ 2,754,275 | $ 1,116,333 | $ 23,085 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares repurchased under share repurchase program (Note 14) | 0 | (10,003) | |||||||||
Repurchases of common stock under incentive plans | (303) | ||||||||||
Issuance of common stock under incentive and benefit plans | 1,433 | ||||||||||
Share-based compensation | 2,528 | ||||||||||
Net income | $ 114,486 | 114,486 | |||||||||
Dividends declared | (540) | ||||||||||
Net unrealized gains (losses) on investments, net of tax | (57,511) | (57,511) | |||||||||
Net foreign currency translation adjustment, net of tax | 3 | ||||||||||
Balance, end of period at Mar. 31, 2018 | $ 3,052,416 | 233 | (894,191) | 2,748,233 | 1,229,616 | (31,475) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of adopting accounting standard update | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Balance, beginning of period at Dec. 31, 2018 | 3,488,715 | 231 | (894,870) | 2,724,733 | 1,719,541 | (60,920) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares repurchased under share repurchase program (Note 14) | (1) | (31,773) | |||||||||
Repurchases of common stock under incentive plans | (451) | ||||||||||
Issuance of common stock under incentive and benefit plans | 1,069 | ||||||||||
Share-based compensation | 3,695 | ||||||||||
Net income | 170,957 | 170,957 | |||||||||
Dividends declared | (534) | ||||||||||
Net unrealized gains (losses) on investments, net of tax | 78,414 | 78,414 | |||||||||
Net foreign currency translation adjustment, net of tax | 0 | ||||||||||
Balance, end of period at Mar. 31, 2019 | $ 3,710,091 | $ 3,710,091 | $ 230 | $ (895,321) | $ 2,697,724 | $ 1,889,964 | $ 17,494 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Cash Provided by (Used in) Operating Activities | $ 217,778 | $ 118,447 |
Cash flows from investing activities: | ||
Proceeds from Sales of Fixed-Maturity Investments Available-for-sale | 435,709 | 224,597 |
Proceeds from Sales of Trading Securities | 70,083 | 11,964 |
Proceeds from Sales of Equity Securities | 33,278 | 55,795 |
Proceeds from Redemption of Fixed-Maturity Investments Available for sale | 79,915 | 94,356 |
Proceeds from Redemptions of Trading securities | 23,293 | 17,890 |
Purchases of Fixed-Maturity Investments Available-for-sale | (275,531) | (482,260) |
Purchases of Equity Securities | (19,767) | (19,994) |
Sales, Redemptions and (Purchases) of Short-term Investments, Net | (526,013) | (17,217) |
Sales, Redemptions and (Purchases) of Other assets and other invested assets, net | 349 | 92 |
Purchases of property and equipment, net | (6,659) | (4,702) |
Acquisitions, net of cash acquired | 0 | (261) |
Net cash provided by (used in) investing activities | (185,343) | (119,740) |
Cash flows from financing activities: | ||
Dividends paid | (534) | (540) |
Issuance of common stock | 363 | 663 |
Purchase of common shares | (31,774) | (10,003) |
Credit facility commitment fees paid | (234) | (185) |
Change in secured borrowings, net (with terms less than 3 months) | 21,534 | 38,719 |
Proceeds from secured borrowings (with terms greater than 3 months) | 6,000 | 6,550 |
Payments of secured borrowings (with terms greater than 3 months) | (7,000) | 0 |
Repayment of other borrowings | (38) | (50) |
Net cash provided by (used in) financing activities | (11,683) | 35,154 |
Effect of exchange rate changes on cash and restricted cash | 0 | (1) |
Increase (decrease) in cash and restricted cash | 20,752 | 33,860 |
Cash and restricted cash, beginning of period | 107,002 | 96,244 |
Cash and restricted cash, end of period | $ 127,754 | $ 130,104 |
Note 1 - Condensed Consolidated
Note 1 - Condensed Consolidated Financial Statements - Business Overview, Recent Developments and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Condensed Consolidated Financial Statements—Business Overview, Recent Developments and Significant Accounting Policies Business Overview 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, real estate and title services. We have two reportable business segments—Mortgage Insurance and Services. Mortgage Insurance Our Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance on residential first-lien mortgage loans, as well as other credit risk management solutions, to mortgage lending institutions and mortgage credit investors. We provide our mortgage insurance products and services mainly through our wholly-owned subsidiary, Radian Guaranty. 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 and 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 home. Private mortgage insurance also facilitates the sale of these low down payment loans in the secondary mortgage market, most of which are currently sold to the GSEs. Our total direct primary mortgage insurance RIF was $57.4 billion as of March 31, 2019 . 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 mortgage insurance subsidiaries may write or prohibit our mortgage insurance subsidiaries from writing insurance altogether. The GSEs and state insurance regulators also possess significant discretion with respect to our mortgage insurance subsidiaries and all aspects of their business. See Note 16 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 March 31, 2019 , Radian Guaranty is an approved mortgage insurer under the PMIERs and is in compliance with the current PMIERs financial requirements. 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. 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, the GSEs have a broad range of consent rights under the PMIERs and require private mortgage insurers to obtain the prior consent of the GSEs before taking certain actions, which may include 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. From time to time, we enter into reinsurance transactions as a component of our long-term risk distribution strategy to manage our capital position and risk profile, which includes managing Radian Guaranty’s capital position under the PMIERs financial requirements. The credit that we receive under the PMIERs financial requirements for these transactions is subject to initial and ongoing review by the GSEs. Services Our Services segment is primarily a fee-for-service business that offers a broad array of services to market participants across the mortgage and real estate value chain. These services comprise mortgage services, real estate services and title services, including technology and turn-key solutions, that provide information and other resources used to originate, evaluate, acquire, securitize, service and monitor residential real estate and loans secured by residential real estate. These services are primarily provided to mortgage lenders, financial institutions, investors and government entities. In addition, we provide title insurance to mortgage lenders as well as directly to borrowers. Our mortgage services help loan originators and investors evaluate, acquire, surveil and securitize mortgages. These services include loan review, RMBS securitization and distressed asset reviews, review and valuation services related to single family rental properties, servicer and loan surveillance and underwriting. Our real estate services help lenders, investors and real estate agents evaluate, manage, monitor and sell properties. These real estate services include software as a service solutions and platforms, as well as managed services, such as REO asset management, real estate valuation services and real estate brokerage services. Our title services provide a comprehensive suite of title insurance products, title settlement services and both traditional and digital closing services. 2019 Developments Capital and Liquidity Actions. On March 20, 2019, Radian Group’s board of directors approved a $150 million increase in authorization for the Company’s existing share repurchase plan, bringing the total authorization to repurchase shares up to $250 million , excluding commissions. During the three months ended March 31, 2019 , the Company purchased 1,546,674 shares at an average price of $20.54 per share, including commissions. At March 31, 2019 , purchase authority of up to $218.2 million remained available under this program, which expires on July 31, 2020. Subsequent to March 31, 2019, we purchased 4,131,329 shares of our common stock under this program at an average price of $21.94 per share, including commissions. See Note 14 for additional details on our share repurchase program. In April 2019, the Pennsylvania Insurance Department approved a $375 million distribution of capital from Radian Guaranty to Radian Group, which was paid on April 30, 2019 in the form of cash and marketable securities. See Note 16 for a discussion of this distribution of capital. Reinsurance. In April 2019, Radian Guaranty entered into a fully collateralized reinsurance agreement with Eagle Re 2019-1. Eagle Re 2019-1 is a VIE and is not a subsidiary or affiliate of Radian Guaranty. This reinsurance agreement provides for up to $562.0 million of aggregate excess-of-loss reinsurance coverage for the mortgage insurance losses on new defaults on an existing portfolio of eligible Recurring Premium Policies issued between January 1, 2018 and December 31, 2018, with an initial RIF of $10.7 billion . Eagle Re 2019-1 financed its coverage by issuing mortgage insurance-linked notes in an aggregate amount of $562.0 million to eligible third-party capital markets investors in an unregistered private offering. See Note 7 for additional details on our reinsurance programs. Significant Accounting Policies Basis of Presentation Our condensed 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. We have condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP pursuant to the instructions set forth in Article 10 of Regulation S-X of the SEC. 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. The financial information presented for interim periods is unaudited; however, such information reflects all adjustments that are, in the opinion of management, necessary for the fair statement of the financial position, results of operations, comprehensive income and cash flows for the interim periods presented. Such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. These interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in our 2018 Form 10-K. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or for any other period. Certain prior period amounts have been reclassified to conform to current period presentation. 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, as well as the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our condensed consolidated financial statements include our best estimates and assumptions, actual results may vary materially. Other Significant Accounting Policies See Note 2 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for information regarding other significant accounting policies. There have been no significant changes in our significant accounting policies from those discussed in our 2018 Form 10-K, other than described below in “—Leases ” and “—Recent Accounting Pronouncements—Accounting Standards Adopted During 2019. ” Leases We determine if an arrangement includes a lease at inception. A right of use asset and lease liability is recognized for operating leases and is included in other assets and other liabilities, respectively, in our condensed consolidated balance sheet at March 31, 2019. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Right of use assets are recognized net of any payments made or received from the lessor. In determining the net present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date or as of our date of adoption, January 1, 2019. Lease expense is recognized on a straight-line basis over the expected lease term. For lease agreements entered into after the adoption of this accounting standard that include lease and non-lease components, such components are generally not accounted for separately. For our building leases, as a result of us having elected to adopt the package of practical expedients permitted under the transition guidance, we account for the lease and non-lease components, such as common area maintenance charges, as a single lease component. We have elected the short-term exemption for contracts with lease terms of 12 months or less. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance. Our lease agreements primarily relate to operating leases for office space we use in our operations. Certain of our leases include renewal options and/or termination options that we did not consider in the determination of the right-of-use asset or the lease liability as we did not consider it reasonably certain that we would exercise such options. Our lease agreements do not contain any variable lease payments, material residual value guarantees or material restrictive covenants. We do not have material sublease agreements. As of March 31, 2019, there were no leases which had not yet commenced but that create significant rights and obligations for us. See Note 12 for more information about our lease agreements. Recent Accounting Pronouncements Accounting Standards Adopted During 2019 . In February 2016, the FASB issued an update that replaces the existing accounting and disclosure requirements for leases of property, plant and equipment, which requires lessees to recognize, as of the lease commencement date, assets and liabilities for all leases with lease terms of more than 12 months. 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. We elected the optional transition method, which requires the recognition of a cumulative-effect adjustment as of the beginning of the period of adoption, and we also elected the practical expedients for transitioning existing leases to the new standard as of the effective date. As a result of applying the practical expedients: (i) we did not reassess expired or existing contracts to determine if they contain additional leases; (ii) we did not reassess the lease classification for expired and existing leases; and (iii) we did not reassess initial direct costs for existing leases. Our adoption of this update, effective January 1, 2019, resulted in our recording an increase in other liabilities of $73.5 million , and a corresponding increase in other assets. The increase to other assets was partially offset by an adjustment for unamortized allowances and incentives of $24.1 million , resulting in a right of use asset of $49.4 million . The increase in other liabilities represents a discounted lease liability from operating leases, primarily for our various facilities, which represents the present value of these future lease payments discounted at our incremental borrowing rate. Additionally, we expanded our financial statement disclosures as required by the amendments. Our adoption of this standard did not impact our stockholders’ equity, results of operations or liquidity. See above for a discussion of our accounting policy regarding leases and Note 12 . 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. The adoption of this update did not have a material effect on our financial statements and disclosures. Accounting Standards Not Yet Adopted. 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. This update is not applicable to credit losses associated with our mortgage insurance policies. We are currently evaluating the impact on our financial statements and future disclosures as a result of this update. In August 2018, the FASB issued an update to the accounting standard regarding long-duration insurance contracts. The new standard: (i) requires that assumptions used to measure the liability for future policy benefits be reviewed at least annually; (ii) defines and simplifies the measurement of market risk benefits; (iii) simplifies the amortization of deferred acquisition costs; and (iv) enhances the required disclosures about long-duration contracts. This update is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of the adoption of this update and do not expect it to have a material effect on our financial statements and disclosures. In August 2018, the FASB issued an update to the accounting standard regarding the capitalization of implementation costs for activities performed in a cloud computing arrangement that is a service contract. The new standard aligns the accounting for implementation costs of hosting arrangements that are service contracts with the accounting for capitalizing internal-use software. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the potential impact of the adoption of this update and do not expect it to have a material effect on our financial statements and disclosures. |
Note 2 - Net Income Per Share
Note 2 - Net Income Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 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. The calculation of basic and diluted net income per share was as follows: Three Months Ended (In thousands, except per-share amounts) 2019 2018 Net income—basic and diluted $ 170,957 $ 114,486 Average common shares outstanding—basic 213,537 215,967 Dilutive effect of share-based compensation arrangements (1) 4,806 3,916 Adjusted average common shares outstanding—diluted 218,343 219,883 Net income per share: Basic $ 0.80 $ 0.53 Diluted $ 0.78 $ 0.52 ______________________ (1) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: Three Months Ended (In thousands) 2019 2018 Shares of common stock equivalents 169 170 |
Note 3 - Segment Reporting
Note 3 - Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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. We allocate to our Mortgage Insurance segment: (i) corporate expenses based on the segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on the segment; (ii) except as described below, all interest expense; and (iii) all corporate cash and investments. Prior to January 1, 2019, interest expense related to the Clayton Intercompany Note was allocated to our Services segment. Effective January 1, 2019, Radian Group recapitalized the Services segment with a capital contribution that enabled the Services segment to repay the intercompany note and its accumulated allocated interest expense associated with the note, and effective as of the same date, all interest expense is allocated to our Mortgage Insurance segment. We allocate to our Services segment: (i) corporate expenses based on the segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on the segment and (ii) until January 1, 2019, the allocated interest expense related to the intercompany note as described above. No 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. Contract underwriting activities are reported within our 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. With the exception of goodwill and other acquired intangible assets that relate to our Services segment, which are reviewed as part of our annual goodwill impairment assessment, we do not manage assets by segment. 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 acquired intangible assets, and net impairment losses recognized in earnings and infrequent or unusual non-operating items. 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 gains and losses arise primarily from changes in the market value of our investments that are classified as trading or equity 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 and changes in fair value of other financial instruments. 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, we do not view acquisition-related expenses as 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 acquired intangible assets. Amortization of acquired intangible assets represents the periodic expense required to amortize the cost of acquired intangible assets over their estimated useful lives. Acquired 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 infrequent or unusual non-operating items . The recognition of net impairment losses on investments and the impairment of other long-lived assets can vary significantly in both amount and frequency, depending on market credit cycles and other factors. Infrequent and unusual non-operating items reflect activities that we do not view to be indicative of our fundamental operating activities. Therefore, whenever such income or loss items occur, we exclude them from our calculation of adjusted pretax operating income (loss). Summarized operating results for our segments for the periods indicated, are as follows: Three Months Ended (In thousands) 2019 2018 Mortgage Insurance Net premiums written—insurance (1) $ 251,586 $ 237,980 (Increase) decrease in unearned premiums 10,192 4,570 Net premiums earned—insurance 261,778 242,550 Net investment income 43,665 33,956 Other income 1,196 807 Total (2) 306,639 277,313 Provision for losses 20,844 37,391 Policy acquisition costs 5,893 7,117 Other operating expenses before corporate allocations 30,410 31,888 Total (3) 57,147 76,396 Adjusted pretax operating income before corporate allocations 249,492 200,917 Allocation of corporate operating expenses 25,625 18,577 Allocation of interest expense 15,697 10,629 Adjusted pretax operating income $ 208,170 $ 171,711 ______________________ (1) Net of ceded premiums written under our reinsurance programs. See Note 7 for additional information. (2) Excludes net gains on investments and other financial instruments of $21.9 million for the three months ended March 31, 2019 , and net losses on investments and other financial instruments of $18.9 million for the three months ended March 31, 2018 , not included in adjusted pretax operating income. (3) Includes inter-segment expenses as follows: Three Months Ended (In thousands) 2019 2018 Inter-segment expenses $ 970 $ 1,002 Three Months Ended (In thousands) 2019 2018 Services Net premiums earned—insurance (1) $ 1,734 $ — Services revenue (2) 33,723 34,166 Net investment income (1) 182 — Other income (1) 408 — Total (2) 36,047 34,166 Provision for losses (1) (18 ) — Cost of services 24,559 23,270 Other operating expenses before corporate allocations 13,435 10,744 Restructuring and other exit costs — 525 Total 37,976 34,539 Adjusted pretax operating income (loss) before corporate allocations (1,929 ) (373 ) Allocation of corporate operating expenses 4,171 2,784 Allocation of interest expense — (3) 4,451 Adjusted pretax operating income (loss) $ (6,100 ) $ (7,608 ) ______________________ (1) Results from inclusion of the operations of EnTitle Direct, a national title insurance and settlement services company, acquired in March 2018. (2) Includes inter-segment revenues as follows: Three Months Ended (In thousands) 2019 2018 Inter-segment revenues $ 970 $ 1,002 (3) Effective January 1, 2019, the Clayton Intercompany Note was repaid using proceeds from an additional capital contribution from Radian Group. As a result of the intercompany note repayment, the Services segment no longer incurs interest expense on the intercompany note. The reconciliation of adjusted pretax operating income to consolidated pretax income is as follows: Three Months Ended (In thousands) 2019 2018 Adjusted pretax operating income (loss): Mortgage Insurance (1) $ 208,170 $ 171,711 Services (1) (6,100 ) (7,608 ) Total adjusted pretax operating income 202,070 164,103 Net gains (losses) on investments and other financial instruments 21,913 (18,887 ) Acquisition-related expenses (2) (233 ) — Amortization and impairment of other acquired intangible assets (2,187 ) (2,748 ) Impairment of other long-lived assets and infrequent or unusual non-operating items (3) (5,427 ) (26 ) Consolidated pretax income $ 216,136 $ 142,442 ______________________ (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) The amount for the three months ended March 31, 2019 is included in other operating expenses on the condensed consolidated statement of operations and primarily relates to impairments of other long-lived assets. The amount for the three months ended March 31, 2018 is included within restructuring and other exit costs on the condensed consolidated statement of operations. 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. Revenue Recognition—Services The accounting standard on revenue from contracts with customers is primarily applicable to revenues from our Services segment and is not applicable to our investments and insurance products, which represent the majority of our revenue. See Notes 1 and 2 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information regarding our accounting policies and the services we offer. The table below represents the disaggregation of Services revenues by revenue type: Three Months Ended (In thousands) 2019 2018 Services segment revenue Mortgage Services $ 16,063 $ 17,498 Real Estate Services 15,836 14,394 Title Services 2,232 2,274 Total (1) $ 34,131 $ 34,166 ______________________ (1) Includes inter-segment revenues of $1.0 million for each of the three months ended March 31, 2019 and 2018 , respectively. For the three months ended March 31, 2019 , amounts exclude a total of $1.9 million , comprised of Services segment net premiums earned—insurance and net investment income, as both are excluded from the scope of the revenue recognition standard. Our Services segment revenues, other than net premiums earned—insurance and net investment income, are recognized over time and measured each period based on the progress to date as services are performed and made available to customers. Our contracts with customers, including payment terms, are generally short-term in nature; therefore, any impact related to timing is immaterial. Revenue recognized related to services made available to customers and billed is reflected in accounts and notes receivable. Revenue recognized related to services performed and not yet billed is recorded in unbilled receivables and reflected in other assets. Deferred revenue represents advance payments received from customers in advance of revenue recognition. We have no material bad-debt expense. The following represents balances related to Services contracts as of the dates indicated: (In thousands) March 31, 2019 December 31, 2018 Accounts Receivable - Services Contracts $ 13,241 $ 15,461 Unbilled Receivables - Services Contracts 22,967 19,917 Deferred Revenues - Services Contracts 3,044 3,204 |
Note 4 - Fair Value of Financia
Note 4 - Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We provide a qualitative description of the valuation techniques and inputs used for recurring and non-recurring fair value measurements in our audited financial statements and notes thereto included in our 2018 Form 10-K. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in our 2018 Form 10-K. The following is a list of assets that are measured at fair value by hierarchy level as of March 31, 2019 : (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 178,908 $ 33,610 $ 212,518 State and municipal obligations — 233,827 233,827 Money market instruments 174,541 — 174,541 Corporate bonds and notes — 2,485,463 2,485,463 RMBS — 368,495 368,495 CMBS — 549,986 549,986 Other ABS — 675,477 675,477 Equity securities 136,107 4,998 141,105 Other investments (1) — 653,905 653,905 Total Investments at Fair Value (2) 489,556 5,005,761 5,495,317 (3) Total Assets at Fair Value (4) $ 489,556 $ 5,005,761 $ 5,495,317 (3) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets of $3.1 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $6.2 million that is reinvested in money market instruments. (3) Includes $22.6 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets. See Note 5 for more information. (4) Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our condensed consolidated balance sheet. See Note 7 for more information. The following is a list of assets that are measured at fair value by hierarchy level as of December 31, 2018 : (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 199,302 $ 28,412 $ 227,714 State and municipal obligations — 324,742 324,742 Money market instruments 95,132 — 95,132 Corporate bonds and notes — 2,564,068 2,564,068 RMBS — 353,224 353,224 CMBS — 591,393 591,393 Other ABS — 705,468 705,468 Equity securities 136,662 3,958 140,620 Other investments (1) — 175,113 175,113 Total Investments at Fair Value (2) 431,096 4,746,378 5,177,474 (3) Total Assets at Fair Value ( 4) $ 431,096 $ 4,746,378 $ 5,177,474 (3) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets of $3.4 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $11.7 million that is reinvested in money market instruments. (3) Includes $27.9 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets. See Note 5 for more information. (4) Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our condensed consolidated balance sheet. See Note 7 for more information. At March 31, 2019 and December 31, 2018 , there were no material Level III assets measured at fair value and no Level III liabilities. There were no investment transfers to or from Level III for the three months ended March 31, 2019 or the year ended December 31, 2018 . Activity related to Level III assets and liabilities (including realized and unrealized gains and losses, purchases, sales, issuances, settlements and transfers) was immaterial for the three months ended March 31, 2019 and the year ended December 31, 2018 . Other Fair Value Disclosure The carrying value and estimated fair value of other selected liabilities not carried at fair value in our condensed consolidated balance sheets were as follows as of the dates indicated: March 31, 2019 December 31, 2018 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Liabilities: Senior notes $ 1,031,197 $ 1,051,418 $ 1,030,348 $ 1,007,687 FHLB advances 108,532 109,097 82,532 82,899 |
Note 5 - Investments
Note 5 - Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments | Investments Available for Sale Securities Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated: March 31, 2019 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 94,441 $ 94,098 (1) $ 185 $ 528 State and municipal obligations 88,598 92,718 4,421 301 Corporate bonds and notes 2,159,040 2,175,975 31,450 14,515 RMBS 348,746 350,238 (2) 4,242 2,750 CMBS 512,190 515,604 4,873 1,459 Other ABS 679,444 675,477 1,021 4,988 Total securities available for sale $ 3,882,459 $ 3,904,110 (3) $ 46,192 $ 24,541 ______________________ (1) Includes securities with a fair value of $10.9 million serving as collateral for FHLB advances. (2) Includes securities with a fair value of $103.7 million serving as collateral for FHLB advances. (3) Includes $6.5 million of fixed-maturity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets, as further described below. December 31, 2018 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 85,532 $ 84,070 (1) $ 46 $ 1,508 State and municipal obligations 138,022 138,313 2,191 1,900 Corporate bonds and notes 2,288,720 2,229,885 5,053 63,888 RMBS 334,843 332,142 (2) 1,785 4,486 CMBS 546,729 539,915 544 7,358 Other ABS 712,748 704,662 814 8,900 Total securities available for sale $ 4,106,594 $ 4,028,987 (3) $ 10,433 $ 88,040 ______________________ (1) Includes securities with a fair value of $10.7 million serving as collateral for FHLB advances. (2) Includes securities with a fair value of $77.7 million serving as collateral for FHLB advances. (3) Includes $7.4 million of fixed-maturity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets, as further described below. Gross Unrealized Losses and Fair Value 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 March 31, 2019 and December 31, 2018 are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below. March 31, 2019 ( $ 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 — $ — $ — 9 $ 38,177 $ 528 9 $ 38,177 $ 528 State and municipal obligations 1 6,487 27 3 10,983 274 4 17,470 301 Corporate bonds and notes 54 220,831 2,676 148 656,876 11,839 202 877,707 14,515 RMBS 9 60,465 124 24 67,863 2,626 33 128,328 2,750 CMBS 33 138,708 621 19 41,516 838 52 180,224 1,459 Other ABS 71 321,040 2,958 41 179,398 2,030 112 500,438 4,988 Total 168 $ 747,531 $ 6,406 244 $ 994,813 $ 18,135 412 $ 1,742,344 $ 24,541 December 31, 2018 ( $ 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 2 $ 27,415 $ 796 8 $ 23,476 $ 712 10 $ 50,891 $ 1,508 State and municipal obligations 12 41,263 955 16 39,982 945 28 81,245 1,900 Corporate bonds and notes 330 1,208,430 36,284 126 601,533 27,604 456 1,809,963 63,888 RMBS 15 92,315 782 28 77,395 3,704 43 169,710 4,486 CMBS 62 328,696 3,973 33 125,728 3,385 95 454,424 7,358 Other ABS 129 503,109 7,917 26 89,628 983 155 592,737 8,900 Total 550 $ 2,201,228 $ 50,707 237 $ 957,742 $ 37,333 787 $ 3,158,970 $ 88,040 Although we held securities in an unrealized loss position as of March 31, 2019 , 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 March 31, 2019 were generally caused by interest rate or credit spread movements since the purchase date, and as such, we expect to recover the amortized cost basis of these securities. As of March 31, 2019 , 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 March 31, 2019 . Other-than-temporary Impairment Activity. To the extent we determine that a security is deemed to have had an other-than-temporary impairment, an impairment loss is recognized. We recognized no other-than-temporary impairment losses in earnings during the three months ended March 31, 2019 and $0.8 million of other-than-temporary impairment losses in earnings for the three months ended March 31, 2018 . There were no other-than-temporary impairment losses recognized in accumulated other comprehensive income (loss) for those periods. Trading Securities The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated: (In thousands) March 31, December 31, Trading securities: State and municipal obligations $ 128,339 $ 168,359 Corporate bonds and notes 203,014 228,151 RMBS 18,257 21,083 CMBS 34,382 51,478 Total $ 383,992 $ 469,071 Securities Lending Agreements We participate in a securities lending program whereby we loan certain securities in our investment portfolio to Borrowers for short periods of time. See Notes 2 and 6 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information about our securities lending agreements. Key balances related to our securities lending agreements consisted of the following as of the dates indicated: (In thousands) March 31, December 31, Loaned securities (1) : U.S. government and agency securities $ — $ 9,987 Corporate bonds and notes 6,526 7,818 Equity securities 16,080 10,055 Total loaned securities, at fair value $ 22,606 $ 27,860 Total loaned securities, at amortized cost $ 22,537 $ 28,992 Securities collateral on deposit from Borrowers (2) 17,372 16,815 Reinvested cash collateral, at estimated fair value (3) 6,233 11,699 ______________________ (1) Our securities loaned under securities lending agreements are reported at fair value within other assets in our condensed 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 condensed 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 in our condensed consolidated balance sheets. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities in our condensed consolidated balance sheets. Net Gains (Losses) on Investments and Other Financial Instruments Net gains (losses) on investments and other financial instruments consisted of: Three Months Ended (In thousands) 2019 2018 Net realized gains (losses): Fixed-maturities available for sale (1) $ (495 ) $ (3,120 ) Equity securities (680 ) 142 Trading securities (684 ) (538 ) Other invested assets 87 62 Other gains (losses) 85 12 Net realized gains (losses) on investments (1,687 ) (3,442 ) Other-than-temporary impairment losses — (844 ) Net unrealized gains (losses) on investment securities 19,469 (12,804 ) Total net gains (losses) on investments 17,782 (17,090 ) Net gains (losses) on other financial instruments 4,131 (1,797 ) Net gains (losses) on investments and other financial instruments $ 21,913 $ (18,887 ) ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Three Months Ended (In thousands) 2019 2018 Gross investment gains from sales and redemptions $ 4,165 $ 598 Gross investment losses from sales and redemptions (4,660 ) (3,718 ) Net Unrealized Gains (Losses) on Investment Securities For each period indicated, the net change in unrealized gains (losses) on investment securities shown below represents a component of net gains (losses) on investments and other financial instruments. The net changes in unrealized gains (losses) on trading securities and equity securities that were still held at each period end were as follows: Three Months Ended (In thousands) 2019 2018 Net changes in unrealized gains (losses): Trading securities $ 8,587 $ (11,420 ) Equity securities 7,919 (1,806 ) Net changes in unrealized gains (losses) on investment securities $ 16,506 $ (13,226 ) Contractual Maturities The contractual maturities of fixed-maturity investments available for sale were as follows: March 31, 2019 Available for Sale (In thousands) Amortized Cost Fair Value Due in one year or less (1) $ 93,413 $ 93,208 Due after one year through five years (1) 828,387 832,653 Due after five years through 10 years (1) 1,051,235 1,060,529 Due after 10 years (1) 369,044 376,401 RMBS (2) 348,746 350,238 CMBS (2) 512,190 515,604 Other ABS (2) 679,444 675,477 Total (3) $ 3,882,459 $ 3,904,110 ______________________ (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 with a fair value of $6.5 million . Other For the three months ended March 31, 2019 , we did not transfer any securities from the available for sale or trading categories. At March 31, 2019 and December 31, 2018 , we had aggregate amounts of $114.6 million and $88.4 million , respectively, of U.S. government and agency securities and RMBS, classified as fixed-maturities available for sale within our investment securities portfolio, serving as collateral for our FHLB advances. See Note 12 for additional information. Our investments include securities on deposit with various state insurance commissioners of $16.7 million and $17.6 million at March 31, 2019 and December 31, 2018 |
Note 6 - Goodwill and Other Acq
Note 6 - Goodwill and Other Acquired Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Acquired Intangible Assets, Net All of our goodwill and other acquired intangible assets relate to our Services segment. The purchase price allocation for the acquisition of Five Bridges was finalized in the first quarter of 2019. In comparison to the preliminary fair value amounts recorded as of December 31, 2018, the final calculations resulted in: (i) an increase in goodwill of $0.5 million and (ii) decreases in intangible assets of $0.4 million related to technology and $0.1 million related to customer relationships. The following table shows the changes in the carrying amount of goodwill for the year-to-date periods ended December 31, 2018 and March 31, 2019 : (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2017 $ 197,391 $ (186,469 ) $ 10,922 Goodwill acquired 3,170 — 3,170 Balance at December 31, 2018 200,561 (186,469 ) 14,092 Goodwill acquired 538 — 538 Balance at March 31, 2019 $ 201,099 $ (186,469 ) $ 14,630 The following is a summary of the gross and net carrying amounts and accumulated amortization of our other acquired intangible assets as of the periods indicated: March 31, 2019 (In thousands) Original Amount Acquired Accumulated Amortization and Impairment Net Carrying Amount Client relationships $ 83,860 $ (49,751 ) (1) $ 34,109 Technology 16,964 (13,575 ) (2) 3,389 Trade name and trademarks 8,340 (4,080 ) 4,260 Non-competition agreements 185 (179 ) 6 Licenses 463 (46 ) 417 Total $ 109,812 $ (67,631 ) $ 42,181 December 31, 2018 (In thousands) Original Amount Acquired Accumulated Amortization Net Carrying Amount Client relationships $ 84,000 $ (48,227 ) (1) $ 35,773 Technology 17,362 (13,141 ) (2) 4,221 Trade name and trademarks 8,340 (3,864 ) 4,476 Non-competition agreements 185 (177 ) 8 Licenses 463 (35 ) 428 Total $ 110,350 $ (65,444 ) $ 44,906 ______________________ (1) Includes an impairment charge of $14.9 million in the quarter ended June 30, 2017. (2) Includes an impairment charge of $0.9 million in the quarter ended June 30, 2017. The estimated aggregate amortization expense for the remainder of 2019 and thereafter is as follows (in thousands): 2019 $ 6,416 2020 7,236 2021 5,822 2022 5,290 2023 4,839 2024 and thereafter 12,578 Total $ 42,181 For additional information on our accounting policies for goodwill and other acquired intangible assets, see Notes 2 and 7 of Notes to Consolidated Financial Statements in our 2018 |
Note 7 - Reinsurance
Note 7 - Reinsurance | 3 Months Ended |
Mar. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance In our insurance business, we use reinsurance as part of our risk distribution strategy, including to manage our capital position and risk profile. Premiums are primarily ceded under the Single Premium QSR Program, the QSR Program and the Excess-of-Loss Program. The effect of all of our reinsurance programs on our net premiums written and earned is as follows: Three Months Ended (In thousands) 2019 2018 Net premiums written—insurance: Direct $ 261,031 $ 256,599 Assumed (1) 2,445 1,312 Ceded (2) (10,156 ) (19,931 ) Net premiums written—insurance $ 253,320 $ 237,980 Net premiums earned—insurance: Direct $ 280,223 $ 257,431 Assumed (1) 2,450 1,318 Ceded (2) (19,161 ) (16,199 ) Net premiums earned—insurance $ 263,512 $ 242,550 ______________________ (1) Includes premiums earned from our participation in certain Front-end and Back-end credit risk transfer programs. (2) Net of profit commission. Single Premium QSR Program In the first quarter of 2016, Radian Guaranty entered into the 2016 Single Premium QSR Agreement with a panel of third-party reinsurers. As of January 1, 2018, Radian Guaranty is no longer ceding NIW under this arrangement. RIF ceded under the 2016 Single Premium QSR Agreement was $6.1 billion and $6.8 billion as of March 31, 2019 and 2018 , respectively. In October 2017, we entered into the 2018 Single Premium QSR Agreement with a panel of third-party reinsurers. Under the 2018 Single Premium QSR Agreement, we expect to cede 65% of our Single Premium NIW beginning with the business written in January 2018, subject to certain conditions that may affect the amount ceded, including 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 amend the agreement, including with respect to any limitations on the amounts of insurance that may be ceded. RIF ceded under the 2018 Single Premium QSR Agreement was $2.1 billion and $0.4 billion as of March 31, 2019 and 2018 , respectively. Ceding commissions earned under the Single Premium QSR Program were $5.8 million and $5.3 million for the three months ended March 31, 2019 and 2018 , respectively, and ceded losses were $1.5 million and $0.9 million for the three months ended March 31, 2019 and 2018 , respectively. QSR Program In 2012, Radian Guaranty entered into the QSR Program with a third-party reinsurance provider. Radian Guaranty has ceded the maximum amount permitted under the QSR Program and is no longer ceding NIW under this program. RIF ceded under the QSR Program was $0.8 billion and $1.1 billion as of March 31, 2019 and 2018 , respectively. Ceding commissions earned under the QSR Program were $2.9 million and $3.5 million for the three months ended March 31, 2019 and 2018 , respectively, and ceded losses were $0.2 million for the three months ended March 31, 2019 and 2018 . Excess-of-Loss Program In November 2018, Radian Guaranty entered into a fully collateralized reinsurance agreement with Eagle Re 2018-1. Eagle Re 2018-1 is a VIE and is not a subsidiary or affiliate of Radian Guaranty. This reinsurance agreement provides for up to $434.0 million of aggregate excess-of-loss reinsurance coverage for the applicable percentage of mortgage insurance losses on new defaults on an existing portfolio of eligible Recurring Premium Policies issued between January 1, 2017 and December 31, 2017, with an initial RIF of $9.1 billion . In addition, Radian Guaranty entered into a separate excess-of-loss reinsurance agreement for up to $21.4 million of coverage, representing a pro rata share of the credit risk alongside the risk assumed by Eagle Re 2018-1 on those Recurring Premium Policies. The aggregate excess of loss reinsurance coverage decreases over a ten-year period as the principal balances of the underlying covered mortgages decrease and as claims are paid by Eagle Re 2018-1 or the mortgage insurance is canceled. The outstanding reinsurance coverage amount will begin amortizing after an initial period in which a target level of credit enhancement is obtained and stop amortizing if certain thresholds are reached, such as if the reinsured mortgages were to experience an elevated level of delinquencies or certain credit enhancement tests were not maintained. Radian Guaranty has rights to terminate the reinsurance agreement upon the occurrence of certain events. Eagle Re 2018-1 financed its coverage by issuing mortgage insurance-linked notes in an aggregate amount of $434.0 million to eligible third-party capital markets investors in an unregistered private offering. Although there is no recourse to Radian Guaranty by the holders of the mortgage insurance-linked notes, reinsurance does not relieve us of our obligations to our policyholders. In the event the VIE is unable to meet its obligations to us, our insurance subsidiaries would be liable to make claims payments to our policyholders. In the event that all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) have become worthless and the VIE is unable to make its payments to us, our maximum potential loss would be the amount of mortgage insurance claim payments for losses on the insured policies, net of the aggregate reinsurance payments already received, up to the full $434.0 million aggregate excess-of-loss reinsurance coverage amount. In the same scenario, the related embedded derivative of $1.7 million , currently recorded in other assets, would no longer have value. Eagle Re 2018-1 represents our only VIE as of March 31, 2019 . The following table presents the total assets of Eagle Re 2018-1 as well as Radian Guaranty’s maximum exposure to loss associated with Eagle Re 2018-1, as of the dates indicated. At March 31, 2019 Maximum Exposure to Loss (In thousands) Total VIE Assets (1) On - Balance Sheet Off - Balance Sheet (2) Total Eagle Re 2018-1 $ 434,034 $ 1,683 (3) $ 434,034 435,717 Total $ 434,034 $ 1,683 $ 434,034 435,717 At December 31, 2018 Maximum Exposure to Loss (In thousands) Total VIE Assets (1) On - Balance Sheet Off - Balance Sheet (2) Total Eagle Re 2018-1 $ 434,034 $ 1,114 (3) $ 434,034 435,148 Total $ 434,034 $ 1,114 $ 434,034 435,148 ______________________ (1) Assets of Eagle Re 2018-1 are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Liabilities of Eagle Re 2018-1 consist of its mortgage insurance-linked notes of $434.0 million , as described above. (2) Represents the maximum amount that would be payable in the future by Radian Guaranty to its policyholders on claims, without the benefit of any corresponding reinsurance recoverables, in the event of the combination of two events: (i) all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) have become worthless and (ii) $660.4 million of claims have been paid on the reinsured RIF. (3) Represents the fair value of the related embedded derivative, included in other assets in our condensed consolidated balance sheets. There were no ceding commissions earned or ceded losses under the Excess-of-Loss Program for the three months ended March 31, 2019 . Activity Subsequent to March 31, 2019 In April 2019, Radian Guaranty entered into a fully collateralized reinsurance agreement with Eagle Re 2019-1. Eagle Re 2019-1 is a VIE and is not a subsidiary or affiliate of Radian Guaranty. This reinsurance agreement provides for up to $562.0 million of aggregate excess-of-loss reinsurance coverage for the mortgage insurance losses on new defaults on an existing portfolio of eligible Recurring Premium Policies issued between January 1, 2018 and December 31, 2018, with an initial RIF of $10.7 billion . Eagle Re 2019-1 financed its coverage by issuing mortgage insurance-linked notes in an aggregate amount of $562.0 million to eligible third-party capital markets investors in an unregistered private offering. 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 Single Premium QSR Program, Radian Guaranty holds amounts received from ceded premiums written to collateralize the reinsurers’ obligations, which is reported in reinsurance funds withheld on our condensed consolidated balance sheets. Any loss recoveries and profit commissions to Radian Guaranty related to the Single Premium QSR Program are expected to be realized from this account. Other In our title insurance business, we also use reinsurance as part of our risk distribution strategy. EnTitle Insurance’s reinsurance agreement with a third-party reinsurer provides for coverage of 100% of losses in excess of $1.0 million ultimate net loss on a per claim basis, subject to certain aggregate limits. For the three months ended March 31, 2019 and the year ended December 31, 2018, the effect of this agreement was immaterial to our results of operations. In addition, on March 27, 2018, EnTitle Insurance entered into a loss portfolio transfer reinsurance transaction in which all policies issued by EnTitle Insurance and outstanding at the time, subject to certain limitations, became reinsured by a third party. See Note 8 of Notes to Consolidated Financial Statements in our 2018 |
Note 8 - Other Assets
Note 8 - Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table shows the components of other assets as of the dates indicated: (In thousands) March 31, December 31, Company-owned life insurance $ 85,729 $ 83,377 Right-of-use assets (1) 47,150 — Internal-use software (2) 46,611 51,367 Property and equipment (3) 39,530 37,090 Accrued investment income 33,275 34,878 Unbilled receivables 22,967 19,917 Loaned securities (Note 5) 22,606 27,860 Deferred policy acquisition costs 17,594 17,311 Reinsurance recoverables 15,401 14,402 Current federal income tax receivable (4) — 44,506 Other 42,815 36,992 Total other assets $ 373,678 $ 367,700 ______________________ (1) Represents right-of-use assets recognized as a result of our adoption, as of January 1, 2019, of the new accounting and disclosure requirements for leases of property, plant and equipment. See Note 1 for additional information. Right-of-use assets are shown less accumulated amortization of $2.3 million at March 31, 2019 . (2) Internal-use software, at cost, has been reduced by accumulated amortization of $63.7 million and $60.3 million at March 31, 2019 and December 31, 2018 , respectively, as well as $3.8 million of impairment charges in the three months ended March 31, 2019 , and $5.1 million of impairment charges in 2018. Amortization expense was $3.1 million and $2.8 million for the three-month periods ended March 31, 2019 and 2018 , respectively. (3) Property and equipment at cost, less accumulated depreciation of $64.5 million and $62.9 million at March 31, 2019 and December 31, 2018 , respectively. Depreciation expense was $2.1 million and $1.9 million for the three-month periods ended March 31, 2019 and 2018 , respectively. (4) During the three months ended March 31, 2019, current federal income tax receivable was reduced by our receipt of the remaining $57.2 million |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As of March 31, 2019 , we have $2.1 million of federal NOL carryforwards. These NOL carryforwards relate to our March 2018 acquisition of EnTitle Direct and are subject to limitation under IRC Section 382. To the extent not utilized, the NOL carryforwards will expire by tax year 2038. Certain entities within our consolidated group have generated deferred tax assets of approximately $67.7 million , relating primarily to state and local NOL carryforwards, which, if unutilized, will expire during various future tax periods. 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 and this 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 of their 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 $64.4 million at March 31, 2019 . In July 2018, we finalized a settlement with the IRS related to adjustments we had been contesting that resulted from the examination of our 2000 through 2007 consolidated federal income tax returns. The IRS was opposing the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of non-economic REMIC residual interests and proposed denying the associated tax benefits of these items. During 2018, under the terms of the settlement, Radian utilized its qualified deposits with the U.S. Treasury to settle its $31.0 million obligation to the IRS, and during the first quarter of 2019, the IRS refunded to Radian the remaining $57.2 million that was previously on deposit. See Note 8 for additional information about this refund. As a mortgage guaranty insurer, we are eligible for a tax deduction, subject to certain limitations, under IRC Section 832(e) for amounts required by state law or regulation to be set aside in statutory contingency reserves. The deduction is allowed only to the extent that we purchase non-interest bearing U.S. Mortgage Guaranty Tax and Loss Bonds (“T&L Bonds”) issued by the U.S. Treasury in an amount equal to the tax benefit derived from deducting any portion of our statutory contingency reserves. As of March 31, 2019 , we held no T&L Bonds. However, we do anticipate purchasing T&L Bonds on a routine basis during the coming quarters. For additional information on our income taxes, including our accounting policies, see Notes 2 and 10 of Notes to Consolidated Financial Statements in our 2018 |
Note 10 - Losses and Loss Adjus
Note 10 - Losses and Loss Adjustment Expense | 3 Months Ended |
Mar. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
Losses and Loss Adjustment Expense | Losses and Loss Adjustment Expense Our reserve for losses and LAE, at the end of each period indicated, consisted of: (In thousands) March 31, December 31, Mortgage insurance loss reserves $ 385,361 $ 397,891 Services loss reserves (1) 3,423 3,470 Total reserve for losses and LAE $ 388,784 $ 401,361 ______________________ (1) A majority of this amount is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our condensed consolidated balance sheet, and relates to EnTitle Insurance. See Note 7 for information about our use of reinsurance in our title insurance business. The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated: (In thousands) March 31, December 31, Reserve for losses by category (1) : Prime $ 240,489 $ 242,135 Alt-A and A minus and below 111,955 119,553 IBNR and other 13,008 13,864 LAE 8,994 10,271 Total primary reserves 374,446 385,823 Total pool reserves 10,621 11,640 Total First-lien reserves 385,067 397,463 Other (2) 294 428 Total reserve for losses $ 385,361 $ 397,891 ______________________ (1) Includes ceded losses on reinsurance transactions, which are expected to be recovered and are included in the reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. See Note 8 . (2) Does not include our second-lien premium deficiency reserve that is included in other liabilities. The following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan premium deficiency reserve, for the periods indicated: Three Months Ended (In thousands) 2019 2018 Balance at beginning of period $ 397,891 $ 507,588 Less: Reinsurance recoverables (1) 11,009 8,350 Balance at beginning of period, net of reinsurance recoverables 386,882 499,238 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 38,922 36,516 Prior years (18,173 ) 391 Total incurred 20,749 36,907 Deduct: Paid claims and LAE related to: Current year (2) 295 226 Prior years 34,294 59,700 Total paid 34,589 59,926 Balance at end of period, net of reinsurance recoverables 373,042 476,219 Add: Reinsurance recoverables (1) 12,319 8,973 Balance at end of period $ 385,361 $ 485,192 ______________________ (1) Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 7 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. Reserve Activity First Quarter 2019 Activity Our mortgage insurance loss reserves at March 31, 2019 declined as compared to December 31, 2018 , primarily as a result of the amount of paid claims and the favorable reserve development on prior year defaults exceeding 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 losses for the three months ended March 31, 2019 , 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 was 8.0% as of March 31, 2019 . This assumed rate reflects seasonal patterns as well as a continuation of improvement in cure rates. Historically, new defaults reported in the first quarter have cured at higher rates than subsequent quarters, and we considered this pattern in developing the estimate for the quarter. The provision for losses during the first three months of 2019 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, 2018. The reductions in Default to Claim Rate assumptions resulted from observed trends, primarily higher Cures than were previously estimated. Total claims paid decreased for the three months ended March 31, 2019 , compared to the same period in 2018 . The decrease in claims paid is consistent with the ongoing decline in the outstanding default inventory. First Quarter 2018 Activity Our loss reserves at March 31, 2018 declined as compared to December 31, 2017 , primarily as a result of the amount of paid claims 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 the three months ended March 31, 2018, 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, was 9.5% as of March 31, 2018 . This assumed rate reflects seasonal patterns as well as a continuation of a general improvement in cure rates. The net effect of changes in reserve estimates for defaults reported in prior years was not material for the three months ended March 31, 2018. We had 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 and through February 2018. While we observed an increase in new primary defaults from FEMA Designated Areas associated with Hurricanes Harvey and Irma, most of them cured by the end of 2018, as expected, and at higher cure rates than the rates of our general population of defaults. These incremental defaults did not have a material impact on our provision for losses as of March 31, 2018. Mortgage Insurance Reserve Assumptions Default to Claim Rate Our aggregate weighted-average net Default to Claim Rate assumption (net of Claim Denials and Rescissions) used in estimating our primary reserve for losses was 33% at both March 31, 2019 and December 31, 2018 . As of March 31, 2019 our gross Default to Claim Rate assumptions on our primary portfolio ranged from 8.0% for new defaults, up to 68% for defaults not in foreclosure stage, and 72% 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 to any differences in characteristics between those rescinded policies and denied claims and the loans remaining in our defaulted inventory. Loss Mitigation As our insurance written in years prior to and including 2008 has become a smaller percentage of our overall insured portfolio, a reduced amount of Loss Mitigation Activity has occurred with respect to the claims we receive, and we expect this general trend to continue. As a result, our future Loss Mitigation Activity is not expected to mitigate our paid losses significantly. Our estimate, with respect to future Rescissions, Claim Denials and Claim Curtailments, inclusive of claim withdrawals, reduced our loss reserve as of March 31, 2019 and December 31, 2018 by $32 million . 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 $11.3 million at March 31, 2019 and December 31, 2018 |
Note 11 - Senior Notes
Note 11 - Senior Notes | 3 Months Ended |
Mar. 31, 2019 | |
Senior Notes [Abstract] | |
Senior Notes | Senior Notes The carrying value of our senior notes at March 31, 2019 and December 31, 2018 was as follows: (In thousands) March 31, December 31, 5.500% Senior Notes due 2019 $ 158,502 $ 158,324 5.250% Senior Notes due 2020 232,961 232,729 7.000% Senior Notes due 2021 196,056 195,867 4.500% Senior Notes due 2024 443,678 443,428 Total Senior Notes $ 1,031,197 $ 1,030,348 |
Note 12 - Other Liabilities (No
Note 12 - Other Liabilities (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities The following table shows the components of other liabilities as of the dates indicated: (In thousands) March 31, December 31, FHLB advances $ 108,532 $ 82,532 Deferred ceding commission 88,110 91,400 Lease liability 70,927 — Payable for securities (1) 35,981 7,949 Current federal income taxes 25,245 — Accrued compensation 19,112 61,452 Amount payable on the return of cash collateral under securities lending agreements (2) 6,233 11,699 Other 65,330 78,627 Total other liabilities $ 419,470 $ 333,659 ______________________ (1) Represents the payable for purchases of securities that have not yet settled as of the balance sheet date. (2) Amounts payable on the return of cash collateral under securities lending agreements are classified as other liabilities in our condensed consolidated balance sheets. See Note 5 for additional information. FHLB Advances As of March 31, 2019 , Radian Guaranty and Radian Reinsurance had $108.5 million of fixed-rate advances outstanding with a weighted average interest rate of 2.77% . Interest on the FHLB advances is payable quarterly, or at maturity if the term of the advance is less than 90 days. As of March 31, 2019 , $86.5 million of the FHLB advances mature in 2019, $3.0 million mature in 2020, $8.0 million mature in 2021, $9.0 million mature in 2023, and $2.0 million mature in 2024 and thereafter. Principal is due at maturity. For obligations with maturities greater than or equal to 90 days, we may prepay the debt at any time, subject to a prepayment fee calculation. See Note 13 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information about our FHLB advances. Lease Liability Our lease liability represents the present value of future lease payments over the lease term. Our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate, on a collateralized basis, to discount the lease payments based on information available at lease commencement. Our leases expire periodically through August 2032, and contain provisions for scheduled periodic rent increases. We estimate the incremental borrowing rate based on the yields of several Radian Group corporate bonds, as adjusted to reflect a collateralized borrowing rate, which mature periodically through 2024. While the majority of our lease population expires within one year of one of the corporate bonds, our more significant leases expire more than one year beyond 2024. For those leases, we adjust the corporate bond rate for both U.S. Treasury rate yields and a corporate spread adjustment determined from recent market data, resulting in discount rates ranging from 4.22% to 7.08% . The following tables provide additional information related to our leases, including: (i) the components of our total lease cost; (ii) the cash flows arising from our lease transactions; (iii) supplemental balance sheet information; (iv) the weighted-average remaining lease term; (v) the weighted-average discount rate used for our leases; and (vi) the remaining maturities of our lease liabilities, as of and for the periods indicated: ($ in thousands) Three Months Ended March 31, 2019 Lease cost Operating lease cost $ 2,319 Short-term lease cost 23 Total lease cost $ 2,342 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (2,637 ) ($ in thousands) March 31, 2019 Operating leases: Operating lease right-of-use assets (1) $ 47,150 Operating lease liabilities (2) 70,927 Weighted-average remaining lease term - operating leases (in years) 10.4 years Weighted-average discount rate - operating leases 6.75 % Remaining maturities of lease liabilities for the remainder of 2019 and thereafter is as follows: 2019 $ 7,873 2020 10,428 2021 9,964 2022 10,136 2023 10,275 2024 and thereafter 56,542 Total lease payments 105,218 Less: Imputed interest (34,291 ) Present value of lease liabilities (2) $ 70,927 ______________________ (1) Classified in other assets in our condensed consolidated balance sheets. See Note 8 . (2) Classified in other liabilities in our condensed consolidated balance sheets. Pursuant to the previous lease accounting standard, rent expense for the three months ended March 31, 2018 was $1.2 million . Our commitment for non-cancelable leases in future years as of December 31, 2018 was as follows (in thousands): 2019 $ 11,310 2020 10,847 2021 10,165 2022 10,100 2023 10,251 2024 and thereafter 56,317 Total $ 108,990 At December 31, 2018 , there were no future minimum receipts expected from sublease rental payments. 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 accordion feature that allows Radian Group, at its option, to increase the total borrowing capacity during the term of the agreement, subject to our obtaining the necessary increased commitments from lenders (which may include then existing or other lenders), up to a total of $300 million . Effective October 26, 2018, Radian Group exercised its rights under the accordion feature to add another global bank to the existing syndicate of bank lenders and to increase the amount of total commitments under the credit facility by $42.5 million , bringing the aggregate unsecured revolving credit facility to $267.5 million . Subject to certain limitations, borrowings under the credit facility may be used for working capital and general corporate purposes, including capital contributions to Radian Group’s insurance and reinsurance subsidiaries as well as growth initiatives. 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. See Note 13 of Notes to Consolidated Financial Statements in our 2018 Form 10-K. At March 31, 2019 , Radian Group was in compliance with all the covenants and there were no |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are routinely involved in a number of legal actions and proceedings, including litigation and other disputes arising in the ordinary course of our business. The legal and regulatory matters discussed below and in our 2018 Form 10-K could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. Management believes, based on current knowledge and after consultation with counsel, that the outcome of such actions will not have a material adverse effect on our consolidated financial condition. However, the outcome of litigation and other legal and regulatory matters and proceedings is inherently uncertain, and it is possible that one or more of the matters currently pending or threatened could have an unanticipated adverse effect on our liquidity, financial condition or results of operations for any particular period. On December 22, 2016, Ocwen Loan Servicing, LLC and Homeward Residential, Inc. (collectively, “Ocwen”) filed a complaint in the U.S. District Court for the Eastern District of Pennsylvania against Radian Guaranty alleging breach of contract and bad faith claims and seeking monetary damages and declaratory relief. Ocwen has also initiated similar legal proceedings against several other mortgage insurers. On December 17, 2016, Ocwen separately filed a parallel arbitration petition against Radian Guaranty before the American Arbitration Association (“AAA”) asserting substantially the same allegations (the “Arbitration”). Ocwen’s filings together listed 9,420 mortgage insurance certificates issued under multiple insurance policies, including Pool Insurance policies, as subject to the dispute. On June 5, 2017, Ocwen filed an amended complaint and an amended petition (collectively, the “Amended Filings”) with both the court and the AAA, respectively, together listing 8,870 certificates as subject to the dispute. On April 11, 2018, the parties entered into a confidential agreement with respect to all certificates subject to the dispute. The confidential agreement resolved certain categories of claims involved in the dispute and, on April 12, 2018, the parties filed a stipulation of voluntary dismissal of the federal court proceeding and the trial judge issued an Order dismissing all claims and counterclaims subject to the parties’ agreement. Radian Guaranty was not required to make any payment in connection with this confidential agreement. Pursuant to the confidential agreement, the parties: (1) dismissed the federal court proceeding; (2) narrowed the scope of the dispute to Ocwen’s breach of contract claims seeking payment of insurance benefits on approximately 2,500 certificates that Ocwen was previously pursuing through the Amended Filings; and (3) agreed to resolve the remaining dispute through the Arbitration. 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 current stage of the Arbitration. On August 31, 2018, Nationstar Mortgage LLC d/b/a Mr. Cooper (“Nationstar”) filed a complaint in the U.S. District Court for the Eastern District of Pennsylvania against Radian Guaranty (the “Complaint”) alleging breach of contract, bad faith, unjust enrichment and conversion claims and seeking monetary damages and declaratory relief. The Complaint lists 3,014 mortgage insurance certificates issued under multiple insurance policies as subject to disputes involving insurance coverage decisions. The Complaint further lists 2,231 mortgage insurance certificates issued under multiple insurance policies as subject to disputes involving premium refund requests. Radian Guaranty believes that Nationstar’s allegations and claims in the legal proceedings described above are without merit and legally deficient, and plans to defend these claims vigorously. In December 2018, Radian Guaranty filed a motion to dismiss the Complaint. In March 2019, the trial judge issued an Order granting in part, and denying in part, our motion to dismiss, and dismissed Nationstar’s unjust enrichment and conversion claims. In May 2019, Radian Guaranty filed an answer, with affirmative defenses and counterclaims, in response to the Complaint. 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 litigation. 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. 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, from time to time we 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 our Loss Mitigation Activities and 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, the associated policies or pay additional claims. See Note 10 for additional information. See Note 14 of Notes to Consolidated Financial Statements in our 2018 |
Note 14 - Capital Stock (Notes)
Note 14 - Capital Stock (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Capital Stock Share Repurchase Program On August 16, 2018, Radian Group’s board of directors approved a share repurchase program that authorized the Company to repurchase up to $100 million of its common stock in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors. On March 20, 2019, Radian Group’s board of directors approved a $150 million increase in authorization for this program, bringing the total authorization to repurchase shares up to $250 million , excluding commissions. Radian operates this program pursuant to a trading plan under Rule 10b5-1 of the Exchange Act, which permits the company to purchase shares, at pre-determined price targets, when it may otherwise be precluded from doing so. During the three months ended March 31, 2019 , the Company purchased 1,546,674 shares at an average price of $20.54 per share, including commissions. As of March 31, 2019 , purchase authority of up to $218.2 million remained available under this program, which expires on July 31, 2020. Subsequent to March 31, 2019, the Company purchased 4,131,329 shares of its common stock under its share repurchase program at an average price of $21.94 per share, including commissions. As of May 6, 2019 , purchase authority of up to a maximum of $127.7 million remained available under this program. 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. 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. Dividends Paid In each of the quarters during 2019 and 2018 |
Note 15 - Accumulated Other Com
Note 15 - Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) The following table shows the rollforward of accumulated other comprehensive income (loss) as of the periods indicated: Three Months Ended March 31, 2019 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (77,114 ) $ (16,194 ) $ (60,920 ) Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 98,763 20,740 78,023 Less: Reclassification adjustment for net gains (losses) included in net income (1) (495 ) (104 ) (391 ) Net unrealized gains (losses) on investments 99,258 20,844 78,414 Other comprehensive income (loss) 99,258 20,844 78,414 Balance at end of period $ 22,144 $ 4,650 $ 17,494 Three Months Ended March 31, 2018 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 32,669 $ 9,584 $ 23,085 Cumulative effect of adopting the accounting standard update for financial instruments 284 60 224 Cumulative effect of adopting the accounting standard update for the reclassification of certain tax effects — (2,724 ) 2,724 Balance adjusted for cumulative effect of adopting accounting standard updates 32,953 6,920 26,033 Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period (76,763 ) (16,120 ) (60,643 ) Less: Reclassification adjustment for net gains (losses) included in net income (1) (3,964 ) (832 ) (3,132 ) Net unrealized gains (losses) on investments (72,799 ) (15,288 ) (57,511 ) Unrealized foreign currency translation adjustments 4 1 3 Other comprehensive income (loss) (72,795 ) (15,287 ) (57,508 ) Balance at end of period $ (39,842 ) $ (8,367 ) $ (31,475 ) ______________________ (1) |
Note 16 - Statutory Information
Note 16 - Statutory Information | 3 Months Ended |
Mar. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Statutory Information | 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 March 31, 2019 , we did not have any prescribed or permitted statutory accounting practices for our mortgage insurance subsidiaries 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. 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 March 31, 2019 , the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $3.9 billion of our consolidated net assets. 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 March 31, 2019 . 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 this Model Act. The process for developing this framework is ongoing. 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 herein and Note 1 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for information regarding the PMIERs, which set requirements for private mortgage insurers to remain approved insurers of loans purchased by the GSEs. 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. March 31, December 31, ($ in millions) RIF, net (1) $ 41,283.5 $ 40,711.3 Common stock and paid-in capital $ 1,416.0 $ 1,416.0 Surplus Note 100.0 100.0 Unassigned earnings (deficit) (651.1 ) (701.9 ) Statutory policyholders’ surplus 864.9 814.1 Contingency reserve 2,224.5 2,109.9 Statutory capital $ 3,089.4 $ 2,924.0 Risk-to-capital 13.4:1 13.9:1 ______________________ (1) Excludes risk ceded through all reinsurance programs (including with affiliates) and RIF on defaulted loans. Radian Guaranty’s statutory capital increased by $165.4 million in the first three months of 2019 , primarily due to Radian Guaranty’s statutory net income of $165.1 million during this period. The net decrease in Radian Guaranty’s Risk-to-capital in the first three months of 2019 was primarily due to the increase in overall statutory capital, partially offset by an increase in RIF. The Risk-to-capital ratio for our combined mortgage insurance operations was 12.4 to 1 as of March 31, 2019 , compared to 12.8 to 1 as of December 31, 2018 . In April 2019, the Pennsylvania Insurance Department approved a $375 million distribution of capital from Radian Guaranty to Radian Group, which was paid on April 30, 2019 in the form of cash and marketable securities. This transfer was approved by the Pennsylvania Insurance Department as an Extraordinary Distribution and will result in a $375 million decrease in Radian Guaranty’s statutory policyholders’ surplus. EnTitle Insurance EnTitle Insurance’s statutory policyholders’ surplus and statutory net loss were $26.1 million and $0.4 million , respectively, as of and for the three months ended March 31, 2019 . Through EnTitle Insurance, we maintain escrow deposits as a service to our customers. Amounts held in escrow and excluded from assets and liabilities in our condensed consolidated balance sheets totaled $2.4 million and $4.7 million as of March 31, 2019 and December 31, 2018 |
Note 1 - Condensed Consolidat_2
Note 1 - Condensed Consolidated Financial Statements - Business Overview, Recent Developments and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy | Our condensed 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. We have condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP pursuant to the instructions set forth in Article 10 of Regulation S-X of the SEC. |
Reclassification, Policy | Certain prior period amounts have been reclassified to conform to current period presentation. |
Use of Estimates, Policy | 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, as well as the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our condensed consolidated financial statements include our best estimates and assumptions, actual results may vary materially. |
Lessee, Leases, Policy | We determine if an arrangement includes a lease at inception. A right of use asset and lease liability is recognized for operating leases and is included in other assets and other liabilities, respectively, in our condensed consolidated balance sheet at March 31, 2019. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Right of use assets are recognized net of any payments made or received from the lessor. In determining the net present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date or as of our date of adoption, January 1, 2019. Lease expense is recognized on a straight-line basis over the expected lease term. For lease agreements entered into after the adoption of this accounting standard that include lease and non-lease components, such components are generally not accounted for separately. For our building leases, as a result of us having elected to adopt the package of practical expedients permitted under the transition guidance, we account for the lease and non-lease components, such as common area maintenance charges, as a single lease component. We have elected the short-term exemption for contracts with lease terms of 12 months or less. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance. |
New Accounting Pronouncements and Changes in Accounting Principles | Accounting Standards Adopted During 2019 . In February 2016, the FASB issued an update that replaces the existing accounting and disclosure requirements for leases of property, plant and equipment, which requires lessees to recognize, as of the lease commencement date, assets and liabilities for all leases with lease terms of more than 12 months. 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. We elected the optional transition method, which requires the recognition of a cumulative-effect adjustment as of the beginning of the period of adoption, and we also elected the practical expedients for transitioning existing leases to the new standard as of the effective date. As a result of applying the practical expedients: (i) we did not reassess expired or existing contracts to determine if they contain additional leases; (ii) we did not reassess the lease classification for expired and existing leases; and (iii) we did not reassess initial direct costs for existing leases. Our adoption of this update, effective January 1, 2019, resulted in our recording an increase in other liabilities of $73.5 million , and a corresponding increase in other assets. The increase to other assets was partially offset by an adjustment for unamortized allowances and incentives of $24.1 million , resulting in a right of use asset of $49.4 million . The increase in other liabilities represents a discounted lease liability from operating leases, primarily for our various facilities, which represents the present value of these future lease payments discounted at our incremental borrowing rate. Additionally, we expanded our financial statement disclosures as required by the amendments. Our adoption of this standard did not impact our stockholders’ equity, results of operations or liquidity. See above for a discussion of our accounting policy regarding leases and Note 12 . 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 |
New Accounting Pronouncements Not Yet Adopted, Policy | Accounting Standards Not Yet Adopted. 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. This update is not applicable to credit losses associated with our mortgage insurance policies. We are currently evaluating the impact on our financial statements and future disclosures as a result of this update. In August 2018, the FASB issued an update to the accounting standard regarding long-duration insurance contracts. The new standard: (i) requires that assumptions used to measure the liability for future policy benefits be reviewed at least annually; (ii) defines and simplifies the measurement of market risk benefits; (iii) simplifies the amortization of deferred acquisition costs; and (iv) enhances the required disclosures about long-duration contracts. This update is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of the adoption of this update and do not expect it to have a material effect on our financial statements and disclosures. |
Segment Reporting, Policy | 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. We allocate to our Mortgage Insurance segment: (i) corporate expenses based on the segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on the segment; (ii) except as described below, all interest expense; and (iii) all corporate cash and investments. Prior to January 1, 2019, interest expense related to the Clayton Intercompany Note was allocated to our Services segment. Effective January 1, 2019, Radian Group recapitalized the Services segment with a capital contribution that enabled the Services segment to repay the intercompany note and its accumulated allocated interest expense associated with the note, and effective as of the same date, all interest expense is allocated to our Mortgage Insurance segment. We allocate to our Services segment: (i) corporate expenses based on the segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on the segment and (ii) until January 1, 2019, the allocated interest expense related to the intercompany note as described above. No 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. |
Income Tax, Policy | 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 and this 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. |
Note 3 - Segment Reporting (Pol
Note 3 - Segment Reporting (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy | 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. We allocate to our Mortgage Insurance segment: (i) corporate expenses based on the segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on the segment; (ii) except as described below, all interest expense; and (iii) all corporate cash and investments. Prior to January 1, 2019, interest expense related to the Clayton Intercompany Note was allocated to our Services segment. Effective January 1, 2019, Radian Group recapitalized the Services segment with a capital contribution that enabled the Services segment to repay the intercompany note and its accumulated allocated interest expense associated with the note, and effective as of the same date, all interest expense is allocated to our Mortgage Insurance segment. We allocate to our Services segment: (i) corporate expenses based on the segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on the segment and (ii) until January 1, 2019, the allocated interest expense related to the intercompany note as described above. No 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. |
Note 9 - Income Taxes (Policies
Note 9 - Income Taxes (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy | 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 and this 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. |
Note 2 - Net Income Per Share (
Note 2 - Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation of basic and diluted net income per share was as follows: Three Months Ended (In thousands, except per-share amounts) 2019 2018 Net income—basic and diluted $ 170,957 $ 114,486 Average common shares outstanding—basic 213,537 215,967 Dilutive effect of share-based compensation arrangements (1) 4,806 3,916 Adjusted average common shares outstanding—diluted 218,343 219,883 Net income per share: Basic $ 0.80 $ 0.53 Diluted $ 0.78 $ 0.52 ______________________ (1) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: Three Months Ended (In thousands) 2019 2018 Shares of common stock equivalents 169 170 |
Note 3 - Segment Reporting (Tab
Note 3 - Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Summarized operating results for our segments for the periods indicated, are as follows: Three Months Ended (In thousands) 2019 2018 Mortgage Insurance Net premiums written—insurance (1) $ 251,586 $ 237,980 (Increase) decrease in unearned premiums 10,192 4,570 Net premiums earned—insurance 261,778 242,550 Net investment income 43,665 33,956 Other income 1,196 807 Total (2) 306,639 277,313 Provision for losses 20,844 37,391 Policy acquisition costs 5,893 7,117 Other operating expenses before corporate allocations 30,410 31,888 Total (3) 57,147 76,396 Adjusted pretax operating income before corporate allocations 249,492 200,917 Allocation of corporate operating expenses 25,625 18,577 Allocation of interest expense 15,697 10,629 Adjusted pretax operating income $ 208,170 $ 171,711 ______________________ (1) Net of ceded premiums written under our reinsurance programs. See Note 7 for additional information. (2) Excludes net gains on investments and other financial instruments of $21.9 million for the three months ended March 31, 2019 , and net losses on investments and other financial instruments of $18.9 million for the three months ended March 31, 2018 , not included in adjusted pretax operating income. (3) Includes inter-segment expenses as follows: Three Months Ended (In thousands) 2019 2018 Inter-segment expenses $ 970 $ 1,002 Three Months Ended (In thousands) 2019 2018 Services Net premiums earned—insurance (1) $ 1,734 $ — Services revenue (2) 33,723 34,166 Net investment income (1) 182 — Other income (1) 408 — Total (2) 36,047 34,166 Provision for losses (1) (18 ) — Cost of services 24,559 23,270 Other operating expenses before corporate allocations 13,435 10,744 Restructuring and other exit costs — 525 Total 37,976 34,539 Adjusted pretax operating income (loss) before corporate allocations (1,929 ) (373 ) Allocation of corporate operating expenses 4,171 2,784 Allocation of interest expense — (3) 4,451 Adjusted pretax operating income (loss) $ (6,100 ) $ (7,608 ) ______________________ (1) Results from inclusion of the operations of EnTitle Direct, a national title insurance and settlement services company, acquired in March 2018. (2) Includes inter-segment revenues as follows: Three Months Ended (In thousands) 2019 2018 Inter-segment revenues $ 970 $ 1,002 (3) |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The reconciliation of adjusted pretax operating income to consolidated pretax income is as follows: Three Months Ended (In thousands) 2019 2018 Adjusted pretax operating income (loss): Mortgage Insurance (1) $ 208,170 $ 171,711 Services (1) (6,100 ) (7,608 ) Total adjusted pretax operating income 202,070 164,103 Net gains (losses) on investments and other financial instruments 21,913 (18,887 ) Acquisition-related expenses (2) (233 ) — Amortization and impairment of other acquired intangible assets (2,187 ) (2,748 ) Impairment of other long-lived assets and infrequent or unusual non-operating items (3) (5,427 ) (26 ) Consolidated pretax income $ 216,136 $ 142,442 ______________________ (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) |
Services Revenue [Table Text Block] | The table below represents the disaggregation of Services revenues by revenue type: Three Months Ended (In thousands) 2019 2018 Services segment revenue Mortgage Services $ 16,063 $ 17,498 Real Estate Services 15,836 14,394 Title Services 2,232 2,274 Total (1) $ 34,131 $ 34,166 ______________________ (1) Includes inter-segment revenues of $1.0 million for each of the three months ended March 31, 2019 and 2018 , respectively. For the three months ended March 31, 2019 , amounts exclude a total of $1.9 million |
Assets & Liabilities Related to Services Segment Revenues [Table Text Block] | The following represents balances related to Services contracts as of the dates indicated: (In thousands) March 31, 2019 December 31, 2018 Accounts Receivable - Services Contracts $ 13,241 $ 15,461 Unbilled Receivables - Services Contracts 22,967 19,917 Deferred Revenues - Services Contracts 3,044 3,204 |
Note 4 - Fair Value of Financ_2
Note 4 - Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following is a list of assets that are measured at fair value by hierarchy level as of March 31, 2019 : (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 178,908 $ 33,610 $ 212,518 State and municipal obligations — 233,827 233,827 Money market instruments 174,541 — 174,541 Corporate bonds and notes — 2,485,463 2,485,463 RMBS — 368,495 368,495 CMBS — 549,986 549,986 Other ABS — 675,477 675,477 Equity securities 136,107 4,998 141,105 Other investments (1) — 653,905 653,905 Total Investments at Fair Value (2) 489,556 5,005,761 5,495,317 (3) Total Assets at Fair Value (4) $ 489,556 $ 5,005,761 $ 5,495,317 (3) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets of $3.1 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $6.2 million that is reinvested in money market instruments. (3) Includes $22.6 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets. See Note 5 for more information. (4) Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our condensed consolidated balance sheet. See Note 7 for more information. The following is a list of assets that are measured at fair value by hierarchy level as of December 31, 2018 : (In thousands) Level I Level II Total Assets at Fair Value Investment Portfolio: U.S. government and agency securities $ 199,302 $ 28,412 $ 227,714 State and municipal obligations — 324,742 324,742 Money market instruments 95,132 — 95,132 Corporate bonds and notes — 2,564,068 2,564,068 RMBS — 353,224 353,224 CMBS — 591,393 591,393 Other ABS — 705,468 705,468 Equity securities 136,662 3,958 140,620 Other investments (1) — 175,113 175,113 Total Investments at Fair Value (2) 431,096 4,746,378 5,177,474 (3) Total Assets at Fair Value ( 4) $ 431,096 $ 4,746,378 $ 5,177,474 (3) ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets of $3.4 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $11.7 million that is reinvested in money market instruments. (3) Includes $27.9 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets. See Note 5 for more information. (4) Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our condensed consolidated balance sheet. See Note 7 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and estimated fair value of other selected liabilities not carried at fair value in our condensed consolidated balance sheets were as follows as of the dates indicated: March 31, 2019 December 31, 2018 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Liabilities: Senior notes $ 1,031,197 $ 1,051,418 $ 1,030,348 $ 1,007,687 FHLB advances 108,532 109,097 82,532 82,899 |
Note 5 - Investments (Tables)
Note 5 - Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
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: March 31, 2019 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 94,441 $ 94,098 (1) $ 185 $ 528 State and municipal obligations 88,598 92,718 4,421 301 Corporate bonds and notes 2,159,040 2,175,975 31,450 14,515 RMBS 348,746 350,238 (2) 4,242 2,750 CMBS 512,190 515,604 4,873 1,459 Other ABS 679,444 675,477 1,021 4,988 Total securities available for sale $ 3,882,459 $ 3,904,110 (3) $ 46,192 $ 24,541 ______________________ (1) Includes securities with a fair value of $10.9 million serving as collateral for FHLB advances. (2) Includes securities with a fair value of $103.7 million serving as collateral for FHLB advances. (3) Includes $6.5 million of fixed-maturity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets, as further described below. December 31, 2018 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 85,532 $ 84,070 (1) $ 46 $ 1,508 State and municipal obligations 138,022 138,313 2,191 1,900 Corporate bonds and notes 2,288,720 2,229,885 5,053 63,888 RMBS 334,843 332,142 (2) 1,785 4,486 CMBS 546,729 539,915 544 7,358 Other ABS 712,748 704,662 814 8,900 Total securities available for sale $ 4,106,594 $ 4,028,987 (3) $ 10,433 $ 88,040 ______________________ (1) Includes securities with a fair value of $10.7 million serving as collateral for FHLB advances. (2) Includes securities with a fair value of $77.7 million serving as collateral for FHLB advances. (3) Includes $7.4 million of fixed-maturity securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets, as further described below. |
Gross Unrealized Losses and Fair Value of Available for Sale Securities [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 March 31, 2019 and December 31, 2018 are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below. March 31, 2019 ( $ 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 — $ — $ — 9 $ 38,177 $ 528 9 $ 38,177 $ 528 State and municipal obligations 1 6,487 27 3 10,983 274 4 17,470 301 Corporate bonds and notes 54 220,831 2,676 148 656,876 11,839 202 877,707 14,515 RMBS 9 60,465 124 24 67,863 2,626 33 128,328 2,750 CMBS 33 138,708 621 19 41,516 838 52 180,224 1,459 Other ABS 71 321,040 2,958 41 179,398 2,030 112 500,438 4,988 Total 168 $ 747,531 $ 6,406 244 $ 994,813 $ 18,135 412 $ 1,742,344 $ 24,541 December 31, 2018 ( $ 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 2 $ 27,415 $ 796 8 $ 23,476 $ 712 10 $ 50,891 $ 1,508 State and municipal obligations 12 41,263 955 16 39,982 945 28 81,245 1,900 Corporate bonds and notes 330 1,208,430 36,284 126 601,533 27,604 456 1,809,963 63,888 RMBS 15 92,315 782 28 77,395 3,704 43 169,710 4,486 CMBS 62 328,696 3,973 33 125,728 3,385 95 454,424 7,358 Other ABS 129 503,109 7,917 26 89,628 983 155 592,737 8,900 Total 550 $ 2,201,228 $ 50,707 237 $ 957,742 $ 37,333 787 $ 3,158,970 $ 88,040 |
Trading Securities [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: (In thousands) March 31, December 31, Trading securities: State and municipal obligations $ 128,339 $ 168,359 Corporate bonds and notes 203,014 228,151 RMBS 18,257 21,083 CMBS 34,382 51,478 Total $ 383,992 $ 469,071 |
Securities Lending Agreements Balances [Table Text Block] | Key balances related to our securities lending agreements consisted of the following as of the dates indicated: (In thousands) March 31, December 31, Loaned securities (1) : U.S. government and agency securities $ — $ 9,987 Corporate bonds and notes 6,526 7,818 Equity securities 16,080 10,055 Total loaned securities, at fair value $ 22,606 $ 27,860 Total loaned securities, at amortized cost $ 22,537 $ 28,992 Securities collateral on deposit from Borrowers (2) 17,372 16,815 Reinvested cash collateral, at estimated fair value (3) 6,233 11,699 ______________________ (1) Our securities loaned under securities lending agreements are reported at fair value within other assets in our condensed 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 condensed consolidated financial statements. (3) |
Net Gains (Losses) on Investments and Other Financial Instruments [Table Text Block] | Net gains (losses) on investments and other financial instruments consisted of: Three Months Ended (In thousands) 2019 2018 Net realized gains (losses): Fixed-maturities available for sale (1) $ (495 ) $ (3,120 ) Equity securities (680 ) 142 Trading securities (684 ) (538 ) Other invested assets 87 62 Other gains (losses) 85 12 Net realized gains (losses) on investments (1,687 ) (3,442 ) Other-than-temporary impairment losses — (844 ) Net unrealized gains (losses) on investment securities 19,469 (12,804 ) Total net gains (losses) on investments 17,782 (17,090 ) Net gains (losses) on other financial instruments 4,131 (1,797 ) Net gains (losses) on investments and other financial instruments $ 21,913 $ (18,887 ) ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Three Months Ended (In thousands) 2019 2018 Gross investment gains from sales and redemptions $ 4,165 $ 598 Gross investment losses from sales and redemptions (4,660 ) (3,718 ) |
Net Unrealized Gains (Losses) on Investment Securities [Table Text Block] | The net changes in unrealized gains (losses) on trading securities and equity securities that were still held at each period end were as follows: Three Months Ended (In thousands) 2019 2018 Net changes in unrealized gains (losses): Trading securities $ 8,587 $ (11,420 ) Equity securities 7,919 (1,806 ) Net changes in unrealized gains (losses) on investment securities $ 16,506 $ (13,226 ) |
Contractual Maturities [Table Text Block] | The contractual maturities of fixed-maturity investments available for sale were as follows: March 31, 2019 Available for Sale (In thousands) Amortized Cost Fair Value Due in one year or less (1) $ 93,413 $ 93,208 Due after one year through five years (1) 828,387 832,653 Due after five years through 10 years (1) 1,051,235 1,060,529 Due after 10 years (1) 369,044 376,401 RMBS (2) 348,746 350,238 CMBS (2) 512,190 515,604 Other ABS (2) 679,444 675,477 Total (3) $ 3,882,459 $ 3,904,110 ______________________ (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 with a fair value of $6.5 million |
Note 6 - Goodwill and Other A_2
Note 6 - Goodwill and Other Acquired Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table shows the changes in the carrying amount of goodwill for the year-to-date periods ended December 31, 2018 and March 31, 2019 : (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2017 $ 197,391 $ (186,469 ) $ 10,922 Goodwill acquired 3,170 — 3,170 Balance at December 31, 2018 200,561 (186,469 ) 14,092 Goodwill acquired 538 — 538 Balance at March 31, 2019 $ 201,099 $ (186,469 ) $ 14,630 |
Schedule of Other Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated aggregate amortization expense for the remainder of 2019 and thereafter is as follows (in thousands): 2019 $ 6,416 2020 7,236 2021 5,822 2022 5,290 2023 4,839 2024 and thereafter 12,578 Total $ 42,181 |
Schedule of Other Intangible Assets [Table Text Block] | The following is a summary of the gross and net carrying amounts and accumulated amortization of our other acquired intangible assets as of the periods indicated: March 31, 2019 (In thousands) Original Amount Acquired Accumulated Amortization and Impairment Net Carrying Amount Client relationships $ 83,860 $ (49,751 ) (1) $ 34,109 Technology 16,964 (13,575 ) (2) 3,389 Trade name and trademarks 8,340 (4,080 ) 4,260 Non-competition agreements 185 (179 ) 6 Licenses 463 (46 ) 417 Total $ 109,812 $ (67,631 ) $ 42,181 December 31, 2018 (In thousands) Original Amount Acquired Accumulated Amortization Net Carrying Amount Client relationships $ 84,000 $ (48,227 ) (1) $ 35,773 Technology 17,362 (13,141 ) (2) 4,221 Trade name and trademarks 8,340 (3,864 ) 4,476 Non-competition agreements 185 (177 ) 8 Licenses 463 (35 ) 428 Total $ 110,350 $ (65,444 ) $ 44,906 ______________________ (1) Includes an impairment charge of $14.9 million in the quarter ended June 30, 2017. (2) Includes an impairment charge of $0.9 million |
Note 7 - Reinsurance (Tables)
Note 7 - Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance, Net Premiums Written and Earned [Table Text Block] | The effect of all of our reinsurance programs on our net premiums written and earned is as follows: Three Months Ended (In thousands) 2019 2018 Net premiums written—insurance: Direct $ 261,031 $ 256,599 Assumed (1) 2,445 1,312 Ceded (2) (10,156 ) (19,931 ) Net premiums written—insurance $ 253,320 $ 237,980 Net premiums earned—insurance: Direct $ 280,223 $ 257,431 Assumed (1) 2,450 1,318 Ceded (2) (19,161 ) (16,199 ) Net premiums earned—insurance $ 263,512 $ 242,550 ______________________ (1) Includes premiums earned from our participation in certain Front-end and Back-end credit risk transfer programs. (2) |
Schedule of VIE Assets [Table Text Block] | The following table presents the total assets of Eagle Re 2018-1 as well as Radian Guaranty’s maximum exposure to loss associated with Eagle Re 2018-1, as of the dates indicated. At March 31, 2019 Maximum Exposure to Loss (In thousands) Total VIE Assets (1) On - Balance Sheet Off - Balance Sheet (2) Total Eagle Re 2018-1 $ 434,034 $ 1,683 (3) $ 434,034 435,717 Total $ 434,034 $ 1,683 $ 434,034 435,717 At December 31, 2018 Maximum Exposure to Loss (In thousands) Total VIE Assets (1) On - Balance Sheet Off - Balance Sheet (2) Total Eagle Re 2018-1 $ 434,034 $ 1,114 (3) $ 434,034 435,148 Total $ 434,034 $ 1,114 $ 434,034 435,148 ______________________ (1) Assets of Eagle Re 2018-1 are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Liabilities of Eagle Re 2018-1 consist of its mortgage insurance-linked notes of $434.0 million , as described above. (2) Represents the maximum amount that would be payable in the future by Radian Guaranty to its policyholders on claims, without the benefit of any corresponding reinsurance recoverables, in the event of the combination of two events: (i) all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) have become worthless and (ii) $660.4 million of claims have been paid on the reinsured RIF. (3) |
Note 8 - Other Assets (Tables)
Note 8 - Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | The following table shows the components of other assets as of the dates indicated: (In thousands) March 31, December 31, Company-owned life insurance $ 85,729 $ 83,377 Right-of-use assets (1) 47,150 — Internal-use software (2) 46,611 51,367 Property and equipment (3) 39,530 37,090 Accrued investment income 33,275 34,878 Unbilled receivables 22,967 19,917 Loaned securities (Note 5) 22,606 27,860 Deferred policy acquisition costs 17,594 17,311 Reinsurance recoverables 15,401 14,402 Current federal income tax receivable (4) — 44,506 Other 42,815 36,992 Total other assets $ 373,678 $ 367,700 ______________________ (1) Represents right-of-use assets recognized as a result of our adoption, as of January 1, 2019, of the new accounting and disclosure requirements for leases of property, plant and equipment. See Note 1 for additional information. Right-of-use assets are shown less accumulated amortization of $2.3 million at March 31, 2019 . (2) Internal-use software, at cost, has been reduced by accumulated amortization of $63.7 million and $60.3 million at March 31, 2019 and December 31, 2018 , respectively, as well as $3.8 million of impairment charges in the three months ended March 31, 2019 , and $5.1 million of impairment charges in 2018. Amortization expense was $3.1 million and $2.8 million for the three-month periods ended March 31, 2019 and 2018 , respectively. (3) Property and equipment at cost, less accumulated depreciation of $64.5 million and $62.9 million at March 31, 2019 and December 31, 2018 , respectively. Depreciation expense was $2.1 million and $1.9 million for the three-month periods ended March 31, 2019 and 2018 , respectively. (4) During the three months ended March 31, 2019, current federal income tax receivable was reduced by our receipt of the remaining $57.2 million |
Note 10 - Losses and Loss Adj_2
Note 10 - Losses and Loss Adjustment Expense (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Losses and LAE by Segment | Our reserve for losses and LAE, at the end of each period indicated, consisted of: (In thousands) March 31, December 31, Mortgage insurance loss reserves $ 385,361 $ 397,891 Services loss reserves (1) 3,423 3,470 Total reserve for losses and LAE $ 388,784 $ 401,361 ______________________ (1) A majority of this amount is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our condensed consolidated balance sheet, and relates to EnTitle Insurance. See Note 7 |
Mortgage Insurance Reserve for Losses and LAE by Category | The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated: (In thousands) March 31, December 31, Reserve for losses by category (1) : Prime $ 240,489 $ 242,135 Alt-A and A minus and below 111,955 119,553 IBNR and other 13,008 13,864 LAE 8,994 10,271 Total primary reserves 374,446 385,823 Total pool reserves 10,621 11,640 Total First-lien reserves 385,067 397,463 Other (2) 294 428 Total reserve for losses $ 385,361 $ 397,891 ______________________ (1) Includes ceded losses on reinsurance transactions, which are expected to be recovered and are included in the reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. See Note 8 . (2) |
Mortgage Insurance Reserve for Losses and LAE Rollforward | The following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan premium deficiency reserve, for the periods indicated: Three Months Ended (In thousands) 2019 2018 Balance at beginning of period $ 397,891 $ 507,588 Less: Reinsurance recoverables (1) 11,009 8,350 Balance at beginning of period, net of reinsurance recoverables 386,882 499,238 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 38,922 36,516 Prior years (18,173 ) 391 Total incurred 20,749 36,907 Deduct: Paid claims and LAE related to: Current year (2) 295 226 Prior years 34,294 59,700 Total paid 34,589 59,926 Balance at end of period, net of reinsurance recoverables 373,042 476,219 Add: Reinsurance recoverables (1) 12,319 8,973 Balance at end of period $ 385,361 $ 485,192 ______________________ (1) Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 7 for additional information. (2) |
Note 11 - Senior Notes (Tables)
Note 11 - Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Senior Notes [Abstract] | |
Schedule of Senior Notes [Table Text Block] | The carrying value of our senior notes at March 31, 2019 and December 31, 2018 was as follows: (In thousands) March 31, December 31, 5.500% Senior Notes due 2019 $ 158,502 $ 158,324 5.250% Senior Notes due 2020 232,961 232,729 7.000% Senior Notes due 2021 196,056 195,867 4.500% Senior Notes due 2024 443,678 443,428 Total Senior Notes $ 1,031,197 $ 1,030,348 |
Note 12 - Other Liabilities (Ta
Note 12 - Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities [Abstract] | |
Other Liabilities [Table Text Block] | The following table shows the components of other liabilities as of the dates indicated: (In thousands) March 31, December 31, FHLB advances $ 108,532 $ 82,532 Deferred ceding commission 88,110 91,400 Lease liability 70,927 — Payable for securities (1) 35,981 7,949 Current federal income taxes 25,245 — Accrued compensation 19,112 61,452 Amount payable on the return of cash collateral under securities lending agreements (2) 6,233 11,699 Other 65,330 78,627 Total other liabilities $ 419,470 $ 333,659 ______________________ (1) Represents the payable for purchases of securities that have not yet settled as of the balance sheet date. (2) Amounts payable on the return of cash collateral under securities lending agreements are classified as other liabilities in our condensed consolidated balance sheets. See Note 5 |
Lease, Cost [Table Text Block] | The following tables provide additional information related to our leases, including: (i) the components of our total lease cost; (ii) the cash flows arising from our lease transactions; (iii) supplemental balance sheet information; (iv) the weighted-average remaining lease term; (v) the weighted-average discount rate used for our leases; and (vi) the remaining maturities of our lease liabilities, as of and for the periods indicated: ($ in thousands) Three Months Ended March 31, 2019 Lease cost Operating lease cost $ 2,319 Short-term lease cost 23 Total lease cost $ 2,342 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (2,637 ) |
Lessee, Operating Lease, Disclosure [Table Text Block] | ($ in thousands) March 31, 2019 Operating leases: Operating lease right-of-use assets (1) $ 47,150 Operating lease liabilities (2) 70,927 Weighted-average remaining lease term - operating leases (in years) 10.4 years Weighted-average discount rate - operating leases 6.75 % Remaining maturities of lease liabilities for the remainder of 2019 and thereafter is as follows: 2019 $ 7,873 2020 10,428 2021 9,964 2022 10,136 2023 10,275 2024 and thereafter 56,542 Total lease payments 105,218 Less: Imputed interest (34,291 ) Present value of lease liabilities (2) $ 70,927 ______________________ (1) Classified in other assets in our condensed consolidated balance sheets. See Note 8 . (2) |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Our commitment for non-cancelable leases in future years as of December 31, 2018 was as follows (in thousands): 2019 $ 11,310 2020 10,847 2021 10,165 2022 10,100 2023 10,251 2024 and thereafter 56,317 Total $ 108,990 |
Note 15 - Accumulated Other C_2
Note 15 - Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: Three Months Ended March 31, 2019 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ (77,114 ) $ (16,194 ) $ (60,920 ) Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 98,763 20,740 78,023 Less: Reclassification adjustment for net gains (losses) included in net income (1) (495 ) (104 ) (391 ) Net unrealized gains (losses) on investments 99,258 20,844 78,414 Other comprehensive income (loss) 99,258 20,844 78,414 Balance at end of period $ 22,144 $ 4,650 $ 17,494 Three Months Ended March 31, 2018 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 32,669 $ 9,584 $ 23,085 Cumulative effect of adopting the accounting standard update for financial instruments 284 60 224 Cumulative effect of adopting the accounting standard update for the reclassification of certain tax effects — (2,724 ) 2,724 Balance adjusted for cumulative effect of adopting accounting standard updates 32,953 6,920 26,033 Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period (76,763 ) (16,120 ) (60,643 ) Less: Reclassification adjustment for net gains (losses) included in net income (1) (3,964 ) (832 ) (3,132 ) Net unrealized gains (losses) on investments (72,799 ) (15,288 ) (57,511 ) Unrealized foreign currency translation adjustments 4 1 3 Other comprehensive income (loss) (72,795 ) (15,287 ) (57,508 ) Balance at end of period $ (39,842 ) $ (8,367 ) $ (31,475 ) ______________________ (1) |
Note 16 - Statutory Informati_2
Note 16 - Statutory Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
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. March 31, December 31, ($ in millions) RIF, net (1) $ 41,283.5 $ 40,711.3 Common stock and paid-in capital $ 1,416.0 $ 1,416.0 Surplus Note 100.0 100.0 Unassigned earnings (deficit) (651.1 ) (701.9 ) Statutory policyholders’ surplus 864.9 814.1 Contingency reserve 2,224.5 2,109.9 Statutory capital $ 3,089.4 $ 2,924.0 Risk-to-capital 13.4:1 13.9:1 ______________________ (1) |
Note 1 - Condensed Consolidat_3
Note 1 - Condensed Consolidated Financial Statements - Business Overview, Recent Developments and Significant Accounting Policies Business Overview (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2019USD ($)segment | |
Business Overview [Abstract] | |
Number of Reportable Business Segments | segment | 2 |
Mortgage Insurance Segment | |
Mortgage Insurance [Abstract] | |
Private Mortgage Insurance Protects Lenders For Loans Made With Less Than This Maximum Down Payment Percentage | 20.00% |
Private Mortgage Insurance Protects Lenders For Refinancings Made to Home Buyers With Less Than This Maximum Equity-Ownership Percentage | 20.00% |
Direct Primary Mortgage Insurance RIF | $ | $ 57.4 |
Note 1 - Condensed Consolidat_4
Note 1 - Condensed Consolidated Financial Statements - Business Overview, Recent Developments and Significant Accounting Policies Current Year Developments (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | May 06, 2019 | Mar. 20, 2019 | |
First Quarter 2019 Repurchase Program | |||||
Stock Repurchase Program, Authorized Amount | $ 150 | ||||
Total of All Repurchase Programs | |||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||
Stock Repurchased During Period, Shares | 1,546,674 | ||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 20.54 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 218.2 | ||||
Mortgage Insurance Segment | |||||
Risk In Force | $ 57,400 | ||||
Subsequent Event | Total of All Repurchase Programs | |||||
Stock Repurchased During Period, Shares | 4,131,329 | ||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 21.94 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 127.7 | ||||
Subsequent Event | Radian Guaranty | |||||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | $ 375 | ||||
Subsequent Event | Eagle Re 2019-1 (Primary) | Mortgage Insurance Segment | Radian Guaranty | |||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 562 | ||||
Risk In Force | 10,700 | ||||
Proceeds from Issuance of Debt | $ 562 |
Note 1 - Condensed Consolidat_5
Note 1 - Condensed Consolidated Financial Statements - Business Overview, Recent Developments and Significant Accounting Policies Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | ||
Operating Lease, Liability, Not Yet Commenced | $ 0 | ||||
Operating Lease, Right-of-Use Asset | [2] | $ 47,150 | [1] | $ 0 | |
ASU 2016-02 | |||||
Increase (Decrease) in Other Liabilities | $ 73,500 | ||||
Increase (Decrease) in Other Assets | 73,500 | ||||
Adjustment for Unamortized Allowances and Incentives | 24,100 | ||||
Operating Lease, Right-of-Use Asset | [2] | $ 49,400 | |||
[1] | Classified in other assets in our condensed consolidated balance sheets. See Note 8 | ||||
[2] | Represents right-of-use assets recognized as a result of our adoption, as of January 1, 2019, of the new accounting and disclosure requirements for leases of property, plant and equipment. See Note 1 for additional information. Right-of-use assets are shown less accumulated amortization of $2.3 million at March 31, 2019 |
Note 2 - Net Income Per Share N
Note 2 - Net Income Per Share Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net income—diluted | $ 170,957 | $ 114,486 | |
Dilutive effect of share-based compensation arrangements | [1] | 4,806 | 3,916 |
Adjusted average common shares outstanding—diluted | 218,343 | 219,883 | |
Net income (loss) per share—diluted | $ 0.78 | $ 0.52 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income - basic | $ 170,957 | $ 114,486 | |
Average common shares outstanding - basic | 213,537 | 215,967 | |
Net income (loss) per share - basic | $ 0.80 | $ 0.53 | |
Stock Compensation Plan | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Shares of common stock equivalents | 169 | 170 | |
[1] | The following number of shares of our common stock equivalents issued under our share-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: Three Months Ended (In thousands) 2019 2018 Shares of common stock equivalents 169 170 |
Note 3 - Segment Reporting Sche
Note 3 - Segment Reporting Schedule of Segment Reporting Information by Segment (Details) | 3 Months Ended | |||
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |||
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | segment | 2 | |||
Net premiums written—insurance | $ 253,320,000 | $ 237,980,000 | ||
Net premiums earned—insurance | 263,512,000 | 242,550,000 | ||
Services revenue | 32,753,000 | 33,164,000 | ||
Net investment income | 43,847,000 | 33,956,000 | ||
Other income | 1,604,000 | 807,000 | ||
Policy acquisition costs | 5,893,000 | 7,117,000 | ||
Cost of services | 24,157,000 | 23,126,000 | ||
Other operating expenses before corporate allocations | 78,805,000 | 63,243,000 | ||
Restructuring and other exit costs | 0 | 551,000 | ||
Adjusted pretax operating income (loss) | 202,070,000 | 164,103,000 | ||
Net gains (losses) on investments and other financial instruments | 21,913,000 | (18,887,000) | ||
Mortgage Insurance Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums written—insurance | [1] | 251,586,000 | 237,980,000 | |
(Increase) decrease in unearned premiums | 10,192,000 | 4,570,000 | ||
Net premiums earned—insurance | 261,778,000 | 242,550,000 | ||
Net investment income | 43,665,000 | 33,956,000 | ||
Other income | 1,196,000 | 807,000 | ||
Total | [2] | 306,639,000 | 277,313,000 | |
Provision for losses | 20,844,000 | 37,391,000 | ||
Policy acquisition costs | 5,893,000 | 7,117,000 | ||
Other operating expenses before corporate allocations | 30,410,000 | 31,888,000 | ||
Total | [3] | 57,147,000 | 76,396,000 | |
Adjusted pretax operating income (loss) before corporate allocations | 249,492,000 | 200,917,000 | ||
Allocation of corporate operating expenses | 25,625,000 | 18,577,000 | ||
Allocation of interest expense | 15,697,000 | 10,629,000 | ||
Adjusted pretax operating income (loss) | [4] | 208,170,000 | 171,711,000 | |
Inter-segment expenses | 970,000 | 1,002,000 | ||
Mortgage and Real Estate Services Segment | ||||
Segment Reporting Information [Line Items] | ||||
Corporate Cash and Investments Allocated to Segments | 0 | |||
Net premiums earned—insurance | [5] | 1,734,000 | 0 | |
Services revenue | [6] | 33,723,000 | 34,166,000 | |
Net investment income | [5] | 182,000 | 0 | |
Other income | [5] | 408,000 | 0 | |
Total | [6] | 36,047,000 | 34,166,000 | |
Provision for losses | [5] | (18,000) | 0 | |
Cost of services | 24,559,000 | 23,270,000 | ||
Other operating expenses before corporate allocations | 13,435,000 | 10,744,000 | ||
Restructuring and other exit costs | 0 | 525,000 | ||
Total | 37,976,000 | 34,539,000 | ||
Adjusted pretax operating income (loss) before corporate allocations | (1,929,000) | (373,000) | ||
Allocation of corporate operating expenses | 4,171,000 | 2,784,000 | ||
Allocation of interest expense | 0 | [7] | 4,451,000 | |
Adjusted pretax operating income (loss) | [4] | (6,100,000) | (7,608,000) | |
Inter-segment revenues | $ 970,000 | $ 1,002,000 | ||
[1] | Net of ceded premiums written under our reinsurance programs. See Note 7 | |||
[2] | Excludes net gains on investments and other financial instruments of $21.9 million for the three months ended March 31, 2019 , and net losses on investments and other financial instruments of $18.9 million for the three months ended March 31, 2018 | |||
[3] | Includes inter-segment expenses as follows: Three Months Ended (In thousands) 2019 2018 Inter-segment expenses $ 970 $ 1,002 | |||
[4] | Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. | |||
[5] | Results from inclusion of the operations of EnTitle Direct, a national title insurance and settlement services company, acquired in March 2018. | |||
[6] | Includes inter-segment revenues as follows: Three Months Ended (In thousands) 2019 2018 Inter-segment revenues $ 970 $ 1,002 | |||
[7] | Effective January 1, 2019, the Clayton Intercompany Note was repaid using proceeds from an additional capital contribution from Radian Group. As a result of the intercompany note repayment, the Services segment no longer incurs interest expense on the intercompany note. |
Note 3 - Segment Reporting Reco
Note 3 - Segment Reporting Reconciliation of Segment to Consolidated Results Pretax (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Adjusted pretax operating income (loss) | $ 202,070 | $ 164,103 | |
Net gains (losses) on investments and other financial instruments | 21,913 | (18,887) | |
Acquisition-related (expenses) benefits | [1] | (233) | 0 |
Amortization and impairment of other acquired intangible assets | (2,187) | (2,748) | |
Impairment of other long-lived assets and loss from the sale of a business line | [2] | (5,427) | (26) |
Consolidated pretax income (loss) | 216,136 | 142,442 | |
Mortgage Insurance Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Adjusted pretax operating income (loss) | [3] | 208,170 | 171,711 |
Mortgage and Real Estate Services Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Adjusted pretax operating income (loss) | [3] | $ (6,100) | $ (7,608) |
[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] | The amount for the three months ended March 31, 2019 is included in other operating expenses on the condensed consolidated statement of operations and primarily relates to impairments of other long-lived assets. The amount for the three months ended March 31, 2018 is included within restructuring and other exit costs on the condensed consolidated statement of operations. | ||
[3] | Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. |
Note 3 - Segment Reporting Reve
Note 3 - Segment Reporting Revenues from Contracts with Customers (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Unbilled Contracts Receivable | $ 22,967,000 | $ 19,917,000 | ||
Mortgage and Real Estate Services Segment | ||||
Sales Revenue, Services and Other, Net | [1] | 34,131,000 | $ 34,166,000 | |
Inter-segment revenues | 970,000 | 1,002,000 | ||
Net Premiums Earned and Net Investment Income | 1,900,000 | |||
Provision for Doubtful Accounts | 0 | 0 | ||
Accounts Receivable, Net | 13,241,000 | 15,461,000 | ||
Unbilled Contracts Receivable | 22,967,000 | 19,917,000 | ||
Deferred Revenue | 3,044,000 | $ 3,204,000 | ||
Mortgage Services | Mortgage and Real Estate Services Segment | ||||
Sales Revenue, Services and Other, Net | 16,063,000 | 17,498,000 | ||
Real Estate Services | Mortgage and Real Estate Services Segment | ||||
Sales Revenue, Services and Other, Net | 15,836,000 | 14,394,000 | ||
Title Services | Mortgage and Real Estate Services Segment | ||||
Sales Revenue, Services and Other, Net | $ 2,232,000 | $ 2,274,000 | ||
[1] | Includes inter-segment revenues of $1.0 million for each of the three months ended March 31, 2019 and 2018 , respectively. For the three months ended March 31, 2019 , amounts exclude a total of $1.9 million |
Note 4 - Fair Value of Financ_3
Note 4 - Fair Value of Financial Instruments Assets Measured at Fair Value by Hierarchy Level (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Other Investments | $ 3,059,000 | $ 3,415,000 | ||||
Reinvested cash collateral held under securities lending agreements | 6,233,000 | 11,699,000 | ||||
Loaned securities | 22,606,000 | 27,860,000 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Other Investments | 3,100,000 | 3,400,000 | ||||
Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 5,495,317,000 | [1],[2] | 5,177,474,000 | [3],[4] | ||
Total Assets at Fair Value | 5,495,317,000 | [2],[5] | 5,177,474,000 | [4],[6] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | $ 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | $ 0 | ||||
Fair Value, Measurements, Recurring | US government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 212,518,000 | 227,714,000 | ||||
Fair Value, Measurements, Recurring | State and municipal obligations | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 233,827,000 | 324,742,000 | ||||
Fair Value, Measurements, Recurring | Money market instruments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 174,541,000 | 95,132,000 | ||||
Fair Value, Measurements, Recurring | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 2,485,463,000 | 2,564,068,000 | ||||
Fair Value, Measurements, Recurring | RMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 368,495,000 | 353,224,000 | ||||
Fair Value, Measurements, Recurring | CMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 549,986,000 | 591,393,000 | ||||
Fair Value, Measurements, Recurring | Other ABS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 675,477,000 | 705,468,000 | ||||
Fair Value, Measurements, Recurring | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 141,105,000 | 140,620,000 | ||||
Fair Value, Measurements, Recurring | Other investments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 653,905,000 | [7] | 175,113,000 | [8] | ||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 489,556,000 | [1] | 431,096,000 | [3] | ||
Total Assets at Fair Value | 489,556,000 | [5] | 431,096,000 | [6] | ||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | US government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 178,908,000 | 199,302,000 | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | State and municipal obligations | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Money market instruments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 174,541,000 | 95,132,000 | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | RMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | CMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Other ABS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 136,107,000 | 136,662,000 | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Other investments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | [7] | 0 | [8] | ||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 5,005,761,000 | [1] | 4,746,378,000 | [3] | ||
Total Assets at Fair Value | 5,005,761,000 | [5] | 4,746,378,000 | [6] | ||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 33,610,000 | 28,412,000 | ||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | State and municipal obligations | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 233,827,000 | 324,742,000 | ||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Money market instruments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 2,485,463,000 | 2,564,068,000 | ||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | RMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 368,495,000 | 353,224,000 | ||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | CMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 549,986,000 | 591,393,000 | ||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Other ABS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 675,477,000 | 705,468,000 | ||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 4,998,000 | 3,958,000 | ||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Other investments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 653,905,000 | [7] | 175,113,000 | [8] | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Assets at Fair Value | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 0 | 0 | ||||
Securities Financing Transaction, Fair Value | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Reinvested cash collateral held under securities lending agreements | [9] | 17,372,000 | 16,815,000 | |||
Loaned securities | [10] | 22,606,000 | 27,860,000 | |||
Securities Financing Transaction, Fair Value | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | [10] | 6,526,000 | 7,818,000 | |||
Securities Financing Transaction, Fair Value | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | [10] | $ 16,080,000 | $ 10,055,000 | |||
[1] | Does not include certain other invested assets of $3.1 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $6.2 million | |||||
[2] | Includes $22.6 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets. See Note 5 | |||||
[3] | Does not include certain other invested assets of $3.4 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. Includes cash collateral held under securities lending agreements of $11.7 million | |||||
[4] | Includes $27.9 million of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our condensed consolidated balance sheets. See Note 5 | |||||
[5] | Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our condensed consolidated balance sheet. See Note 7 | |||||
[6] | Does not include the fair value of an immaterial embedded derivative, which we have accounted for separately as a freestanding derivative and classified in other assets in our condensed consolidated balance sheet. See Note 7 | |||||
[7] | Comprising short-term certificates of deposit and commercial paper. | |||||
[8] | Comprising short-term certificates of deposit and commercial paper. | |||||
[9] | Securities collateral on deposit with us from Borrowers may not be transferred or re-pledged unless the Borrower is in default, and is therefore not reflected in our condensed consolidated financial statements. | |||||
[10] | Our securities loaned under securities lending agreements are reported at fair value within other assets in our condensed consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None |
Note 4 - Fair Value of Financ_4
Note 4 - Fair Value of Financial Instruments Other Fair Value Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 1,031,197 | $ 1,030,348 |
FHLB advances | 108,532 | 82,532 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 1,031,197 | 1,030,348 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Fair Value | 1,051,418 | 1,007,687 |
Federal Home Loan Bank Borrowings, Fair Value Disclosure | $ 109,097 | $ 82,899 |
Note 5 - Investments Available
Note 5 - Investments Available for Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |||
Debt Securities, Available-for-sale [Line Items] | |||||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 114,600 | $ 88,400 | |||
Loaned securities | 22,606 | 27,860 | |||
Securities Financing Transaction, Fair Value | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Loaned securities | [1] | 22,606 | 27,860 | ||
Securities Financing Transaction, Fair Value | US government and agency securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Loaned securities | [1] | 0 | 9,987 | ||
Securities Financing Transaction, Fair Value | Corporate bonds and notes | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Loaned securities | [1] | 6,526 | 7,818 | ||
Fixed maturities | US government and agency securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for Sale Securities, Amortized Cost | 94,441 | 85,532 | |||
Available for Sale Securities, Fair Value | 94,098 | [2] | 84,070 | [3] | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 185 | 46 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 528 | 1,508 | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 10,900 | 10,700 | |||
Fixed maturities | State and municipal obligations | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for Sale Securities, Amortized Cost | 88,598 | 138,022 | |||
Available for Sale Securities, Fair Value | 92,718 | 138,313 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 4,421 | 2,191 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 301 | 1,900 | |||
Fixed maturities | Corporate bonds and notes | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for Sale Securities, Amortized Cost | 2,159,040 | 2,288,720 | |||
Available for Sale Securities, Fair Value | 2,175,975 | 2,229,885 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 31,450 | 5,053 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 14,515 | 63,888 | |||
Fixed maturities | RMBS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for Sale Securities, Amortized Cost | 348,746 | 334,843 | |||
Available for Sale Securities, Fair Value | 350,238 | [4] | 332,142 | [5] | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 4,242 | 1,785 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 2,750 | 4,486 | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 103,700 | 77,700 | |||
Fixed maturities | CMBS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for Sale Securities, Amortized Cost | 512,190 | 546,729 | |||
Available for Sale Securities, Fair Value | 515,604 | 539,915 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 4,873 | 544 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,459 | 7,358 | |||
Fixed maturities | Other ABS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for Sale Securities, Amortized Cost | 679,444 | 712,748 | |||
Available for Sale Securities, Fair Value | 675,477 | 704,662 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,021 | 814 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 4,988 | 8,900 | |||
Fixed maturities | Total fixed-maturities available for sale | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available for Sale Securities, Amortized Cost | 3,882,459 | 4,106,594 | |||
Available for Sale Securities, Fair Value | 3,904,110 | [6] | 4,028,987 | [7] | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 46,192 | 10,433 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 24,541 | 88,040 | |||
Fixed maturities | Securities Financing Transaction, Fair Value | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Loaned securities | $ 6,500 | $ 7,400 | |||
[1] | Our securities loaned under securities lending agreements are reported at fair value within other assets in our condensed consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None | ||||
[2] | Includes securities with a fair value of $10.9 million | ||||
[3] | Includes securities with a fair value of $10.7 million | ||||
[4] | Includes securities with a fair value of $103.7 million | ||||
[5] | Includes securities with a fair value of $77.7 million | ||||
[6] | Includes $6.5 million | ||||
[7] | Includes $7.4 million |
Note 5 - Investments Gross Unre
Note 5 - Investments Gross Unrealized Losses and Fair Value of Available for Sale Securities (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)security | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)security | |
Continuous Loss Position Less Than Twelve Months [Abstract] | |||
Number of Securities, Less than 12 Months | security | 168 | 550 | |
Fair Value, Less Than 12 Months | $ 747,531 | $ 2,201,228 | |
Unrealized Losses, Less Than 12 Months | $ 6,406 | $ 50,707 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of Securities, 12 Months or Greater | security | 244 | 237 | |
Fair Value, 12 Months or Greater | $ 994,813 | $ 957,742 | |
Unrealized Losses, 12 Months or Greater | $ 18,135 | $ 37,333 | |
Continuous Loss Position, Total | |||
Number of Securities, Total | security | 412 | 787 | |
Fair Value, Total | $ 1,742,344 | $ 3,158,970 | |
Unrealized Losses, Total | $ 24,541 | $ 88,040 | |
US government and agency securities | |||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||
Number of Securities, Less than 12 Months | security | 0 | 2 | |
Fair Value, Less Than 12 Months | $ 0 | $ 27,415 | |
Unrealized Losses, Less Than 12 Months | $ 0 | $ 796 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of Securities, 12 Months or Greater | security | 9 | 8 | |
Fair Value, 12 Months or Greater | $ 38,177 | $ 23,476 | |
Unrealized Losses, 12 Months or Greater | $ 528 | $ 712 | |
Continuous Loss Position, Total | |||
Number of Securities, Total | security | 9 | 10 | |
Fair Value, Total | $ 38,177 | $ 50,891 | |
Unrealized Losses, Total | $ 528 | $ 1,508 | |
State and municipal obligations | |||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||
Number of Securities, Less than 12 Months | security | 1 | 12 | |
Fair Value, Less Than 12 Months | $ 6,487 | $ 41,263 | |
Unrealized Losses, Less Than 12 Months | $ 27 | $ 955 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of Securities, 12 Months or Greater | security | 3 | 16 | |
Fair Value, 12 Months or Greater | $ 10,983 | $ 39,982 | |
Unrealized Losses, 12 Months or Greater | $ 274 | $ 945 | |
Continuous Loss Position, Total | |||
Number of Securities, Total | security | 4 | 28 | |
Fair Value, Total | $ 17,470 | $ 81,245 | |
Unrealized Losses, Total | $ 301 | $ 1,900 | |
Corporate bonds and notes | |||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||
Number of Securities, Less than 12 Months | security | 54 | 330 | |
Fair Value, Less Than 12 Months | $ 220,831 | $ 1,208,430 | |
Unrealized Losses, Less Than 12 Months | $ 2,676 | $ 36,284 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of Securities, 12 Months or Greater | security | 148 | 126 | |
Fair Value, 12 Months or Greater | $ 656,876 | $ 601,533 | |
Unrealized Losses, 12 Months or Greater | $ 11,839 | $ 27,604 | |
Continuous Loss Position, Total | |||
Number of Securities, Total | security | 202 | 456 | |
Fair Value, Total | $ 877,707 | $ 1,809,963 | |
Unrealized Losses, Total | $ 14,515 | $ 63,888 | |
RMBS | |||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||
Number of Securities, Less than 12 Months | security | 9 | 15 | |
Fair Value, Less Than 12 Months | $ 60,465 | $ 92,315 | |
Unrealized Losses, Less Than 12 Months | $ 124 | $ 782 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of Securities, 12 Months or Greater | security | 24 | 28 | |
Fair Value, 12 Months or Greater | $ 67,863 | $ 77,395 | |
Unrealized Losses, 12 Months or Greater | $ 2,626 | $ 3,704 | |
Continuous Loss Position, Total | |||
Number of Securities, Total | security | 33 | 43 | |
Fair Value, Total | $ 128,328 | $ 169,710 | |
Unrealized Losses, Total | $ 2,750 | $ 4,486 | |
CMBS | |||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||
Number of Securities, Less than 12 Months | security | 33 | 62 | |
Fair Value, Less Than 12 Months | $ 138,708 | $ 328,696 | |
Unrealized Losses, Less Than 12 Months | $ 621 | $ 3,973 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of Securities, 12 Months or Greater | security | 19 | 33 | |
Fair Value, 12 Months or Greater | $ 41,516 | $ 125,728 | |
Unrealized Losses, 12 Months or Greater | $ 838 | $ 3,385 | |
Continuous Loss Position, Total | |||
Number of Securities, Total | security | 52 | 95 | |
Fair Value, Total | $ 180,224 | $ 454,424 | |
Unrealized Losses, Total | $ 1,459 | $ 7,358 | |
Other ABS | |||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||
Number of Securities, Less than 12 Months | security | 71 | 129 | |
Fair Value, Less Than 12 Months | $ 321,040 | $ 503,109 | |
Unrealized Losses, Less Than 12 Months | $ 2,958 | $ 7,917 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of Securities, 12 Months or Greater | security | 41 | 26 | |
Fair Value, 12 Months or Greater | $ 179,398 | $ 89,628 | |
Unrealized Losses, 12 Months or Greater | $ 2,030 | $ 983 | |
Continuous Loss Position, Total | |||
Number of Securities, Total | security | 112 | 155 | |
Fair Value, Total | $ 500,438 | $ 592,737 | |
Unrealized Losses, Total | 4,988 | $ 8,900 | |
OTTI Recognized in Earnings | |||
Continuous Loss Position, Total | |||
Other-than-temporary impairment losses | 0 | $ 844 | |
OTTI Recognized in AOCI | |||
Continuous Loss Position, Total | |||
Other-than-temporary impairment losses | $ 0 | $ 0 |
Note 5 - Investments Trading Se
Note 5 - Investments Trading Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | $ 383,992 | $ 469,071 |
State and municipal obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 128,339 | 168,359 |
Corporate bonds and notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 203,014 | 228,151 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 18,257 | 21,083 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | $ 34,382 | $ 51,478 |
Note 5 - Investments Securities
Note 5 - Investments Securities Lending Agreements (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Securities Financing Transaction [Line Items] | |||
Loaned securities | $ 22,606,000 | $ 27,860,000 | |
Cash Collateral for Borrowed Securities | 6,233,000 | 11,699,000 | |
Securities Held as Collateral, at Fair Value | 0 | ||
Securities Financing Transaction, Fair Value | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | [1] | 22,606,000 | 27,860,000 |
Cash Collateral for Borrowed Securities | [2] | 17,372,000 | 16,815,000 |
Reinvested Cash Collateral, Fair Value | [3] | 6,233,000 | 11,699,000 |
Securities Financing Transaction, Fair Value | US government and agency securities | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | [1] | 0 | 9,987,000 |
Securities Financing Transaction, Fair Value | Corporate bonds and notes | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | [1] | 6,526,000 | 7,818,000 |
Securities Financing Transaction, Fair Value | Equity securities | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | [1] | 16,080,000 | 10,055,000 |
Securities Financing Transaction, Cost | |||
Securities Financing Transaction [Line Items] | |||
Loaned securities | $ 22,537,000 | $ 28,992,000 | |
[1] | Our securities loaned under securities lending agreements are reported at fair value within other assets in our condensed consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None | ||
[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 condensed 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 in our condensed consolidated balance sheets. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities in our condensed consolidated balance sheets. |
Note 5 - Investments Net Gains
Note 5 - Investments Net Gains (Losses) on Investments and Other Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Gain (Loss) on Securities [Line Items] | |||
Other gains (losses), net realized gain (loss) | $ 85 | $ 12 | |
Net realized gains (losses) on investments | (1,687) | (3,442) | |
Unrealized Gain (Loss) on Securities | 19,469 | (12,804) | |
Total net gains (losses) on investments | 17,782 | (17,090) | |
Net gains (losses) on other financial instruments | 4,131 | (1,797) | |
Net gains (losses) on investments and other financial instruments | 21,913 | (18,887) | |
Fixed maturities | |||
Gain (Loss) on Securities [Line Items] | |||
Fixed maturities available for sale, net realized gain (loss) | [1] | (495) | (3,120) |
Gross investment gains from sales and redemptions | 4,165 | 598 | |
Gross investment losses from sales and redemptions | (4,660) | (3,718) | |
Equity securities | |||
Gain (Loss) on Securities [Line Items] | |||
Equity securities, net realized gain (loss) | (680) | 142 | |
Trading Securities | |||
Gain (Loss) on Securities [Line Items] | |||
Trading securities, net realized gain (loss) | (684) | (538) | |
Other invested assets | |||
Gain (Loss) on Securities [Line Items] | |||
Other invested assets, net realized gain (loss) | $ 87 | $ 62 | |
[1] | Components of net realized gains (losses) on fixed-maturities available for sale include: Three Months Ended (In thousands) 2019 2018 Gross investment gains from sales and redemptions $ 4,165 $ 598 Gross investment losses from sales and redemptions (4,660 ) (3,718 ) |
Note 5 - Investments Net Unreal
Note 5 - Investments Net Unrealized Gains (Losses) on Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | ||
Net changes in unrealized gains (losses) on investment securities | $ 16,506 | $ (13,226) |
Trading Securities | ||
Gain (Loss) on Securities [Line Items] | ||
Trading Securities, Change in Unrealized Holding Gain (Loss) | 8,587 | (11,420) |
Equity securities | ||
Gain (Loss) on Securities [Line Items] | ||
Equity Securities, Change in Unrealized Holding Gain (Loss) | $ 7,919 | $ (1,806) |
Note 5 - Investments Contractua
Note 5 - Investments Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Total Debt Securities [Line Items] | |||
Loaned securities | $ 22,606 | $ 27,860 | |
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturity investments available for sale, Total, Amortized Cost | 3,875,919 | 4,098,962 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturity investments available for sale, Total, Fair Value | 3,897,584 | 4,021,575 | |
Non Asset Backed Security Investments, Contractual Maturities [Member] | |||
Available-for-sale Securities, Amortized Cost | |||
Due in one year or less | [1] | 93,413 | |
Due after one year through five years | [1] | 828,387 | |
Due after five years through ten years | [1] | 1,051,235 | |
Due after ten years | [1] | 369,044 | |
Available-for-sale Securities, Fair Value | |||
Due in one year or less | [1] | 93,208 | |
Due after one year through five years | [1] | 832,653 | |
Due after five years through ten years | [1] | 1,060,529 | |
Due after ten years | [1] | 376,401 | |
RMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Amortized Cost | [2] | 348,746 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Fair Value | [2] | 350,238 | |
CMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Amortized Cost | [2] | 512,190 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Fair Value | [2] | 515,604 | |
Other ABS | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Amortized Cost | [2] | 679,444 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Fair Value | [2] | 675,477 | |
Total fixed-maturities available for sale | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturity investments available for sale, Total, Amortized Cost | [3] | 3,882,459 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturity investments available for sale, Total, Fair Value | [3] | 3,904,110 | |
Securities Financing Transaction, Fair Value | |||
Total Debt Securities [Line Items] | |||
Loaned securities | [4] | 22,606 | 27,860 |
Fixed maturities | Securities Financing Transaction, Fair Value | |||
Total Debt Securities [Line Items] | |||
Loaned securities | $ 6,500 | $ 7,400 | |
[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 with a fair value of $6.5 million | ||
[4] | Our securities loaned under securities lending agreements are reported at fair value within other assets in our condensed consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None |
Note 5 - Investments Other (Det
Note 5 - Investments Other (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 114.6 | $ 88.4 |
Debt securities | ||
Assets Held by Insurance Regulators | $ 16.7 | $ 17.6 |
Note 6 - Goodwill and Other A_3
Note 6 - Goodwill and Other Acquired Intangible Assets, Net General (Details) - Mortgage and Real Estate Services Segment - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill, Acquired During Period | $ 538 | $ 3,170 |
Technology | ||
Finite-Lived Intangible Assets, Period Increase (Decrease) | 400 | |
Client relationships | ||
Finite-Lived Intangible Assets, Period Increase (Decrease) | $ 100 |
Note 6 - Goodwill and Other A_4
Note 6 - Goodwill and Other Acquired Intangible Assets, Net Schedule of Goodwill (Details) - Mortgage and Real Estate Services Segment - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill, Gross, Beginning of Period | $ 200,561 | $ 197,391 | |
Goodwill, Acquired During Period | 538 | 3,170 | |
Goodwill, Gross, End of Period | 201,099 | 200,561 | |
Goodwill, Impaired, Accumulated Impairment Loss, Beginning of Period | (186,469) | (186,469) | |
Goodwill, Impaired, Accumulated Impairment Loss, End of Period | (186,469) | (186,469) | |
Goodwill, Net | $ 14,630 | $ 14,092 | $ 10,922 |
Note 6 - Goodwill and Other A_5
Note 6 - Goodwill and Other Acquired Intangible Assets, Net Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Jun. 30, 2017 | Dec. 31, 2018 | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Other Intangible Assets, Net Carrying Amount | $ 42,181 | |||
Mortgage and Real Estate Services Segment | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Other Intangible Assets, Original Acquired Amount | 109,812 | $ 110,350 | ||
Other Intangible Assets, Accumulated Amortization and Impairment | (67,631) | (65,444) | ||
Other Intangible Assets, Net Carrying Amount | 42,181 | 44,906 | ||
Mortgage and Real Estate Services Segment | Client relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Period Increase (Decrease) | 100 | |||
Other Intangible Assets, Original Acquired Amount | 83,860 | 84,000 | ||
Other Intangible Assets, Accumulated Amortization and Impairment | [1] | (49,751) | (48,227) | |
Other Intangible Assets, Net Carrying Amount | 34,109 | 35,773 | ||
Impairment charge, Other Intangible Assets | $ 14,900 | |||
Mortgage and Real Estate Services Segment | Technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Period Increase (Decrease) | 400 | |||
Other Intangible Assets, Original Acquired Amount | 16,964 | 17,362 | ||
Other Intangible Assets, Accumulated Amortization and Impairment | [2] | (13,575) | (13,141) | |
Other Intangible Assets, Net Carrying Amount | 3,389 | 4,221 | ||
Impairment charge, Other Intangible Assets | $ 900 | |||
Mortgage and Real Estate Services Segment | Trade name and trademarks | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Other Intangible Assets, Original Acquired Amount | 8,340 | 8,340 | ||
Other Intangible Assets, Accumulated Amortization and Impairment | (4,080) | (3,864) | ||
Other Intangible Assets, Net Carrying Amount | 4,260 | 4,476 | ||
Mortgage and Real Estate Services Segment | Non-competition agreements | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Other Intangible Assets, Original Acquired Amount | 185 | 185 | ||
Other Intangible Assets, Accumulated Amortization and Impairment | (179) | (177) | ||
Other Intangible Assets, Net Carrying Amount | 6 | 8 | ||
Mortgage and Real Estate Services Segment | Licenses | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Other Intangible Assets, Original Acquired Amount | 463 | 463 | ||
Other Intangible Assets, Accumulated Amortization and Impairment | (46) | (35) | ||
Other Intangible Assets, Net Carrying Amount | $ 417 | $ 428 | ||
[1] | Includes an impairment charge of $14.9 million | |||
[2] | Includes an impairment charge of $0.9 million |
Note 6 - Goodwill and Other A_6
Note 6 - Goodwill and Other Acquired Intangible Assets, Net Schedule of Future Amortization Expense for Other Intangible Assets (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 6,416 |
2020 | 7,236 |
2021 | 5,822 |
2022 | 5,290 |
2023 | 4,839 |
2024 and thereafter | 12,578 |
Total | $ 42,181 |
Note 7 - Reinsurance Net Premiu
Note 7 - Reinsurance Net Premiums Written and Earned, Insurance (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Premiums Written, Net [Abstract] | |||
Direct Premiums Written | $ 261,031 | $ 256,599 | |
Assumed Premiums Written | [1] | 2,445 | 1,312 |
Ceded Premiums Written | [2] | (10,156) | (19,931) |
Net premiums written—insurance | 253,320 | 237,980 | |
Premiums Earned, Net [Abstract] | |||
Direct Premiums Earned | 280,223 | 257,431 | |
Assumed Premiums Earned | [1] | 2,450 | 1,318 |
Ceded Premiums Earned | [2] | (19,161) | (16,199) |
Net premiums earned—insurance | $ 263,512 | $ 242,550 | |
[1] | Includes premiums earned from our participation in certain Front-end and Back-end credit risk transfer programs. | ||
[2] | Net of profit commission. |
Note 7 - Reinsurance Single Pre
Note 7 - Reinsurance Single Premium QSR Program (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Oct. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | |
Ceded Credit Risk [Line Items] | |||||
Ceded Premiums Written | [1] | $ 10,156 | $ 19,931 | ||
Reinsurer Concentration Risk | 2016 Single Premium QSR Program | Radian Guaranty | |||||
Ceded Credit Risk [Line Items] | |||||
Risk In Force | 6,100,000 | 6,800,000 | |||
Reinsurer Concentration Risk | 2018 Single Premium QSR Program | Radian Guaranty | |||||
Ceded Credit Risk [Line Items] | |||||
Risk In Force | 2,100,000 | 400,000 | |||
Percent of Ceded Risk | 65.00% | ||||
Ceded Premiums Written | $ 335,000 | ||||
Reinsurer Concentration Risk | Single Premium QSR Program | Radian Guaranty | |||||
Ceded Credit Risk [Line Items] | |||||
Ceding Commissions Earned | 5,800 | 5,300 | |||
Ceded losses | $ 1,500 | $ 900 | |||
[1] | Net of profit commission. |
Note 7 - Reinsurance QSR Progra
Note 7 - Reinsurance QSR Program (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Radian Guaranty | Reinsurer Concentration Risk | QSR Program | ||
Risk In Force | $ 800 | $ 1,100 |
Ceding Commissions Earned | 2.9 | 3.5 |
Ceded losses | 0.2 | |
Mortgage Insurance Segment | ||
Risk In Force | $ 57,400 | |
Radian Guaranty | Radian Guaranty | Reinsurer Concentration Risk | QSR Program | ||
Ceded losses | $ 0.2 |
Note 7 - Reinsurance Excess-of-
Note 7 - Reinsurance Excess-of-Loss Program (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2019 | Nov. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Mortgage Insurance Segment | |||||||
Risk In Force | $ 57,400,000 | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 34,589 | $ 59,926 | |||||
Subsequent Event | Mortgage Insurance Segment | Radian Guaranty | Eagle Re 2019-1 (Primary) | |||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 562,000 | ||||||
Proceeds from Issuance of Debt | 562,000 | ||||||
Risk In Force | $ 10,700,000 | ||||||
Excess-of-Loss Program | Eagle Re 2018-1 (Primary) | |||||||
Derivative Asset | $ 1,700 | ||||||
Excess-of-Loss Program | Mortgage Insurance Segment | Radian Guaranty | |||||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | [1] | 434,034 | 434,034 | ||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 435,717 | 435,148 | |||||
Excess-of-Loss Program | Mortgage Insurance Segment | Radian Guaranty | Eagle Re 2018-1 (Primary) | |||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 434,000 | ||||||
Proceeds from Issuance of Debt | 434,000 | ||||||
Risk In Force | 9,100,000 | ||||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | [1] | 434,034 | 434,034 | ||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 435,717 | 435,148 | |||||
Excess-of-Loss Program | Mortgage Insurance Segment | Radian Guaranty | Separate Third-Party Reinsurer | |||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 21,400 | ||||||
Excess-of-Loss Program | Mortgage Insurance Segment | Radian Guaranty | On-Balance Sheet | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 1,683 | 1,114 | |||||
Excess-of-Loss Program | Mortgage Insurance Segment | Radian Guaranty | On-Balance Sheet | Eagle Re 2018-1 (Primary) | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [2] | 1,683 | 1,114 | ||||
Excess-of-Loss Program | Mortgage Insurance Segment | Radian Guaranty | Off-Balance Sheet | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [3] | 434,034 | 434,034 | ||||
Excess-of-Loss Program | Mortgage Insurance Segment | Radian Guaranty | Off-Balance Sheet | Eagle Re 2018-1 (Primary) | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [3] | 434,034 | $ 434,034 | ||||
Excess-of-Loss Program | Scenario, Forecast | Mortgage Insurance Segment | Radian Guaranty | Eagle Re 2018-1 (Primary) | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | $ 660,400 | ||||||
Excess-of-Loss Program | Reinsurer Concentration Risk | Mortgage Insurance Segment | Radian Guaranty | |||||||
Ceding Commissions Earned | 0 | ||||||
Ceded losses | $ 0 | ||||||
[1] | Assets of Eagle Re 2018-1 are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Liabilities of Eagle Re 2018-1 consist of its mortgage insurance-linked notes of $434.0 million | ||||||
[2] | Represents the fair value of the related embedded derivative, included in other assets in our condensed consolidated balance sheets. | ||||||
[3] | Represents the maximum amount that would be payable in the future by Radian Guaranty to its policyholders on claims, without the benefit of any corresponding reinsurance recoverables, in the event of the combination of two events: (i) all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) have become worthless and (ii) $660.4 million |
Note 7 - Reinsurance Other (Det
Note 7 - Reinsurance Other (Details) - Mortgage and Real Estate Services Segment - EnTitle Insurance $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Concentration Risk, Percentage | 100.00% |
Reinsurance Retention, Net Loss Per Claim | $ 1 |
Note 8 - Other Assets Component
Note 8 - Other Assets Components of Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |||
Company-owned life insurance | $ 85,729 | $ 83,377 | |||
Right-of-use assets | [2] | 47,150 | [1] | 0 | |
Internal-use software | [3] | 46,611 | 51,367 | ||
Property and equipment | [4] | 39,530 | 37,090 | ||
Accrued investment income | 33,275 | 34,878 | |||
Unbilled receivables | 22,967 | 19,917 | |||
Loaned securities (Note 5) | 22,606 | 27,860 | |||
Deferred policy acquisition costs | 17,594 | 17,311 | |||
Reinsurance recoverables | 15,401 | 14,402 | |||
Current federal income tax receivable | [5] | 0 | 44,506 | ||
Other | 42,815 | 36,992 | |||
Total other assets | 373,678 | 367,700 | |||
Accumulated Amortization, Right-of-Use Assets | 2,300 | ||||
Capitalized Computer Software, Accumulated Amortization | 63,700 | 60,300 | |||
Capitalized Computer Software, Impairments | 3,800 | 5,100 | |||
Capitalized Computer Software, Amortization | 3,100 | $ 2,800 | |||
Property and Equipment, Owned, Accumulated Depreciation | 64,500 | 62,900 | |||
Depreciation expense | $ 2,100 | $ 1,900 | |||
REMIC Residual | Internal Revenue Service (IRS) | |||||
Refund of Qualified Deposit Assets from U.S. Department of Treasury | $ 57,200 | ||||
[1] | Classified in other assets in our condensed consolidated balance sheets. See Note 8 | ||||
[2] | Represents right-of-use assets recognized as a result of our adoption, as of January 1, 2019, of the new accounting and disclosure requirements for leases of property, plant and equipment. See Note 1 for additional information. Right-of-use assets are shown less accumulated amortization of $2.3 million at March 31, 2019 | ||||
[3] | Internal-use software, at cost, has been reduced by accumulated amortization of $63.7 million and $60.3 million at March 31, 2019 and December 31, 2018 , respectively, as well as $3.8 million of impairment charges in the three months ended March 31, 2019 , and $5.1 million of impairment charges in 2018. Amortization expense was $3.1 million and $2.8 million for the three-month periods ended March 31, 2019 and 2018 | ||||
[4] | Property and equipment at cost, less accumulated depreciation of $64.5 million and $62.9 million at March 31, 2019 and December 31, 2018 , respectively. Depreciation expense was $2.1 million and $1.9 million for the three-month periods ended March 31, 2019 and 2018 | ||||
[5] | During the three months ended March 31, 2019, current federal income tax receivable was reduced by our receipt of the remaining $57.2 million |
Note 9 - Income Taxes Income Ta
Note 9 - Income Taxes Income Tax (Details) | Mar. 31, 2019USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 2,100,000 |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local, Net of Federal Benefit | 67,700,000 |
US Treasury Securities | |
Operating Loss Carryforwards [Line Items] | |
Debt Securities | 0 |
State and Local NOL Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Valuation Allowance, Amount | $ 64,400,000 |
Note 9 - Income Taxes Income _2
Note 9 - Income Taxes Income Tax Examinations (Details) - REMIC Residual - Internal Revenue Service (IRS) $ in Millions | Dec. 31, 2018USD ($) |
Income Tax Examination [Line Items] | |
Qualified Deposit Assets With The U.S. Department Of Treasury Expected to be Submitted | $ 31 |
Refund of Qualified Deposit Assets from U.S. Department of Treasury | $ 57.2 |
Note 10 - Losses and Loss Adj_3
Note 10 - Losses and Loss Adjustment Expense Reserve for Losses and LAE by Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Reserve for losses and loss adjustment expense (Note 10) | $ 388,784 | $ 401,361 | |||||
Mortgage Insurance Segment | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Reserve for losses and loss adjustment expense (Note 10) | 385,361 | [1] | 397,891 | [1] | $ 485,192 | $ 507,588 | |
Mortgage and Real Estate Services Segment | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Reserve for losses and loss adjustment expense (Note 10) | [2] | $ 3,423 | $ 3,470 | ||||
[1] | Includes ceded losses on reinsurance transactions, which are expected to be recovered and are included in the reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. See Note 8 | ||||||
[2] | A majority of this amount is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our condensed consolidated balance sheet, and relates to EnTitle Insurance. See Note 7 |
Note 10 - Losses and Loss Adj_4
Note 10 - Losses and Loss Adjustment Expense Mortgage Insurance Reserve for Losses and LAE by Category (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||||
Liability for Claims and Claims Adjustment Expense | $ 388,784 | $ 401,361 | |||||
Mortgage Insurance Segment | |||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||||
Liability for Claims and Claims Adjustment Expense | 385,361 | [1] | 397,891 | [1] | $ 485,192 | $ 507,588 | |
Prime | Mortgage Insurance Segment | |||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||||
Liability for Unpaid Claims | [1] | 240,489 | 242,135 | ||||
Alt-A and A minus and below | Mortgage Insurance Segment | |||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||||
Liability for Unpaid Claims | [1] | 111,955 | 119,553 | ||||
Primary Mortgage Product | Mortgage Insurance Segment | |||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||||
IBNR and other | [1] | 13,008 | 13,864 | ||||
LAE | [1] | 8,994 | 10,271 | ||||
Total primary reserves | Mortgage Insurance Segment | |||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||||
Liability for Claims and Claims Adjustment Expense | [1] | 374,446 | 385,823 | ||||
Total pool reserves | Mortgage Insurance Segment | |||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||||
Liability for Claims and Claims Adjustment Expense | [1] | 10,621 | 11,640 | ||||
Total First-lien reserves | Mortgage Insurance Segment | |||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||||
Liability for Claims and Claims Adjustment Expense | [1] | 385,067 | 397,463 | ||||
Other (Second-lien reserves) | Mortgage Insurance Segment | |||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||||
Liability for Claims and Claims Adjustment Expense | [1],[2] | $ 294 | $ 428 | ||||
[1] | Includes ceded losses on reinsurance transactions, which are expected to be recovered and are included in the reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. See Note 8 | ||||||
[2] | Does not include our second-lien premium deficiency reserve that is included in other liabilities. |
Note 10 - Losses and Loss Adj_5
Note 10 - Losses and Loss Adjustment Expense Mortgage Insurance Reserve for Losses and LAE Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Loss reserve [Roll Forward] | ||||
Balance at beginning of period | $ 401,361 | |||
Deduct paid claims and LAE related to [Abstract] | ||||
Balance at end of period | 388,784 | |||
Mortgage Insurance Segment | ||||
Loss reserve [Roll Forward] | ||||
Balance at beginning of period | 397,891 | [1] | $ 507,588 | |
Less: Reinsurance recoverables | [2] | 11,009 | 8,350 | |
Balance at beginning of period, net of reinsurance recoverables | 386,882 | 499,238 | ||
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract] | ||||
Incurred Losses and LAE Current year | [3] | 38,922 | 36,516 | |
Incurred Losses and LAE Prior years | (18,173) | 391 | ||
Total incurred losses and LAE | 20,749 | 36,907 | ||
Deduct paid claims and LAE related to [Abstract] | ||||
Paid Losses and LAE Current year | [3] | 295 | 226 | |
Paid losses and LAE Prior years | 34,294 | 59,700 | ||
Total paid losses and LAE | 34,589 | 59,926 | ||
Balance at end of period, net of reinsurance recoverables | 373,042 | 476,219 | ||
Add: Reinsurance recoverables | [2] | 12,319 | 8,973 | |
Balance at end of period | $ 385,361 | [1] | $ 485,192 | |
[1] | Includes ceded losses on reinsurance transactions, which are expected to be recovered and are included in the reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. See Note 8 | |||
[2] | Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 7 | |||
[3] | 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. |
Note 10 - Losses and Loss Adj_6
Note 10 - Losses and Loss Adjustment Expense Reserve Activity (Details) - incident | Mar. 31, 2019 | Mar. 31, 2018 |
Number of Natural Disasters | 2 | |
Mortgage Insurance Segment | ||
Default To Claim Rate Estimate, Gross, For New Defaults | 9.50% | |
Primary Mortgage Product | Mortgage Insurance Segment | ||
Default To Claim Rate Estimate, Gross, For New Defaults | 8.00% | |
Hurricanes Harvey and Irma | Primary Mortgage Product | Mortgage Insurance Segment | ||
Default To Claim Rate Estimate, Gross, For New Defaults | 3.00% |
Note 10 - Losses and Loss Adj_7
Note 10 - Losses and Loss Adjustment Expense Mortgage Insurance Reserve Assumptions (Details) - Mortgage Insurance Segment - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Default To Claim Rate Estimate, Gross, For New Defaults | 9.50% | ||
Decrease To Our Loss Reserves Due To Estimated Rescissions And Denials | $ 32 | $ 32 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | $ 10.4 | $ 11.3 | |
Primary Mortgage Product | |||
Weighted Average Default To Claim Rate Assumption Net Of Denials Rescissions and Reinstatements | 33.00% | ||
Default To Claim Rate Estimate, Gross, For New Defaults | 8.00% | ||
Default To Claim Rate Estimate, Gross, For Pre-Foreclosure Stage Defaults | 68.00% | ||
Default To Claim Estimate, Gross, For Foreclosure Stage Defaults | 72.00% |
Note 11 - Senior Notes Schedule
Note 11 - Senior Notes Schedule of Senior Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,031,197 | $ 1,030,348 |
Senior Notes Due 2019 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% |
Senior Notes | $ 158,502 | $ 158,324 |
Senior Notes Due 2020 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% |
Senior Notes | $ 232,961 | $ 232,729 |
Senior Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% |
Senior Notes | $ 196,056 | $ 195,867 |
Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% |
Senior Notes | $ 443,678 | $ 443,428 |
Note 12 - Other Liabilities Com
Note 12 - Other Liabilities Components of Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | ||
Other Liabilities [Abstract] | ||||
FHLB advances | $ 108,532 | $ 82,532 | ||
Deferred ceding commission | 88,110 | 91,400 | ||
Lease liability | 70,927 | [1] | 0 | |
Payable for securities | [2] | 35,981 | 7,949 | |
Current federal income taxes | 25,245 | 0 | ||
Accrued compensation | 19,112 | 61,452 | ||
Amount payable on the return of cash collateral under securities lending agreements (2) | [3] | 6,233 | 11,699 | |
Other | 65,330 | 78,627 | ||
Total other liabilities | $ 419,470 | $ 333,659 | ||
[1] | Classified in other liabilities in our condensed consolidated balance sheets. | |||
[2] | Represents the payable for purchases of securities that have not yet settled as of the balance sheet date. | |||
[3] | Amounts payable on the return of cash collateral under securities lending agreements are classified as other liabilities in our condensed consolidated balance sheets. See Note 5 |
Note 12 - Other Liabilities FHL
Note 12 - Other Liabilities FHLB Advances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
FHLB Advances [Line Items] | ||
FHLB advances | $ 108,532 | $ 82,532 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 2.77% | |
Federal Home Loan Bank, Advances, Maturity Period, Fixed Rate | 90 days | |
FHLB Advances | ||
FHLB Advances [Line Items] | ||
FHLB Advances Maturing in Remainder of 2019 | $ 86,500 | |
FHLB Advances Maturing in 2020 | 3,000 | |
FHLB Advances Maturing in 2021 | 8,000 | |
FHLB Advances Maturing in 2023 | 9,000 | |
FHLB Advances Maturing in 2024 and Thereafter | $ 2,000 |
Note 12 - Other Liabilities Lea
Note 12 - Other Liabilities Lease Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |||
Operating Lease, Cost | $ 2,319 | ||||
Short-term Lease, Cost | 23 | ||||
Lease, Cost | 2,342 | ||||
Operating Lease, Payments | (2,637) | ||||
Operating Lease, Right-of-Use Asset | [2] | 47,150 | [1] | $ 0 | |
Operating Lease, Liability | $ 70,927 | [3] | 0 | ||
Operating Lease, Weighted Average Remaining Lease Term | 10 years 4 months 24 days | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 6.75% | ||||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 7,873 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 10,428 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 9,964 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 10,136 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 10,275 | ||||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 56,542 | ||||
Lessee, Operating Lease, Liability, Payments, Due | 105,218 | ||||
Lessee, Operating Lease, Imputed Interest | $ (34,291) | ||||
Operating Leases, Rent Expense | $ 1,200 | ||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 11,310 | ||||
Operating Leases, Future Minimum Payments, Due in Two Years | 10,847 | ||||
Operating Leases, Future Minimum Payments, Due in Three Years | 10,165 | ||||
Operating Leases, Future Minimum Payments, Due in Four Years | 10,100 | ||||
Operating Leases, Future Minimum Payments, Due in Five Years | 10,251 | ||||
Operating Leases, Future Minimum Payments, Due Thereafter | 56,317 | ||||
Operating Leases, Future Minimum Payments Due | 108,990 | ||||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 0 | ||||
Minimum | |||||
Lessee, Operating Lease, Discount Rate | 4.22% | ||||
Maximum | |||||
Lessee, Operating Lease, Discount Rate | 7.08% | ||||
[1] | Classified in other assets in our condensed consolidated balance sheets. See Note 8 | ||||
[2] | Represents right-of-use assets recognized as a result of our adoption, as of January 1, 2019, of the new accounting and disclosure requirements for leases of property, plant and equipment. See Note 1 for additional information. Right-of-use assets are shown less accumulated amortization of $2.3 million at March 31, 2019 | ||||
[3] | Classified in other liabilities in our condensed consolidated balance sheets. |
Note 12 - Other Liabilities Rev
Note 12 - Other Liabilities Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) $ in Millions | Mar. 31, 2019 | Oct. 26, 2018 | Oct. 16, 2017 |
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 267.5 | $ 225 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 300 | ||
Line of Credit Facility, Increase to Current Borrowing Capacity | $ 42.5 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies Legal Proceedings (Details) | 3 Months Ended | ||||
Mar. 31, 2019matter | Aug. 31, 2018Certificates | Apr. 12, 2018Certificates | Jun. 05, 2017Certificates | Dec. 17, 2016Certificates | |
Unasserted Claim | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Minimum Number of Pending or Threatened Matters That Could Affect Our Results | matter | 1 | ||||
Insurance Claims | Total primary reserves | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Legal Actions Commencement, Period | 2 years | ||||
Insurance Claims | Pool Insurance Mortgage Insurance Product | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Legal Actions Commencement, Period | 3 years | ||||
Ocwen | Ocwen filings, Initial | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Issued Under Multiple Insurance Policies | 9,420 | ||||
Ocwen | Ocwen filings, Amended | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Issued Under Multiple Insurance Policies | 8,870 | ||||
Ocwen | Ocwen filings, Narrowed Scope | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Whose Scopes Were Narrowed as a Result of the Confidential Agreement | 2,500 | ||||
Nationstar | Insurance coverage decisions | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Issued Under Multiple Insurance Policies | 3,014 | ||||
Nationstar | Insurance premium refunds | |||||
Loss Contingencies [Line Items] | |||||
Insurance Certificates Issued Under Multiple Insurance Policies | 2,231 |
Note 14 - Capital Stock Share R
Note 14 - Capital Stock Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | May 06, 2019 | Mar. 20, 2019 | Aug. 16, 2018 | |
Third Quarter 2018 Repurchase Program | |||||
Capital Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 100 | ||||
First Quarter 2019 Repurchase Program | |||||
Capital Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 150 | ||||
Total of All Repurchase Programs | |||||
Capital Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||
Stock Repurchased During Period, Shares | 1,546,674 | ||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 20.54 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 218.2 | ||||
Subsequent Event | Total of All Repurchase Programs | |||||
Capital Stock [Line Items] | |||||
Stock Repurchased During Period, Shares | 4,131,329 | ||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 21.94 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 127.7 |
Note 14 - Capital Stock Dividen
Note 14 - Capital Stock Dividends Paid (Details) - $ / shares | 3 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Equity [Abstract] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 |
Note 15 - Accumulated Other C_3
Note 15 - Accumulated Other Comprehensive Income (Loss) Rollforward of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | ||
Other Comprehensive Income, Net of Tax [Abstract] | ||||
AOCI, Net of Tax, Balance at beginning of period | $ (60,920) | |||
Unrealized holding gains (losses) arising during the period | 78,023 | $ (60,643) | ||
Less: Reclassification adjustment for net gains (losses) included in net income (loss) | (391) | (3,132) | ||
Unrealized foreign currency translation adjustments | 0 | 3 | ||
Other comprehensive income (loss), net of tax | 78,414 | (57,508) | ||
AOCI, Net of Tax, Balance at end of period | 17,494 | |||
Other Comprehensive Income | ||||
Other Comprehensive Income, before Tax [Abstract] | ||||
AOCI before Tax, Balance at beginning of period | (77,114) | 32,669 | ||
AOCI before Tax, Balance adjusted for cumulative effect of adopting accounting standard updates | 32,953 | |||
Unrealized holding gains (losses) arising during the period | 98,763 | (76,763) | ||
Less: Reclassification adjustment for net gains (losses) included in net income | [1] | (495) | (3,964) | |
Net unrealized gains (losses) on investments | 99,258 | (72,799) | ||
Unrealized foreign currency translation adjustments | 4 | |||
Other comprehensive income (loss) | 99,258 | (72,795) | ||
AOCI before Tax, Balance at end of period | 22,144 | (39,842) | ||
Other Comprehensive Income, Tax [Abstract] | ||||
AOCI, Tax, Balance at beginning of period | (16,194) | 9,584 | ||
AOCI, Tax, Balance adjusted for Cumulative Effect of Adopting Accounting Standard Updates | 6,920 | |||
Unrealized holding gains (losses) arising during the period | 20,740 | (16,120) | ||
Less: Reclassification adjustment for net gains (losses) included in net income | [1] | (104) | (832) | |
Net unrealized gains (losses) on investments | 20,844 | (15,288) | ||
Unrealized foreign currency translation adjustments | 1 | |||
Other comprehensive income (loss) | 20,844 | (15,287) | ||
AOCI Tax, Balance at end of period | 4,650 | (8,367) | ||
Other Comprehensive Income, Net of Tax [Abstract] | ||||
AOCI, Net of Tax, Balance at beginning of period | (60,920) | 23,085 | ||
AOCI, Net of Tax, Balance adjusted for Cumulative Effect of Adopting Accounting Standard Updates | 26,033 | |||
Unrealized holding gains (losses) arising during the period | 78,023 | (60,643) | ||
Less: Reclassification adjustment for net gains (losses) included in net income (loss) | [1] | (391) | (3,132) | |
Net unrealized gains (losses) on investments | 78,414 | (57,511) | ||
Net foreign currency translation adjustments | 3 | |||
Other comprehensive income (loss), net of tax | 78,414 | (57,508) | ||
AOCI, Net of Tax, Balance at end of period | $ 17,494 | $ (31,475) | ||
ASU 2016-01 | Other Comprehensive Income | ||||
Other Comprehensive Income, before Tax [Abstract] | ||||
AOCI before tax,Cumulative Effect of Adopting an Accounting Standard Update | $ 284 | |||
Other Comprehensive Income, Tax [Abstract] | ||||
AOCI, Tax, Cumulative Effect of Adopting an Accounting Standard Update | 60 | |||
Other Comprehensive Income, Net of Tax [Abstract] | ||||
AOCI, Net of Tax, Cumulative Effect of Adopting an Accounting Standard Update, Net of Tax | 224 | |||
ASU 2018-02 | Other Comprehensive Income | ||||
Other Comprehensive Income, before Tax [Abstract] | ||||
AOCI before tax,Cumulative Effect of Adopting an Accounting Standard Update | 0 | |||
Other Comprehensive Income, Tax [Abstract] | ||||
AOCI, Tax, Cumulative Effect of Adopting an Accounting Standard Update | (2,724) | |||
Other Comprehensive Income, Net of Tax [Abstract] | ||||
AOCI, Net of Tax, Cumulative Effect of Adopting an Accounting Standard Update, Net of Tax | $ 2,724 | |||
[1] | Included in net gains (losses) on investments and other financial instruments on our condensed consolidated statements of operations. |
Note 16 - Statutory Informati_3
Note 16 - Statutory Information Statutory Information (Details) $ in Millions | Mar. 31, 2019USD ($)state |
Statutory Accounting Practices [Line Items] | |
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement | state | 16 |
Risk To Capital Ratio, Regulatory Maximum | 25 |
Non RBC States | Minimum | |
Statutory Accounting Practices [Line Items] | |
Capital Required for Capital Adequacy | $ 1 |
Non RBC States | Maximum | |
Statutory Accounting Practices [Line Items] | |
Capital Required for Capital Adequacy | 5 |
Consolidated insurance subsidiaries | |
Statutory Accounting Practices [Line Items] | |
Restricted Net Assets Held by Consolidated Subsidiaries | $ 3,900 |
Note 16 - Statutory Informati_4
Note 16 - Statutory Information Risk To Capital Calculation (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Radian Guaranty | |||
Risk to Capital Line Items [Line Items] | |||
RIF, net | [1] | $ 41,283.5 | $ 40,711.3 |
Common stock and paid-in capital | 1,416 | 1,416 | |
Surplus Note | 100 | 100 | |
Unassigned earnings (deficit) | (651.1) | (701.9) | |
Statutory policyholders’ surplus | 864.9 | 814.1 | |
Contingency reserve | 2,224.5 | 2,109.9 | |
Statutory capital | $ 3,089.4 | $ 2,924 | |
Risk-to-capital | 13.4 | 13.9 | |
Increase (decrease) in Statutory Capital and Surplus | $ 165.4 | ||
Statutory Net Income (Loss) | $ 165.1 | ||
Consolidated insurance subsidiaries | |||
Risk to Capital Line Items [Line Items] | |||
Risk-to-capital | 12.4 | 12.8 | |
Extraordinary Distribution | Radian Guaranty | |||
Risk to Capital Line Items [Line Items] | |||
Increase (decrease) in Statutory Capital and Surplus | $ (375) | ||
[1] | Excludes risk ceded through all reinsurance programs (including with affiliates) and RIF on defaulted loans. |
Note 16 - Statutory Informati_5
Note 16 - Statutory Information EnTitle Insurance (Details) - EnTitle Insurance - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 26.1 | |
Statutory Net Income (Loss) | (0.4) | |
Amounts held in escrow | $ 2.4 | $ 4.7 |