Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 05, 2019 | |
Document Information [Line Items] | ||
Document Transition Report | false | |
Document Quarterly Report | true | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Entity Incorporation, State or Country Code | DE | |
Entity Registrant Name | Radian Group Inc | |
City Area Code | 215 | |
Local Phone Number | 231-1000 | |
Entity Central Index Key | 0000890926 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 1-11356 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 201,149,388 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Tax Identification Number | 23-2691170 | |
Entity Address, Address Line One | 1500 Market Street | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19102 | |
Trading Symbol | RDN | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) Statement - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Fixed-maturities available for sale—at fair value (amortized cost $4,369,273 and $4,098,962) | $ 4,527,223 | $ 4,021,575 |
Trading securities—at fair value (amortized cost of $307,891 and $468,696) | 329,935 | 469,071 |
Equity securities—at fair value (cost of $119,408 and $139,377) | 121,759 | 130,565 |
Short-term investments—at fair value (includes $34,767 and $11,699 of reinvested cash collateral held under securities lending agreements) | 552,095 | 528,403 |
Other invested assets—at fair value | 2,712 | 3,415 |
Total investments | 5,533,724 | 5,153,029 |
Cash | 49,393 | 95,393 |
Restricted cash | 2,853 | 11,609 |
Accounts and notes receivable | 144,113 | 78,652 |
Deferred income taxes, net (Note 9) | 0 | 131,643 |
Goodwill and other acquired intangible assets, net (Note 6) | 52,533 | 58,998 |
Prepaid reinsurance premium | 374,339 | 417,628 |
Other assets (Note 8) | 513,647 | 367,700 |
Total assets | 6,670,602 | 6,314,652 |
Liabilities and Stockholders’ Equity | ||
Unearned premiums | 647,856 | 739,357 |
Reserve for losses and loss adjustment expense (Note 10) | 398,141 | 401,361 |
Senior notes (Note 11) | 886,643 | 1,030,348 |
FHLB advances (Note 11) | 104,492 | 82,532 |
Reinsurance funds withheld | 352,532 | 321,212 |
Other liabilities | 358,431 | 251,127 |
Total liabilities | 2,748,095 | 2,825,937 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity | ||
Common stock: par value $0.001 per share; 485,000 shares authorized at September 30, 2019 and December 31, 2018; 220,174 and 231,132 shares issued at September 30, 2019 and December 31, 2018, respectively; 202,219 and 213,473 shares outstanding at September 30, 2019 and December 31, 2018, respectively | 220 | 231 |
Treasury stock, at cost: 17,955 and 17,660 shares at September 30, 2019 and December 31, 2018, respectively | (901,556) | (894,870) |
Additional paid-in capital | 2,469,097 | 2,724,733 |
Retained earnings | 2,229,107 | 1,719,541 |
Accumulated other comprehensive income (loss) (Note 14) | 125,639 | (60,920) |
Total stockholders’ equity | 3,922,507 | 3,488,715 |
Total liabilities and stockholders’ equity | $ 6,670,602 | $ 6,314,652 |
Balance Sheet Parentheticals (P
Balance Sheet Parentheticals (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fixed-maturities available for sale—at amortized cost | $ 4,369,273 | $ 4,098,962 |
Debt Securities, Trading, Amortized Cost | 307,981 | 468,696 |
Available-for-sale Equity Securities, Amortized Cost Basis | 119,408 | 139,377 |
Reinvested cash collateral held under securities lending agreements | $ 34,767 | $ 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 | 220,174 | 231,132 |
Common Stock, Shares, Outstanding | 202,219 | 213,473 |
Treasury Stock, Shares | 17,955 | 17,660 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues: | |||||
Net premiums earned—insurance | $ 281,185 | $ 258,431 | $ 843,863 | [1] | $ 752,325 |
Services revenue | 42,509 | 36,566 | 114,565 | 106,558 | |
Net investment income | 42,756 | 38,995 | 130,364 | 110,424 | |
Net gains (losses) on investments and other financial instruments | 13,009 | (4,480) | 47,462 | (30,771) | |
Other income | 879 | 1,174 | 2,677 | 2,997 | |
Total revenues | 380,338 | 330,686 | 1,138,931 | 941,533 | |
Expenses: | |||||
Provision for losses | 29,231 | 20,881 | 97,412 | 77,501 | |
Policy acquisition costs | 6,435 | 5,667 | 18,531 | 18,780 | |
Cost of services | 29,044 | 25,854 | 81,046 | 73,185 | |
Other operating expenses | 76,384 | 70,125 | 225,235 | 203,552 | |
Restructuring and other exit costs | 0 | 4,464 | 0 | 5,940 | |
Interest expense | 13,492 | 15,535 | 44,150 | 45,906 | |
Loss on extinguishment of debt | 5,940 | 0 | 22,738 | 0 | |
Amortization and impairment of other acquired intangible assets | 2,139 | 3,472 | 6,465 | 8,968 | |
Total expenses | 162,665 | 145,998 | 495,577 | 433,832 | |
Consolidated pretax income (loss) | 217,673 | 184,688 | 643,354 | 507,701 | |
Income tax provision | 44,235 | 41,891 | 132,229 | 41,469 | |
Net income | $ 173,438 | $ 142,797 | $ 511,125 | $ 466,232 | |
Earnings Per Share, Basic [Abstract] | |||||
Basic net income (loss) per share | $ 0.85 | $ 0.67 | $ 2.45 | $ 2.17 | |
Earnings Per Share, Diluted [Abstract] | |||||
Diluted net income (loss) per share | $ 0.83 | $ 0.66 | $ 2.39 | $ 2.13 | |
Weighted-average number of common shares outstanding—basic | 203,107 | 213,309 | 208,561 | 214,499 | |
Weighted-average number of common and common equivalent shares outstanding—diluted | 208,691 | 217,902 | 213,963 | 218,783 | |
[1] | Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies. See Note 3 for further information. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 173,438 | $ 142,797 | $ 511,125 | $ 466,232 |
Unrealized gains (losses) on investments: | ||||
Unrealized holding gains (losses) arising during the period | 40,654 | (5,341) | 190,677 | (93,788) |
Less: Reclassification adjustment for net gains (losses) included in net income | 3,477 | (4,044) | 4,115 | (8,512) |
Net unrealized gains (losses) on investments | 37,177 | (1,297) | 186,562 | (85,276) |
Foreign Currency Translation Adjustments | ||||
Net foreign currency translation adjustments | 0 | 0 | (3) | 3 |
Other comprehensive income (loss), net of tax | 37,177 | (1,297) | 186,559 | (85,273) |
Comprehensive income | $ 210,615 | $ 141,500 | $ 697,684 | $ 380,959 |
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of adopting accounting standard updates | $ (663) | $ 2,948 | |||||
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] | |||||||
Issuance of common stock under incentive and benefit plans | 1 | ||||||
Shares repurchased under share repurchase program (Note 13) | (3) | (50,050) | |||||
Repurchases of common stock under incentive plans | (747) | ||||||
Issuance of common stock under incentive and benefit plans | 2,593 | ||||||
Share-based compensation | 13,808 | ||||||
Net income | $ 466,232 | 466,232 | |||||
Dividends declared | (1,606) | ||||||
Net unrealized gains (losses) on investments, net of tax | (85,276) | (85,276) | |||||
Net foreign currency translation adjustment, net of tax | 3 | 3 | |||||
Balance, end of period at Sep. 30, 2018 | $ 3,347,278 | 231 | (894,635) | 2,720,626 | 1,580,296 | (59,240) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of adopting accounting standard updates | 0 | 0 | |||||
Balance, beginning of period at Jun. 30, 2018 | 231 | (894,610) | 2,715,426 | 1,438,032 | (57,943) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under incentive and benefit plans | 0 | ||||||
Shares repurchased under share repurchase program (Note 13) | 0 | 0 | |||||
Repurchases of common stock under incentive plans | (25) | ||||||
Issuance of common stock under incentive and benefit plans | 1,014 | ||||||
Share-based compensation | 4,186 | ||||||
Net income | 142,797 | 142,797 | |||||
Dividends declared | (533) | ||||||
Net unrealized gains (losses) on investments, net of tax | (1,297) | (1,297) | |||||
Net foreign currency translation adjustment, net of tax | 0 | 0 | |||||
Balance, end of period at Sep. 30, 2018 | 3,347,278 | 231 | (894,635) | 2,720,626 | 1,580,296 | (59,240) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of adopting accounting standard updates | 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] | |||||||
Issuance of common stock under incentive and benefit plans | 1 | ||||||
Shares repurchased under share repurchase program (Note 13) | (12) | (275,173) | |||||
Repurchases of common stock under incentive plans | (6,686) | ||||||
Issuance of common stock under incentive and benefit plans | 4,418 | ||||||
Share-based compensation | 15,119 | ||||||
Net income | 511,125 | 511,125 | |||||
Dividends declared | (1,559) | ||||||
Net unrealized gains (losses) on investments, net of tax | 186,562 | 186,562 | |||||
Net foreign currency translation adjustment, net of tax | (3) | (3) | |||||
Balance, end of period at Sep. 30, 2019 | 3,922,507 | 3,922,507 | 220 | (901,556) | 2,469,097 | 2,229,107 | 125,639 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of adopting accounting standard updates | 0 | 0 | |||||
Balance, beginning of period at Jun. 30, 2019 | 223 | (901,419) | 2,539,803 | 2,056,175 | 88,462 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under incentive and benefit plans | 0 | ||||||
Shares repurchased under share repurchase program (Note 13) | (3) | (77,535) | |||||
Repurchases of common stock under incentive plans | (137) | ||||||
Issuance of common stock under incentive and benefit plans | 1,660 | ||||||
Share-based compensation | 5,169 | ||||||
Net income | 173,438 | 173,438 | |||||
Dividends declared | (506) | ||||||
Net unrealized gains (losses) on investments, net of tax | 37,177 | 37,177 | |||||
Net foreign currency translation adjustment, net of tax | 0 | 0 | |||||
Balance, end of period at Sep. 30, 2019 | $ 3,922,507 | $ 3,922,507 | $ 220 | $ (901,556) | $ 2,469,097 | $ 2,229,107 | $ 125,639 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Cash Provided by (Used in) Operating Activities | $ 506,805 | $ 491,929 |
Cash flows from investing activities: | ||
Proceeds from Sales of Fixed-Maturity Investments Available for sale | 770,393 | 577,034 |
Proceeds from Sales of Trading Securities | 120,875 | 35,182 |
Proceeds from Sales of Equity Securities | 52,295 | 92,702 |
Proceeds from Redemption of Fixed-Maturity Investments Available for sale | 287,557 | 337,857 |
Proceeds from Redemptions of Trading securities | 36,827 | 53,437 |
Purchases of Fixed-Maturity Investments Available for sale | (1,352,883) | (1,307,335) |
Purchases of Equity Securities | (45,748) | (59,625) |
Sales, Redemptions and (Purchases) of Short-term Investments, Net | (12,199) | (216,778) |
Sales, Redemptions and (Purchases) of Other assets and other invested assets, net | 687 | 2,111 |
Purchases of property and equipment, net | (20,707) | (20,323) |
Acquisitions, net of cash acquired | 0 | (662) |
Net cash provided by (used in) investing activities | (162,903) | (506,400) |
Cash flows from financing activities: | ||
Dividends paid | (1,559) | (1,606) |
Issuance of senior notes, net | 442,498 | 0 |
Repayments and repurchases of senior notes | (610,739) | 0 |
Issuance of common stock | 2,126 | 1,128 |
Repurchases of common shares | (275,185) | (50,053) |
Credit facility commitment fees paid | (710) | (643) |
Change in secured borrowings, net (with terms less than 3 months) | 9,568 | 41,414 |
Proceeds from secured borrowings (with terms greater than 3 months) | 73,011 | 45,458 |
Payments of secured borrowings (with terms greater than 3 months) | (37,550) | (3,000) |
Repayments of other borrowings | (114) | (133) |
Net cash provided by (used in) financing activities | (398,654) | 32,565 |
Effect of exchange rate changes on cash and restricted cash | (4) | 0 |
Increase (decrease) in cash and restricted cash | (54,756) | 18,094 |
Cash and restricted cash, beginning of period | 107,002 | 96,244 |
Cash and restricted cash, end of period | $ 52,246 | $ 114,338 |
Note 1 - Condensed Consolidated
Note 1 - Condensed Consolidated Financial Statements - Business Overview and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 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 homebuyers 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 IIF and RIF were $237.2 billion and $60.4 billion , respectively, as of September 30, 2019 . 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. 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. To fully understand the basis of presentation, these interim financial statements and related notes contained herein 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 “— Recent Accounting Pronouncements—Accounting Standards Adopted During 2019 .” Recent Accounting Pronouncements Accounting Standards Adopted During 2019 . We adopted ASU 2016-02, Leases (“ASU 2016-02”), on January 1, 2019. Most significantly, this update requires a lessee to recognize, as of the lease commencement date, a liability to make lease payments and an asset with respect to its right to use the underlying asset for the lease term. Upon adoption for contracts in effect as of January 1, 2019, we recorded a lease liability of $73.5 million within other liabilities, and a right-of-use asset of $49.4 million within other assets, corresponding to the lease liability as adjusted for deferred rent and unamortized allowances and incentives of $24.1 million . We elected the optional transition method and 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. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance. With respect to leases entered into subsequent to the adoption of this ASU, we determine if an arrangement includes a lease at inception. If it does, we recognize a right-of-use asset and lease liability in other assets and other liabilities, respectively, in our condensed consolidated balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and are recognized net of any payments made or received from the lessor. Lease liabilities represent our obligation to make lease payments arising from the lease and are based on the present value of lease payments over the lease term. 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 ASU that include lease and non-lease components, such components are generally not accounted for separately. We have elected the short-term exemption for contracts with lease terms of 12 months or less. 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 believe it was 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 September 30, 2019 , there were no leases that had not yet commenced but that created significant rights and obligations for us. See Note 12 for more information about our lease agreements. We adopted ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs, on January 1, 2019. 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 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 ASU 2016-13, Financial Instruments-Credit Losses, and issued subsequent amendments to the initial guidance. This ASU and the associated subsequent amendments require that financial assets measured at their amortized cost basis be presented at the net amount expected to be collected. Credit losses relating to our 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 allowance method will allow reversals of credit losses if the estimate of credit losses declines. This ASU will also affect certain of our accounts and notes receivable, including premiums receivable, and certain of our other assets, including reinsurance recoverables. However, this ASU is not applicable to the accounting for insurance losses and loss adjustment expenses. Due to the nature of our assets affected by this update, we do not expect it to have a material effect on our financial statements and disclosures. 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. In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance. 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 but do not expect it to have a material effect on our financial statements and disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. This ASU requires 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 but do not expect it to have a material effect on our financial statements and disclosures. In April 2019, the FASB issued ASU 2019-04, Codification Improvements related to Financial Instruments-Credit Losses, Derivatives and Hedging, and Financial Instruments. This update to the accounting standards regarding financial instruments and derivatives and hedging clarifies the accounting treatment for the measurement of credit losses and provides further clarification on previously issued updates. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the potential impact of the adoption of this update but 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 | 9 Months Ended |
Sep. 30, 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 Nine Months Ended (In thousands, except per-share amounts) 2019 2018 2019 2018 Net income—basic and diluted $ 173,438 $ 142,797 $ 511,125 $ 466,232 Average common shares outstanding—basic 203,107 213,309 208,561 214,499 Dilutive effect of share-based compensation arrangements (1) 5,584 4,593 5,402 4,284 Adjusted average common shares outstanding—diluted 208,691 217,902 213,963 218,783 Net income per share: Basic $ 0.85 $ 0.67 $ 2.45 $ 2.17 Diluted $ 0.83 $ 0.66 $ 2.39 $ 2.13 ______________________ (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 Nine Months Ended (In thousands) 2019 2018 2019 2018 Shares of common stock equivalents — 338 160 338 |
Note 3 - Segment Reporting
Note 3 - Segment Reporting | 9 Months Ended |
Sep. 30, 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. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation. 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 for periods prior to January 1, 2019, all interest expense; and (iii) all net investment income from 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 Clayton 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 Clayton Intercompany Note as discussed above. 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) excluding the effects of: (i) net gains (losses) on investments and other financial instruments; (ii) loss on extinguishment of debt; (iii) amortization and impairment of goodwill and other acquired intangible assets; and (iv) impairment of other long-lived assets and other non-operating items, such as losses from the sale of lines of business and acquisition-related expenses. See Note 4 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for detailed information regarding items excluded from adjusted pretax operating income (loss), including the reasons for their treatment. Although adjusted pretax operating income (loss) 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 (loss). The reconciliation of adjusted pretax operating income (loss) for our reportable segments to consolidated pretax income is as follows: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Adjusted pretax operating income (loss): Mortgage Insurance $ 214,256 $ 204,620 $ 641,791 (1) $ 573,771 Services (1,513 ) (7,921 ) (11,139 ) (21,960 ) Total adjusted pretax operating income 212,743 196,699 630,652 551,811 Net gains (losses) on investments and other financial instruments 13,009 (4,480 ) 47,462 (30,771 ) Loss on extinguishment of debt (5,940 ) — (22,738 ) — Amortization and impairment of other acquired intangible assets (2,139 ) (3,472 ) (6,465 ) (8,968 ) Impairment of other long-lived assets and other non-operating items — (4,059 ) (5,557 ) (4,371 ) Consolidated pretax income $ 217,673 $ 184,688 $ 643,354 $ 507,701 ______________________ (1) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies, as further described below. 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. Our results for the nine months ended September 30, 2019 include a $32.9 million increase in net premiums earned and a $0.12 increase in net income per share, due to a reduction in our unearned premiums resulting from a cumulative adjustment in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies. The update to our earned premium recognition factors also resulted in a $6.2 million reduction in other operating expenses and a $0.02 increase in net income per share due to the acceleration of earned ceding commissions related to policies covered under our Single Premium QSR Program. This cumulative adjustment reflects a change in our estimate of the period over which we recognize premiums during the life of our mortgage insurance policies. We periodically review our premium recognition models, with adjustments to the estimate, if any, reflected in current period income. See Note 2 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information regarding our accounting policies for insurance premiums revenue recognition. We updated the amortization rates due to the continuing increase in the significance of borrower-paid Single Premium Policies in our portfolio following our rate reductions on borrower-paid Single Premium Policies in 2018. Under the Homeowners Protection Act of 1998 (“HPA”), borrower-paid policies must be canceled automatically on the date the LTV is scheduled to reach 78% of the original value (or, if the loan is not current on that date, on the date that the loan becomes current). As a result, given the shift in our mix of Single Premium Policies toward more borrower-paid Single Premium Policies than lender-paid, the average anticipated term of our Single Premium IIF is declining compared to historical levels. We updated our analysis to reflect not only this anticipated effect of HPA cancellations on borrower-paid policies, but also changes in observed and projected loss patterns for both borrower-paid and lender-paid policies. Revenue The reconciliation of our reportable segment revenues to consolidated revenues is as follows: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Reportable segment revenues: Mortgage Insurance $ 321,056 $ 295,031 $ 968,215 (1) $ 859,380 Services 47,378 40,901 126,406 115,577 Total reportable segment revenues 368,434 335,932 1,094,621 974,957 Add: Net gains (losses) on investments and other financial instruments 13,009 (4,480 ) 47,462 (30,771 ) Less: Inter-segment revenues (2) 1,105 766 3,152 2,653 Total revenues $ 380,338 $ 330,686 $ 1,138,931 $ 941,533 ______________________ (1) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies, as further described above. (2) Inter-segment revenues included in the Services segment. The accounting standard on revenue from contracts with customers is primarily applicable to our services revenue 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 from external customers, by type: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Services revenue Mortgage Services $ 19,218 $ 18,839 $ 51,531 $ 55,552 Real Estate Services 17,865 15,984 50,640 44,948 Title Services 5,426 1,743 12,394 6,058 Total services revenue $ 42,509 $ 36,566 $ 114,565 $ 106,558 Our services revenues 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 expected to be recognized in any future period related to remaining performance obligations, such as contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. 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 revenue contracts as of the dates indicated: (In thousands) September 30, December 31, Accounts Receivable $ 18,956 $ 15,461 Unbilled Receivables 25,110 19,917 Deferred Revenues 3,036 3,204 |
Note 4 - Fair Value of Financia
Note 4 - Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For discussion of our valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 of Notes to Consolidated Financial Statements in our 2018 Form 10-K. The following is a list of assets that are measured at fair value by hierarchy level as of September 30, 2019 : (In thousands) Level I Level II Total Assets at fair value Investments: Fixed-maturities available for sale: U.S. government and agency securities $ 128,443 $ 34,012 $ 162,455 State and municipal obligations — 110,981 110,981 Corporate bonds and notes — 2,347,346 2,347,346 RMBS — 619,935 619,935 CMBS — 563,338 563,338 Other ABS — 717,986 717,986 Foreign government and agency securities — 5,182 5,182 Total fixed-maturities available for sale 128,443 4,398,780 4,527,223 Trading securities: State and municipal obligations — 121,190 121,190 Corporate bonds and notes — 156,648 156,648 RMBS — 17,116 17,116 CMBS — 34,981 34,981 Total trading securities — 329,935 329,935 Equity securities 116,762 4,997 121,759 Short-term investments: U.S. government and agency securities 120,969 — 120,969 State and municipal obligations — 25,547 25,547 Money market instruments 196,372 — 196,372 Corporate bonds and notes — 37,593 37,593 Other investments (1) — 171,614 171,614 Total short-term investments 317,341 234,754 552,095 Total investments at fair value (2) 562,546 4,968,466 5,531,012 Other assets: Loaned securities: (3) U.S. government and agency securities 19,960 — 19,960 Corporate bonds and notes — 15,227 15,227 Equity securities 30,257 — 30,257 Total assets at fair value (2) $ 612,763 $ 4,983,693 $ 5,596,456 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include other invested assets of $2.7 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (3) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 5 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 Investments: Fixed-maturities available for sale: U.S. government and agency securities $ 55,658 $ 28,412 $ 84,070 State and municipal obligations — 138,313 138,313 Corporate bonds and notes — 2,222,473 2,222,473 RMBS — 332,142 332,142 CMBS — 539,915 539,915 Other ABS — 704,662 704,662 Total fixed-maturities available for sale 55,658 3,965,917 4,021,575 Trading securities: State and municipal obligations — 168,359 168,359 Corporate bonds and notes — 228,152 228,152 RMBS — 21,082 21,082 CMBS — 51,478 51,478 Total trading securities — 469,071 469,071 Equity securities 126,607 3,958 130,565 Short-term investments: U.S. government and agency securities 133,657 — 133,657 State and municipal obligations — 18,070 18,070 Money market instruments 95,132 — 95,132 Corporate bonds and notes — 105,625 105,625 Other ABS — 806 806 Other investments (1) — 175,113 175,113 Total short-term investments 228,789 299,614 528,403 Total investments at fair value (2) 411,054 4,738,560 5,149,614 Other assets: Loaned securities: (3) U.S. government and agency securities 9,987 — 9,987 Corporate bonds and notes — 7,818 7,818 Equity securities 10,055 — 10,055 Total assets at fair value (2) $ 431,096 $ 4,746,378 $ 5,177,474 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include 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. (3) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 5 for more information. At September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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: September 30, 2019 December 31, 2018 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Liabilities: Senior notes $ 886,643 $ 919,125 $ 1,030,348 $ 1,007,687 FHLB advances 104,492 105,661 82,532 82,899 The fair value of our senior notes is estimated based on the quoted market prices for the same or similar instruments. The fair value of our FHLB advances is estimated based on expected cash flows for similar borrowings. These liabilities are categorized in Level II of the fair value hierarchy. See Note 11 for additional information on our senior notes and FHLB advances. |
Note 5 - Investments
Note 5 - Investments | 9 Months Ended |
Sep. 30, 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: September 30, 2019 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 176,682 $ 182,415 $ 5,839 $ 106 State and municipal obligations 100,070 110,981 10,911 — Corporate bonds and notes 2,254,627 2,362,004 108,541 1,164 RMBS 605,687 619,935 15,286 1,038 CMBS 542,284 563,338 21,966 912 Other ABS 718,854 717,986 2,394 3,262 Foreign government and agency securities 5,089 5,182 93 — Total securities available for sale, including loaned securities 4,403,293 4,561,841 $ 165,030 $ 6,482 Less: loaned securities 34,020 34,618 Total fixed-maturities available for sale $ 4,369,273 $ 4,527,223 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 $ 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 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, including loaned securities 4,106,594 4,028,987 $ 10,433 $ 88,040 Less: loaned securities 7,632 7,412 Total fixed-maturities available for sale $ 4,098,962 $ 4,021,575 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 September 30, 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. September 30, 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 4 $ 68,719 $ 89 3 $ 9,051 $ 17 7 $ 77,770 $ 106 Corporate bonds and notes 28 126,732 1,145 4 8,543 19 32 135,275 1,164 RMBS 5 30,478 52 23 44,649 986 28 75,127 1,038 CMBS 18 32,861 724 10 9,120 188 28 41,981 912 Other ABS 60 257,688 1,003 40 155,904 2,259 100 413,592 3,262 Total 115 $ 516,478 $ 3,013 80 $ 227,267 $ 3,469 195 $ 743,745 $ 6,482 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 available for sale securities in an unrealized loss position as of September 30, 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 September 30, 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 September 30, 2019 , we did not have the intent to sell any available for sale 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 September 30, 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 nine months ended September 30, 2019 and $1.7 million of other-than-temporary impairment losses in earnings for the nine months ended September 30, 2018 . There were no other-than-temporary impairment losses recognized in accumulated other comprehensive income (loss) for those periods. Securities Lending Agreements We participate in a securities lending program whereby we loan certain securities in our investment portfolio to third-party borrowers for short periods of time. Although we report such securities at fair value within other assets in our condensed consolidated balance sheets, rather than within investments, the detailed information we provide in this Note 5 includes these securities. See Note 4 for additional detail on the loaned securities, and see Notes 2 and 6 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information about our accounting policies with respect to our securities lending agreements and the collateral requirements thereunder, respectively. All of our securities lending agreements are classified as overnight and revolving. Securities collateral on deposit with us from third-party borrowers totaling $32.3 million and $16.8 million as of September 30, 2019 and December 31, 2018 , respectively, may not be transferred or re-pledged unless the third-party borrower is in default, and is therefore not reflected in our condensed consolidated financial statements. Net Gains (Losses) on Investments Net gains (losses) on investments consisted of: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Net realized gains (losses): Fixed-maturities available for sale (1) $ 4,401 $ (4,219 ) $ 5,209 $ (9,030 ) Trading securities 19 (260 ) (391 ) (910 ) Equity securities (28 ) (69 ) (708 ) 571 Other investments 205 101 521 392 Net realized gains (losses) on investments 4,597 (4,447 ) 4,631 (8,977 ) Other-than-temporary impairment losses — (900 ) — (1,744 ) Net unrealized gains (losses) on investments 4,419 1,405 33,005 (17,132 ) Total net gains (losses) on investments $ 9,016 $ (3,942 ) $ 37,636 $ (27,853 ) ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Gross investment gains from sales and redemptions $ 4,697 $ 814 $ 10,926 $ 1,831 Gross investment losses from sales and redemptions (296 ) (5,033 ) (5,717 ) (10,861 ) The net changes in unrealized gains (losses) recognized in earnings on investments that were still held at each period-end were as follows: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Net unrealized gains (losses) on investments still held: Trading securities $ 4,132 $ (2,581 ) $ 18,962 $ (18,431 ) Equity securities 563 2,971 9,170 2,238 Other investments 47 430 (64 ) 655 Net unrealized gains (losses) on investments still held $ 4,742 $ 820 $ 28,068 $ (15,538 ) Contractual Maturities The contractual maturities of fixed-maturities available for sale were as follows: September 30, 2019 Available for Sale (In thousands) Amortized Cost Fair Value Due in one year or less (1) $ 132,819 $ 132,897 Due after one year through five years (1) 885,660 903,546 Due after five years through 10 years (1) 1,108,946 1,168,298 Due after 10 years (1) 409,043 455,841 RMBS (2) 605,687 619,935 CMBS (2) 542,284 563,338 Other ABS (2) 718,854 717,986 Total 4,403,293 4,561,841 Less: loaned securities 34,020 34,618 Total fixed-maturities available for sale $ 4,369,273 $ 4,527,223 ______________________ (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. Other For the nine months ended September 30, 2019 , we did not transfer any securities from the available for sale or trading categories. Our fixed-maturities available for sale include securities totaling $110.0 million and $88.4 million at September 30, 2019 and December 31, 2018 , respectively, serving as collateral for our FHLB advances. See Note 11 for additional information about our FHLB advances. Our fixed-maturities available for sale include securities totaling $16.8 million and $17.6 million at September 30, 2019 and December 31, 2018 , respectively, on deposit and serving as collateral with various state regulatory authorities. |
Note 6 - Goodwill and Other Acq
Note 6 - Goodwill and Other Acquired Intangible Assets, Net | 9 Months Ended |
Sep. 30, 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 in December 2018 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 client relationships. The following table shows the changes in the carrying amount of goodwill for the year-to-date periods ended December 31, 2018 and September 30, 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 September 30, 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: September 30, 2019 (In thousands) Original Amount Acquired Accumulated Amortization and Impairment Net Carrying Amount Client relationships $ 83,860 $ (52,764 ) $ 31,096 Technology 16,964 (14,382 ) 2,582 Trade name and trademarks 8,340 (4,511 ) 3,829 Non-competition agreements 185 (183 ) 2 Licenses 463 (69 ) 394 Total $ 109,812 $ (71,909 ) $ 37,903 December 31, 2018 (In thousands) Original Amount Acquired Accumulated Amortization and Impairment Net Carrying Amount Client relationships $ 84,000 $ (48,227 ) $ 35,773 Technology 17,362 (13,141 ) 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 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 Form 10-K. |
Note 7 - Reinsurance
Note 7 - Reinsurance | 9 Months Ended |
Sep. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance In our mortgage insurance and title insurance businesses, we use reinsurance as part of our risk distribution strategy, including to manage our capital position and risk profile. See Note 8 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for more information about our use of reinsurance in our title insurance business. The reinsurance arrangements for our mortgage insurance business include p remiums ceded under the QSR Program, the Single Premium QSR Program and the Excess-of-Loss Program. The effect of all of our reinsurance programs on our net income is as follows: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Net premiums written—insurance: Direct $ 287,000 $ 279,137 $ 828,022 $ 820,449 Assumed (1) 2,608 1,987 7,528 4,803 Ceded (2) (15,455 ) (24,348 ) (39,900 ) (76,162 ) Net premiums written—insurance $ 274,153 $ 256,776 $ 795,650 $ 749,090 Net premiums earned—insurance: Direct $ 305,493 $ 272,505 $ 919,507 (3) $ 796,448 Assumed (1) 2,614 1,994 7,545 4,822 Ceded (2) (26,922 ) (16,068 ) (83,189 ) (3) (48,945 ) Net premiums earned—insurance $ 281,185 $ 258,431 $ 843,863 (3) $ 752,325 Ceding commissions earned $ 12,153 $ 8,373 $ 37,191 (3) $ 25,728 Ceded losses 771 1,191 4,326 3,356 ______________________ (1) Includes premiums earned from our participation in certain credit risk transfer programs. (2) Net of profit commission. (3) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies. See Note 3 for further information. 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 additional NIW under this program. RIF ceded under the QSR Program was $0.7 billion and $1.0 billion as of September 30, 2019 and 2018 , respectively. 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 additional NIW under this arrangement. RIF ceded under the 2016 Single Premium QSR Agreement was $5.7 billion and $6.4 billion as of September 30, 2019 and 2018 , respectively. In October 2017, Radian Guaranty 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 up to 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 $2.9 billion and $1.6 billion as of September 30, 2019 and 2018 , respectively. Excess-of-Loss Program Since the fourth quarter of 2018, Radian Guaranty has entered into two fully collateralized reinsurance arrangements with the Eagle Re Issuers. Total ceded premiums earned under our Excess-of-Loss Program were $7.5 million and $18.4 million for the three and nine months ended September 30, 2019 , respectively. The Eagle Re 2018-1 reinsurance agreement, entered into in November 2018, provides for up to $434.0 million of aggregate excess-of-loss reinsurance coverage for a specified 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. 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. Radian Guaranty and its affiliates have retained the first-loss layer of $204.9 million of aggregate losses, as well as any losses in excess of the outstanding reinsurance coverage amount. The Eagle Re 2019-1 reinsurance agreement, entered into in April 2019, provides for up to $562.0 million of aggregate excess-of-loss reinsurance coverage for a specified percentage of 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. Radian Guaranty and its affiliates have retained the first-loss layer of $267.6 million of aggregate losses, as well as any losses in excess of the outstanding reinsurance coverage amount. The aggregate excess-of-loss reinsurance coverage for these transactions decreases over a ten -year period as the principal balances of the underlying covered mortgages decrease and as any claims are paid by the applicable Eagle Re Issuer 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 will 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 agreements upon the occurrence of certain events. The Eagle Re Issuers are not subsidiaries or affiliates of Radian Guaranty. Based on the accounting guidance that addresses VIEs, we have not consolidated any of the Eagle Re Issuers in our consolidated financial statements, because Radian does not have: (i) the power to direct the activities that most significantly affect the Eagle Re Issuers’ economic performances or (ii) the obligation to absorb losses or the right to receive benefits from the Eagle Re Issuers that potentially could be significant to the Eagle Re Issuers. See Note 2 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for more information on our accounting treatment of VIEs. The Eagle Re Issuers represent our only VIEs as of September 30, 2019 . The following table presents the total assets of the Eagle Re Issuers as well as Radian Guaranty’s maximum exposure to loss associated with each Eagle Re Issuer, as of the dates indicated. At September 30, 2019 Maximum Exposure to Loss (In thousands) Total VIE Assets (1) On - Balance Sheet Off - Balance Sheet (2) Total Eagle Re 2018-1 $ 408,586 $ 1,493 (3) $ 408,586 $ 410,079 Eagle Re 2019-1 562,036 2,202 (3) 562,036 564,238 Total $ 970,622 $ 3,695 $ 970,622 $ 974,317 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 held by the Eagle Re Issuers are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Liabilities of the Eagle Re Issuers consist of their mortgage insurance-linked notes, described above. (2) Represents Radian Guaranty’s maximum exposure to loss in the event the VIE is unable to meet its obligations to us and 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) were to lose their value 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 aggregate excess-of-loss reinsurance coverage amount. In the same scenario, the related embedded derivative would no longer have value. (3) Represents the fair value of the related embedded derivative, included in other assets in our condensed consolidated balance sheets. 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, consistent with the PMIERs reinsurer counterparty collateral requirements, Radian Guaranty’s 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 are reported in reinsurance funds withheld on our condensed consolidated balance sheets. Any loss recoveries and profit commissions paid to Radian Guaranty related to the Single Premium QSR Program are expected to be realized from this account. See Note 8 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for more information about our reinsurance transactions. |
Note 8 - Other Assets
Note 8 - Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table shows the components of other assets as of the dates indicated: (In thousands) September 30, December 31, Company-owned life insurance $ 103,877 $ 83,377 Prepaid federal income taxes (Note 9) 89,200 — Loaned securities (Note 5) 65,444 27,860 Internal-use software (1) 55,190 51,367 Right-of-use assets (2) 42,613 — Property and equipment (3) 34,339 37,090 Accrued investment income 33,187 34,878 Unbilled receivables 25,110 19,917 Deferred policy acquisition costs 19,928 17,311 Reinsurance recoverables 16,906 14,402 Current federal income tax receivable (4) — 44,506 Other 27,853 36,992 Total other assets $ 513,647 $ 367,700 ______________________ (1) Internal-use software, at cost, has been reduced by accumulated amortization of $70.4 million and $60.3 million at September 30, 2019 and December 31, 2018 , respectively, as well as $3.8 million of impairment charges in the nine months ended September 30, 2019 , and $5.1 million of impairment charges in 2018. Amortization expense was $3.3 million and $2.9 million for the three-month periods ended September 30, 2019 and 2018 , respectively, and $9.8 million and $8.6 million for the nine-month periods ended September 30, 2019 and 2018 , respectively. (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 $6.8 million at September 30, 2019 . (3) Property and equipment at cost, less accumulated depreciation of $68.5 million and $62.9 million at September 30, 2019 and December 31, 2018 , respectively. Depreciation expense was $1.9 million and $2.1 million for the three-month periods ended September 30, 2019 and 2018 , respectively, and $5.9 million for both the nine-month periods ended September 30, 2019 and 2018 . (4) During the nine months ended September 30, 2019 , current federal income tax receivable was reduced by our receipt of the remaining $57.2 million refund from amounts on deposit with the IRS related to the settlement of the IRS Matter. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Certain entities within our consolidated group have generated deferred tax assets of approximately $68.0 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 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 $67.9 million at September 30, 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. 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 resulting in a reduction of our current federal income tax receivable. As of September 30, 2019 , our current federal income tax liability is $33.4 million and is included as a component of other liabilities in our condensed consolidated balance sheets. 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 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 September 30, 2019 , we held $89.2 million of these bonds, which are included as prepaid income taxes within other assets in our condensed consolidated balance sheets. The corresponding deduction of our statutory contingency reserves resulted in the recognition of a net deferred tax liability, which is included in other liabilities in our condensed consolidated balance sheets. 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 Form 10-K. |
Note 10 - Losses and Loss Adjus
Note 10 - Losses and Loss Adjustment Expense | 9 Months Ended |
Sep. 30, 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) September 30, December 31, Mortgage Insurance loss reserves $ 394,087 $ 397,891 Services loss reserves (1) 4,054 3,470 Total reserve for losses and LAE $ 398,141 $ 401,361 ______________________ (1) The Services loss reserves relate to Radian Title Insurance and the majority is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. For all periods presented, total incurred losses and paid claims for Radian Title Insurance were not material. See Note 8 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information about our use of reinsurance in our title insurance business. 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: Nine 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) 107,866 100,047 Prior years (10,579 ) (24,075 ) Total incurred 97,287 75,972 Deduct: Paid claims and LAE related to: Current year (2) 1,784 2,316 Prior years 101,927 173,911 Total paid 103,711 176,227 Balance at end of period, net of reinsurance recoverables 380,458 398,983 Add: Reinsurance recoverables (1) 13,629 9,997 Balance at end of period $ 394,087 $ 408,980 ______________________ (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 2019 Activity Reserves established for new default notices were the primary driver of our total incurred losses for the nine months ended September 30, 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 7.5% as of September 30, 2019 . Our provision for losses during the first nine months of 2019 was positively impacted by favorable reserve development on prior year defaults. This favorable development 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, partially offset by an increase in our IBNR reserve estimate in the nine months ended September 30, 2019 related to previously disclosed legal proceedings. See Note 12 for additional information. Total claims paid decreased for the nine months ended September 30, 2019 , compared to the same period in 2018 . The decrease in claims paid is consistent with the ongoing decline in the outstanding default inventory. 2018 Activity Our mortgage insurance loss reserves at September 30, 2018 declined as compared to December 31, 2017 , primarily as a result of the amount of paid claims outpacing losses incurred related to new default notices reported in the current year. Reserves established for new default notices were the primary driver of our incurred loss for the nine months ended September 30, 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 was 8.5% as of September 30, 2018 . The provision for losses during the first nine months of 2018 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, 2017. The reductions in Default to Claim Rate assumptions resulted from observed trends, primarily higher Cures than were previously estimated. Mortgage Insurance Reserve Assumptions Default to Claim Rate As of September 30, 2019 our gross Default to Claim Rate assumptions on our primary portfolio ranged from 7.5% for new defaults, up to 65% for defaults not in foreclosure stage, and 72% |
Note 11 - Borrowings and Financ
Note 11 - Borrowings and Financing Activities | 9 Months Ended |
Sep. 30, 2019 | |
Senior Notes [Abstract] | |
Borrowings and Financing Activities | Borrowings and Financing Activities The carrying value of our debt at September 30, 2019 and December 31, 2018 was as follows: (In thousands) September 30, December 31, Senior notes: 5.500% Senior Notes due 2019 $ — $ 158,324 5.250% Senior Notes due 2020 — 232,729 7.000% Senior Notes due 2021 — 195,867 4.500% Senior Notes due 2024 444,186 443,428 4.875% Senior Notes due 2027 442,457 — Total senior notes $ 886,643 $ 1,030,348 FHLB advances: FHLB advances due 2019 $ 58,881 $ 60,550 FHLB advances due 2020 6,621 2,991 FHLB advances due 2021 14,000 8,000 FHLB advances due 2022 9,000 — FHLB advances due 2023 8,994 8,995 FHLB advances due 2024 6,996 1,996 Total FHLB advances $ 104,492 $ 82,532 Repayment and Extinguishment of Debt Repayment of Senior Notes due 2019 In accordance with the terms of the notes under the related indenture, we retired the remaining aggregate principal amount of $158.6 million of outstanding Senior Notes due 2019 upon their maturity in June 2019. Repurchases of Senior Notes due 2020 and 2021 During the second quarter of 2019, pursuant to cash tender offers to purchase any and all of our outstanding Senior Notes due 2020 and 2021, we purchased aggregate principal amounts of $207.2 million and $127.3 million of our Senior Notes due 2020 and 2021, respectively. We funded the purchases with $351.8 million in cash (which includes accrued and unpaid interest due on the purchased notes). These purchases resulted in a loss on extinguishment of debt of $16.8 million . In the third quarter of 2019, we redeemed the remaining $27.0 million and $70.4 million aggregate principal amount of Senior Notes due 2020 and 2021, respectively, in accordance with the terms of the related indentures. The aggregate redemption amount paid was $103.1 million , which includes accrued interest through the applicable redemption dates. These purchases resulted in a loss on extinguishment of debt of $5.9 million . Following these purchases and redemptions, there were no remaining principal amounts outstanding on the Senior Notes due 2020 and 2021 at September 30, 2019 . Senior Notes due 2027 In June 2019, we issued $450 million aggregate principal amount of Senior Notes due 2027 and received net proceeds of $442.2 million . These notes mature on March 15, 2027 and bear interest at a rate of 4.875% per annum, payable semi-annually on March 15 and September 15 of each year, with interest payments commencing on March 15, 2020. We have the option to redeem these notes, in whole or in part, at any time, or from time to time, prior to September 15, 2026 (the date that is six months prior to the maturity date of the notes) (the “Par Call Date”), at a redemption price equal to the greater of (i) 100% of the aggregate principal amount of the notes to be redeemed and (ii) the make-whole amount, which is the sum of the present values of the remaining scheduled payments of principal and interest in respect of the notes to be redeemed from the redemption date to the Par Call Date discounted to the redemption date at the applicable treasury rate plus 50 basis points, plus, in each case, accrued and unpaid interest thereon to, but excluding, the redemption date. At any time on or after the Par Call Date, we may, at our option, redeem the notes in whole or in part, at a redemption price equal to 100% of the aggregate principal amount of the notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the redemption date. The indenture governing the Senior Notes due 2027 contains covenants customary for securities of this nature, including covenants related to the payments of the notes, reports to be provided, compliance certificates to be issued and the ability to modify the covenants. Additionally, the indenture includes covenants restricting us from encumbering the capital stock of a designated subsidiary (as defined in the indenture for the notes) or disposing of any capital stock of any designated subsidiary unless either all of the stock is disposed of or we retain more than 80% of the stock. FHLB Advances Principal on FHLB advances is due at maturity. For obligations with original 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. Revolving Credit Facility Radian Group has in place a $267.5 million unsecured revolving credit facility with a syndicate of bank lenders, which is scheduled to expire on October 16, 2020. At September 30, 2019 , Radian Group was in compliance with all of the credit facility covenants, and there were no amounts outstanding. For more information regarding our revolving credit facility, including certain of its terms and covenants, see Note 13 of Notes to Consolidated Financial Statements in our 2018 Form 10-K. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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. 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 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. The Arbitration is proceeding, and Radian continues to defend against Ocwen’s claims vigorously. 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, equitable indemnification, unjust enrichment, and conversion claims and seeking monetary damages and declaratory relief. Exhibit 1 to the Complaint lists 3,014 mortgage insurance certificates issued under multiple insurance policies as subject to disputes involving insurance coverage decisions (the “Coverage Disputed Loans”). Exhibit 2 to the Complaint further lists 2,231 mortgage insurance certificates issued under multiple insurance policies as subject to disputes involving premium refund requests. 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. On September 23, 2019, the trial judge entered as an order a joint stipulation submitted by Nationstar and Radian Guaranty that narrowed the scope of the dispute involving Coverage Disputed Loans to claims relating to 1,704 mortgage insurance certificates. Radian Guaranty believes that Nationstar’s allegations and claims in the legal proceedings described above are without merit and legally deficient, and continues to defend against these claims vigorously. In the three and nine months ended September 30, 2019, the Company increased its IBNR reserve estimate by $11.8 million and $31.2 million, respectively, related to our best estimate of our probable loss in connection with the above legal proceedings. While Radian believes it has substantial defenses in these matters and intends to continue to defend against these claims vigorously, it is not feasible to predict the ultimate outcome of these disputes, and the Company could in the future be required to pay amounts as a result of settlements or decisions in these matters, potentially in excess of accruals. 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. These challenges could result in additional 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. 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 Radian Group corporate bonds, as adjusted to reflect a collateralized borrowing rate, resulting in discount rates ranging from 4.22% to 7.08% . While the majority of our lease population expires within one year of one of the Radian Group corporate bonds, our more significant leases do not. 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. 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 September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 2,340 $ 7,006 Short-term lease cost 36 111 Total lease cost $ 2,376 $ 7,117 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (2,657 ) $ (7,933 ) ($ in thousands) September 30, 2019 Operating leases: Operating lease right-of-use assets (1) $ 42,613 Operating lease liabilities (2) 65,816 Weighted-average remaining lease term - operating leases (in years) 10.0 years Weighted-average discount rate - operating leases 6.77 % Remaining maturities of lease liabilities for the remainder of 2019 and thereafter is as follows: 2019 $ 2,681 2020 10,408 2021 9,945 2022 10,140 2023 10,279 2024 and thereafter 56,421 Total lease payments 99,874 Less: Imputed interest (34,058 ) Present value of lease liabilities (2) $ 65,816 ______________________ (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 and nine months ended September 30, 2018 was $2.5 million and $6.8 million , respectively. 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. See Note 1 herein for additional information about our leases and Note 14 of Notes to Consolidated Financial Statements in our 2018 |
Note 13 - Capital Stock (Notes)
Note 13 - Capital Stock (Notes) | 9 Months Ended |
Sep. 30, 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 operated this program pursuant to a trading plan under Rule 10b5-1 of the Exchange Act, which permitted the Company to purchase shares, at pre-determined price targets, when it may have otherwise been precluded from doing so. During the three and nine months ended September 30, 2019 , the Company purchased 2,241,568 and 11,258,574 shares at an average price of $23.43 and $22.22 per share, respectively, including commissions. As of September 30, 2019 , no further purchase authority remains under this program. Over the course of this program, the Company repurchased a total of 11,258,574 shares, or 5.3% of the shares outstanding at the beginning of the program. On August 14, 2019, Radian Group’s board of directors approved a new share repurchase program that authorizes the Company to spend up to $200 million , excluding commissions, to repurchase Radian Group common stock in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors. Radian 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 September 30, 2019 , the Company purchased 1,104,786 shares at an average price of $22.64 per share, including commissions. As of September 30, 2019 , purchase authority of up to $175.0 million remained available under this program, which expires on August 31, 2020. Subsequent to September 30, 2019 , the Company purchased 1,090,875 shares of its common stock under its share repurchase program at an average price of $22.93 per share, including commissions. As of November 8, 2019 , purchase authority of up to $150.0 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 During each of the first three quarters of 2019 and each quarter of 2018 , we declared quarterly cash dividends on our common stock equal to $0.0025 per share. |
Note 14 - Accumulated Other Com
Note 14 - Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 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 September 30, 2019 Nine Months Ended September 30, 2019 (In thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Balance at beginning of period $ 111,977 $ 23,515 $ 88,462 $ (77,114 ) $ (16,194 ) $ (60,920 ) Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 51,460 10,806 40,654 241,363 50,686 190,677 Less: Reclassification adjustment for net gains (losses) included in net income (1) 4,401 924 3,477 5,209 1,094 4,115 Net unrealized gains (losses) on investments 47,059 9,882 37,177 236,154 49,592 186,562 Unrealized foreign currency translation adjustments — — — (4 ) (1 ) (3 ) Other comprehensive income (loss) 47,059 9,882 37,177 236,150 49,591 186,559 Balance at end of period $ 159,036 $ 33,397 $ 125,639 $ 159,036 $ 33,397 $ 125,639 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (In thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Balance at beginning of period $ (73,345 ) $ (15,402 ) $ (57,943 ) $ 32,669 $ 9,584 $ 23,085 Cumulative effect of adopting accounting standard updates — — — 284 (2,664 ) 2,948 Balance adjusted for cumulative effect of adopting accounting standard updates (73,345 ) (15,402 ) (57,943 ) 32,953 6,920 26,033 Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period (6,762 ) (1,421 ) (5,341 ) (118,719 ) (24,931 ) (93,788 ) Less: Reclassification adjustment for net gains (losses) included in net income (1) (5,120 ) (1,076 ) (4,044 ) (10,775 ) (2,263 ) (8,512 ) Net unrealized gains (losses) on investments (1,642 ) (345 ) (1,297 ) (107,944 ) (22,668 ) (85,276 ) Unrealized foreign currency translation adjustments — — — 4 1 3 Other comprehensive income (loss) (1,642 ) (345 ) (1,297 ) (107,940 ) (22,667 ) (85,273 ) Balance at end of period $ (74,987 ) $ (15,747 ) $ (59,240 ) $ (74,987 ) $ (15,747 ) $ (59,240 ) ______________________ (1) Included in net gains (losses) on investments and other financial instruments on our condensed consolidated statements of operations. |
Note 15 - Statutory Information
Note 15 - Statutory Information | 9 Months Ended |
Sep. 30, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Statutory Information | Statutory Information 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. As of September 30, 2019 , the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $4.0 billion of our consolidated net assets. Under state insurance regulations, our mortgage insurance subsidiaries are required to maintain minimum surplus levels. In certain RBC States, mortgage insurers licensed in those states must also satisfy a Statutory RBC Requirement that is a minimum ratio of statutory capital relative to the level of net RIF, or Risk-to-capital. Other RBC States require mortgage insurers licensed in those states to satisfy a MPP Requirement that is calculated on both risk and surplus levels. Our mortgage insurance subsidiaries were in compliance with the Statutory RBC Requirements or MPP Requirements, to the extent applicable, in each of the RBC States as of September 30, 2019 . In addition, in order to be eligible to insure loans purchased by the GSEs, mortgage insurers such as Radian Guaranty must meet the GSEs’ eligibility requirements, or PMIERs. At September 30, 2019 , Radian Guaranty is an approved mortgage insurer under the PMIERs and is in compliance with the current PMIERs financial requirements. See Note 1 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information regarding the PMIERs. Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus plus statutory contingency reserves. September 30, December 31, ($ in millions) RIF, net (1) $ 43,484.8 $ 40,711.3 Common stock and paid-in capital $ 1,041.0 $ 1,416.0 Surplus Note 100.0 100.0 Unassigned earnings (deficit) (553.5 ) (701.9 ) Statutory policyholders’ surplus 587.5 814.1 Contingency reserve 2,475.9 2,109.9 Statutory capital $ 3,063.4 $ 2,924.0 Risk-to-capital 14.2:1 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 $139.4 million in the first nine months of 2019 , primarily due to Radian Guaranty’s statutory net income of $525.5 million during this period, partially offset by the effect of an Extraordinary Distribution paid to Radian Group, as described below. The net increase in Radian Guaranty’s Risk-to-capital in the first nine months of 2019 was primarily due to the increase in RIF, partially offset by the increase in overall statutory capital. The Risk-to-capital ratio for our combined mortgage insurance operations was 12.9 to 1 as of September 30, 2019 , compared to 12.8 to 1 as of December 31, 2018 . In April 2019, the Pennsylvania Insurance Department approved a $375 million Extraordinary Distribution from Radian Guaranty to Radian Group, which was paid on April 30, 2019 in the form of cash and marketable securities, resulting in a $375 million decrease in Radian Guaranty’s statutory policyholders’ surplus. For a description of our statutory compliance with regulations for our mortgage insurance and title services businesses, see Note 19 of Notes to Consolidated Financial Statements in our 2018 Form 10-K. |
Note 1 - Condensed Consolidat_2
Note 1 - Condensed Consolidated Financial Statements - Business Overview and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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. If it does, we recognize a right-of-use asset and lease liability in other assets and other liabilities, respectively, in our condensed consolidated balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and are recognized net of any payments made or received from the lessor. Lease liabilities represent our obligation to make lease payments arising from the lease and are based on the present value of lease payments over the lease term. 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 ASU that include lease and non-lease components, such components are generally not accounted for separately. We have elected the short-term exemption for contracts with lease terms of 12 months or less. |
New Accounting Pronouncements and Changes in Accounting Principles | Accounting Standards Adopted During 2019 . We adopted ASU 2016-02, Leases (“ASU 2016-02”), on January 1, 2019. Most significantly, this update requires a lessee to recognize, as of the lease commencement date, a liability to make lease payments and an asset with respect to its right to use the underlying asset for the lease term. Upon adoption for contracts in effect as of January 1, 2019, we recorded a lease liability of $73.5 million within other liabilities, and a right-of-use asset of $49.4 million within other assets, corresponding to the lease liability as adjusted for deferred rent and unamortized allowances and incentives of $24.1 million . We elected the optional transition method and 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. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance. We adopted ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs, on January 1, 2019. 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 adoption of this update did not have a material effect on our financial statements and disclosures. |
New Accounting Pronouncements Not Yet Adopted, Policy | Accounting Standards Not Yet Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, and issued subsequent amendments to the initial guidance. This ASU and the associated subsequent amendments require that financial assets measured at their amortized cost basis be presented at the net amount expected to be collected. Credit losses relating to our 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 allowance method will allow reversals of credit losses if the estimate of credit losses declines. This ASU will also affect certain of our accounts and notes receivable, including premiums receivable, and certain of our other assets, including reinsurance recoverables. However, this ASU is not applicable to the accounting for insurance losses and loss adjustment expenses. Due to the nature of our assets affected by this update, we do not expect it to have a material effect on our financial statements and disclosures. 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. In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance. 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 but do not expect it to have a material effect on our financial statements and disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. This ASU requires 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 but do not expect it to have a material effect on our financial statements and disclosures. In April 2019, the FASB issued ASU 2019-04, Codification Improvements related to Financial Instruments-Credit Losses, Derivatives and Hedging, and Financial Instruments. This update to the accounting standards regarding financial instruments and derivatives and hedging clarifies the accounting treatment for the measurement of credit losses and provides further clarification on previously issued updates. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the potential impact of the adoption of this update but 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. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation. 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 for periods prior to January 1, 2019, all interest expense; and (iii) all net investment income from 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 Clayton 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 Clayton Intercompany Note as discussed above. |
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) | 9 Months Ended |
Sep. 30, 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. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation. 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 for periods prior to January 1, 2019, all interest expense; and (iii) all net investment income from 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 Clayton 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 Clayton Intercompany Note as discussed above. |
Note 9 - Income Taxes (Policies
Note 9 - Income Taxes (Policies) | 9 Months Ended |
Sep. 30, 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) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended (In thousands, except per-share amounts) 2019 2018 2019 2018 Net income—basic and diluted $ 173,438 $ 142,797 $ 511,125 $ 466,232 Average common shares outstanding—basic 203,107 213,309 208,561 214,499 Dilutive effect of share-based compensation arrangements (1) 5,584 4,593 5,402 4,284 Adjusted average common shares outstanding—diluted 208,691 217,902 213,963 218,783 Net income per share: Basic $ 0.85 $ 0.67 $ 2.45 $ 2.17 Diluted $ 0.83 $ 0.66 $ 2.39 $ 2.13 ______________________ (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 Nine Months Ended (In thousands) 2019 2018 2019 2018 Shares of common stock equivalents — 338 160 338 |
Note 3 - Segment Reporting (Tab
Note 3 - Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The reconciliation of adjusted pretax operating income (loss) for our reportable segments to consolidated pretax income is as follows: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Adjusted pretax operating income (loss): Mortgage Insurance $ 214,256 $ 204,620 $ 641,791 (1) $ 573,771 Services (1,513 ) (7,921 ) (11,139 ) (21,960 ) Total adjusted pretax operating income 212,743 196,699 630,652 551,811 Net gains (losses) on investments and other financial instruments 13,009 (4,480 ) 47,462 (30,771 ) Loss on extinguishment of debt (5,940 ) — (22,738 ) — Amortization and impairment of other acquired intangible assets (2,139 ) (3,472 ) (6,465 ) (8,968 ) Impairment of other long-lived assets and other non-operating items — (4,059 ) (5,557 ) (4,371 ) Consolidated pretax income $ 217,673 $ 184,688 $ 643,354 $ 507,701 ______________________ (1) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies, as further described below. |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The reconciliation of our reportable segment revenues to consolidated revenues is as follows: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Reportable segment revenues: Mortgage Insurance $ 321,056 $ 295,031 $ 968,215 (1) $ 859,380 Services 47,378 40,901 126,406 115,577 Total reportable segment revenues 368,434 335,932 1,094,621 974,957 Add: Net gains (losses) on investments and other financial instruments 13,009 (4,480 ) 47,462 (30,771 ) Less: Inter-segment revenues (2) 1,105 766 3,152 2,653 Total revenues $ 380,338 $ 330,686 $ 1,138,931 $ 941,533 ______________________ (1) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies, as further described above. (2) Inter-segment revenues included in the Services segment. |
Services Revenue [Table Text Block] | The table below represents the disaggregation of services revenues from external customers, by type: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Services revenue Mortgage Services $ 19,218 $ 18,839 $ 51,531 $ 55,552 Real Estate Services 17,865 15,984 50,640 44,948 Title Services 5,426 1,743 12,394 6,058 Total services revenue $ 42,509 $ 36,566 $ 114,565 $ 106,558 |
Assets & Liabilities Related to Services Segment Revenues [Table Text Block] | The following represents balances related to services revenue contracts as of the dates indicated: (In thousands) September 30, December 31, Accounts Receivable $ 18,956 $ 15,461 Unbilled Receivables 25,110 19,917 Deferred Revenues 3,036 3,204 |
Note 4 - Fair Value of Financ_2
Note 4 - Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2019 : (In thousands) Level I Level II Total Assets at fair value Investments: Fixed-maturities available for sale: U.S. government and agency securities $ 128,443 $ 34,012 $ 162,455 State and municipal obligations — 110,981 110,981 Corporate bonds and notes — 2,347,346 2,347,346 RMBS — 619,935 619,935 CMBS — 563,338 563,338 Other ABS — 717,986 717,986 Foreign government and agency securities — 5,182 5,182 Total fixed-maturities available for sale 128,443 4,398,780 4,527,223 Trading securities: State and municipal obligations — 121,190 121,190 Corporate bonds and notes — 156,648 156,648 RMBS — 17,116 17,116 CMBS — 34,981 34,981 Total trading securities — 329,935 329,935 Equity securities 116,762 4,997 121,759 Short-term investments: U.S. government and agency securities 120,969 — 120,969 State and municipal obligations — 25,547 25,547 Money market instruments 196,372 — 196,372 Corporate bonds and notes — 37,593 37,593 Other investments (1) — 171,614 171,614 Total short-term investments 317,341 234,754 552,095 Total investments at fair value (2) 562,546 4,968,466 5,531,012 Other assets: Loaned securities: (3) U.S. government and agency securities 19,960 — 19,960 Corporate bonds and notes — 15,227 15,227 Equity securities 30,257 — 30,257 Total assets at fair value (2) $ 612,763 $ 4,983,693 $ 5,596,456 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include other invested assets of $2.7 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (3) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 5 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 Investments: Fixed-maturities available for sale: U.S. government and agency securities $ 55,658 $ 28,412 $ 84,070 State and municipal obligations — 138,313 138,313 Corporate bonds and notes — 2,222,473 2,222,473 RMBS — 332,142 332,142 CMBS — 539,915 539,915 Other ABS — 704,662 704,662 Total fixed-maturities available for sale 55,658 3,965,917 4,021,575 Trading securities: State and municipal obligations — 168,359 168,359 Corporate bonds and notes — 228,152 228,152 RMBS — 21,082 21,082 CMBS — 51,478 51,478 Total trading securities — 469,071 469,071 Equity securities 126,607 3,958 130,565 Short-term investments: U.S. government and agency securities 133,657 — 133,657 State and municipal obligations — 18,070 18,070 Money market instruments 95,132 — 95,132 Corporate bonds and notes — 105,625 105,625 Other ABS — 806 806 Other investments (1) — 175,113 175,113 Total short-term investments 228,789 299,614 528,403 Total investments at fair value (2) 411,054 4,738,560 5,149,614 Other assets: Loaned securities: (3) U.S. government and agency securities 9,987 — 9,987 Corporate bonds and notes — 7,818 7,818 Equity securities 10,055 — 10,055 Total assets at fair value (2) $ 431,096 $ 4,746,378 $ 5,177,474 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include 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. (3) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 5 for more information. |
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: September 30, 2019 December 31, 2018 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Liabilities: Senior notes $ 886,643 $ 919,125 $ 1,030,348 $ 1,007,687 FHLB advances 104,492 105,661 82,532 82,899 |
Note 5 - Investments (Tables)
Note 5 - Investments (Tables) | 9 Months Ended |
Sep. 30, 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: September 30, 2019 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 176,682 $ 182,415 $ 5,839 $ 106 State and municipal obligations 100,070 110,981 10,911 — Corporate bonds and notes 2,254,627 2,362,004 108,541 1,164 RMBS 605,687 619,935 15,286 1,038 CMBS 542,284 563,338 21,966 912 Other ABS 718,854 717,986 2,394 3,262 Foreign government and agency securities 5,089 5,182 93 — Total securities available for sale, including loaned securities 4,403,293 4,561,841 $ 165,030 $ 6,482 Less: loaned securities 34,020 34,618 Total fixed-maturities available for sale $ 4,369,273 $ 4,527,223 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 $ 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 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, including loaned securities 4,106,594 4,028,987 $ 10,433 $ 88,040 Less: loaned securities 7,632 7,412 Total fixed-maturities available for sale $ 4,098,962 $ 4,021,575 |
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 September 30, 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. September 30, 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 4 $ 68,719 $ 89 3 $ 9,051 $ 17 7 $ 77,770 $ 106 Corporate bonds and notes 28 126,732 1,145 4 8,543 19 32 135,275 1,164 RMBS 5 30,478 52 23 44,649 986 28 75,127 1,038 CMBS 18 32,861 724 10 9,120 188 28 41,981 912 Other ABS 60 257,688 1,003 40 155,904 2,259 100 413,592 3,262 Total 115 $ 516,478 $ 3,013 80 $ 227,267 $ 3,469 195 $ 743,745 $ 6,482 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 |
Net Gains (Losses) on Investments and Other Financial Instruments [Table Text Block] | Net gains (losses) on investments consisted of: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Net realized gains (losses): Fixed-maturities available for sale (1) $ 4,401 $ (4,219 ) $ 5,209 $ (9,030 ) Trading securities 19 (260 ) (391 ) (910 ) Equity securities (28 ) (69 ) (708 ) 571 Other investments 205 101 521 392 Net realized gains (losses) on investments 4,597 (4,447 ) 4,631 (8,977 ) Other-than-temporary impairment losses — (900 ) — (1,744 ) Net unrealized gains (losses) on investments 4,419 1,405 33,005 (17,132 ) Total net gains (losses) on investments $ 9,016 $ (3,942 ) $ 37,636 $ (27,853 ) ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Gross investment gains from sales and redemptions $ 4,697 $ 814 $ 10,926 $ 1,831 Gross investment losses from sales and redemptions (296 ) (5,033 ) (5,717 ) (10,861 ) |
Net Changes in Unrealized Gains (Losses) Recognized in Earnings [Table Text Block] | The net changes in unrealized gains (losses) recognized in earnings on investments that were still held at each period-end were as follows: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Net unrealized gains (losses) on investments still held: Trading securities $ 4,132 $ (2,581 ) $ 18,962 $ (18,431 ) Equity securities 563 2,971 9,170 2,238 Other investments 47 430 (64 ) 655 Net unrealized gains (losses) on investments still held $ 4,742 $ 820 $ 28,068 $ (15,538 ) |
Contractual Maturities [Table Text Block] | The contractual maturities of fixed-maturities available for sale were as follows: September 30, 2019 Available for Sale (In thousands) Amortized Cost Fair Value Due in one year or less (1) $ 132,819 $ 132,897 Due after one year through five years (1) 885,660 903,546 Due after five years through 10 years (1) 1,108,946 1,168,298 Due after 10 years (1) 409,043 455,841 RMBS (2) 605,687 619,935 CMBS (2) 542,284 563,338 Other ABS (2) 718,854 717,986 Total 4,403,293 4,561,841 Less: loaned securities 34,020 34,618 Total fixed-maturities available for sale $ 4,369,273 $ 4,527,223 ______________________ (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. |
Note 6 - Goodwill and Other A_2
Note 6 - Goodwill and Other Acquired Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2019 $ 201,099 $ (186,469 ) $ 14,630 |
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: September 30, 2019 (In thousands) Original Amount Acquired Accumulated Amortization and Impairment Net Carrying Amount Client relationships $ 83,860 $ (52,764 ) $ 31,096 Technology 16,964 (14,382 ) 2,582 Trade name and trademarks 8,340 (4,511 ) 3,829 Non-competition agreements 185 (183 ) 2 Licenses 463 (69 ) 394 Total $ 109,812 $ (71,909 ) $ 37,903 December 31, 2018 (In thousands) Original Amount Acquired Accumulated Amortization and Impairment Net Carrying Amount Client relationships $ 84,000 $ (48,227 ) $ 35,773 Technology 17,362 (13,141 ) 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 |
Note 7 - Reinsurance (Tables)
Note 7 - Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance, Net Premiums Written and Earned [Table Text Block] | The effect of all of our reinsurance programs on our net income is as follows: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Net premiums written—insurance: Direct $ 287,000 $ 279,137 $ 828,022 $ 820,449 Assumed (1) 2,608 1,987 7,528 4,803 Ceded (2) (15,455 ) (24,348 ) (39,900 ) (76,162 ) Net premiums written—insurance $ 274,153 $ 256,776 $ 795,650 $ 749,090 Net premiums earned—insurance: Direct $ 305,493 $ 272,505 $ 919,507 (3) $ 796,448 Assumed (1) 2,614 1,994 7,545 4,822 Ceded (2) (26,922 ) (16,068 ) (83,189 ) (3) (48,945 ) Net premiums earned—insurance $ 281,185 $ 258,431 $ 843,863 (3) $ 752,325 Ceding commissions earned $ 12,153 $ 8,373 $ 37,191 (3) $ 25,728 Ceded losses 771 1,191 4,326 3,356 ______________________ (1) Includes premiums earned from our participation in certain credit risk transfer programs. (2) Net of profit commission. (3) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies. See Note 3 for further information. |
Schedule of VIE Assets [Table Text Block] | The following table presents the total assets of the Eagle Re Issuers as well as Radian Guaranty’s maximum exposure to loss associated with each Eagle Re Issuer, as of the dates indicated. At September 30, 2019 Maximum Exposure to Loss (In thousands) Total VIE Assets (1) On - Balance Sheet Off - Balance Sheet (2) Total Eagle Re 2018-1 $ 408,586 $ 1,493 (3) $ 408,586 $ 410,079 Eagle Re 2019-1 562,036 2,202 (3) 562,036 564,238 Total $ 970,622 $ 3,695 $ 970,622 $ 974,317 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 held by the Eagle Re Issuers are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Liabilities of the Eagle Re Issuers consist of their mortgage insurance-linked notes, described above. (2) Represents Radian Guaranty’s maximum exposure to loss in the event the VIE is unable to meet its obligations to us and 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) were to lose their value 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 aggregate excess-of-loss reinsurance coverage amount. In the same scenario, the related embedded derivative would no longer have value. (3) Represents the fair value of the related embedded derivative, included in other assets in our condensed consolidated balance sheets. |
Note 8 - Other Assets (Tables)
Note 8 - Other Assets (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, December 31, Company-owned life insurance $ 103,877 $ 83,377 Prepaid federal income taxes (Note 9) 89,200 — Loaned securities (Note 5) 65,444 27,860 Internal-use software (1) 55,190 51,367 Right-of-use assets (2) 42,613 — Property and equipment (3) 34,339 37,090 Accrued investment income 33,187 34,878 Unbilled receivables 25,110 19,917 Deferred policy acquisition costs 19,928 17,311 Reinsurance recoverables 16,906 14,402 Current federal income tax receivable (4) — 44,506 Other 27,853 36,992 Total other assets $ 513,647 $ 367,700 ______________________ (1) Internal-use software, at cost, has been reduced by accumulated amortization of $70.4 million and $60.3 million at September 30, 2019 and December 31, 2018 , respectively, as well as $3.8 million of impairment charges in the nine months ended September 30, 2019 , and $5.1 million of impairment charges in 2018. Amortization expense was $3.3 million and $2.9 million for the three-month periods ended September 30, 2019 and 2018 , respectively, and $9.8 million and $8.6 million for the nine-month periods ended September 30, 2019 and 2018 , respectively. (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 $6.8 million at September 30, 2019 . (3) Property and equipment at cost, less accumulated depreciation of $68.5 million and $62.9 million at September 30, 2019 and December 31, 2018 , respectively. Depreciation expense was $1.9 million and $2.1 million for the three-month periods ended September 30, 2019 and 2018 , respectively, and $5.9 million for both the nine-month periods ended September 30, 2019 and 2018 . (4) During the nine months ended September 30, 2019 , current federal income tax receivable was reduced by our receipt of the remaining $57.2 million refund from amounts on deposit with the IRS related to the settlement of the IRS Matter. |
Note 10 - Losses and Loss Adj_2
Note 10 - Losses and Loss Adjustment Expense (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, December 31, Mortgage Insurance loss reserves $ 394,087 $ 397,891 Services loss reserves (1) 4,054 3,470 Total reserve for losses and LAE $ 398,141 $ 401,361 ______________________ (1) The Services loss reserves relate to Radian Title Insurance and the majority is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. For all periods presented, total incurred losses and paid claims for Radian Title Insurance were not material. See Note 8 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information about our use of reinsurance in our title insurance business. |
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: Nine 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) 107,866 100,047 Prior years (10,579 ) (24,075 ) Total incurred 97,287 75,972 Deduct: Paid claims and LAE related to: Current year (2) 1,784 2,316 Prior years 101,927 173,911 Total paid 103,711 176,227 Balance at end of period, net of reinsurance recoverables 380,458 398,983 Add: Reinsurance recoverables (1) 13,629 9,997 Balance at end of period $ 394,087 $ 408,980 ______________________ (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. |
Note 11 - Borrowings and Fina_2
Note 11 - Borrowings and Financing Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Senior Notes [Abstract] | |
Schedule of Debt [Table Text Block] | The carrying value of our debt at September 30, 2019 and December 31, 2018 was as follows: (In thousands) September 30, December 31, Senior notes: 5.500% Senior Notes due 2019 $ — $ 158,324 5.250% Senior Notes due 2020 — 232,729 7.000% Senior Notes due 2021 — 195,867 4.500% Senior Notes due 2024 444,186 443,428 4.875% Senior Notes due 2027 442,457 — Total senior notes $ 886,643 $ 1,030,348 FHLB advances: FHLB advances due 2019 $ 58,881 $ 60,550 FHLB advances due 2020 6,621 2,991 FHLB advances due 2021 14,000 8,000 FHLB advances due 2022 9,000 — FHLB advances due 2023 8,994 8,995 FHLB advances due 2024 6,996 1,996 Total FHLB advances $ 104,492 $ 82,532 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 2,340 $ 7,006 Short-term lease cost 36 111 Total lease cost $ 2,376 $ 7,117 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (2,657 ) $ (7,933 ) |
Lessee, Operating Leases [Text Block] | ($ in thousands) September 30, 2019 Operating leases: Operating lease right-of-use assets (1) $ 42,613 Operating lease liabilities (2) 65,816 Weighted-average remaining lease term - operating leases (in years) 10.0 years Weighted-average discount rate - operating leases 6.77 % Remaining maturities of lease liabilities for the remainder of 2019 and thereafter is as follows: 2019 $ 2,681 2020 10,408 2021 9,945 2022 10,140 2023 10,279 2024 and thereafter 56,421 Total lease payments 99,874 Less: Imputed interest (34,058 ) Present value of lease liabilities (2) $ 65,816 ______________________ (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. |
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 14 - Accumulated Other C_2
Note 14 - Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2019 Nine Months Ended September 30, 2019 (In thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Balance at beginning of period $ 111,977 $ 23,515 $ 88,462 $ (77,114 ) $ (16,194 ) $ (60,920 ) Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 51,460 10,806 40,654 241,363 50,686 190,677 Less: Reclassification adjustment for net gains (losses) included in net income (1) 4,401 924 3,477 5,209 1,094 4,115 Net unrealized gains (losses) on investments 47,059 9,882 37,177 236,154 49,592 186,562 Unrealized foreign currency translation adjustments — — — (4 ) (1 ) (3 ) Other comprehensive income (loss) 47,059 9,882 37,177 236,150 49,591 186,559 Balance at end of period $ 159,036 $ 33,397 $ 125,639 $ 159,036 $ 33,397 $ 125,639 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 (In thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Balance at beginning of period $ (73,345 ) $ (15,402 ) $ (57,943 ) $ 32,669 $ 9,584 $ 23,085 Cumulative effect of adopting accounting standard updates — — — 284 (2,664 ) 2,948 Balance adjusted for cumulative effect of adopting accounting standard updates (73,345 ) (15,402 ) (57,943 ) 32,953 6,920 26,033 Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period (6,762 ) (1,421 ) (5,341 ) (118,719 ) (24,931 ) (93,788 ) Less: Reclassification adjustment for net gains (losses) included in net income (1) (5,120 ) (1,076 ) (4,044 ) (10,775 ) (2,263 ) (8,512 ) Net unrealized gains (losses) on investments (1,642 ) (345 ) (1,297 ) (107,944 ) (22,668 ) (85,276 ) Unrealized foreign currency translation adjustments — — — 4 1 3 Other comprehensive income (loss) (1,642 ) (345 ) (1,297 ) (107,940 ) (22,667 ) (85,273 ) Balance at end of period $ (74,987 ) $ (15,747 ) $ (59,240 ) $ (74,987 ) $ (15,747 ) $ (59,240 ) ______________________ (1) Included in net gains (losses) on investments and other financial instruments on our condensed consolidated statements of operations. |
Note 15 - Statutory Informati_2
Note 15 - Statutory Information (Tables) | 9 Months Ended |
Sep. 30, 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. September 30, December 31, ($ in millions) RIF, net (1) $ 43,484.8 $ 40,711.3 Common stock and paid-in capital $ 1,041.0 $ 1,416.0 Surplus Note 100.0 100.0 Unassigned earnings (deficit) (553.5 ) (701.9 ) Statutory policyholders’ surplus 587.5 814.1 Contingency reserve 2,475.9 2,109.9 Statutory capital $ 3,063.4 $ 2,924.0 Risk-to-capital 14.2:1 13.9:1 ______________________ (1) Excludes risk ceded through all reinsurance programs (including with affiliates) and RIF on defaulted loans. |
Note 1 - Condensed Consolidat_3
Note 1 - Condensed Consolidated Financial Statements - Business Overview and Significant Accounting Policies Business Overview (Details) $ in Billions | 9 Months Ended |
Sep. 30, 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 in Force | $ 237.2 |
Direct Primary Mortgage Insurance RIF | $ 60.4 |
Note 1 - Condensed Consolidat_4
Note 1 - Condensed Consolidated Financial Statements - Business Overview and Significant Accounting Policies Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Increase (Decrease) in Other Liabilities | [1] | $ 65,816 | |||
Operating Lease, Right-of-Use Asset | [3] | 42,613 | [2] | $ 0 | |
Operating Lease, Liability, Not Yet Commenced | $ 0 | ||||
ASU 2016-02 | |||||
Increase (Decrease) in Other Liabilities | $ 73,500 | ||||
Operating Lease, Right-of-Use Asset | 49,400 | ||||
Adjustment for Unamortized Allowances and Incentives | $ 24,100 | ||||
Maximum | |||||
Lessee, Operating Lease, Term of Contract | 12 months | ||||
[1] | Classified in other liabilities in our condensed consolidated balance sheets. | ||||
[2] | Classified in other assets in our condensed consolidated balance sheets. See Note 8 . | ||||
[3] | 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 $6.8 million at September 30, 2019 . |
Note 2 - Net Income Per Share N
Note 2 - Net Income Per Share Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Net income (loss)—diluted | $ 173,438 | $ 142,797 | $ 511,125 | $ 466,232 | |
Dilutive effect of share-based compensation arrangements | [1] | 5,584 | 4,593 | 5,402 | 4,284 |
Adjusted average common shares outstanding—diluted | 208,691 | 217,902 | 213,963 | 218,783 | |
Net income (loss) per share—diluted | $ 0.83 | $ 0.66 | $ 2.39 | $ 2.13 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income (loss) - basic | $ 173,438 | $ 142,797 | $ 511,125 | $ 466,232 | |
Average common shares outstanding - basic | 203,107 | 213,309 | 208,561 | 214,499 | |
Net income (loss) per share - basic | $ 0.85 | $ 0.67 | $ 2.45 | $ 2.17 | |
Stock Compensation Plan | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Shares of common stock equivalents | 0 | 338 | 160 | 338 | |
[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 Nine Months Ended (In thousands) 2019 2018 2019 2018 Shares of common stock equivalents — 338 160 338 |
Note 3 - Segment Reporting Segm
Note 3 - Segment Reporting Segments (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 2 |
Note 3 - Segment Reporting Adju
Note 3 - Segment Reporting Adjusted Pretax Operating Income (Loss) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018USD ($) | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Adjusted pretax operating income (loss) | $ 212,743 | $ 196,699 | $ 630,652 | $ 551,811 | |
Net gains (losses) on investments and other financial instruments | 13,009 | (4,480) | 47,462 | (30,771) | |
Loss on extinguishment of debt | (5,940) | 0 | (22,738) | 0 | |
Amortization and impairment of other acquired intangible assets | (2,139) | (3,472) | (6,465) | (8,968) | |
Impairment of other long-lived assets and other-non-operating items | 0 | (4,059) | (5,557) | (4,371) | |
Consolidated pretax income (loss) | $ 217,673 | 184,688 | 643,354 | 507,701 | |
Increase in Net Premium Earned | 32,900 | ||||
Reduction in Other Operating Expense | $ 6,200 | ||||
Percent of LTV at which HPA Must Be Canceled Automatically | 0.78 | 0.78 | |||
Mortgage Insurance Segment | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Adjusted pretax operating income (loss) | $ 214,256 | 204,620 | $ 641,791 | [1] | 573,771 |
Increase in Net Premiums Earned Per Share | $ / shares | $ 0.12 | ||||
Decrease in Other Operating Expenses Per Share | $ / shares | $ 0.02 | ||||
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) | $ (1,513) | $ (7,921) | $ (11,139) | $ (21,960) | |
[1] | Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies, as further described below. |
Note 3 - Segment Reporting Reve
Note 3 - Segment Reporting Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |||
Revenue Non GAAP Basis | $ 368,434,000 | $ 335,932,000 | $ 1,094,621,000 | $ 974,957,000 | |||
Net gains (losses) on investments and other financial instruments | 13,009,000 | (4,480,000) | 47,462,000 | (30,771,000) | |||
Revenues | 380,338,000 | 330,686,000 | 1,138,931,000 | 941,533,000 | |||
Unbilled Contracts Receivable | 25,110,000 | 25,110,000 | $ 19,917,000 | ||||
Mortgage Insurance Segment | |||||||
Revenue Non GAAP Basis | 321,056,000 | 295,031,000 | 968,215,000 | [1] | 859,380,000 | ||
Mortgage and Real Estate Services Segment | |||||||
Revenue Non GAAP Basis | 47,378,000 | 40,901,000 | 126,406,000 | 115,577,000 | |||
Inter-segment revenues | [2] | 1,105,000 | 766,000 | 3,152,000 | 2,653,000 | ||
Sales Revenue, Services and Other, Net | 42,509,000 | 36,566,000 | 114,565,000 | 106,558,000 | |||
Accounts Receivable, Credit Loss Expense (Reversal) | 0 | 0 | 0 | 0 | |||
Accounts Receivable, after Allowance for Credit Loss | 18,956,000 | 18,956,000 | 15,461,000 | ||||
Unbilled Contracts Receivable | 25,110,000 | 25,110,000 | 19,917,000 | ||||
Deferred Revenue | 3,036,000 | 3,036,000 | $ 3,204,000 | ||||
Mortgage Services | Mortgage and Real Estate Services Segment | |||||||
Sales Revenue, Services and Other, Net | 19,218,000 | 18,839,000 | 51,531,000 | 55,552,000 | |||
Real Estate Services | Mortgage and Real Estate Services Segment | |||||||
Sales Revenue, Services and Other, Net | 17,865,000 | 15,984,000 | 50,640,000 | 44,948,000 | |||
Title Services | Mortgage and Real Estate Services Segment | |||||||
Sales Revenue, Services and Other, Net | $ 5,426,000 | $ 1,743,000 | $ 12,394,000 | $ 6,058,000 | |||
[1] | Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies, as further described above. | ||||||
[2] | Inter-segment revenues included in the Services segment. |
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 | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | ||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | $ 65,444,000 | $ 65,444,000 | $ 27,860,000 | |||
Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 5,531,012,000 | [1] | 5,531,012,000 | [1] | 5,149,614,000 | [2] |
Assets, Fair Value Disclosure | 5,596,456,000 | [1] | 5,596,456,000 | [1] | 5,177,474,000 | [2] |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | 0 | 0 | |||
Fair Value, Measurements, Recurring | Investments Measured at NAV | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 2,700,000 | 2,700,000 | 3,400,000 | |||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 562,546,000 | [1] | 562,546,000 | [1] | 411,054,000 | [2] |
Assets, Fair Value Disclosure | 612,763,000 | [1] | 612,763,000 | [1] | 431,096,000 | [2] |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 4,968,466,000 | [1] | 4,968,466,000 | [1] | 4,738,560,000 | [2] |
Assets, Fair Value Disclosure | 4,983,693,000 | [1] | 4,983,693,000 | [1] | 4,746,378,000 | [2] |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Assets, Fair Value Disclosure | 0 | 0 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 0 | 0 | 0 | |||
Securities Financing Transaction, Fair Value | Fair Value, Measurements, Recurring | US government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | 19,960,000 | [3] | 19,960,000 | [3] | 9,987,000 | [4] |
Securities Financing Transaction, Fair Value | Fair Value, Measurements, Recurring | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | 15,227,000 | [3] | 15,227,000 | [3] | 7,818,000 | [4] |
Securities Financing Transaction, Fair Value | Fair Value, Measurements, Recurring | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | 30,257,000 | [3] | 30,257,000 | [3] | 10,055,000 | [4] |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | US government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | 19,960,000 | [3] | 19,960,000 | [3] | 9,987,000 | [4] |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | 0 | [3] | 0 | [3] | 0 | [4] |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | 30,257,000 | [3] | 30,257,000 | [3] | 10,055,000 | [4] |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | 0 | [3] | 0 | [3] | 0 | [4] |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | 15,227,000 | [3] | 15,227,000 | [3] | 7,818,000 | [4] |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Loaned securities | 0 | [3] | 0 | [3] | 0 | [4] |
Fixed maturities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 4,527,223,000 | 4,527,223,000 | 4,021,575,000 | |||
Fixed maturities | Fair Value, Measurements, Recurring | US government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 162,455,000 | 162,455,000 | 84,070,000 | |||
Fixed maturities | Fair Value, Measurements, Recurring | State and municipal obligations | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 110,981,000 | 110,981,000 | 138,313,000 | |||
Fixed maturities | Fair Value, Measurements, Recurring | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 2,347,346,000 | 2,347,346,000 | 2,222,473,000 | |||
Fixed maturities | Fair Value, Measurements, Recurring | RMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 619,935,000 | 619,935,000 | 332,142,000 | |||
Fixed maturities | Fair Value, Measurements, Recurring | CMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 563,338,000 | 563,338,000 | 539,915,000 | |||
Fixed maturities | Fair Value, Measurements, Recurring | Other ABS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 717,986,000 | 717,986,000 | 704,662,000 | |||
Fixed maturities | Fair Value, Measurements, Recurring | Foreign government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 5,182,000 | 5,182,000 | ||||
Fixed maturities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 128,443,000 | 128,443,000 | 55,658,000 | |||
Fixed maturities | 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 | 128,443,000 | 128,443,000 | 55,658,000 | |||
Fixed maturities | 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 | 0 | |||
Fixed maturities | 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 | 0 | |||
Fixed maturities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | RMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | 0 | |||
Fixed maturities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | CMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | 0 | |||
Fixed maturities | 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 | 0 | |||
Fixed maturities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Foreign government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | ||||
Fixed maturities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 4,398,780,000 | 4,398,780,000 | 3,965,917,000 | |||
Fixed maturities | 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 | 34,012,000 | 34,012,000 | 28,412,000 | |||
Fixed maturities | 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 | 110,981,000 | 110,981,000 | 138,313,000 | |||
Fixed maturities | 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 | 2,347,346,000 | 2,347,346,000 | 2,222,473,000 | |||
Fixed maturities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | RMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 619,935,000 | 619,935,000 | 332,142,000 | |||
Fixed maturities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | CMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 563,338,000 | 563,338,000 | 539,915,000 | |||
Fixed maturities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Other ABS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 717,986,000 | 717,986,000 | 704,662,000 | |||
Fixed maturities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 5,182,000 | 5,182,000 | ||||
Trading Securities | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 329,935,000 | 329,935,000 | 469,071,000 | |||
Trading Securities | Fair Value, Measurements, Recurring | State and municipal obligations | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 121,190,000 | 121,190,000 | 168,359,000 | |||
Trading Securities | Fair Value, Measurements, Recurring | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 156,648,000 | 156,648,000 | 228,152,000 | |||
Trading Securities | Fair Value, Measurements, Recurring | RMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 17,116,000 | 17,116,000 | 21,082,000 | |||
Trading Securities | Fair Value, Measurements, Recurring | CMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 34,981,000 | 34,981,000 | 51,478,000 | |||
Trading Securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | 0 | |||
Trading Securities | 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 | 0 | |||
Trading Securities | 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 | 0 | |||
Trading Securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | RMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | 0 | |||
Trading Securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | CMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | 0 | 0 | |||
Trading Securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 329,935,000 | 329,935,000 | 469,071,000 | |||
Trading Securities | 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 | 121,190,000 | 121,190,000 | 168,359,000 | |||
Trading Securities | 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 | 156,648,000 | 156,648,000 | 228,152,000 | |||
Trading Securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | RMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 17,116,000 | 17,116,000 | 21,082,000 | |||
Trading Securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | CMBS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 34,981,000 | 34,981,000 | 51,478,000 | |||
Equity securities | Fair Value, Measurements, Recurring | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 121,759,000 | 121,759,000 | 130,565,000 | |||
Equity securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 116,762,000 | 116,762,000 | 126,607,000 | |||
Equity securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Equity securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 4,997,000 | 4,997,000 | 3,958,000 | |||
Short-term Investments | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 552,095,000 | 552,095,000 | 528,403,000 | |||
Short-term Investments | Fair Value, Measurements, Recurring | US government and agency securities | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 120,969,000 | 120,969,000 | 133,657,000 | |||
Short-term Investments | Fair Value, Measurements, Recurring | State and municipal obligations | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 25,547,000 | 25,547,000 | 18,070,000 | |||
Short-term Investments | Fair Value, Measurements, Recurring | Money market instruments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 196,372,000 | 196,372,000 | 95,132,000 | |||
Short-term Investments | Fair Value, Measurements, Recurring | Corporate bonds and notes | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 37,593,000 | 37,593,000 | 105,625,000 | |||
Short-term Investments | Fair Value, Measurements, Recurring | Other ABS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 806,000 | |||||
Short-term Investments | Fair Value, Measurements, Recurring | Other investments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 171,614,000 | [5] | 171,614,000 | [5] | 175,113,000 | [6] |
Short-term Investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 317,341,000 | 317,341,000 | 228,789,000 | |||
Short-term Investments | 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 | 120,969,000 | 120,969,000 | 133,657,000 | |||
Short-term Investments | 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 | 0 | |||
Short-term Investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Money market instruments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 196,372,000 | 196,372,000 | 95,132,000 | |||
Short-term Investments | 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 | 0 | |||
Short-term Investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Other ABS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | |||||
Short-term Investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Other investments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 0 | [5] | 0 | [5] | 0 | [6] |
Short-term Investments | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 234,754,000 | 234,754,000 | 299,614,000 | |||
Short-term Investments | 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 | 0 | 0 | 0 | |||
Short-term Investments | 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 | 25,547,000 | 25,547,000 | 18,070,000 | |||
Short-term Investments | 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 | 0 | |||
Short-term Investments | 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 | 37,593,000 | 37,593,000 | 105,625,000 | |||
Short-term Investments | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Other ABS | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | 806,000 | |||||
Short-term Investments | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Other investments | ||||||
Fair Value by Hierarchy Level [Line Items] | ||||||
Total Investments at Fair Value | $ 171,614,000 | [5] | $ 171,614,000 | [5] | $ 175,113,000 | [6] |
[1] | Does not include other invested assets of $2.7 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. | |||||
[2] | Does not include other invested assets of $3.4 million | |||||
[3] | Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 5 for more information. | |||||
[4] | Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 5 for more information. | |||||
[5] | Comprising short-term certificates of deposit and commercial paper. | |||||
[6] | Comprising short-term certificates of deposit and commercial paper. |
Note 4 - Fair Value of Financ_4
Note 4 - Fair Value of Financial Instruments Other Fair Value Disclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 886,643 | $ 1,030,348 |
FHLB advances | 104,492 | 82,532 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 886,643 | 1,030,348 |
FHLB advances | 104,492 | 82,532 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Fair Value | 919,125 | 1,007,687 |
FHLB advances, Fair Value | $ 105,661 | $ 82,899 |
Note 5 - Investments Available
Note 5 - Investments Available for Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Loaned securities | $ 65,444 | $ 27,860 |
Debt Securities, Available-for-sale, Amortized Cost | 4,369,273 | 4,098,962 |
Debt Securities, Available-for-sale | 4,527,223 | 4,021,575 |
Total fixed-maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 4,403,293 | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 4,561,841 | |
Fixed maturities | US government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 176,682 | 85,532 |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 182,415 | 84,070 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 5,839 | 46 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 106 | 1,508 |
Fixed maturities | State and municipal obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 100,070 | 138,022 |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 110,981 | 138,313 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 10,911 | 2,191 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 1,900 |
Fixed maturities | Corporate bonds and notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 2,254,627 | 2,288,720 |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 2,362,004 | 2,229,885 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 108,541 | 5,053 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,164 | 63,888 |
Fixed maturities | RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 605,687 | 334,843 |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 619,935 | 332,142 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 15,286 | 1,785 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,038 | 4,486 |
Fixed maturities | CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 542,284 | 546,729 |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 563,338 | 539,915 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 21,966 | 544 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 912 | 7,358 |
Fixed maturities | Other ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 718,854 | 712,748 |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 717,986 | 704,662 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,394 | 814 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 3,262 | 8,900 |
Fixed maturities | Foreign government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 5,089 | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 5,182 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 93 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Fixed maturities | Total fixed-maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 4,403,293 | 4,106,594 |
Debt Securities, Available-for-sale, Amortized Cost | 4,369,273 | 4,098,962 |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 4,561,841 | 4,028,987 |
Debt Securities, Available-for-sale | 4,527,223 | 4,021,575 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 165,030 | 10,433 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 6,482 | 88,040 |
Fixed maturities | Securities Financing Transaction, Cost | Total fixed-maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Loaned securities | 34,020 | 7,632 |
Fixed maturities | Securities Financing Transaction, Fair Value | Total fixed-maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Loaned securities | $ 34,618 | $ 7,412 |
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 | 9 Months Ended | |||
Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)security | |
Continuous Loss Position Less Than Twelve Months [Abstract] | |||||
Number of Securities, Less than 12 Months | security | 115 | 115 | 550 | ||
Fair Value, Less Than 12 Months | $ 516,478 | $ 516,478 | $ 2,201,228 | ||
Unrealized Losses, Less Than 12 Months | $ 3,013 | $ 3,013 | $ 50,707 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||||
Number of Securities, 12 Months or Greater | security | 80 | 80 | 237 | ||
Fair Value, 12 Months or Greater | $ 227,267 | $ 227,267 | $ 957,742 | ||
Unrealized Losses, 12 Months or Greater | $ 3,469 | $ 3,469 | $ 37,333 | ||
Continuous Loss Position, Total | |||||
Number of Securities, Total | security | 195 | 195 | 787 | ||
Fair Value, Total | $ 743,745 | $ 743,745 | $ 3,158,970 | ||
Unrealized Losses, Total | $ 6,482 | $ 6,482 | $ 88,040 | ||
US government and agency securities | |||||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||||
Number of Securities, Less than 12 Months | security | 4 | 4 | 2 | ||
Fair Value, Less Than 12 Months | $ 68,719 | $ 68,719 | $ 27,415 | ||
Unrealized Losses, Less Than 12 Months | $ 89 | $ 89 | $ 796 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||||
Number of Securities, 12 Months or Greater | security | 3 | 3 | 8 | ||
Fair Value, 12 Months or Greater | $ 9,051 | $ 9,051 | $ 23,476 | ||
Unrealized Losses, 12 Months or Greater | $ 17 | $ 17 | $ 712 | ||
Continuous Loss Position, Total | |||||
Number of Securities, Total | security | 7 | 7 | 10 | ||
Fair Value, Total | $ 77,770 | $ 77,770 | $ 50,891 | ||
Unrealized Losses, Total | $ 106 | $ 106 | $ 1,508 | ||
State and municipal obligations | |||||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||||
Number of Securities, Less than 12 Months | security | 12 | ||||
Fair Value, Less Than 12 Months | $ 41,263 | ||||
Unrealized Losses, Less Than 12 Months | $ 955 | ||||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||||
Number of Securities, 12 Months or Greater | security | 16 | ||||
Fair Value, 12 Months or Greater | $ 39,982 | ||||
Unrealized Losses, 12 Months or Greater | $ 945 | ||||
Continuous Loss Position, Total | |||||
Number of Securities, Total | security | 28 | ||||
Fair Value, Total | $ 81,245 | ||||
Unrealized Losses, Total | $ 1,900 | ||||
Corporate bonds and notes | |||||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||||
Number of Securities, Less than 12 Months | security | 28 | 28 | 330 | ||
Fair Value, Less Than 12 Months | $ 126,732 | $ 126,732 | $ 1,208,430 | ||
Unrealized Losses, Less Than 12 Months | $ 1,145 | $ 1,145 | $ 36,284 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||||
Number of Securities, 12 Months or Greater | security | 4 | 4 | 126 | ||
Fair Value, 12 Months or Greater | $ 8,543 | $ 8,543 | $ 601,533 | ||
Unrealized Losses, 12 Months or Greater | $ 19 | $ 19 | $ 27,604 | ||
Continuous Loss Position, Total | |||||
Number of Securities, Total | security | 32 | 32 | 456 | ||
Fair Value, Total | $ 135,275 | $ 135,275 | $ 1,809,963 | ||
Unrealized Losses, Total | $ 1,164 | $ 1,164 | $ 63,888 | ||
RMBS | |||||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||||
Number of Securities, Less than 12 Months | security | 5 | 5 | 15 | ||
Fair Value, Less Than 12 Months | $ 30,478 | $ 30,478 | $ 92,315 | ||
Unrealized Losses, Less Than 12 Months | $ 52 | $ 52 | $ 782 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||||
Number of Securities, 12 Months or Greater | security | 23 | 23 | 28 | ||
Fair Value, 12 Months or Greater | $ 44,649 | $ 44,649 | $ 77,395 | ||
Unrealized Losses, 12 Months or Greater | $ 986 | $ 986 | $ 3,704 | ||
Continuous Loss Position, Total | |||||
Number of Securities, Total | security | 28 | 28 | 43 | ||
Fair Value, Total | $ 75,127 | $ 75,127 | $ 169,710 | ||
Unrealized Losses, Total | $ 1,038 | $ 1,038 | $ 4,486 | ||
CMBS | |||||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||||
Number of Securities, Less than 12 Months | security | 18 | 18 | 62 | ||
Fair Value, Less Than 12 Months | $ 32,861 | $ 32,861 | $ 328,696 | ||
Unrealized Losses, Less Than 12 Months | $ 724 | $ 724 | $ 3,973 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||||
Number of Securities, 12 Months or Greater | security | 10 | 10 | 33 | ||
Fair Value, 12 Months or Greater | $ 9,120 | $ 9,120 | $ 125,728 | ||
Unrealized Losses, 12 Months or Greater | $ 188 | $ 188 | $ 3,385 | ||
Continuous Loss Position, Total | |||||
Number of Securities, Total | security | 28 | 28 | 95 | ||
Fair Value, Total | $ 41,981 | $ 41,981 | $ 454,424 | ||
Unrealized Losses, Total | $ 912 | $ 912 | $ 7,358 | ||
Other ABS | |||||
Continuous Loss Position Less Than Twelve Months [Abstract] | |||||
Number of Securities, Less than 12 Months | security | 60 | 60 | 129 | ||
Fair Value, Less Than 12 Months | $ 257,688 | $ 257,688 | $ 503,109 | ||
Unrealized Losses, Less Than 12 Months | $ 1,003 | $ 1,003 | $ 7,917 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||||
Number of Securities, 12 Months or Greater | security | 40 | 40 | 26 | ||
Fair Value, 12 Months or Greater | $ 155,904 | $ 155,904 | $ 89,628 | ||
Unrealized Losses, 12 Months or Greater | $ 2,259 | $ 2,259 | $ 983 | ||
Continuous Loss Position, Total | |||||
Number of Securities, Total | security | 100 | 100 | 155 | ||
Fair Value, Total | $ 413,592 | $ 413,592 | $ 592,737 | ||
Unrealized Losses, Total | 3,262 | 3,262 | $ 8,900 | ||
OTTI Recognized in Earnings | |||||
Continuous Loss Position, Total | |||||
Other-than-temporary impairment losses | $ 0 | $ 900 | 0 | $ 1,744 | |
OTTI Recognized in AOCI | |||||
Continuous Loss Position, Total | |||||
Other-than-temporary impairment losses | $ 0 | $ 0 |
Note 5 - Investments Securities
Note 5 - Investments Securities Lending Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities Financing Transaction [Line Items] | ||
Securities Received as Collateral | $ 34,767 | $ 11,699 |
Securities Financing Transaction, Fair Value | ||
Securities Financing Transaction [Line Items] | ||
Securities Received as Collateral | $ 32,300 | $ 16,800 |
Note 5 - Investments Net Gains
Note 5 - Investments Net Gains (Losses) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Gain (Loss) on Securities [Line Items] | |||||
Net realized gains (losses) on investments | $ 4,597 | $ (4,447) | $ 4,631 | $ (8,977) | |
Unrealized Gain (Loss) on Securities | 4,419 | 1,405 | 33,005 | (17,132) | |
Total net gains (losses) on investments | 9,016 | (3,942) | 37,636 | (27,853) | |
Fixed maturities | |||||
Gain (Loss) on Securities [Line Items] | |||||
Fixed maturities available for sale, net realized gain (loss) | [1] | 4,401 | (4,219) | 5,209 | (9,030) |
Gross investment gains from sales and redemptions | 4,697 | 814 | 10,926 | 1,831 | |
Gross investment losses from sales and redemptions | (296) | (5,033) | (5,717) | (10,861) | |
Trading Securities | |||||
Gain (Loss) on Securities [Line Items] | |||||
Trading securities, net realized gain (loss) | 19 | (260) | (391) | (910) | |
Equity securities | |||||
Gain (Loss) on Securities [Line Items] | |||||
Equity Securities, FV-NI, Realized Gain (Loss) | (28) | (69) | (708) | 571 | |
Short-term Investments | |||||
Gain (Loss) on Securities [Line Items] | |||||
Debt and Equity Securities, Gain (Loss) | 205 | 101 | 521 | 392 | |
OTTI Recognized in Earnings | |||||
Gain (Loss) on Securities [Line Items] | |||||
Other-than-temporary impairment losses | $ 0 | $ (900) | $ 0 | $ (1,744) | |
[1] | Components of net realized gains (losses) on fixed-maturities available for sale include: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Gross investment gains from sales and redemptions $ 4,697 $ 814 $ 10,926 $ 1,831 Gross investment losses from sales and redemptions (296 ) (5,033 ) (5,717 ) (10,861 ) |
Note 5 - Investments Net Unreal
Note 5 - Investments Net Unrealized Gains (Losses) on Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Net changes in unrealized gains (losses) on investments | $ 4,742 | $ 820 | $ 28,068 | $ (15,538) |
Trading Securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Trading Securities, Change in Unrealized Holding Gain (Loss) | 4,132 | (2,581) | 18,962 | (18,431) |
Equity securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Equity Securities, Change in Unrealized Holding Gain (Loss) | 563 | 2,971 | 9,170 | 2,238 |
Other investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Other Investments, Change in Unrealized Holding Gain (Loss) | $ 47 | $ 430 | $ (64) | $ 655 |
Note 5 - Investments Contractua
Note 5 - Investments Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Available-for-sale Securities, Amortized Cost | |||
Loaned securities | $ 65,444 | $ 27,860 | |
Fixed-maturities available for sale—at amortized cost | 4,369,273 | 4,098,962 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturity investments available for sale, Total, Fair Value | 4,527,223 | 4,021,575 | |
Non Asset Backed Security Investments, Contractual Maturities [Member] | |||
Available-for-sale Securities, Amortized Cost | |||
Due in one year or less | [1] | 132,819 | |
Due after one year through five years | [1] | 885,660 | |
Due after five years through ten years | [1] | 1,108,946 | |
Due after ten years | [1] | 409,043 | |
Available-for-sale Securities, Fair Value | |||
Due in one year or less | [1] | 132,897 | |
Due after one year through five years | [1] | 903,546 | |
Due after five years through ten years | [1] | 1,168,298 | |
Due after ten years | [1] | 455,841 | |
RMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Amortized Cost | [2] | 605,687 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Fair Value | [2] | 619,935 | |
CMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Amortized Cost | [2] | 542,284 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Fair Value | [2] | 563,338 | |
Other ABS | |||
Available-for-sale Securities, Amortized Cost | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Amortized Cost | [2] | 718,854 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Fair Value | [2] | 717,986 | |
Total fixed-maturities available for sale | |||
Available-for-sale Securities, Amortized Cost | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 4,403,293 | ||
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 4,561,841 | ||
Fixed maturities | RMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 605,687 | 334,843 | |
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 619,935 | 332,142 | |
Fixed maturities | CMBS | |||
Available-for-sale Securities, Amortized Cost | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 542,284 | 546,729 | |
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 563,338 | 539,915 | |
Fixed maturities | Other ABS | |||
Available-for-sale Securities, Amortized Cost | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 718,854 | 712,748 | |
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 717,986 | 704,662 | |
Fixed maturities | Total fixed-maturities available for sale | |||
Available-for-sale Securities, Amortized Cost | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 4,403,293 | 4,106,594 | |
Fixed-maturities available for sale—at amortized cost | 4,369,273 | 4,098,962 | |
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 4,561,841 | 4,028,987 | |
Fixed-maturity investments available for sale, Total, Fair Value | 4,527,223 | 4,021,575 | |
Fixed maturities | Securities Financing Transaction, Cost | Total fixed-maturities available for sale | |||
Available-for-sale Securities, Amortized Cost | |||
Loaned securities | 34,020 | 7,632 | |
Fixed maturities | Securities Financing Transaction, Fair Value | Total fixed-maturities available for sale | |||
Available-for-sale Securities, Amortized Cost | |||
Loaned securities | $ 34,618 | $ 7,412 | |
[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. |
Note 5 - Investments Other (Det
Note 5 - Investments Other (Details) - Fixed maturities - Debt securities - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 110 | $ 88.4 |
Assets Held by Insurance Regulators | $ 16.8 | $ 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 | 9 Months Ended | 12 Months Ended | |
Sep. 30, 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) - Mortgage and Real Estate Services Segment - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Original Acquired Amount | $ 109,812 | $ 110,350 |
Other Intangible Assets, Accumulated Amortization and Impairment | (71,909) | (65,444) |
Other Intangible Assets, Net Carrying Amount | 37,903 | 44,906 |
Client relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Original Acquired Amount | 83,860 | 84,000 |
Other Intangible Assets, Accumulated Amortization and Impairment | (52,764) | (48,227) |
Other Intangible Assets, Net Carrying Amount | 31,096 | 35,773 |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Original Acquired Amount | 16,964 | 17,362 |
Other Intangible Assets, Accumulated Amortization and Impairment | (14,382) | (13,141) |
Other Intangible Assets, Net Carrying Amount | 2,582 | 4,221 |
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 | (4,511) | (3,864) |
Other Intangible Assets, Net Carrying Amount | 3,829 | 4,476 |
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 | (183) | (177) |
Other Intangible Assets, Net Carrying Amount | 2 | 8 |
Licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Original Acquired Amount | 463 | 463 |
Other Intangible Assets, Accumulated Amortization and Impairment | (69) | (35) |
Other Intangible Assets, Net Carrying Amount | $ 394 | $ 428 |
Note 7 - Reinsurance Net Premiu
Note 7 - Reinsurance Net Premiums Written and Earned, Insurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||
Premiums Written, Net [Abstract] | ||||||
Direct Premiums Written | $ 287,000 | $ 279,137 | $ 828,022 | $ 820,449 | ||
Assumed Premiums Written | [1] | 2,608 | 1,987 | 7,528 | 4,803 | |
Ceded Premiums Written | [2] | (15,455) | (24,348) | (39,900) | (76,162) | |
Net premiums written—insurance | 274,153 | 256,776 | 795,650 | 749,090 | ||
Premiums Earned, Net [Abstract] | ||||||
Direct Premiums Earned | 305,493 | 272,505 | 919,507 | [3] | 796,448 | |
Assumed Premiums Earned | [1] | 2,614 | 1,994 | 7,545 | 4,822 | |
Ceded Premiums Earned | [2] | (26,922) | (16,068) | (83,189) | [3] | (48,945) |
Net premiums earned—insurance | 281,185 | 258,431 | 843,863 | [3] | 752,325 | |
Ceded Credit Risk [Line Items] | ||||||
Ceding Commissions Earned | 12,153 | 8,373 | 37,191 | [3] | 25,728 | |
Ceded losses | $ 771 | $ 1,191 | $ 4,326 | $ 3,356 | ||
[1] | Includes premiums earned from our participation in certain credit risk transfer programs. | |||||
[2] | Net of profit commission. | |||||
[3] | Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies. See Note 3 for further information. |
Note 7 - Reinsurance QSR Progra
Note 7 - Reinsurance QSR Program (Details) - USD ($) $ in Billions | Sep. 30, 2019 | Sep. 30, 2018 |
Radian Guaranty | Reinsurer Concentration Risk | QSR Program | ||
Risk In Force | $ 0.7 | $ 1 |
Note 7 - Reinsurance Single Pre
Note 7 - Reinsurance Single Premium QSR Program (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Oct. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Ceded Premiums Written | [1] | $ 15,455 | $ 24,348 | $ 39,900 | $ 76,162 | ||
2016 Single Premium QSR | Radian Guaranty | Reinsurer Concentration Risk | |||||||
Risk In Force | 5,700,000 | 6,400,000 | 5,700,000 | 6,400,000 | |||
2018 Single Premium QSR | Radian Guaranty | Reinsurer Concentration Risk | |||||||
Risk In Force | $ 2,900,000 | $ 1,600,000 | $ 2,900,000 | $ 1,600,000 | |||
Concentration Risk, Percentage | 65.00% | ||||||
Ceded Premiums Written | $ 335,000 | ||||||
[1] | Net of profit commission. |
Note 7 - Reinsurance Excess-of-
Note 7 - Reinsurance Excess-of-Loss Program (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Sep. 30, 2019USD ($)arrangements | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)arrangements | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |||
Ceded Premiums Earned | [1] | $ 26,922 | $ 16,068 | $ 83,189 | [2] | $ 48,945 | |||
Mortgage Insurance Segment | |||||||||
Risk In Force | 60,400,000 | $ 60,400,000 | |||||||
Radian Guaranty | Mortgage Insurance Segment | |||||||||
Reinsurance Retention Policy, Term of Coverage, Period | 10 years | ||||||||
Excess-of-Loss Program | Radian Guaranty | Mortgage Insurance Segment | |||||||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | [3] | 970,622 | $ 970,622 | $ 434,034 | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 974,317 | 974,317 | 435,148 | ||||||
Excess-of-Loss Program | Radian Guaranty | Mortgage Insurance Segment | On-Balance Sheet | |||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 3,695 | 3,695 | 1,114 | ||||||
Excess-of-Loss Program | Radian Guaranty | Mortgage Insurance Segment | Off-Balance Sheet | |||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [4] | 970,622 | 970,622 | 434,034 | |||||
Excess-of-Loss Program | Radian Guaranty | Mortgage Insurance Segment | Eagle Re 2018-1 (Primary) | |||||||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | [3] | 408,586 | 408,586 | 434,034 | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 410,079 | 410,079 | 435,148 | ||||||
Excess-of-Loss Program | Radian Guaranty | Mortgage Insurance Segment | Eagle Re 2018-1 (Primary) | On-Balance Sheet | |||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [5] | 1,493 | 1,493 | 1,114 | |||||
Excess-of-Loss Program | Radian Guaranty | Mortgage Insurance Segment | Eagle Re 2018-1 (Primary) | Off-Balance Sheet | |||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [4] | 408,586 | 408,586 | $ 434,034 | |||||
Excess-of-Loss Program | Radian Guaranty | Mortgage Insurance Segment | Eagle Re 2019-1 (Primary) | |||||||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | [3] | 562,036 | 562,036 | ||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 564,238 | 564,238 | |||||||
Excess-of-Loss Program | Radian Guaranty | Mortgage Insurance Segment | Eagle Re 2019-1 (Primary) | On-Balance Sheet | |||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [5] | 2,202 | 2,202 | ||||||
Excess-of-Loss Program | Radian Guaranty | Mortgage Insurance Segment | Eagle Re 2019-1 (Primary) | Off-Balance Sheet | |||||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | [4] | $ 562,036 | $ 562,036 | ||||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | |||||||||
Number of Fully Collateralized Reinsurance Arrangements with the Eagle Re Issuers | arrangements | 2 | 2 | |||||||
Ceded Premiums Earned | $ 7,500 | $ 18,400 | |||||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage Insurance Segment | Eagle Re 2018-1 (Primary) | |||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 434,000 | ||||||||
Risk In Force | 9,100,000 | ||||||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage Insurance Segment | Eagle Re 2018-1 (Primary) | XOL First Layer | |||||||||
Reinsurance Retention Policy, Amount Retained | 204,900 | ||||||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage Insurance Segment | Separate Third-Party Reinsurer | |||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 21,400 | ||||||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage Insurance Segment | Eagle Re 2019-1 (Primary) | |||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 562,000 | ||||||||
Risk In Force | 10,700,000 | ||||||||
Proceeds from Issuance of Debt | 562,000 | ||||||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage Insurance Segment | Eagle Re 2019-1 (Primary) | XOL First Layer | |||||||||
Reinsurance Retention Policy, Amount Retained | $ 267,600 | ||||||||
[1] | Net of profit commission. | ||||||||
[2] | Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies. See Note 3 for further information. | ||||||||
[3] | Assets held by the Eagle Re Issuers are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Liabilities of the Eagle Re Issuers consist of their mortgage insurance-linked notes, described above. | ||||||||
[4] | Represents Radian Guaranty’s maximum exposure to loss in the event the VIE is unable to meet its obligations to us and 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) were to lose their value 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 aggregate excess-of-loss reinsurance coverage amount. In the same scenario, the related embedded derivative would no longer have value. | ||||||||
[5] | Represents the fair value of the related embedded derivative, included in other assets in our condensed consolidated balance sheets. |
Note 8 - Other Assets Component
Note 8 - Other Assets Components of Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||||
Company-owned life insurance | $ 103,877 | $ 103,877 | $ 83,377 | |||||
Prepaid federal income taxes (Note 9) | 89,200 | 89,200 | 0 | |||||
Loaned securities (Note 5) | 65,444 | 65,444 | 27,860 | |||||
Internal-use software | [1] | 55,190 | 55,190 | 51,367 | ||||
Right-of-use assets | [3] | 42,613 | [2] | 42,613 | [2] | 0 | ||
Property and equipment | [4] | 34,339 | 34,339 | 37,090 | ||||
Accrued investment income | 33,187 | 33,187 | 34,878 | |||||
Unbilled receivables | 25,110 | 25,110 | 19,917 | |||||
Deferred policy acquisition costs | 19,928 | 19,928 | 17,311 | |||||
Reinsurance recoverables | 16,906 | 16,906 | 14,402 | |||||
Current federal income tax receivable | [5] | 0 | 0 | 44,506 | ||||
Other | 27,853 | 27,853 | 36,992 | |||||
Total other assets | 513,647 | 513,647 | 367,700 | |||||
Internal-use software, Accumulated Amortization | 70,400 | 70,400 | 60,300 | |||||
Internal-use software, Impairments | 3,800 | 5,100 | ||||||
Internal-use software, Amortization | 3,300 | $ 2,900 | 9,800 | $ 8,600 | ||||
Accumulated Amortization, Right-of-Use Assets | 6,800 | 6,800 | ||||||
Property and Equipment, Owned, Accumulated Depreciation | 68,500 | 68,500 | 62,900 | |||||
Depreciation expense | $ 1,900 | $ 2,100 | $ 5,900 | $ 5,900 | ||||
REMIC Residual | Internal Revenue Service (IRS) | ||||||||
Refund of Qualified Deposit Assets from U.S. Department of Treasury | $ 57,200 | |||||||
[1] | Internal-use software, at cost, has been reduced by accumulated amortization of $70.4 million and $60.3 million at September 30, 2019 and December 31, 2018 , respectively, as well as $3.8 million of impairment charges in the nine months ended September 30, 2019 , and $5.1 million of impairment charges in 2018. Amortization expense was $3.3 million and $2.9 million for the three-month periods ended September 30, 2019 and 2018 , respectively, and $9.8 million and $8.6 million for the nine-month periods ended September 30, 2019 and 2018 , respectively. | |||||||
[2] | Classified in other assets in our condensed consolidated balance sheets. See Note 8 . | |||||||
[3] | 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 $6.8 million at September 30, 2019 . | |||||||
[4] | Property and equipment at cost, less accumulated depreciation of $68.5 million and $62.9 million at September 30, 2019 and December 31, 2018 , respectively. Depreciation expense was $1.9 million and $2.1 million for the three-month periods ended September 30, 2019 and 2018 , respectively, and $5.9 million for both the nine-month periods ended September 30, 2019 and 2018 . | |||||||
[5] | During the nine months ended September 30, 2019 , current federal income tax receivable was reduced by our receipt of the remaining $57.2 million refund from amounts on deposit with the IRS related to the settlement of the IRS Matter. |
Note 9 - Income Taxes Income Ta
Note 9 - Income Taxes Income Tax (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local, Net of Federal Benefit | $ 68 | |
US Treasury Securities | ||
Operating Loss Carryforwards [Line Items] | ||
Debt Securities | 89.2 | |
Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Income Taxes Payable, Federal, Current | 33.4 | |
REMIC Residual | Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [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 | |
State and Local NOL Carryforwards | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation Allowance, Amount | $ 67.9 |
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 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Reserve for losses and loss adjustment expense (Note 10) | $ 398,141 | $ 401,361 | |||
Mortgage Insurance Segment | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Reserve for losses and loss adjustment expense (Note 10) | 394,087 | 397,891 | $ 408,980 | $ 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) | [1] | $ 4,054 | $ 3,470 | ||
[1] | The Services loss reserves relate to Radian Title Insurance and the majority is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. For all periods presented, total incurred losses and paid claims for Radian Title Insurance were not material. See Note 8 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information about our use of reinsurance in our title insurance business. |
Note 10 - Losses and Loss Adj_4
Note 10 - Losses and Loss Adjustment Expense Mortgage Insurance Reserve for Losses and LAE Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 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 | 398,141 | ||
Mortgage Insurance Segment | |||
Loss reserve [Roll Forward] | |||
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 [Abstract] | |||
Incurred Losses and LAE Current year | [2] | 107,866 | 100,047 |
Incurred Losses and LAE Prior years | (10,579) | (24,075) | |
Total incurred losses and LAE | 97,287 | 75,972 | |
Deduct paid claims and LAE related to [Abstract] | |||
Paid Losses and LAE Current year | [2] | 1,784 | 2,316 |
Paid losses and LAE Prior years | 101,927 | 173,911 | |
Total paid losses and LAE | 103,711 | 176,227 | |
Balance at end of period, net of reinsurance recoverables | 380,458 | 398,983 | |
Add: Reinsurance recoverables | [1] | 13,629 | 9,997 |
Balance at end of period | $ 394,087 | $ 408,980 | |
[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. |
Note 10 - Losses and Loss Adj_5
Note 10 - Losses and Loss Adjustment Expense Reserve Activity (Details) | Sep. 30, 2019 | Sep. 30, 2018 |
Primary Mortgage Product | Mortgage Insurance Segment | ||
Default To Claim Rate Estimate, Gross, For New Defaults | 7.50% | 8.50% |
Note 10 - Losses and Loss Adj_6
Note 10 - Losses and Loss Adjustment Expense Mortgage Insurance Reserve Assumptions (Details) - Primary Mortgage Product - Mortgage Insurance Segment | Sep. 30, 2019 | Sep. 30, 2018 |
Default To Claim Rate Estimate, Gross, For New Defaults | 7.50% | 8.50% |
Default To Claim Rate Estimate, Gross, For Pre-Foreclosure Stage Defaults | 65.00% | |
Default To Claim Estimate, Gross, For Foreclosure Stage Defaults | 72.00% |
Note 11 - Borrowings and Fina_3
Note 11 - Borrowings and Financing Activities Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Advances from Federal Home Loan Banks | $ 104,492 | $ 82,532 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | 886,643 | 1,030,348 | |
Senior Notes | Senior Notes Due 2019 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 0 | $ 158,324 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |
Senior Notes | Senior Notes Due 2020 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 0 | $ 232,729 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | |
Senior Notes | Senior Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 0 | $ 195,867 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | |
Senior Notes | Senior Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 444,186 | $ 443,428 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | |
Senior Notes | Senior Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 442,457 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | 4.875% |
FHLB Advances | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 58,881 | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 6,621 | $ 60,550 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 14,000 | 2,991 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 9,000 | 8,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 8,994 | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 6,996 | 8,995 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 1,996 | ||
Advances from Federal Home Loan Banks | $ 104,492 | $ 82,532 |
Note 11 - Borrowings and Fina_4
Note 11 - Borrowings and Financing Activities Repayment and Extinguishment of Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Loss on extinguishment of debt | $ (5,940) | $ 0 | $ (22,738) | $ 0 | ||
Senior Notes | Senior Notes Due 2019 | ||||||
Maturities of Senior Debt | $ 158,600 | |||||
Senior Notes | Senior Notes Due 2020 | ||||||
Debt Instrument, Repurchased Face Amount | 207,200 | 27,000 | $ 207,200 | 27,000 | ||
Long-term Debt, Gross | 0 | 0 | ||||
Senior Notes | Senior Notes Due 2021 | ||||||
Debt Instrument, Repurchased Face Amount | $ 127,300 | 70,400 | 127,300 | 70,400 | ||
Long-term Debt, Gross | 0 | $ 0 | ||||
Senior Notes | Senior Notes due 2020 and 2021 | ||||||
Repayments of Senior Debt | 103,100 | 351,800 | ||||
Loss on extinguishment of debt | $ (5,900) | $ (16,800) |
Note 11 - Borrowings and Fina_5
Note 11 - Borrowings and Financing Activities Senior Notes due 2027 (Details) - Senior Notes - Senior Notes Due 2027 - USD ($) $ in Millions | 1 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument, Face Amount | $ 450 | ||
Proceeds from Issuance of Long-term Debt | $ 442.2 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | 4.875% |
Debt Instrument, Redemption Price, Percentage | 100.00% | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Percent of Stock With Ordinary Voting Rights That Company Must Retain In Order To Make Any Capital Stock Transactions | 0.80 |
Note 11 - Borrowings and Fina_6
Note 11 - Borrowings and Financing Activities FHLB Advances (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank, Advances, Maturity Period, Fixed Rate | 90 days |
Note 11 - Borrowings and Fina_7
Note 11 - Borrowings and Financing Activities Revolving Credit Facility (Details) - Revolving Credit Facility $ in Millions | Sep. 30, 2019USD ($) |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 267.5 |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Note 12 - Commitments and Con_3
Note 12 - Commitments and Contingencies Legal Proceedings (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019USD ($)matter | Sep. 30, 2019USD ($)matter | Sep. 23, 2019Certificates | Aug. 31, 2018Certificates | Apr. 12, 2018Certificates | Jun. 05, 2017Certificates | Dec. 17, 2016Certificates | |
Loss Contingencies [Line Items] | |||||||
Increase in Incurred But Not Reported Reserves | $ | $ 11.8 | $ 31.2 | |||||
Unasserted Claim | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Minimum Number of Pending or Threatened Matters That Could Affect Our Results | matter | 1 | 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 | 1,704 | 3,014 | |||||
Nationstar | Insurance premium refunds | |||||||
Loss Contingencies [Line Items] | |||||||
Insurance Certificates Issued Under Multiple Insurance Policies | 2,231 |
Note 12 - Commitments and Con_4
Note 12 - Commitments and Contingencies Lease Liability (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||||
Operating Lease, Cost | $ 2,340,000 | $ 7,006,000 | ||||||
Short-term Lease, Cost | 36,000 | 111,000 | ||||||
Lease, Cost | 2,376,000 | 7,117,000 | ||||||
Operating cash flows from operating leases | (2,657,000) | (7,933,000) | ||||||
Operating Lease, Right-of-Use Asset | [2] | 42,613,000 | [1] | 42,613,000 | [1] | $ 0 | ||
Operating lease liabilities | [3] | $ 65,816,000 | $ 65,816,000 | |||||
Weighted-average remaining lease term - operating leases (in years) | 10 years | 10 years | ||||||
Weighted-average discount rate - operating leases | 6.77% | 6.77% | ||||||
Remaining maturities of lease liabilities for 2019 | $ 2,681,000 | $ 2,681,000 | ||||||
Remaining maturities of lease liabilities for 2020 | 10,408,000 | 10,408,000 | ||||||
Remaining maturities of lease liabilities for 2021 | 9,945,000 | 9,945,000 | ||||||
Remaining maturities of lease liabilities for 2022 | 10,140,000 | 10,140,000 | ||||||
Remaining maturities of lease liabilities for 2023 | 10,279,000 | 10,279,000 | ||||||
Remaining maturities of lease liabilities for 2024 and thereafter | 56,421,000 | 56,421,000 | ||||||
Total lease payments | 99,874,000 | 99,874,000 | ||||||
Less: Imputed interest | $ (34,058,000) | $ (34,058,000) | ||||||
Rent expense pursuant to previous lease accounting standard | $ 2,500,000 | $ 6,800,000 | ||||||
Commitment for non-cancelable leases in 2019 | 11,310,000 | |||||||
Commitment for non-cancelable leases in 2020 | 10,847,000 | |||||||
Commitment for non-cancelable leases in 2021 | 10,165,000 | |||||||
Commitment for non-cancelable leases in 2022 | 10,100,000 | |||||||
Commitment for non-cancelable leases in 2023 | 10,251,000 | |||||||
Commitment for non-cancelable leases in 2024 and thereafter | 56,317,000 | |||||||
Total | 108,990,000 | |||||||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 0 | |||||||
Minimum | ||||||||
Lessee, Operating Lease, Discount Rate | 4.22% | 4.22% | ||||||
Maximum | ||||||||
Lessee, Operating Lease, Discount Rate | 7.08% | 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 $6.8 million at September 30, 2019 . | |||||||
[3] | Classified in other liabilities in our condensed consolidated balance sheets. |
Note 13 - Capital Stock Share R
Note 13 - Capital Stock Share Repurchase Program (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2019$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Nov. 01, 2019USD ($) | Aug. 14, 2019USD ($) | Mar. 20, 2019USD ($) | Aug. 16, 2018USD ($) | |
3Q18 Repurchase Program | |||||||
Capital Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 100 | ||||||
1Q19 Repurchase Program | |||||||
Capital Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 150 | ||||||
Total of 3Q18 and 1Q19 Repurchase Programs | |||||||
Capital Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 250 | ||||||
Stock Repurchased During Period, Shares | shares | 2,241,568 | 11,258,574 | |||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ / shares | $ 23.43 | $ 22.22 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0 | $ 0 | |||||
Percent of Reduction in Shares Outstanding | 0.053 | 0.053 | |||||
3Q19 Repurchase Program | |||||||
Capital Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 200 | ||||||
Stock Repurchased During Period, Shares | shares | 1,104,786 | ||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ / shares | $ 22.64 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 175 | $ 175 | |||||
Subsequent Event | 3Q19 Repurchase Program | |||||||
Capital Stock [Line Items] | |||||||
Stock Repurchased During Period, Shares | shares | 1,090,875 | ||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ / shares | $ 22.93 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 150 |
Note 13 - Capital Stock Dividen
Note 13 - Capital Stock Dividends Paid (Details) - $ / shares | 3 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | 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 | $ 0.0025 | $ 0.0025 |
Note 14 - Accumulated Other C_3
Note 14 - Accumulated Other Comprehensive Income (Loss) Rollforward of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 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 | $ 40,654 | $ (5,341) | 190,677 | $ (93,788) | |||
Less: Reclassification adjustment for net gains (losses) included in net income (loss) | 3,477 | (4,044) | 4,115 | (8,512) | |||
Net foreign currency translation adjustments | 0 | 0 | (3) | 3 | |||
Other comprehensive income (loss), net of tax | 37,177 | (1,297) | 186,559 | (85,273) | |||
AOCI, Net of Tax, Balance at end of period | 125,639 | 125,639 | |||||
Other Comprehensive Income | |||||||
Other Comprehensive Income, before Tax [Abstract] | |||||||
AOCI before Tax, Balance at beginning of period | 111,977 | (73,345) | (77,114) | 32,669 | |||
AOCI before tax,Cumulative Effect of Adopting an Accounting Standard Update | $ 0 | $ 284 | |||||
AOCI before Tax, Balance adjusted for cumulative effect of adopting accounting standard updates | (73,345) | 32,953 | |||||
Unrealized holding gains (losses) arising during the period | 51,460 | (6,762) | 241,363 | (118,719) | |||
Less: Reclassification adjustment for net gains (losses) included in net income | [1] | 4,401 | (5,120) | 5,209 | (10,775) | ||
Net unrealized gains (losses) on investments | 47,059 | (1,642) | 236,154 | (107,944) | |||
Unrealized foreign currency translation adjustments | 0 | 0 | (4) | 4 | |||
Other comprehensive income (loss) | 47,059 | (1,642) | 236,150 | (107,940) | |||
AOCI before Tax, Balance at end of period | 159,036 | (74,987) | 159,036 | (74,987) | |||
Other Comprehensive Income, Tax [Abstract] | |||||||
AOCI, Tax, Balance at beginning of period | 23,515 | (15,402) | (16,194) | 9,584 | |||
AOCI, Tax, Cumulative Effect of Adopting an Accounting Standard Update | 0 | (2,664) | |||||
AOCI, Tax, Balance adjusted for Cumulative Effect of Adopting Accounting Standard Updates | (15,402) | 6,920 | |||||
Unrealized holding gains (losses) arising during the period | 10,806 | (1,421) | 50,686 | (24,931) | |||
Less: Reclassification adjustment for net gains (losses) included in net income | [1] | 924 | (1,076) | 1,094 | (2,263) | ||
Net unrealized gains (losses) on investments | 9,882 | (345) | 49,592 | (22,668) | |||
Unrealized foreign currency translation adjustments | 0 | 0 | (1) | 1 | |||
Other comprehensive income (loss) | 9,882 | (345) | 49,591 | (22,667) | |||
AOCI Tax, Balance at end of period | 33,397 | (15,747) | 33,397 | (15,747) | |||
Other Comprehensive Income, Net of Tax [Abstract] | |||||||
AOCI, Net of Tax, Balance at beginning of period | 88,462 | (57,943) | (60,920) | 23,085 | |||
AOCI, Net of Tax, Cumulative Effect of Adopting an Accounting Standard Update, Net of Tax | $ 0 | $ 2,948 | |||||
AOCI, Net of Tax, Balance adjusted for Cumulative Effect of Adopting Accounting Standard Updates | (57,943) | 26,033 | |||||
Unrealized holding gains (losses) arising during the period | 40,654 | (5,341) | 190,677 | (93,788) | |||
Less: Reclassification adjustment for net gains (losses) included in net income (loss) | [1] | 3,477 | (4,044) | 4,115 | (8,512) | ||
Net unrealized gains (losses) on investments | 37,177 | (1,297) | 186,562 | (85,276) | |||
Net foreign currency translation adjustments | 0 | 0 | (3) | 3 | |||
Other comprehensive income (loss), net of tax | 37,177 | (1,297) | 186,559 | (85,273) | |||
AOCI, Net of Tax, Balance at end of period | $ 125,639 | $ (59,240) | $ 125,639 | $ (59,240) | |||
[1] | Included in net gains (losses) on investments and other financial instruments on our condensed consolidated statements of operations. |
Note 15 - Statutory Informati_3
Note 15 - Statutory Information Statutory Information (Details) $ in Billions | Sep. 30, 2019USD ($) |
Consolidated insurance subsidiaries | |
Statutory Accounting Practices [Line Items] | |
Restricted Net Assets Held by Consolidated Subsidiaries | $ 4 |
Note 15 - Statutory Informati_4
Note 15 - Statutory Information Risk To Capital Calculation (Details) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Apr. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Radian Guaranty | ||||
Risk to Capital Line Items [Line Items] | ||||
RIF, net | [1] | $ 43,484.8 | $ 40,711.3 | |
Common stock and paid-in capital | 1,041 | 1,416 | ||
Surplus Note | 100 | 100 | ||
Unassigned earnings (deficit) | (553.5) | (701.9) | ||
Statutory policyholders’ surplus | 587.5 | 814.1 | ||
Contingency reserve | 2,475.9 | 2,109.9 | ||
Statutory capital | $ 3,063.4 | $ 2,924 | ||
Risk-to-capital | 14.2 | 13.9 | ||
Increase (decrease) in Statutory Capital and Surplus | $ 139.4 | |||
Statutory Net Income (Loss) | $ 525.5 | |||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | $ 375 | |||
Consolidated insurance subsidiaries | ||||
Risk to Capital Line Items [Line Items] | ||||
Risk-to-capital | 12.9 | 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. |