Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NMI HOLDINGS, INC. | |
Entity Central Index Key | 1547903 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 58,686,375 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $365,674 and $337,718 as of March 31, 2015 and December 31, 2014, respectively) | $367,947,000 | $336,501,000 |
Cash and cash equivalents | 66,420,000 | 103,021,000 |
Premiums receivable | 1,663,000 | 1,048,000 |
Accrued investment income | 1,732,000 | 1,707,000 |
Prepaid expenses | 2,091,000 | 2,054,000 |
Deferred policy acquisition costs, net | 5,283,000 | 2,985,000 |
Software and equipment, net | 12,913,000 | 11,806,000 |
Goodwill and other indefinite lived intangible assets | 3,634,000 | 3,634,000 |
Other assets | 56,000 | 509,000 |
Total Assets | 461,739,000 | 463,265,000 |
Liabilities | ||
Unearned premiums | 28,054,000 | 22,069,000 |
Reserve for insurance claims and claim expenses | 187,000 | 83,000 |
Accounts payable and accrued expenses | 6,845,000 | 10,646,000 |
Warrant liability, at fair value | 2,124,000 | 3,372,000 |
Current tax payable | 1,190,000 | 0 |
Deferred tax liability | 137,000 | 137,000 |
Total Liabilities | 38,537,000 | 36,307,000 |
Commitments and contingencies | ||
Shareholders' Equity | ||
Additional paid-in capital | 564,915,000 | 562,911,000 |
Accumulated other comprehensive loss, net of tax | -1,548,000 | -3,607,000 |
Accumulated deficit | -140,750,000 | -132,930,000 |
Total Shareholders' Equity | 423,202,000 | 426,958,000 |
Total Liabilities and Shareholders' Equity | 461,739,000 | 463,265,000 |
Class A | ||
Shareholders' Equity | ||
Common stock - class A shares, $0.01 par value; 58,519,558 and 58,428,548 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively (250,000,000 shares authorized) | $585,000 | $584,000 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Fixed maturity, amortized cost | $365,674 | $337,718 |
Class A | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares issued | 58,519,558 | 58,428,548 |
Common stock, shares outstanding | 58,519,558 | 58,428,548 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Net premiums written | $12,921 | $5,178 |
Increase in unearned premiums | -5,985 | -3,274 |
Net premiums earned | 6,936 | 1,904 |
Net investment income | 1,596 | 1,489 |
Net realized investment gains | 613 | 0 |
Gain from change in fair value of warrant liability | 1,248 | 817 |
Gain from settlement of warrants | 0 | 37 |
Total revenues | 10,393 | 4,247 |
Expenses | ||
Insurance claims and claims expenses | 104 | 0 |
Underwriting and operating expenses | 18,350 | 19,302 |
Total expenses | 18,454 | 19,302 |
Loss before income taxes | -8,061 | -15,055 |
Income tax benefit | -241 | 0 |
Net loss | -7,820 | -15,055 |
Other comprehensive income, net of tax: | ||
Net unrealized holding gains for the period included in accumulated other comprehensive loss, net of tax expense of $1,431, and $0 for the three months ended March 31, 2015 and 2014, respectively | 2,672 | 3,035 |
Reclassification adjustment for gains included in net loss, net of tax expense of $0, and $0 for the three months ended March 31, 2015 and 2014, respectively | -613 | 0 |
Other comprehensive income, net of tax | 2,059 | 3,035 |
Total comprehensive loss | ($5,761) | ($12,020) |
Loss per share | ||
Basic and Diluted loss per share (in dollars per share) | ($0.13) | ($0.26) |
Weighted average common shares outstanding (in shares) | 58,485,899 | 58,061,299 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (Parentheticals) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Change in unrealized investment gains (losses), tax amount | $1,431 | $0 |
Reclassification adjustment from AOCI for sale of securities, tax amount | $0 | $0 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (USD $) | Total | Class A | Common Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | |
In Thousands, unless otherwise specified | Class A | Class B | Class A | ||||||
Beginning balance at Dec. 31, 2013 | $463,217 | $581 | $0 | $553,707 | ($7,047) | ($84,024) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock: class A shares issued under related to warrants | [1] | 13 | 13 | ||||||
Common stock: class A shares issued under related to warrants | 14 | 3 | 11 | ||||||
Share-based compensation expense | 9,180 | 9,180 | |||||||
Change in unrealized investment gains/losses, net of tax | 3,440 | 3,440 | |||||||
Net loss | -48,906 | -48,906 | |||||||
Ending balance at Dec. 31, 2014 | 426,958 | 584 | 0 | 562,911 | -3,607 | -132,930 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock: class A shares issued under related to warrants | 0 | 1 | -1 | ||||||
Share-based compensation expense | 2,005 | 2,005 | |||||||
Change in unrealized investment gains/losses, net of tax | 2,059 | 2,059 | |||||||
Net loss | -7,820 | -7,820 | |||||||
Ending balance at Mar. 31, 2015 | $423,202 | $585 | $0 | $564,915 | ($1,548) | ($140,750) | |||
[1] | During 2014, we issued 1,115 common shares with a par value of $0.01 related to the exercise of warrants, which is not identifiable in this schedule due to rounding. |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Change in unrealized investment gains (losses), tax amount | $2,390 |
Class A | |
Common stock, par value (in dollars per share) | $0.01 |
Class A | Common Stock | |
Stock issued during period (in shares) | 1,115 |
Common stock, par value (in dollars per share) | $0.01 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows From Operating Activities | ||
Net loss | ($7,820) | ($15,055) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Net realized investment gains | -613 | 0 |
(Gain) loss from change in fair value of warrant liability | -1,248 | -817 |
Gain from settlement of warrants | 0 | -37 |
Depreciation and other amortization | 1,099 | 1,952 |
Share-based compensation expense | 2,005 | 2,333 |
Benefit for taxes on current year unrealized gains | -241 | 0 |
Changes in operating assets and liabilities: | ||
Accrued investment income | -25 | 210 |
Premiums receivable | -615 | -110 |
Prepaid expenses | -37 | -183 |
Deferred policy acquisition costs, net | -2,298 | -887 |
Other assets | 453 | 7 |
Unearned premiums | 5,985 | 3,274 |
Reserve for insurance claims and claims expenses | 104 | 0 |
Accounts payable and accrued expenses | -4,291 | -2,678 |
Net Cash Used in Operating Activities | -7,542 | -11,991 |
Cash Flows From Investing Activities | ||
Purchase of fixed-maturity investments, available-for-sale | -61,676 | -110 |
Proceeds from redemptions, maturities and sale of fixed-maturity investments, available-for-sale | 33,935 | 718 |
Purchase of software and equipment | -1,317 | -1,664 |
Net Cash Provided by (Used in) Investing Activities | -29,058 | -1,056 |
Cash Flows From Financing Activities | ||
Taxes paid related to net share settlement of equity awards | -334 | -90 |
Issuance of common stock | 333 | 0 |
Net Cash Provided by (Used in) Financing Activities | -1 | -90 |
Net Increase (Decrease) in Cash and Cash Equivalents | -36,601 | -13,137 |
Cash and Cash Equivalents, beginning of period | 103,021 | 55,929 |
Cash and Cash Equivalents, end of period | $66,420 | $42,792 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation |
NMI Holdings, Inc. (NMIH) is a Delaware corporation, incorporated in May 2011, to provide private mortgage guaranty insurance (which we refer to as mortgage insurance or MI) through its wholly owned insurance subsidiaries, National Mortgage Insurance Corporation (NMIC) and National Mortgage Reinsurance Inc One (Re One). In April 2013, NMIC, our primary insurance subsidiary, wrote our first mortgage insurance policy. As of March 31, 2015, we had $4.8 billion of primary insurance in force (IIF) and $4.6 billion of pool IIF, with $1.1 billion of primary risk-in-force (RIF) and $93.1 million of pool RIF. | |
Freddie Mac and Fannie Mae each approved NMIC as an eligible mortgage insurer, on January 15, 2013 and January 16, 2013, respectively, which approvals are conditioned upon NMIC maintaining certain conditions (GSE Approval). | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements, which include the results of NMIH and its wholly owned subsidiaries, have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC for interim reporting and include other information and disclosures required by accounting principles generally accepted in the U.S. (GAAP). Our accounts are maintained in U.S. dollars. These statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2014 included in our Annual Report on Form 10-K. All intercompany transactions have been eliminated. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities as of the balance sheet date. Estimates also affect the reported amounts of income and expenses for the reporting period. Actual results could differ from those estimates. The results of operations for the interim period may not be indicative of the results that may be expected for the full year ending December 31, 2015. | |
Earnings per Share | |
Basic net loss per share is based on the weighted-average number of common shares outstanding, while diluted net loss per share is based on the weighted-average number of common shares outstanding and common stock equivalents that would be issuable upon the exercise of stock options, other stock-based compensation arrangements, and the dilutive effect of outstanding warrants. As a result of our net losses for the three months ended March 31, 2015 and 2014, 7,137,901 shares and 6,159,735 shares, respectively, of our common stock equivalents issued under stock-based compensation arrangements and warrants, respectively, were not included in the calculation of diluted net loss per share as of such dates because they were anti-dilutive. | |
Deferred Policy Acquisition Costs | |
Costs directly associated with the successful acquisition of mortgage insurance policies, consisting of certain selling expenses and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs (DAC). For each book year of business, these costs are amortized to expense in proportion to estimated gross profits over the estimated life of the policies. Total amortization of DAC for the three months ended March 31, 2015 and 2014 were $356 thousand and $19 thousand, respectively. | |
Premium Deficiency Reserves | |
We consider whether a premium deficiency exists at each fiscal quarter using best estimate assumptions as of the testing date. Per Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 944, a premium deficiency reserve shall be recognized if the sum of expected claim costs and claim adjustment expenses, expected dividends to policyholders, unamortized acquisition costs, and maintenance costs exceeds related unearned premiums and anticipated investment income. We have determined that no premium deficiency reserves were necessary for the three months ended March 31, 2015 or 2014. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). This update is intended to provide a consistent approach in recognizing revenue. In accordance with the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The provisions of this update are effective for interim and annual periods beginning after December 15, 2016. The Company is currently evaluating the impact the adoption of this ASU will have on the consolidated financial statements. |
Investments
Investments | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||||||||
We have designated our investment portfolio as available-for-sale and report it at fair value. The related unrealized gains and losses are, after considering the related tax expense or benefit, recognized as a component of accumulated other comprehensive loss in shareholders' equity. Net realized investment gains and losses are reported in income based upon specific identification of securities sold. | |||||||||||||||||||||||||||
Fair Values and Gross Unrealized Gains and Losses on Investments | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
As of March 31, 2015 | (In Thousands) | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 86,605 | $ | 115 | $ | (127 | ) | $ | 86,593 | ||||||||||||||||||
Municipal debt securities | 12,008 | 21 | (34 | ) | 11,995 | ||||||||||||||||||||||
Corporate debt securities | 198,125 | 2,311 | (308 | ) | 200,128 | ||||||||||||||||||||||
Asset-backed securities | 68,936 | 397 | (102 | ) | 69,231 | ||||||||||||||||||||||
Total investments | $ | 365,674 | $ | 2,844 | $ | (571 | ) | $ | 367,947 | ||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
As of December 31, 2014 | (In Thousands) | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 68,911 | $ | 7 | $ | (573 | ) | $ | 68,345 | ||||||||||||||||||
Municipal debt securities | 12,009 | 27 | (73 | ) | 11,963 | ||||||||||||||||||||||
Corporate debt securities | 200,358 | 883 | (1,456 | ) | 199,785 | ||||||||||||||||||||||
Asset-backed securities | 56,440 | 222 | (254 | ) | 56,408 | ||||||||||||||||||||||
Total investments | $ | 337,718 | $ | 1,139 | $ | (2,356 | ) | $ | 336,501 | ||||||||||||||||||
Scheduled Maturities | |||||||||||||||||||||||||||
The amortized cost and fair values of available for sale securities at March 31, 2015 and December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most asset-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories. | |||||||||||||||||||||||||||
As of March 31, 2015 | Amortized | Fair | |||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Due in one year or less | $ | 19,617 | $ | 19,662 | |||||||||||||||||||||||
Due after one through five years | 180,613 | 181,103 | |||||||||||||||||||||||||
Due after five through ten years | 79,706 | 81,044 | |||||||||||||||||||||||||
Due after ten years | 16,802 | 16,907 | |||||||||||||||||||||||||
Asset-backed securities | 68,936 | 69,231 | |||||||||||||||||||||||||
Total investments | $ | 365,674 | $ | 367,947 | |||||||||||||||||||||||
As of December 31, 2014 | Amortized | Fair | |||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Due in one year or less | $ | 6,110 | $ | 6,125 | |||||||||||||||||||||||
Due after one through five years | 195,492 | 194,472 | |||||||||||||||||||||||||
Due after five through ten years | 54,360 | 53,891 | |||||||||||||||||||||||||
Due after ten years | 25,316 | 25,605 | |||||||||||||||||||||||||
Asset-backed securities | 56,440 | 56,408 | |||||||||||||||||||||||||
Total investments | $ | 337,718 | $ | 336,501 | |||||||||||||||||||||||
Net Realized Investment Gains (Losses) on Investments | |||||||||||||||||||||||||||
Gross realized gains and losses were $0.8 million and $0.2 million, respectively, for the three months ended March 31, 2015. There were no realized investment gains or losses for the three months ended March 31, 2014. | |||||||||||||||||||||||||||
Aging of Unrealized Losses | |||||||||||||||||||||||||||
At March 31, 2015, the investment portfolio had gross unrealized losses of $0.6 million, $0.5 million of which has been in an unrealized loss position for a period of 12 months or greater. We did not consider these securities to be other-than-temporarily impaired as of March 31, 2015. We based our conclusion that these investments were not other-than-temporarily impaired at March 31, 2015 on the following facts: (i) the unrealized losses were primarily caused by interest rate movements since the purchase date; (ii) we do not intend to sell these investments; and (iii) we do not believe that it is more likely than not that we will be required to sell these investments before recovery of our amortized cost basis, which may not occur until maturity. For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows: | |||||||||||||||||||||||||||
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 | |||||||||||||||||||
As of March 31, 2015 | (Dollars in Thousands) | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | 2 | $ | 7,307 | $ | (17 | ) | 6 | $ | 22,448 | $ | (110 | ) | 8 | $ | 29,755 | $ | (127 | ) | |||||||||
Municipal debt securities | 1 | 3,240 | (10 | ) | 1 | 1,726 | (24 | ) | 2 | 4,966 | (34 | ) | |||||||||||||||
Corporate debt securities | 5 | 10,774 | (38 | ) | 7 | 21,276 | (270 | ) | 12 | 32,050 | (308 | ) | |||||||||||||||
Assets-backed securities | 5 | 13,452 | (34 | ) | 4 | 10,782 | (68 | ) | 9 | 24,234 | (102 | ) | |||||||||||||||
Total investments | 13 | $ | 34,773 | $ | (99 | ) | 18 | $ | 56,232 | $ | (472 | ) | 31 | $ | 91,005 | $ | (571 | ) | |||||||||
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 | |||||||||||||||||||
As of December 31, 2014 | (Dollars in Thousands) | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | 4 | $ | 7,228 | $ | (33 | ) | 10 | $ | 49,884 | $ | (540 | ) | 14 | $ | 57,112 | $ | (573 | ) | |||||||||
Municipal debt securities | 1 | 3,232 | (18 | ) | 1 | 1,695 | (55 | ) | 2 | 4,927 | (73 | ) | |||||||||||||||
Corporate debt securities | 26 | 60,334 | (559 | ) | 22 | 65,806 | (897 | ) | 48 | 126,140 | (1,456 | ) | |||||||||||||||
Assets-backed securities | 3 | 10,614 | (57 | ) | 4 | 20,047 | (197 | ) | 7 | 30,661 | (254 | ) | |||||||||||||||
Total investments | 34 | $ | 81,408 | $ | (667 | ) | 37 | $ | 137,432 | $ | (1,689 | ) | 71 | $ | 218,840 | $ | (2,356 | ) | |||||||||
Net Investment Income | |||||||||||||||||||||||||||
For the three months ended March 31, 2015, net investment income was comprised of $1.7 million of investment income from fixed maturities and $0.1 million of investment expenses, compared to $1.6 million of investment income from fixed maturities and $0.1 million of investment expenses for the three months ended March 31, 2014. | |||||||||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, there were approximately $7.0 million of cash and investments in the form of U.S. Treasury securities on deposit with various state insurance departments to satisfy regulatory requirements. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||
The following is a list of those assets and liabilities that are measured at fair value by hierarchy level: | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | Fair Value | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
As of March 31, 2015 | (In Thousands) | |||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 57,238 | $ | 29,355 | $ | — | $ | 86,593 | ||||||||
Municipal debt securities | — | 11,995 | — | 11,995 | ||||||||||||
Corporate debt securities | — | 200,128 | — | 200,128 | ||||||||||||
Asset-backed securities | — | 69,231 | — | 69,231 | ||||||||||||
Cash and cash equivalents | 66,420 | — | — | 66,420 | ||||||||||||
Total assets | $ | 123,658 | $ | 310,709 | $ | — | $ | 434,367 | ||||||||
Warrant liability | $ | — | $ | — | $ | 2,124 | $ | 2,124 | ||||||||
Total liabilities | $ | — | $ | — | $ | 2,124 | $ | 2,124 | ||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | Fair Value | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
As of December 31, 2014 | (In Thousands) | |||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 39,176 | $ | 29,169 | $ | — | $ | 68,345 | ||||||||
Municipal debt securities | — | 11,963 | — | 11,963 | ||||||||||||
Corporate debt securities | — | 199,785 | — | 199,785 | ||||||||||||
Asset-backed securities | — | 56,408 | — | 56,408 | ||||||||||||
Cash and cash equivalents | 103,021 | — | — | 103,021 | ||||||||||||
Total assets | $ | 142,197 | $ | 297,325 | $ | — | $ | 439,522 | ||||||||
Warrant liability | $ | — | $ | — | $ | 3,372 | $ | 3,372 | ||||||||
Total liabilities | $ | — | $ | — | $ | 3,372 | $ | 3,372 | ||||||||
The following is a roll-forward of Level 3 liabilities measured at fair value: | ||||||||||||||||
For the three months ended March 31, | ||||||||||||||||
Warrant Liability | 2015 | 2014 | ||||||||||||||
(In Thousands) | ||||||||||||||||
Balance, January 1 | $ | 3,372 | $ | 6,371 | ||||||||||||
Change in fair value of warrant liability included in earnings | (1,248 | ) | (817 | ) | ||||||||||||
Issuance of common stock on warrant exercise | — | (13 | ) | |||||||||||||
Gain on settlement of warrants | — | (37 | ) | |||||||||||||
Balance, March 31 | $ | 2,124 | $ | 5,504 | ||||||||||||
We revalue the warrant liability quarterly using a Black-Scholes option-pricing model, in combination with a binomial model, and we value the pricing protection features within the warrants using a Monte-Carlo simulation model. As of March 31, 2015, the assumptions used in the option pricing model were as follows: a common stock price as of March 31, 2015 of $7.49, risk free interest rate of 1.65%, expected life of 6.67 years, expected volatility of 34.4% and a dividend yield of 0%. The change in fair value is primarily attributable to a decline in the price of our common stock from December 31, 2014 to March 31, 2015. |
Reserves_for_Insurance_Claims_
Reserves for Insurance Claims and Claim Expenses | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Insurance [Abstract] | ||||||||
Reserves for Insurance Claims and Claim Expenses | Reserves for Insurance Claims and Claims Expenses | |||||||
We establish claim reserves to recognize the estimated liability for insurance claims and claim expenses related to defaults on insured mortgage loans. Our method, consistent with industry practice, is to establish claim reserves only for loans in default. Our claim reserves also include amounts for estimated claims incurred on loans that have been in default for at least 60 days that have not yet been reported to us by the servicers, often referred to as IBNR. We did not establish reserves for insurance claims within our primary insurance book until the second quarter of 2014. In 2013, we entered into a pool insurance agreement with Fannie Mae. We only establish claim or IBNR reserves for pool risk if we expect claims to exceed the deductible under the pool agreement, which represents the amount of claims absorbed by Fannie Mae before we are obligated to pay any claims. At March 31, 2015, thirty-five loans in the pool were past due by sixty days or more. These thirty-five loans represent approximately $1.9 million in RIF. Due to the deductible of $10.3 million, the level of notices of default (NODs) reported through March 31, 2015 and the expected severity (all loans in the pool have LTVs under 80%), we have not established any pool reserves for claims or IBNR for the three months ended March 31, 2015 and 2014. We have not paid any claims to date. | ||||||||
The following table provides a reconciliation of the beginning and ending reserve balances for insurance claims and claims expenses: | ||||||||
For the three months ended March 31, | ||||||||
2015 | 2014 | |||||||
(In Thousands) | ||||||||
Reserve at beginning of period | $ | 83 | $ | — | ||||
Claims incurred: | ||||||||
Claims and claim expenses incurred: | ||||||||
Current year | 80 | — | ||||||
Prior years | 24 | — | ||||||
Total claims incurred | 104 | — | ||||||
Claims paid: | ||||||||
Claims and claim expenses paid: | ||||||||
Current year | — | — | ||||||
Prior years | — | — | ||||||
Total claims paid | — | — | ||||||
Reserve at end of period | $ | 187 | $ | — | ||||
There was a $24 thousand unfavorable prior year development during the three months ended March 31, 2015. Reserves remaining as of March 31, 2015 for prior years are $107 thousand as a result of re-estimation of unpaid claims and claim adjustment expenses. The increase in the period is generally the result of ongoing analysis of recent loss development trends. Original estimates are increased or decreased as additional information becomes known regarding individual claims. |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Warrants | Warrants |
In April 2012, we issued 992,000 warrants with an aggregate fair value of $5.1 million upon the completion of a private placement of our securities and in conjunction with the acquisition of our insurance subsidiaries. Each warrant gives the holder thereof the right to purchase one share of common stock at an exercise price equal to $10.00. | |
Upon exercise of these warrants, the amounts are reclassified from warrant liability to additional paid-in capital. During the first quarter of 2014, 7,790 warrants were exercised and we issued 1,115 Class A common shares via a cashless exercise. Upon exercise we recognized a gain of approximately $37 thousand. No warrants were exercised during the first quarter of 2015. | |
We account for these warrants to purchase our common shares in accordance with ASC 470-20, Debt with Conversion and Other Options and ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity. |
Share_Based_Compensation
Share Based Compensation | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Share-Based Compensation | Share Based Compensation | ||||||||||
The following table provides a summary of option activity: | |||||||||||
For the three months ended March 31, 2015 | Shares | Weighted Average Grant Date Fair Value per Share | Weighted Average Exercise Price | ||||||||
(Shares in Thousands) | |||||||||||
Options outstanding at December 31, 2014 | 3,630 | $ | 4.16 | $ | 10.66 | ||||||
Options granted | 755 | 3.06 | 8.5 | ||||||||
Options forfeited | (12 | ) | 4.34 | 11.07 | |||||||
Options outstanding at March 31, 2015 | 4,373 | $ | 3.97 | $ | 10.29 | ||||||
For the three months ended March 31, 2014 | Shares | Weighted Average Grant Date Fair Value per Share | Weighted Average Exercise Price | ||||||||
(Shares in Thousands) | |||||||||||
Options outstanding at December 31, 2013 | 3,063 | $ | 3.98 | $ | 10.31 | ||||||
Options granted | 693 | 4.97 | 12.32 | ||||||||
Options exercised | (2 | ) | 3.84 | 10 | |||||||
Options forfeited | (28 | ) | 4.15 | 10.71 | |||||||
Options outstanding at March 31, 2014 | 3,726 | $ | 4.17 | $ | 10.68 | ||||||
At March 31, 2015, there were no options exercised and 2.1 million options were fully vested and exercisable. The weighted average exercise price for the fully vested and exercisable options was $10.53. The remaining weighted average contractual life of options fully vested and exercisable as of March 31, 2015 was 7.5 years. The aggregate intrinsic value for fully vested and exercisable options was $0 as of March 31, 2015. The fair value of option grants to employees is determined based on a Black-Scholes simulation model at the date of grant. | |||||||||||
The following table provides a summary of restricted stock unit (RSU) activity: | |||||||||||
For the three months ended March 31, 2015 | Shares | Weighted Average Grant Date Fair Value per Share | |||||||||
(Shares in Thousands) | |||||||||||
Non-vested restricted stock units at December 31, 2014 | 1,209 | $ | 8.9 | ||||||||
Restricted stock units granted | 677 | 7.57 | |||||||||
Restricted stock units vested and exercised | (91 | ) | 12.21 | ||||||||
Restricted stock units forfeited | (15 | ) | 10.82 | ||||||||
Non-vested restricted stock units at March 31, 2015 | 1,780 | $ | 8.21 | ||||||||
For the three months ended March 31, 2014 | Shares | Weighted Average Grant Date Fair Value per Share | |||||||||
(Shares in Thousands) | |||||||||||
Non-vested restricted stock units at December 31, 2013 | 1,242 | $ | 7.75 | ||||||||
Restricted stock units granted | 239 | 12.32 | |||||||||
Restricted stock units vested and exercised | (19 | ) | 11.31 | ||||||||
Restricted stock units forfeited | (14 | ) | 6.98 | ||||||||
Non-vested restricted stock units at March 31, 2014 | 1,448 | $ | 8.46 | ||||||||
At March 31, 2015, the 1.8 million shares of non-vested RSUs consisted of 0.5 million shares that are subject to both a market and service condition and 1.3 million shares that are subject only to service conditions. The non-vested RSUs subject to both a market and service condition vest in one-half increments upon the achievement of certain market price goals and continued service. Non-vested RSUs subject only to a service condition vest over a service period ranging from 1 to 3 years. The fair value of RSUs subject to market and service conditions is determined based on a Monte Carlo simulation model at the date of grant. The fair value of RSUs subject only to service conditions are valued at our stock price on the date of grant less the present value of anticipated dividends, which is $0. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
We are a U.S. taxpayer and are subject to a statutory U.S. federal corporate income tax rate of 35%. Our holding company files a consolidated U.S. federal and various state income tax returns on behalf of itself and its subsidiaries. Our effective income tax rate on our pre-tax loss was 3.0% for the three months ended March 31, 2015, compared to 0.0% for the comparable 2014 period. | |
The income tax benefit of $0.2 million for the three months ended March 31, 2015 is related to the tax effects of unrealized gains credited to other comprehensive income (OCI). Generally, the amount of tax expense or benefit allocated to continuing operations is determined without regard to the tax effects of other categories of income or loss, such as OCI. However, an exception to the general rule is provided in ASC 740-20-45-7 when there is a pre-tax loss from continuing operations and there are items charged or credited to other categories, including OCI, in the current year. The intraperiod tax allocation rules related to items charged or credited directly to OCI can result in disproportionate tax effects that remain in OCI until certain events occur. As a result of net unrealized gains credited directly to OCI during the three months ended March 31, 2015, approximately $1.4 million of tax provision expense has been netted with current year unrealized gains in OCI, and $0.2 million of tax provision benefit was allocated to the income tax provision for continuing operations. Other benefits from income taxes were eliminated or reduced by the recognition of a full valuation allowance which was recorded to reflect the amount of the deferred taxes that may not be realized. |
Statutory_Information
Statutory Information | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Insurance [Abstract] | ||||||||||||
Statutory Information | Statutory Information | |||||||||||
Our insurance subsidiaries, NMIC and Re One, are domiciled in the state of Wisconsin and file financial statements in conformity with statutory basis accounting principles (SAP) prescribed or permitted by the Wisconsin Office of the Commissioner of Insurance (Wisconsin OCI). NMIC and Re One's principal regulator is the Wisconsin OCI. Prescribed SAP includes state laws, regulations and general administrative rules, as well as a variety of publications of the National Association of Insurance Commissioners (NAIC). The Wisconsin OCI recognizes only SAP prescribed or permitted by the state of Wisconsin for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under Wisconsin insurance laws. | ||||||||||||
Certain states limit the amount of risk a mortgage insurer may retain on a single loan to 25% of the indebtedness to the insured and, as a result, the portion of such insurance in excess of 25% must be reinsured. NMIC cedes premiums, loss reserves and claims to Re One on an excess share basis for any primary or pool policy which offers coverage greater than 25% on any loan insured thereunder solely for purposes of compliance with these state statutory coverage limits. Currently, NMIC has no other reinsurance agreements. | ||||||||||||
NMIC and Re One's combined statutory net loss, statutory surplus and contingency reserve were as follows: | ||||||||||||
As of and for the three months ended March 31, 2015 and as of and for the year ended December 31, 2014 | March 31, 2015 | December 31, 2014 | ||||||||||
(In Thousands) | ||||||||||||
Statutory net loss | $ | (12,131 | ) | $ | (47,961 | ) | ||||||
Statutory surplus | 224,604 | 236,738 | ||||||||||
Contingency reserve | 12,869 | 9,401 | ||||||||||
NMIC is licensed in all 50 states and D.C. Under applicable Wisconsin law and 15 other states, a mortgage insurer must maintain a minimum amount of statutory capital relative to its risk-in-force (risk-to-capital ratio or RTC ratio) to continue to write new business. While formulas for minimum capital may vary among jurisdictions, the most common measure applied allows for a maximum permitted RTC ratio of 25 to 1. Our operation plan filed with the Wisconsin OCI and other state insurance departments in connection with NMIC's applications for licensure includes the expectation that NMIH will downstream additional capital if needed so that NMIC does not exceed RTC ratios agreed to with those states. In addition, under the terms of our conditional approvals from the GSEs, we are required to operate at a risk-to-capital ratio not to exceed 15 to 1 for our first three years of operations. | ||||||||||||
As of March 31, 2015, NMIC had $1.1 billion in total RIF with a RTC ratio of 5:1, significantly below the GSE and state imposed financial requirements. As of March 31, 2014, NMIC had $175.2 million of RIF, resulting in a RTC ratio of 0.9:1. The risk-to-capital calculation for each of our insurance subsidiaries, as well as our combined risk-to-capital calculation, is presented below. | ||||||||||||
As of March 31, 2015 | NMIC | Re One | Combined | |||||||||
(In Thousands) | ||||||||||||
Primary risk-in-force (1) | ||||||||||||
Direct | $ | 1,145,252 | $ | — | $ | 1,145,252 | ||||||
Assumed | — | 98,680 | 98,680 | |||||||||
Ceded | (98,680 | ) | — | (98,680 | ) | |||||||
Total primary risk-in-force | 1,046,572 | 98,680 | 1,145,252 | |||||||||
Pool risk-in-force (2) | ||||||||||||
Direct | 93,090 | — | 93,090 | |||||||||
Assumed | — | 24,705 | 24,705 | |||||||||
Ceded | (24,705 | ) | — | (24,705 | ) | |||||||
Total pool risk-in-force | 68,385 | 24,705 | 93,090 | |||||||||
Total risk-in-force | 1,114,957 | 123,385 | 1,238,342 | |||||||||
Statutory policyholders' surplus | 211,130 | 13,474 | 224,604 | |||||||||
Statutory contingency reserve | 11,216 | 1,653 | 12,869 | |||||||||
Total statutory policyholders' position | $ | 222,346 | $ | 15,127 | $ | 237,473 | ||||||
Risk-to-Capital (3) | 5:01 | 8.2:1 | 5.2:1 | |||||||||
(1) | Primary RIF excludes risk on policies that are currently in default and for which loss reserves have been established. | |||||||||||
(2) | Pool RIF as shown in the table above is equal to the aggregate stop loss less a deductible. | |||||||||||
(3) | Represents total RIF divided by statutory policyholders' position which is the metric by which the majority of state insurance regulators will assess our capital adequacy. | |||||||||||
NMIH is not subject to any limitations on its ability to pay dividends except those generally applicable to corporations that are incorporated in Delaware, such as NMIH. Delaware corporation law provides that dividends are only payable out of a corporation's capital surplus or (subject to certain limitations) recent net profits. As of December 31, 2014, NMIH's shareholders' equity was approximately $427 million. NMIH's total assets, excluding its investment in NMIC and Re One, were approximately $179 million at December 31, 2014, and were unencumbered by any debt or other subsidiary commitments or obligations. The insurance subsidiaries are both mono-line mortgage insurance companies and the assets of each are dedicated only to the support of direct risk and obligations of each mortgage insurance entity. NMIC only writes direct mortgage insurance business and assumes no business from any other entity. Re One only assumes business from NMIC to allow NMIC to comply with state statutory risk requirements. Neither NMIC nor Re One have subsidiaries, and therefore do not have subsidiary risks and obligations that compete for its resources. | ||||||||||||
The GSEs and state insurance regulators may restrict our insurance subsidiaries' ability to pay dividends to NMIH. In addition to the restrictions imposed during the GSE Approval and state licensing processes, the ability of our insurance subsidiaries to pay dividends to NMIH is limited by insurance laws of the State of Wisconsin and certain other states. Wisconsin law provides that an insurance company may pay out dividends without the prior approval of the Wisconsin OCI (ordinary dividends) in an amount, when added to other shareholder distributions made in the prior 12 months, not to exceed the lesser of (a) 10% of the insurer's policyholders' surplus as of the prior December 31 or (b) its net income (excluding realized capital gains) for the 12 month period ending December 31 of the immediately preceding calendar year. In determining net income, an insurer may carry forward net income from the previous calendar years that has not already been paid out as a dividend. Dividends that exceed this amount are "extraordinary dividends," which require prior approval of the Wisconsin OCI. As of December 31, 2014, the amount of restricted net assets held by our consolidated insurance subsidiaries totaled approximately $252 million of NMIH's consolidated net assets of $427 million. The amount of restricted assets used to determine any dividend to NMIH, once all restrictions expire, would be computed under SAP which may differ from the amount of restricted assets computed under GAAP. Since inception, NMIC has not paid any dividends to NMIH. As NMIC had a statutory net loss for the year ended December 31, 2014, NMIC cannot pay any dividends to NMIH through December 31, 2015, without the prior approval of the Wisconsin OCI. Additionally, NMIC will not be permitted to pay dividends to NMIH until after December 31, 2015 as a condition of GSE Approval or until January 2016 under agreements with various state insurance regulators. |
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||
Schedule of Fair Values and Gross Unrealized Gains and Losses | Fair Values and Gross Unrealized Gains and Losses on Investments | ||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
As of March 31, 2015 | (In Thousands) | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 86,605 | $ | 115 | $ | (127 | ) | $ | 86,593 | ||||||||||||||||||
Municipal debt securities | 12,008 | 21 | (34 | ) | 11,995 | ||||||||||||||||||||||
Corporate debt securities | 198,125 | 2,311 | (308 | ) | 200,128 | ||||||||||||||||||||||
Asset-backed securities | 68,936 | 397 | (102 | ) | 69,231 | ||||||||||||||||||||||
Total investments | $ | 365,674 | $ | 2,844 | $ | (571 | ) | $ | 367,947 | ||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
As of December 31, 2014 | (In Thousands) | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 68,911 | $ | 7 | $ | (573 | ) | $ | 68,345 | ||||||||||||||||||
Municipal debt securities | 12,009 | 27 | (73 | ) | 11,963 | ||||||||||||||||||||||
Corporate debt securities | 200,358 | 883 | (1,456 | ) | 199,785 | ||||||||||||||||||||||
Asset-backed securities | 56,440 | 222 | (254 | ) | 56,408 | ||||||||||||||||||||||
Total investments | $ | 337,718 | $ | 1,139 | $ | (2,356 | ) | $ | 336,501 | ||||||||||||||||||
Schedule of Investments by Maturity | The amortized cost and fair values of available for sale securities at March 31, 2015 and December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most asset-backed securities provide for periodic payments throughout their lives, they are listed below in separate categories. | ||||||||||||||||||||||||||
As of March 31, 2015 | Amortized | Fair | |||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Due in one year or less | $ | 19,617 | $ | 19,662 | |||||||||||||||||||||||
Due after one through five years | 180,613 | 181,103 | |||||||||||||||||||||||||
Due after five through ten years | 79,706 | 81,044 | |||||||||||||||||||||||||
Due after ten years | 16,802 | 16,907 | |||||||||||||||||||||||||
Asset-backed securities | 68,936 | 69,231 | |||||||||||||||||||||||||
Total investments | $ | 365,674 | $ | 367,947 | |||||||||||||||||||||||
As of December 31, 2014 | Amortized | Fair | |||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
Due in one year or less | $ | 6,110 | $ | 6,125 | |||||||||||||||||||||||
Due after one through five years | 195,492 | 194,472 | |||||||||||||||||||||||||
Due after five through ten years | 54,360 | 53,891 | |||||||||||||||||||||||||
Due after ten years | 25,316 | 25,605 | |||||||||||||||||||||||||
Asset-backed securities | 56,440 | 56,408 | |||||||||||||||||||||||||
Total investments | $ | 337,718 | $ | 336,501 | |||||||||||||||||||||||
Schedule of Aging Unrealized Losses | For those securities in an unrealized loss position, the length of time the securities were in such a position is as follows: | ||||||||||||||||||||||||||
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 | |||||||||||||||||||
As of March 31, 2015 | (Dollars in Thousands) | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | 2 | $ | 7,307 | $ | (17 | ) | 6 | $ | 22,448 | $ | (110 | ) | 8 | $ | 29,755 | $ | (127 | ) | |||||||||
Municipal debt securities | 1 | 3,240 | (10 | ) | 1 | 1,726 | (24 | ) | 2 | 4,966 | (34 | ) | |||||||||||||||
Corporate debt securities | 5 | 10,774 | (38 | ) | 7 | 21,276 | (270 | ) | 12 | 32,050 | (308 | ) | |||||||||||||||
Assets-backed securities | 5 | 13,452 | (34 | ) | 4 | 10,782 | (68 | ) | 9 | 24,234 | (102 | ) | |||||||||||||||
Total investments | 13 | $ | 34,773 | $ | (99 | ) | 18 | $ | 56,232 | $ | (472 | ) | 31 | $ | 91,005 | $ | (571 | ) | |||||||||
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 | |||||||||||||||||||
As of December 31, 2014 | (Dollars in Thousands) | ||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | 4 | $ | 7,228 | $ | (33 | ) | 10 | $ | 49,884 | $ | (540 | ) | 14 | $ | 57,112 | $ | (573 | ) | |||||||||
Municipal debt securities | 1 | 3,232 | (18 | ) | 1 | 1,695 | (55 | ) | 2 | 4,927 | (73 | ) | |||||||||||||||
Corporate debt securities | 26 | 60,334 | (559 | ) | 22 | 65,806 | (897 | ) | 48 | 126,140 | (1,456 | ) | |||||||||||||||
Assets-backed securities | 3 | 10,614 | (57 | ) | 4 | 20,047 | (197 | ) | 7 | 30,661 | (254 | ) | |||||||||||||||
Total investments | 34 | $ | 81,408 | $ | (667 | ) | 37 | $ | 137,432 | $ | (1,689 | ) | 71 | $ | 218,840 | $ | (2,356 | ) | |||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | The following is a list of those assets and liabilities that are measured at fair value by hierarchy level: | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | Fair Value | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
As of March 31, 2015 | (In Thousands) | |||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 57,238 | $ | 29,355 | $ | — | $ | 86,593 | ||||||||
Municipal debt securities | — | 11,995 | — | 11,995 | ||||||||||||
Corporate debt securities | — | 200,128 | — | 200,128 | ||||||||||||
Asset-backed securities | — | 69,231 | — | 69,231 | ||||||||||||
Cash and cash equivalents | 66,420 | — | — | 66,420 | ||||||||||||
Total assets | $ | 123,658 | $ | 310,709 | $ | — | $ | 434,367 | ||||||||
Warrant liability | $ | — | $ | — | $ | 2,124 | $ | 2,124 | ||||||||
Total liabilities | $ | — | $ | — | $ | 2,124 | $ | 2,124 | ||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | Fair Value | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
As of December 31, 2014 | (In Thousands) | |||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies | $ | 39,176 | $ | 29,169 | $ | — | $ | 68,345 | ||||||||
Municipal debt securities | — | 11,963 | — | 11,963 | ||||||||||||
Corporate debt securities | — | 199,785 | — | 199,785 | ||||||||||||
Asset-backed securities | — | 56,408 | — | 56,408 | ||||||||||||
Cash and cash equivalents | 103,021 | — | — | 103,021 | ||||||||||||
Total assets | $ | 142,197 | $ | 297,325 | $ | — | $ | 439,522 | ||||||||
Warrant liability | $ | — | $ | — | $ | 3,372 | $ | 3,372 | ||||||||
Total liabilities | $ | — | $ | — | $ | 3,372 | $ | 3,372 | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a roll-forward of Level 3 liabilities measured at fair value: | |||||||||||||||
For the three months ended March 31, | ||||||||||||||||
Warrant Liability | 2015 | 2014 | ||||||||||||||
(In Thousands) | ||||||||||||||||
Balance, January 1 | $ | 3,372 | $ | 6,371 | ||||||||||||
Change in fair value of warrant liability included in earnings | (1,248 | ) | (817 | ) | ||||||||||||
Issuance of common stock on warrant exercise | — | (13 | ) | |||||||||||||
Gain on settlement of warrants | — | (37 | ) | |||||||||||||
Balance, March 31 | $ | 2,124 | $ | 5,504 | ||||||||||||
Reserves_for_Insurance_Claims_1
Reserves for Insurance Claims and Claim Expenses (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Insurance [Abstract] | ||||||||
Reconciliation of Liability for Insurance Claims and Claims Expenses | The following table provides a reconciliation of the beginning and ending reserve balances for insurance claims and claims expenses: | |||||||
For the three months ended March 31, | ||||||||
2015 | 2014 | |||||||
(In Thousands) | ||||||||
Reserve at beginning of period | $ | 83 | $ | — | ||||
Claims incurred: | ||||||||
Claims and claim expenses incurred: | ||||||||
Current year | 80 | — | ||||||
Prior years | 24 | — | ||||||
Total claims incurred | 104 | — | ||||||
Claims paid: | ||||||||
Claims and claim expenses paid: | ||||||||
Current year | — | — | ||||||
Prior years | — | — | ||||||
Total claims paid | — | — | ||||||
Reserve at end of period | $ | 187 | $ | — | ||||
Share_Based_Compensation_Table
Share Based Compensation (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Schedule of Stock Option Activity | The following table provides a summary of option activity: | ||||||||||
For the three months ended March 31, 2015 | Shares | Weighted Average Grant Date Fair Value per Share | Weighted Average Exercise Price | ||||||||
(Shares in Thousands) | |||||||||||
Options outstanding at December 31, 2014 | 3,630 | $ | 4.16 | $ | 10.66 | ||||||
Options granted | 755 | 3.06 | 8.5 | ||||||||
Options forfeited | (12 | ) | 4.34 | 11.07 | |||||||
Options outstanding at March 31, 2015 | 4,373 | $ | 3.97 | $ | 10.29 | ||||||
For the three months ended March 31, 2014 | Shares | Weighted Average Grant Date Fair Value per Share | Weighted Average Exercise Price | ||||||||
(Shares in Thousands) | |||||||||||
Options outstanding at December 31, 2013 | 3,063 | $ | 3.98 | $ | 10.31 | ||||||
Options granted | 693 | 4.97 | 12.32 | ||||||||
Options exercised | (2 | ) | 3.84 | 10 | |||||||
Options forfeited | (28 | ) | 4.15 | 10.71 | |||||||
Options outstanding at March 31, 2014 | 3,726 | $ | 4.17 | $ | 10.68 | ||||||
Schedule of Restricted Stock Units Activity | The following table provides a summary of restricted stock unit (RSU) activity: | ||||||||||
For the three months ended March 31, 2015 | Shares | Weighted Average Grant Date Fair Value per Share | |||||||||
(Shares in Thousands) | |||||||||||
Non-vested restricted stock units at December 31, 2014 | 1,209 | $ | 8.9 | ||||||||
Restricted stock units granted | 677 | 7.57 | |||||||||
Restricted stock units vested and exercised | (91 | ) | 12.21 | ||||||||
Restricted stock units forfeited | (15 | ) | 10.82 | ||||||||
Non-vested restricted stock units at March 31, 2015 | 1,780 | $ | 8.21 | ||||||||
For the three months ended March 31, 2014 | Shares | Weighted Average Grant Date Fair Value per Share | |||||||||
(Shares in Thousands) | |||||||||||
Non-vested restricted stock units at December 31, 2013 | 1,242 | $ | 7.75 | ||||||||
Restricted stock units granted | 239 | 12.32 | |||||||||
Restricted stock units vested and exercised | (19 | ) | 11.31 | ||||||||
Restricted stock units forfeited | (14 | ) | 6.98 | ||||||||
Non-vested restricted stock units at March 31, 2014 | 1,448 | $ | 8.46 | ||||||||
Statutory_Information_Tables
Statutory Information (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Insurance [Abstract] | ||||||||||||
Schedule of Risk to Capital | The risk-to-capital calculation for each of our insurance subsidiaries, as well as our combined risk-to-capital calculation, is presented below. | |||||||||||
As of March 31, 2015 | NMIC | Re One | Combined | |||||||||
(In Thousands) | ||||||||||||
Primary risk-in-force (1) | ||||||||||||
Direct | $ | 1,145,252 | $ | — | $ | 1,145,252 | ||||||
Assumed | — | 98,680 | 98,680 | |||||||||
Ceded | (98,680 | ) | — | (98,680 | ) | |||||||
Total primary risk-in-force | 1,046,572 | 98,680 | 1,145,252 | |||||||||
Pool risk-in-force (2) | ||||||||||||
Direct | 93,090 | — | 93,090 | |||||||||
Assumed | — | 24,705 | 24,705 | |||||||||
Ceded | (24,705 | ) | — | (24,705 | ) | |||||||
Total pool risk-in-force | 68,385 | 24,705 | 93,090 | |||||||||
Total risk-in-force | 1,114,957 | 123,385 | 1,238,342 | |||||||||
Statutory policyholders' surplus | 211,130 | 13,474 | 224,604 | |||||||||
Statutory contingency reserve | 11,216 | 1,653 | 12,869 | |||||||||
Total statutory policyholders' position | $ | 222,346 | $ | 15,127 | $ | 237,473 | ||||||
Risk-to-Capital (3) | 5:01 | 8.2:1 | 5.2:1 | |||||||||
(1) | Primary RIF excludes risk on policies that are currently in default and for which loss reserves have been established. | |||||||||||
(2) | Pool RIF as shown in the table above is equal to the aggregate stop loss less a deductible. | |||||||||||
(3) | Represents total RIF divided by statutory policyholders' position which is the metric by which the majority of state insurance regulators will assess our capital adequacy. | |||||||||||
NMIC and Re One's combined statutory net loss, statutory surplus and contingency reserve were as follows: | ||||||||||||
As of and for the three months ended March 31, 2015 and as of and for the year ended December 31, 2014 | March 31, 2015 | December 31, 2014 | ||||||||||
(In Thousands) | ||||||||||||
Statutory net loss | $ | (12,131 | ) | $ | (47,961 | ) | ||||||
Statutory surplus | 224,604 | 236,738 | ||||||||||
Contingency reserve | 12,869 | 9,401 | ||||||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Business Acquisition [Line Items] | ||
Primary insurance in force | $4,800,000,000 | |
Pool insurance in force | 4,600,000,000 | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,137,901 | 6,159,735 |
Deferred policy acquisition cost, amortization expense | 356,000 | 19,000 |
Combined | ||
Business Acquisition [Line Items] | ||
Primary insurance risk in force | 1,100,000,000 | |
Pool risk in force | $93,090,000 |
Investments_Fair_Values_and_Gr
Investments - Fair Values and Gross Unrealized Gains and Losses on Investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $365,674 | $337,718 |
Gross Unrealized Gains | 2,844 | 1,139 |
Gross Unrealized (Losses) | -571 | -2,356 |
Fair Value | 367,947 | 336,501 |
U.S. Treasury securities and obligations of U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 86,605 | 68,911 |
Gross Unrealized Gains | 115 | 7 |
Gross Unrealized (Losses) | -127 | -573 |
Fair Value | 86,593 | 68,345 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,008 | 12,009 |
Gross Unrealized Gains | 21 | 27 |
Gross Unrealized (Losses) | -34 | -73 |
Fair Value | 11,995 | 11,963 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 198,125 | 200,358 |
Gross Unrealized Gains | 2,311 | 883 |
Gross Unrealized (Losses) | -308 | -1,456 |
Fair Value | 200,128 | 199,785 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 68,936 | 56,440 |
Gross Unrealized Gains | 397 | 222 |
Gross Unrealized (Losses) | -102 | -254 |
Fair Value | $69,231 | $56,408 |
Investments_Scheduled_Maturiti
Investments - Scheduled Maturities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract] | ||
Amortized Cost, Due in one year or less | $19,617 | $6,110 |
Amortized Cost, Due after one through five years | 180,613 | 195,492 |
Amortized Cost, Due after five through ten years | 79,706 | 54,360 |
Amortized Cost, Due after ten years | 16,802 | 25,316 |
Amortized Cost, Total Investments | 365,674 | 337,718 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date [Abstract] | ||
Fair Value, Due in one year or less | 19,662 | 6,125 |
Fair Value, Due after one through five years | 181,103 | 194,472 |
Fair Value, Due after five through ten years | 81,044 | 53,891 |
Fair Value Due after ten years | 16,907 | 25,605 |
Fair Value, Total Investments | 367,947 | 336,501 |
Asset-backed securities | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract] | ||
Amortized Cost, Total Investments | 68,936 | 56,440 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date [Abstract] | ||
Fair Value, Total Investments | $69,231 | $56,408 |
Investments_Unrealized_Losses_
Investments - Unrealized Losses (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | security | security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities, less than 12 months | 13 | 34 |
Fair value, less than 12 months | $34,773 | $81,408 |
Unrealized losses, less than 12 months | -99 | -667 |
Number of securities,12 months or greater | 18 | 37 |
Fair value, 12 months or greater | 56,232 | 137,432 |
Unrealized losses, 12 months or greater | -472 | -1,689 |
Number of securities, total | 31 | 71 |
Fair value | 91,005 | 218,840 |
Unrealized Losses | -571 | -2,356 |
U.S. Treasury securities and obligations of U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities, less than 12 months | 2 | 4 |
Fair value, less than 12 months | 7,307 | 7,228 |
Unrealized losses, less than 12 months | -17 | -33 |
Number of securities,12 months or greater | 6 | 10 |
Fair value, 12 months or greater | 22,448 | 49,884 |
Unrealized losses, 12 months or greater | -110 | -540 |
Number of securities, total | 8 | 14 |
Fair value | 29,755 | 57,112 |
Unrealized Losses | -127 | -573 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities, less than 12 months | 1 | 1 |
Fair value, less than 12 months | 3,240 | 3,232 |
Unrealized losses, less than 12 months | -10 | -18 |
Number of securities,12 months or greater | 1 | 1 |
Fair value, 12 months or greater | 1,726 | 1,695 |
Unrealized losses, 12 months or greater | -24 | -55 |
Number of securities, total | 2 | 2 |
Fair value | 4,966 | 4,927 |
Unrealized Losses | -34 | -73 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities, less than 12 months | 5 | 26 |
Fair value, less than 12 months | 10,774 | 60,334 |
Unrealized losses, less than 12 months | -38 | -559 |
Number of securities,12 months or greater | 7 | 22 |
Fair value, 12 months or greater | 21,276 | 65,806 |
Unrealized losses, 12 months or greater | -270 | -897 |
Number of securities, total | 12 | 48 |
Fair value | 32,050 | 126,140 |
Unrealized Losses | -308 | -1,456 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities, less than 12 months | 5 | 3 |
Fair value, less than 12 months | 13,452 | 10,614 |
Unrealized losses, less than 12 months | -34 | -57 |
Number of securities,12 months or greater | 4 | 4 |
Fair value, 12 months or greater | 10,782 | 20,047 |
Unrealized losses, 12 months or greater | -68 | -197 |
Number of securities, total | 9 | 7 |
Fair value | 24,234 | 30,661 |
Unrealized Losses | ($102) | ($254) |
Investments_Narrative_Details
Investments - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, gross realized gains | $800,000 | $0 | |
Realized losses, excluding other than temporary impairments | -200,000 | 0 | |
Unrealized loss position, accumulated loss | 571,000 | 2,356,000 | |
Unrealized losses, 12 months or greater | 472,000 | 1,689,000 | |
Investment income, investment expense | -100,000 | -100,000 | |
U.S. Treasury securities and obligations of U.S. government agencies | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized loss position, accumulated loss | 127,000 | 573,000 | |
Unrealized losses, 12 months or greater | 110,000 | 540,000 | |
Cash and investments held with various state insurance departments | 7,000,000 | 7,000,000 | |
Fixed Maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment Income, gross | $1,700,000 | $1,600,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Assets and Liabilities at Fair Value (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $367,947 | $336,501 |
Warrant liability | 2,124 | 3,372 |
U.S. Treasury securities and obligations of U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 86,593 | 68,345 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 11,995 | 11,963 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 200,128 | 199,785 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 69,231 | 56,408 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 66,420 | 103,021 |
Total assets | 434,367 | 439,522 |
Warrant liability | 2,124 | 3,372 |
Total liabilities | 2,124 | 3,372 |
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 86,593 | 68,345 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 11,995 | 11,963 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 200,128 | 199,785 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 69,231 | 56,408 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 66,420 | 103,021 |
Total assets | 123,658 | 142,197 |
Warrant liability | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities and obligations of U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 57,238 | 39,176 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 310,709 | 297,325 |
Warrant liability | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities and obligations of U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 29,355 | 29,169 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 11,995 | 11,963 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 200,128 | 199,785 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 69,231 | 56,408 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Warrant liability | 2,124 | 3,372 |
Total liabilities | 2,124 | 3,372 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities and obligations of U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $0 | $0 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Rollforward of Level 3 (Details) (Significant Unobservable Inputs (Level 3), Warrant Liability, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Significant Unobservable Inputs (Level 3) | Warrant Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $3,372 | $6,371 |
Change in fair value of warrant liability included in earnings | -1,248 | -817 |
Issuance of common stock on warrant exercise | 0 | -13 |
Gain on settlement of warrants | 0 | -37 |
Ending balance | $2,124 | $5,504 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Narrative (Details) (Significant Unobservable Inputs (Level 3), USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Volatility assumption | 34.40% |
Warrant Liability | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Share Price (in dollars per share) | 7.49 |
Risk free rate | 1.65% |
Expected term | 6 years 7 months 30 days |
Expected dividend rate | 0.00% |
Reconciliation_of_Reserve_Bala
Reconciliation of Reserve Balances for Insurance Claims Expenses (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Reserve at beginning of period | $83 | $0 |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] | ||
Current year | 80 | 0 |
Prior years | 24 | 0 |
Total claims incurred | 104 | 0 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | ||
Current year | 0 | 0 |
Prior years | 0 | 0 |
Total claims paid | 0 | 0 |
Reserve at end of period | $187 | $0 |
Reconciliation_of_Reserve_Bala1
Reconciliation of Reserve Balances for Insurance Claims Expenses - Narrative (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance Agreement [Line Items] | ||||
Claim and claim adjustment expense reserve | $187,000 | $0 | $83,000 | $0 |
Prior years | 24,000 | 0 | ||
Reserve for prior year insurance claims and claim expenses | 107,000 | |||
Fannie Mae | ||||
Insurance Agreement [Line Items] | ||||
Number of loans in pool past due 60 days or more | 35 | |||
Risk in Force of loans in pool past due 60 days or more | 1,900,000 | |||
Deductible on policy | 10,300,000 | |||
Loan-to-value ratio (less than) | 0.8 | |||
Claim and claim adjustment expense reserve | $0 | $0 |
Warrants_Details
Warrants (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Apr. 30, 2012 | |
Line of Credit Facility [Line Items] | ||||
Warrants issued (in shares) | 992,000 | |||
Warrants value | $5,100,000 | |||
Right to purchase, number of shares per warrant | 1 | |||
Exercise price of warrants (in dollars per warrant) | $10 | |||
Number of warrants exercised during period | 0 | 7,790 | ||
Gain from settlement of warrants | $0 | $37,000 | $37,000 | |
Class A | Common Stock | ||||
Line of Credit Facility [Line Items] | ||||
Issuance of Class A shares of common stock as part of cashless exercise of warrants, shares | 1,115 |
Share_Based_Compensation_Stock
Share Based Compensation - Stock Option Activity (Details) (The 2012 Stock Incentive Plan, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
The 2012 Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options beginning balance (in shares) | 3,630,000 | 3,063,000 |
Options granted (in shares) | 755,000 | 693,000 |
Options exercised (in shares) | 0 | -2,000 |
Options forfeited (in shares) | -12,000 | -28,000 |
Options ending balance (in shares) | 4,373,000 | 3,726,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Options beginning balance (in dollars per share) | $4.16 | $3.98 |
Options granted (in dollars per share) | $3.06 | $4.97 |
Options exercised (in dollars per shares) | $3.84 | |
Options forfeited (in dollars per share) | $4.34 | $4.15 |
Options ending balance (in dollars per share) | $3.97 | $4.17 |
Weighted Average Exercise Price | ||
Options beginning balance (in dollars per share) | $10.66 | $10.31 |
Options granted (in dollars per share) | $8.50 | $12.32 |
Options exercised (in dollars per share) | $10 | |
Options forfeited (in dollars per share) | $11.07 | $10.71 |
Options ending balance (in dollars per share) | $10.29 | $10.68 |
Share_Based_Compensation_Narra
Share Based Compensation - Narrative (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
The 2012 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised (in shares) | 0 | 2,000 | ||
Number of options vested (in shares) | 2,100,000 | |||
Weighted average exercise price for options vested (in dollars per share) | $10.53 | |||
Weighted average remaining contractual term | 7 years 5 months 20 days | |||
Options vested aggregate value | $0 | |||
Present value of anticipated dividends | $0 | |||
The 2012 Stock Incentive Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units outstanding (in shares) | 1,780,000 | 1,448,000 | 1,209,000 | 1,242,000 |
Subject to Market and Service Conditions | The 2012 Stock Incentive Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units outstanding (in shares) | 500,000 | |||
Subject to Service Conditions | The 2012 Stock Incentive Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units outstanding (in shares) | 1,300,000 | |||
Subject to Service Conditions | Minimum | The 2012 Stock Incentive Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 1 year | |||
Subject to Service Conditions | Maximum | The 2012 Stock Incentive Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 3 years | |||
First Increment | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 50.00% | |||
Second Increment | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 50.00% |
Share_Based_Compensation_Restr
Share Based Compensation - Restricted Stock Units Activity (Details) (The 2012 Stock Incentive Plan, Restricted Stock Units, USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
The 2012 Stock Incentive Plan | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Restricted Stock beginning balance (in shares) | 1,209 | 1,242 |
Restricted stock units granted (in shares) | 677 | 239 |
Restricted stock units vested (in shares) | -91 | -19 |
Restricted stock units forfeited (in shares) | -15 | -14 |
Restricted Stock ending balance (in shares) | 1,780 | 1,448 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Restricted Stock beginning balance (in dollars per share) | $8.90 | $7.75 |
Restricted Stock Units Granted (in dollars per share) | $7.57 | $12.32 |
Restricted stock units vested (in dollars per share) | $12.21 | $11.31 |
Restricted stock units forfeited (in dollars per share) | $10.82 | $6.98 |
Restricted Stock ending balance (in dollars per share) | $8.21 | $8.46 |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 35.00% | ||
Effective income tax rate on pre-tax loss | 3.00% | 0.00% | |
Income tax benefit | $241,000 | $0 | |
Tax provision expense netted against unrealized gains in OCI | 1,400,000 | ||
Deferred tax liabilities, net | $137,000 | $137,000 |
Statutory_Information_Statutor
Statutory Information - Statutory Income (Details) (Combined, USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Combined | ||
Statutory Accounting Practices [Line Items] | ||
Statutory net loss | ($12,131) | ($47,961) |
Statutory surplus | 224,604 | 236,738 |
Contingency reserve | $12,869 | $9,401 |
Statutory_Information_Narrativ
Statutory Information - Narrative (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
state | ||||
Statutory Accounting Practices [Line Items] | ||||
Mortgage insurance, percentage of indebtedness on single loan | 25.00% | |||
Number of states entity is licensed to write mortgage insurance | 50 | |||
Number of states which require minimum amount of statutory capital relative to risk in force | 15 | |||
Risk-to-capital | 25 | |||
Required risk-to-capital ratio on agreements per GSE approval, maximum | 15 | |||
Required maximum risk-to-capital ratio on agreements per GSE approval, time period | 3 years | |||
Shareholders' equity | $423,202,000 | $426,958,000 | $463,217,000 | |
Investment in subsidiaries, at equity in net assets | 179,000,000 | |||
Ordinary dividends, restriction with regards to capital surplus | 10.00% | |||
Combined | ||||
Statutory Accounting Practices [Line Items] | ||||
Mortgage Insurance risk in force | 1,238,342,000 | |||
Risk to capital ratio | 5.2 | |||
NMIC | ||||
Statutory Accounting Practices [Line Items] | ||||
Mortgage Insurance risk in force | 1,100,000,000 | 175,200,000 | ||
Risk to capital ratio | 5 | 0.9 | ||
Subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Shareholders' equity | $252,000,000 |
Statutory_Information_Risk_to_
Statutory Information - Risk to Capital (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |||
NMIC | |||
Primary risk-in-force | |||
Direct | $1,145,252 | ||
Assumed | 0 | ||
Ceded | -98,680 | ||
Total primary risk-in-force | 1,046,572 | ||
Pool risk-in-force | |||
Direct | 93,090 | ||
Assumed | 0 | ||
Ceded | -24,705 | ||
Total pool risk-in-force | 68,385 | ||
Total risk-in-force | 1,100,000 | 175,200 | |
Statutory policyholders' surplus | 211,130 | ||
Statutory contingency reserve | 11,216 | ||
Total statutory policyholders' position | 222,346 | ||
Risk to capital ratio | 5 | 0.9 | |
Re One | |||
Primary risk-in-force | |||
Direct | 0 | ||
Assumed | 98,680 | ||
Ceded | 0 | ||
Total primary risk-in-force | 98,680 | ||
Pool risk-in-force | |||
Direct | 0 | ||
Assumed | 24,705 | ||
Ceded | 0 | ||
Total pool risk-in-force | 24,705 | ||
Total risk-in-force | 123,385 | ||
Statutory policyholders' surplus | 13,474 | ||
Statutory contingency reserve | 1,653 | ||
Total statutory policyholders' position | 15,127 | ||
Risk to capital ratio | 8.2 | ||
Combined | |||
Primary risk-in-force | |||
Direct | 1,145,252 | ||
Assumed | 98,680 | ||
Ceded | -98,680 | ||
Total primary risk-in-force | 1,145,252 | ||
Pool risk-in-force | |||
Direct | 93,090 | ||
Assumed | 24,705 | ||
Ceded | -24,705 | ||
Total pool risk-in-force | 93,090 | ||
Total risk-in-force | 1,238,342 | ||
Statutory policyholders' surplus | 224,604 | 236,738 | |
Statutory contingency reserve | 12,869 | ||
Total statutory policyholders' position | $237,473 | ||
Risk to capital ratio | 5.2 |