Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-10816 | ||
Entity Registrant Name | MGIC Investment Corp | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-1486475 | ||
Entity Address, Address Line One | 250 E. Kilbourn Avenue | ||
Entity Address, Postal Zip Code | 53202 | ||
Entity Address, City or Town | Milwaukee, | ||
Entity Address, State or Province | WI | ||
City Area Code | (414) | ||
Local Phone Number | 347-6480 | ||
Title of 12(b) Security | Common stock, par value $1 per share | ||
Trading Symbol | MTG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.4 | ||
Entity Common Stock, Shares Outstanding | 269,669,667 | ||
Documents Incorporated by Reference | The following documents have been incorporated by reference in this Form 10-K, as indicated: Document Part and Item Number of Form 10-K Into Which Incorporated* Proxy Statement for the 2024 Annual Meeting of Shareholders, provided such Proxy Statement is filed within 120 days after December 31, 2023. If not so filed, the information provided in Items 10 through 14 of Part III will be included in an amended Form 10-K filed within such 120 day period. Items 10 through 14 of Part III * In each case, to the extent provided in the Items listed. | ||
Entity Central Index Key | 0000876437 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Milwaukee, Wisconsin |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investment portfolio: | ||
Equity securities, at fair value (cost, 2023 - $16,025; 2022 - $15,924) | $ 14,771 | $ 14,140 |
Other invested assets, at cost | 850 | 850 |
Total investment portfolio | 5,738,734 | 5,424,688 |
Cash and cash equivalents | 363,666 | 327,384 |
Restricted cash and cash equivalents | 6,978 | 5,529 |
Accrued investment income | 58,774 | 55,178 |
Reinsurance recoverable on loss reserves | 33,302 | 28,240 |
Reinsurance recoverable on paid losses | 9,896 | 18,081 |
Premiums receivable | 58,499 | 58,000 |
Home office and equipment, net | 38,755 | 41,419 |
Deferred insurance policy acquisition costs | 14,591 | 19,062 |
Deferred income taxes, net | 79,782 | 124,769 |
Other assets | 135,403 | 111,443 |
Total assets | 6,538,380 | 6,213,793 |
Liabilities: | ||
Loss reserves | 505,379 | 557,988 |
Unearned premiums | 157,779 | 195,289 |
Senior notes | 643,196 | 641,724 |
Convertible junior subordinated debentures | 0 | 21,086 |
Other liabilities | 160,009 | 154,966 |
Total liabilities | 1,466,363 | 1,571,053 |
Contingencies | ||
Shareholders' equity: | ||
Common stock | 371,353 | 371,353 |
Paid-in capital | 1,808,113 | 1,798,842 |
Treasury stock, at cost | (1,384,293) | (1,050,238) |
Accumulated other comprehensive income (loss), net of tax | (316,281) | (481,511) |
Retained earnings | 4,593,125 | 4,004,294 |
Total shareholders' equity | 5,072,017 | 4,642,740 |
Total liabilities and shareholders' equity | 6,538,380 | 6,213,793 |
Fixed income | ||
Investment portfolio: | ||
Fixed income, available-for-sale | 5,601,540 | 5,342,667 |
Short-Term Investments | ||
Investment portfolio: | ||
Fixed income, available-for-sale | $ 121,573 | $ 67,031 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 371,353,000 | 371,353,000 |
Common stock, shares outstanding (in shares) | 272,494,000 | 293,433,000 |
Treasury stock, shares at cost (in shares) | 98,859,000 | 77,920,000 |
Fixed income | ||
Fixed income, amortized cost | $ 5,939,483 | $ 5,859,688 |
Short-Term Investments | ||
Fixed income, amortized cost | 121,539 | 67,097 |
Equity securities | ||
Cost | $ 16,025 | $ 15,924 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Premiums written: | |||
Direct | $ 1,105,027 | $ 1,108,570 | $ 1,123,117 |
Assumed | 12,835 | 8,535 | 8,924 |
Ceded | (202,821) | (156,373) | (163,031) |
Net premiums written | 915,041 | 960,732 | 969,010 |
Decrease (increase) in unearned premiums | 37,510 | 46,401 | 45,409 |
Net premiums earned | 952,551 | 1,007,133 | 1,014,419 |
Investment income, net of expenses | 214,740 | 167,476 | 156,438 |
Net gains (losses) on investments and other financial instruments | (14,141) | (7,463) | 5,861 |
Other revenue | 1,952 | 5,639 | 8,957 |
Total revenues | 1,155,102 | 1,172,785 | 1,185,675 |
Losses and expenses: | |||
Losses incurred, net | (20,856) | (254,565) | 64,577 |
Amortization of deferred insurance policy acquisition costs | 10,820 | 12,366 | 12,602 |
Other underwriting and operating expenses, net | 226,004 | 236,697 | 198,445 |
Loss on debt extinguishment | 0 | 40,199 | 36,914 |
Interest expense | 36,905 | 48,054 | 71,360 |
Total losses and expenses | 252,873 | 82,751 | 383,898 |
Income before tax | 902,229 | 1,090,034 | 801,777 |
Provision for income taxes | 189,280 | 224,685 | 166,794 |
Net income | $ 712,949 | $ 865,349 | $ 634,983 |
Earnings per share: | |||
Basic (in dollars per share) | $ 2.51 | $ 2.83 | $ 1.90 |
Diluted (in dollars per share) | $ 2.49 | $ 2.79 | $ 1.85 |
Weighted average common shares outstanding - basic (in shares) | 283,605 | 305,847 | 334,330 |
Weighted average common shares outstanding - diluted (in shares) | 287,155 | 311,229 | 351,308 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 712,949 | $ 865,349 | $ 634,983 |
Other comprehensive income (loss), net of tax: | |||
Change in unrealized investment gains and losses | 141,548 | (558,534) | (122,099) |
Benefit plans adjustment | 23,682 | (42,674) | 24,975 |
Other comprehensive income (loss), net of tax | 165,230 | (601,208) | (97,124) |
Comprehensive income | $ 878,179 | $ 264,141 | $ 537,859 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Paid-in capital | Paid-in capital Cumulative Effect, Period of Adoption, Adjustment | Paid-in capital Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury stock | Accumulated other comprehensive income (loss) | Retained earnings | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Retained earnings Cumulative Effect, Period of Adoption, Adjusted Balance |
Balance, beginning of year at Dec. 31, 2020 | $ 371,353 | $ 1,862,042 | $ (68,289) | $ 1,793,753 | $ (393,326) | $ 216,821 | $ 2,642,096 | $ 68,289 | $ 2,710,385 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Reissuance of treasury stock, net under share-based compensation plans | (15,956) | 8,879 | ||||||||
Equity compensation | 17,109 | |||||||||
Purchases of common stock | (290,818) | |||||||||
Other comprehensive income (loss) | $ (97,124) | (97,124) | ||||||||
Net income | 634,983 | 634,983 | ||||||||
Cash dividends | (94,677) | |||||||||
Balance, end of year at Dec. 31, 2021 | $ 4,861,382 | 371,353 | 1,794,906 | (675,265) | 119,697 | 3,250,691 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||||||
Reissuance of treasury stock, net under share-based compensation plans | (20,835) | 10,741 | ||||||||
Equity compensation | 24,771 | |||||||||
Purchases of common stock | (385,714) | |||||||||
Other comprehensive income (loss) | $ (601,208) | (601,208) | ||||||||
Net income | 865,349 | 865,349 | ||||||||
Cash dividends | (111,746) | |||||||||
Balance, end of year at Dec. 31, 2022 | 4,642,740 | 371,353 | 1,798,842 | (1,050,238) | (481,511) | 4,004,294 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Conversion of 9% Debentures, net of tax | (5,315) | |||||||||
Reissuance of treasury stock, net under share-based compensation plans | (17,021) | 9,764 | ||||||||
Equity compensation | 31,607 | |||||||||
Purchases of common stock | (343,819) | |||||||||
Other comprehensive income (loss) | 165,230 | 165,230 | ||||||||
Net income | 712,949 | 712,949 | ||||||||
Cash dividends | (124,118) | |||||||||
Balance, end of year at Dec. 31, 2023 | $ 5,072,017 | $ 371,353 | $ 1,808,113 | $ (1,384,293) | $ (316,281) | $ 4,593,125 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 712,949 | $ 865,349 | $ 634,983 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and other amortization | 35,230 | 54,252 | 66,014 |
Deferred tax expense (benefit) | 1,065 | (4,367) | 5,188 |
Equity compensation | 31,607 | 24,771 | 17,109 |
Loss on debt extinguishment | 0 | 40,199 | 36,914 |
Net (gains) losses on investments and other financial instruments | 14,141 | 7,463 | (5,861) |
Change in certain assets and liabilities: | |||
Accrued investment income | (3,596) | (3,276) | (1,905) |
Reinsurance recoverable on loss reserves | (5,062) | 38,665 | 28,137 |
Reinsurance recoverable on paid losses | 8,185 | 18,194 | (35,606) |
Premiums receivable | (499) | (1,460) | (496) |
Deferred insurance policy acquisition costs | 4,471 | 2,609 | (110) |
Profit commission receivable | 5,108 | 4,724 | (19,245) |
Loss reserves | (52,609) | (325,534) | 2,985 |
Unearned premiums | (37,510) | (46,401) | (45,409) |
Return premium accrual | (4,400) | (11,800) | 7,200 |
Current income taxes | (4,143) | (8,549) | 5,429 |
Other, net | 8,025 | (4,827) | 990 |
Net cash provided by operating activities | 712,962 | 650,012 | 696,317 |
Cash flows from investing activities: | |||
Purchases of investments | (1,469,540) | (674,406) | (1,531,129) |
Proceeds from sales of investments | 376,598 | 399,661 | 473,904 |
Proceeds from maturity of fixed income securities | 913,415 | 688,484 | 900,591 |
Proceeds from sale of property and equipment | 2,336 | 0 | 0 |
Additions to property and equipment | (1,999) | (3,254) | (4,115) |
Net cash (used in) provided by investing activities | (179,190) | 410,485 | (160,749) |
Cash flows from financing activities: | |||
Conversion / purchase of convertible junior subordinated debentures | (28,637) | (89,118) | (98,610) |
Redemption of 5.75% senior notes | 0 | (242,296) | 0 |
Repayment of FHLB advance | 0 | (155,000) | 0 |
Cash portion of loss on debt extinguishment | 0 | (39,514) | (36,914) |
Repurchase of common stock | (337,182) | (385,573) | (290,818) |
Dividends paid | (122,965) | (110,947) | (94,219) |
Payment of withholding taxes related to share-based compensation net share settlement | (7,257) | (10,094) | (6,729) |
Net cash used in financing activities | (496,041) | (1,032,542) | (527,290) |
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 37,731 | 27,955 | 8,278 |
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year | 332,913 | 304,958 | 296,680 |
Cash and cash equivalents and restricted cash and cash equivalents at end of year | $ 370,644 | $ 332,913 | $ 304,958 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Business [Abstract] | |
Nature of Business | Nature of Business MGIC Investment Corporation is a holding company which, through Mortgage Guaranty Insurance Corporation ("MGIC"), is principally engaged in the mortgage insurance business. We provide mortgage insurance to lenders throughout the United States and to government sponsored entities to protect against loss from defaults on low down payment residential mortgage loans. Primary mortgage insurance provides mortgage default protection on individual loans and covers a percentage of the unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure or sale approved by us, of the underlying property. MGIC Assurance Corporation ("MAC") and MGIC Indemnity Corporation ("MIC"), insurance subsidiaries of MGIC, provide insurance for certain mortgages under Fannie Mae and Freddie Mac (the "GSEs") credit risk transfer programs. At December 31, 2023, our direct primary insurance in force ("IIF") was $293.5 billion, which represents the unpaid principal balance of loans that we insure, as reported to us, and our direct primary risk in force ("RIF") was $77.2 billion, which represents the IIF multiplied by the insurance coverage percentage. The substantial majority of our new insurance written ("NIW") is for loans purchased by the GSEs. The current private mortgage insurer eligibility requirements ("PMIERs") of the GSEs include financial requirements, as well as business, quality control and certain transactional approval requirements. The financial requirements of the PMIERs require a mortgage insurer’s "Available Assets" (generally only the most liquid assets of an insurer) to equal or exceed its "Minimum Required Assets" (which are based on an insurer's book of risk in force, calculated from tables of factors with several risk dimensions). Based on our application of the PMIERs, as of December 31, 2023, MGIC’s Available Assets are in excess of its Minimum Required Assets; and MGIC is in compliance with the PMIERs and eligible to insure loans purchased by the GSEs. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation BASIS OF PRESENTATION The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), as codified in the Accounting Standards Codification ("ASC"). Our consolidated financial statements include the accounts of MGIC Investment Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated. In accordance with GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. SUBSEQUENT EVENTS |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies CASH AND CASH EQUIVALENTS We consider money market funds and investments with original maturities of three months or less to be cash equivalents. RESTRICTED CASH AND CASH EQUIVALENTS Restricted cash and cash equivalents consists of cash and money market funds held in trusts for the benefit of contractual counterparties under reinsurance agreements or for other contractual restrictions. FAIR VALUE MEASUREMENTS We carry certain financial instruments at fair value and disclose the fair value of all financial instruments. Our financial instruments carried at fair value are predominantly measured on a recurring basis. Financial instruments measured on a nonrecurring basis are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). The fair value of an asset or liability is defined as the price that would be received upon a sale of an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Fair value is based on quoted market prices or inputs, where available. If prices or quotes are not available, fair value is based on valuation models or other valuation techniques that consider relevant transaction characteristics (such as maturity) and use as inputs observable or unobservable market parameters including yield curves, interest rates, volatilities, equity or debt prices, and credit curves. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, as described below. As of December 31, 2023 and 2022, we did not elect to measure any financial instruments acquired, or issued, such as our outstanding debt obligations, at fair value for which the primary basis of accounting is not fair value. Valuation process We use independent pricing sources to determine the fair value of a substantial majority of our financial instruments, which primarily consist of assets in our investment portfolio, but also includes cash and cash equivalents and restricted cash and cash equivalents. A variety of inputs are used; in approximate order of priority, they are: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, and reference data including market research publications. Market indicators, industry, and economic events are also considered. The inputs listed above are evaluated using a multidimensional pricing model. This model combines all inputs to arrive at a value assigned to each security. Quality controls are performed by the independent pricing sources throughout this process, which include reviewing tolerance reports, trading information, data changes, and directional moves compared to market moves. On a quarterly basis, we perform quality controls over values received from the pricing sources which also include reviewing tolerance reports, data changes, and directional moves compared to market moves. We have not made any adjustments to the prices obtained from the independent pricing sources. Valuation hierarchy A three-level valuation hierarchy has been established under GAAP for disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of a financial instrument as of the measurement date. To determine the fair value of securities available-for-sale in Level 1 and Level 2 of the fair value hierarchy, independent pricing sources, as described below, have been utilized. One price is provided per security based on observable market data. To ensure securities are appropriately classified in the fair value hierarchy, we review the pricing techniques and methodologies of the independent pricing sources and believe that their policies adequately consider market activity, either based on specific transactions for the issue valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. The three levels are defined as follows: è Level 1 Quoted prices for identical instruments in active markets that we can access. Financial assets using Level 1 inputs primarily include U.S. Treasury securities, money market funds, treasury bills, and certain equity securities. è Level 2 Quoted prices for similar instruments in active markets that we can access; quoted prices for identical or similar instruments in markets that are not active; and inputs, other than quoted prices, that are observable in the marketplace for the instrument. The observable inputs are used in valuation models to calculate the fair value of the instruments. Financial assets using Level 2 inputs primarily include obligations of U.S. government corporations and agencies, corporate bonds, mortgage-backed securities, asset-backed securities, most municipal bonds, and commercial paper. Note 6 - "Fair Value Measurements" for further information. è Level 3 Valuations derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The inputs used to derive the fair value of Level 3 securities reflect our own assumptions about the assumptions a market participant would use in pricing an asset or liability. Our non-financial assets that are classified as Level 3 securities consist of real estate acquired through claim settlement and embedded derivatives related to our Home Re Transactions. The fair value of real estate acquired is the lower of our acquisition cost or a percentage of the appraised value. The percentage applied to the appraised value is based upon our historical sales experience adjusted for current trends. The fair value of our embedded derivatives reflects the present value impact of the variation in investment income on the assets held by the reinsurance trusts and the contractual reference rate on Home Re Transactions used to calculate the reinsurance premiums we estimate we will pay over the estimated remaining life. INVESTMENTS Fixed income securities. Our fixed income securities are classified as available-for-sale and are reported at fair value. Fixed income securities with original maturities less than one year and greater than three months are classified as short-term on our consolidated balance sheet. The related unrealized investment gains or losses are, after considering the related tax expense or benefit, recognized as a component of accumulated other comprehensive income (loss) in shareholders' equity. Realized investment gains and losses on fixed income securities are reported in income based upon specific identification of securities within "Net gains (losses) on investments and other financial instruments" on the consolidated statement of operations, along with any changes in the credit allowance. Equity securities. Equity securities are reported at fair value, except for certain securities that are carried at cost. Equity securities carried at cost are reported as Other invested assets. Realized investment gains and losses on equity securities are reported in income based upon specific identification of securities sold within "Net gains (losses) on investments and other financial instruments" on the consolidated statement of operations, along with any changes in the fair value. Other invested assets. Other invested assets are carried at cost. These assets represent our investment in Federal Home Loan Bank of Chicago ("FHLB") stock, which due to restrictions, is required to be redeemed or sold only to the security issuer at par value. Accrued Investment Income. We report accrued investment income separately from securities. Accrued investment income is written off through net realized investment gains (losses) if, and at the time, the issuer of the security defaults or is expected to default on payments. Unrealized losses and allowance for credit losses Each quarter we determine whether securities in an unrealized loss position are impaired by considering several factors including, but not limited to: è our intent to sell the security or whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; è the present value of the discounted cash flows we expect to collect compared to the amortized cost basis of the security; è failure of the issuer to make scheduled interest or principal payments; è a change in rating to below investment grade; and è adverse conditions specifically related to the security, an industry, or a geographic area. Based on our evaluation, we will record an impairment on a security if we intend to sell, if it is more likely than not that we will be required to sell it prior to recovery of its amortized cost basis, or if the present value of the discounted cash flows we expect to collect is less than the amortized cost basis of the security. When a security is considered to be impaired, but when a sale is not intended or is not likely, the loss is separated into the portion that represents the credit loss and the portion that is due to other factors. A credit loss is recorded, subject to reversal, in the consolidated statement of operations within "Net gains (losses) on investments and other financial instruments." The loss due to other factors is recognized in accumulated other comprehensive loss, net of taxes. A credit loss is determined to exist if the present value of the discounted cash flows, using the security’s original yield, expected to be collected from the security is less than the cost basis of the security. HOME OFFICE AND EQUIPMENT Home office and equipment is carried at cost net of depreciation. For financial reporting purposes, depreciation is determined on a straight-line basis for the home office and equipment over estimated lives ranging from 3 to 45 years. For income tax purposes, we use accelerated depreciation methods. Home office and equipment is shown net of accumulated depreciation of $59.2 million and $57.1 million as of December 31, 2023 and 2022, respectively. Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $4.6 million, $4.9 million and $5.6 million, respectively. DEFERRED INSURANCE POLICY ACQUISITION COSTS Costs directly associated with the successful acquisition of mortgage insurance business, consisting of employee compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred insurance policy acquisition costs ("DAC"). The deferred costs are reported net of any ceding commissions received associated with our reinsurance transactions. For each underwriting year of business, these costs are amortized to income in proportion to estimated gross profits over the estimated life of the policies. We do not utilize anticipated investment income in our calculation. This includes accruing interest on the unamortized balance of DAC. The estimates for each underwriting year are reviewed quarterly and updated when necessary to reflect actual experience and any changes to key variables such as persistency or loss development. LOSS RESERVES Loss reserves include case reserves, incurred but not reported ("IBNR") reserves, and loss adjustment expense ("LAE") reserves. Case reserves and LAE reserves are established when notices of delinquency on insured mortgage loans are received. Such loans are referred to as being in our delinquency inventory. For reporting purposes, we consider a loan delinquent when it is two or more payments past due and has not become current or resulted in a claim payment. Even though the accounting standard, ASC 944, regarding accounting and reporting by insurance entities specifically excludes mortgage insurance from its guidance relating to loss reserves, we establish loss reserves using the general principles contained in the insurance standard. However, consistent with industry standards for mortgage insurers, we do not establish case reserves for future claims on insured loans that are not currently delinquent. Case reserves are established by estimating the number of loans in our delinquency inventory that will result in a claim payment, which is referred to as the claim rate, and further estimating the amount of the claim payment, which is referred to as claim severity. Our case reserve estimates are primarily established based upon historical experience, including rescissions of policies, curtailments of claims, and loan modification activity. Adjustments to reserve estimates are reflected in the financial statements in the years in which the adjustments are made. Loss reserves for reinsurance assumed are based on information provided by the ceding companies. IBNR reserves are established for delinquencies estimated to have occurred prior to the close of an accounting period, but have not yet been reported to us. Consistent with case reserves for reported delinquencies, IBNR reserves are also established using estimated claim rates and claim severities. LAE reserves are established for the estimated costs of settling claims, including legal and other expenses, and general expenses of administering the claims settlement process. Loss reserves are ceded to reinsurers under our reinsurance agreements. (See "Reinsurance" discussion below. Also see Note 8 – “Loss Reserves” and Note 9 – “Reinsurance.” ) PREMIUM DEFICIENCY RESERVE After our loss reserves are established, we perform premium deficiency tests using our best estimate of future premium, losses and LAE paid. Premium deficiency reserves are established, if necessary, when the present value of expected future losses and LAE paid exceeds the present value of expected future premium and already established loss reserves. REVENUE RECOGNITION We write policies which are guaranteed renewable at the insured's option on a monthly, single, or annual premium basis. We have no ability to re-underwrite or reprice these policies. Premiums written on monthly premium policies are earned as coverage is provided. Premiums written on single premium policies and annual premium policies are initially deferred as unearned premium reserve. Premiums written on annual premium policies are earned on a monthly pro rata basis. Premiums written on policies covering more than one year are amortized over the estimated policy life based on historical experience, which includes the anticipated incurred loss pattern. When a policy is cancelled for a reason other than rescission or claim payment, all premium that is non-refundable is immediately earned. Any refundable premium is returned to the servicer or borrower. When a policy is cancelled due to rescission, all previously collected premium is returned. When a policy is cancelled because a claim is paid, premium collected since the date of delinquency is returned. The liability associated with our estimate of premium to be returned is accrued for separately and included in "Other liabilities" on our consolidated balance sheets. Changes in this liability, and the actual return of premiums for all periods, affects premiums written and earned. We assess whether a credit loss allowance is required for our premium receivable. We consider collectability trends and industry development, among other things. Any estimated credit loss would be immediately recognized. Fee income of our non-insurance subsidiaries is earned and recognized as the services are provided and the customer is obligated to pay. Fee income consists primarily of contract underwriting and related fee-based services provided to lenders and is included in “Other revenue” on the consolidated statements of operations. INCOME TAXES Deferred income taxes are provided under the liability method, which recognizes the future tax effects of temporary differences between amounts reported in the consolidated financial statements and the tax bases of these items. The estimated tax effects are computed at the enacted federal statutory income tax rate. Changes in tax laws, rates, regulations, and policies or the final determination of tax audits or examinations, could materially affect our estimates and can be significant to our operating results. We evaluate the realizability of the deferred tax assets based on the weight of all available positive and negative evidence. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. The recognition of a tax position is determined using a two-step approach. The first step applies a more-likely-than-not threshold for recognition and derecognition. The second step measures the tax position as the greatest amount of benefit that is cumulatively greater than 50% likely to be realized. When evaluating a tax position for recognition and measurement, we presume that the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. We recognize interest accrued and penalties related to unrecognized tax benefits in our provision for income taxes. Federal tax law permits mortgage guaranty insurance companies to deduct from taxable income, subject to certain limitations, the amounts added to contingency loss reserves that are recorded for regulatory purposes. The amounts we deduct must generally be included in taxable income in the tenth subsequent year. The deduction is allowed only to the extent that we purchase and hold U.S. government non-interest-bearing tax and loss bonds in an amount equal to the tax benefit attributable to the deduction. We account for these purchases as a payment of current federal income tax. (See "Note 12 - Income Taxes." ) BENEFIT PLANS We have a non-contributory defined benefit pension plan, as well as a supplemental executive retirement plan, that covered eligible employees as of December 31, 2022, utilizing a cash balance formula. Effective January 1, 2023, these plans were frozen (no future benefits will be accrued for participants due to employment and no new participants will be added). Participants will continue to earn interest credits on their retirement benefits. We recognize the ongoing retirement benefit costs of these plans as they are incurred. Our policy is to fund pension costs as required under the Employee Retirement Income Security Act of 1974. We offer both medical and dental benefits for retired domestic employees, their eligible spouses and dependents. Eligibility for coverage is based on meeting certain years of service and retirement age qualifications. We accrue the estimated costs of retiree medical and dental benefits over the period during which employees render the service that qualifies them for benefits. (See Note 11 – “Benefit Plans.” ) REINSURANCE We cede insurance risk through the use of quota share reinsurance transactions ("QSR") and excess of loss reinsurance transactions. We have excess of loss transactions executed through the traditional reinsurance market and with Home Re special purpose insurers. Premiums and losses incurred on our QSR Transactions are ceded pursuant to the terms of our reinsurance agreements. Reinsurance premiums ceded under our traditional reinsurance transactions are based off the remaining reinsured coverage levels. Reinsurance premiums ceded under our Home Re agreements are composed of coverage, initial expense and supplemental premiums. The coverage premiums are generally calculated as the difference between the amount of interest payable by the Home Re Entity on the remaining reinsurance coverage levels, and the investment income collected on the collateral assets held in the reinsurance trust account and used to collateralize the Home Re Entity's reinsurance obligation to MGIC. Loss reserves are reported before taking credit for amounts ceded under reinsurance transactions. Ceded loss reserves are reflected as "Reinsurance recoverable on loss reserves." Amounts due from reinsurers on paid claims are reflected as “Reinsurance recoverable on paid losses.” Ceded premiums payable, net of ceding commission and profit commission are included in “Other liabilities.” Profit commissions are included with “Premiums written – Ceded” and ceding commissions are included with “Other underwriting and operating expenses, net.” We remain liable for all insurance ceded. (See Note 9 – “Reinsurance.” ) We assess whether a credit loss allowance is required for our reinsurance recoverables. In assessing whether a credit allowance should be established, we consider several factors including, but not limited to, the credit ratings of individual reinsurers, investor reports for our Home Re Transactions, collateral held in trust accounts in which MGIC is the sole beneficiary, and aging of outstanding reinsurance recoverable balances. Assumed reinsurance is based on information received from the ceding company. See Note 9 – “Reinsurance " for discussion of our variable interest entity ("VIE") policy on the Home Re Transactions. SHARE-BASED COMPENSATION We have certain share-based compensation plans. Under the fair value method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period which generally corresponds to the vesting period. Awards under our plans generally vest over periods ranging from one Note 15 – “Share-based Compensation Plans.” ) EARNINGS PER SHARE Basic earnings per share ("EPS") is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Our "participating securities" are composed of vested restricted stock and restricted stock units ("RSUs") with non-forfeitable rights to dividends. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. We calculate diluted EPS using the treasury stock method and if-converted method. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if our unvested restricted stock units result in the issuance of common stock. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our 9% Debentures are converted to common stock. The determination of potentially issuable shares does not consider the satisfaction of the conversion requirements and the shares are included in the determination of diluted EPS as of the beginning of the period, if dilutive. For purposes of calculating basic and diluted EPS, vested RSUs are considered outstanding. In the third quarter of 2023, under the terms of our 9% Debentures, we exercised our option to redeem the outstanding principal. (See Note 7 - “Debt” .) RELATED PARTY TRANSACTIONS In 2023 and 2022, there were no material related party transactions. In 2021 MGIC distributed to the holding company, as a dividend, its investment in MGIC Credit Assurance Corporation. RECENT ACCOUNTING AND REPORTING DEVELOPMENTS Accounting standards and laws and regulations effective in 2023, or early adopted, and relevant to our financial statements are described below: Reference Rate Reform: ASU 2022-06 In March 2020, the FASB issued ASU 2020-04 to provide temporary optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. It provided optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. In December 2022, the FASB issued ASU 2022-06, extending the election and application from March 12, 2020 through December 31, 2024 (originally December 31, 2022). Future elections of this standard will ease, if warranted, the requirements for accounting for the future effects of reference rate reform. We have evaluated the impact the discontinuance of LIBOR will have on our consolidated financial statements and have determined it will not have a material impact. Inflation Reduction Act On August 16, 2022, the Inflation Reduction Act (the “IRA”) was enacted and signed into law in the United States. The IRA includes provisions for a 15% corporate minimum tax and a 1% excise tax on net stock repurchases. Both of these taxes are effective in 2023. These provisions did not have a material impact on our consolidated financial results, including our annual estimated effective tax rate. PROSPECTIVE ACCOUNTING AND REPORTING DEVELOPMENTS Relevant new amendments to accounting standards, which are not yet effective or adopted. Improvements to Income Tax Disclosures: ASU 2023-09 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings Per Share Table 4.1 reconciles basic and diluted EPS amounts: Earnings per share Table 4.1 Years Ended December 31, (In thousands, except per share data) 2023 2022 2021 Basic earnings per share: Net income $ 712,949 $ 865,349 $ 634,983 Weighted average common shares outstanding - basic 283,605 305,847 334,330 Basic earnings per share $ 2.51 $ 2.83 $ 1.90 Diluted earnings per share: Net Income $ 712,949 $ 865,349 $ 634,983 Interest expense, net of tax (1) : 9% Debentures 1,026 3,228 14,343 Diluted income available to common shareholders $ 713,975 $ 868,577 $ 649,326 Weighted-average shares - basic 283,605 305,847 334,330 Effect of dilutive securities: Unvested restricted stock units 2,427 1,917 1,782 9% Debentures 1,123 3,465 15,196 Weighted average common shares outstanding - diluted 287,155 311,229 351,308 Diluted income per share $ 2.49 $ 2.79 $ 1.85 (1) Interest expense has been tax effected at a rate of 21%. All of our outstanding 9% Debentures were reflected in diluted earnings per share using the “if-converted” method. Under this method, if dilutive, the common stock related to the outstanding 9% Debentures is assumed issued as of the beginning of the reporting period and the related interest expense, net of tax, is added back to earnings in calculating diluted EPS. In the third quarter of 2023, under the terms of our 9% Debentures, we exercised our option to redeem the outstanding principal. (See Note 7 - "Debt" .) |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Investments | Investments FIXED INCOME SECURITIES Our fixed income securities consisted of the following as of December 31, 2023 and 2022: Details of fixed income investment securities by category as of December 31, 2023 Table 5.1a (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 167,995 $ 51 $ (6,364) $ 161,682 Obligations of U.S. states and political subdivisions 2,092,754 5,159 (189,835) 1,908,078 Corporate debt securities 2,626,401 17,391 (128,211) 2,515,581 ABS 173,256 1,292 (3,275) 171,273 RMBS 347,132 4,297 (20,656) 330,773 CMBS 293,204 5 (15,752) 277,457 CLOs 327,467 37 (1,408) 326,096 Foreign government debt 4,486 — (643) 3,843 Commercial paper 28,327 3 — 28,330 Total fixed income securities $ 6,061,022 $ 28,235 $ (366,144) $ 5,723,113 Details of fixed income investment securities by category as of December 31, 2022 Table 5.1b (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 145,581 $ 2 $ (9,683) $ 135,900 Obligations of U.S. states and political subdivisions 2,400,261 4,866 (256,073) 2,149,054 Corporate debt securities 2,416,475 1,043 (196,377) 2,221,141 ABS 126,723 5 (6,041) 120,687 RMBS 223,743 10 (25,744) 198,009 CMBS 257,785 22 (20,591) 237,216 CLOs 337,656 5 (7,829) 329,832 Foreign government debt 4,486 — (699) 3,787 Commercial paper $ 14,075 $ — $ (3) $ 14,072 Total fixed income securities $ 5,926,785 $ 5,953 $ (523,040) $ 5,409,698 We had $12.2 million and $11.8 million of investments at fair value on deposit with various states as of December 31, 2023 and 2022, respectively, due to regulatory requirements of those state insurance departments. In connection with our insurance and reinsurance activities within MAC and MIC, insurance subsidiaries of MGIC, we are required to maintain assets in trusts for the benefit of contractual counterparties, which had investments at fair value of $156.9 million and $128.4 million at December 31, 2023 and 2022, respectively. The increase is primarily due to an increase in collateral required as the risk in force covered by these insurance and reinsurance activities has increased. The amortized cost and fair values of fixed income securities at December 31, 2023, by contractual maturity, are shown in table 5.2 below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most mortgage and asset-backed securities provide for periodic payments throughout their lives, they are listed in separate categories. Fixed income securities maturity schedule Table 5.2 December 31, 2023 (In thousands) Amortized Cost Fair Value Due in one year or less $ 645,017 $ 639,245 Due after one year through five years 1,530,186 1,487,270 Due after five years through ten years 1,824,666 1,708,591 Due after ten years 920,094 782,408 4,919,963 4,617,514 ABS 173,256 171,273 RMBS 347,132 330,773 CMBS 293,204 277,457 CLOs 327,467 326,096 Total as of December 31, 2023 $ 6,061,022 $ 5,723,113 EQUITY SECURITIES The cost and fair value of investments in equity securities as of December 31, 2023 and December 31, 2022 are shown in tables 5.3a and 5.3b below. Details of equity investment securities as of December 31, 2023 Table 5.3a (In thousands) Cost Fair value gains Fair value losses Fair Value Equity securities $ 16,025 $ 5 $ (1,259) $ 14,771 Details of equity investment securities as of December 31, 2022 Table 5.3b (In thousands) Cost Fair value gains Fair value losses Fair Value Equity securities $ 15,924 $ — $ (1,784) $ 14,140 NET GAINS (LOSSES) ON INVESTMENTS AND OTHER FINANCIAL INSTRUMENTS The net gains (losses) on investments and other financial instruments and the proceeds from the sale of fixed income securities classified as available-for-sale and equity securities are shown in table 5.4 below. Details of net gains (losses) on investments and other financial instruments Table 5.4 (in thousands) December 31, 2023 December 31, 2022 December 31, 2021 Fixed income securities Gains on sales $ 3,071 $ 7,152 $ 8,980 Losses on sales (17,620) (15,477) (1,942) Change in credit allowance — — 49 Impairments — (1,415) — Equity securities gains (losses) Gains (losses) on sales — (7) 4 Changes in fair value 530 (2,013) (463) Change in embedded derivative on Home Re Transactions (1) (118) 4,269 (721) Other Gains (losses) on sales (1) 2 (33) Market adjustment (3) 26 (13) Net gains (losses) on investments and other financial instruments $ (14,141) $ (7,463) $ 5,861 Proceeds from sales of fixed income securities $ 375,788 $ 397,553 $ 471,783 Proceeds from sales of equity securities — 97 2,621 (1) See Note 6 "Fair Value Measurements" for discussion of the embedded derivative on the Home Re Transactions. OTHER INVESTED ASSETS Our other invested assets balances includes an investment in Federal Home Loan Bank ("FHLB") stock that is carried at cost, which due to its nature approximates fair value. Ownership of FHLB stock provides access to a secured lending facility. UNREALIZED INVESTMENT LOSSES Tables 5.5a and 5.5b below summarize, for all available-for-sale investments in an unrealized loss position as of December 31, 2023 and 2022, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in tables 5.5a and 5.5b below are estimated using the process described in Note 6 - "Fair Value Measurements" to these consolidated financial statements. Unrealized loss aging for securities by type and length of time as of December 31, 2023 Table 5.5a Less Than 12 Months 12 Months or Greater Total (In thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 26,550 $ (75) $ 98,359 $ (6,289) $ 124,909 $ (6,364) Obligations of U.S. states and political subdivisions 275,727 (3,622) 1,200,533 (186,213) 1,476,260 (189,835) Corporate debt securities 270,956 (6,060) 1,604,021 (122,151) 1,874,977 (128,211) ABS 41,549 (1,234) 62,611 (2,041) 104,160 (3,275) RMBS 44,867 (872) 176,349 (19,784) 221,216 (20,656) CMBS 35,249 (391) 244,216 (15,361) 279,465 (15,752) CLOs — — 274,729 (1,408) 274,729 (1,408) Foreign government debt — — 3,843 (643) 3,843 (643) Total $ 694,898 $ (12,254) $ 3,664,661 $ (353,890) $ 4,359,559 $ (366,144) Unrealized loss aging for securities by type and length of time as of December 31, 2022 Table 5.5b Less Than 12 Months 12 Months or Greater Total (In thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 67,531 $ (3,583) $ 76,246 $ (6,100) $ 143,777 $ (9,683) Obligations of U.S. states and political subdivisions 1,344,272 (157,903) 360,956 (98,170) 1,705,228 (256,073) Corporate debt securities 1,488,255 (109,976) 758,732 (86,401) 2,246,987 (196,377) ABS 53,201 (1,008) 67,073 (5,033) 120,274 (6,041) RMBS 77,563 (8,572) 136,179 (17,172) 213,742 (25,744) CMBS 166,973 (12,951) 70,792 (7,640) 237,765 (20,591) CLOs 213,461 (4,644) 114,459 (3,185) 327,920 (7,829) Foreign government debt — — 3,787 (699) 3,787 (699) Commercial paper — — 3,816 (3) 3,816 (3) Total $ 3,411,256 $ (298,637) $ 1,592,040 $ (224,403) $ 5,003,296 $ (523,040) The change in net unrealized gains (losses) of investments is shown in table 5.6 below. Change in net unrealized gains (losses) Table 5.6 (In thousands) 2023 2022 2021 Fixed income securities $ 179,174 $ (707,005) $ (154,555) There were 1,021 and 1,226 securities in an unrealized loss position as of December 31, 2023 and 2022, respectively. Based on current facts and circumstances, we believe the unrealized losses as of December 31, 2023 presented in table 5.5a above are not indicative of the ultimate collectability of the par value of the securities. The unrealized losses in all categories of our investments were primarily caused by an increase in prevailing interest rates. We also rely upon estimates of several credit and non-credit factors in our review and evaluation of individual investments to determine whether a credit impairment exists. All of the securities in an unrealized loss position are current with respect to their interest obligations. The source of net investment income is shown in table 5.7 below. Net investment income Table 5.7 (In thousands) 2023 2022 2021 Fixed income securities $ 202,655 $ 166,306 $ 160,030 Equity securities 529 437 471 Cash equivalents 16,111 5,049 75 Other 44 51 22 Investment income 219,339 171,843 160,598 Investment expenses (4,599) (4,367) (4,160) Net investment income $ 214,740 $ 167,476 $ 156,438 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring fair value measurements The following describes the valuation methodologies generally used by the independent pricing sources, or by us, to measure financial instruments at fair value, including the general classification of such financial instruments pursuant to the valuation hierarchy. • Fixed income securities: U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies: Securities with valuations derived from quoted prices for identical instruments in active markets that we can access are categorized in Level 1 of the fair value hierarchy. Securities valued by surveying the dealer community, obtaining relevant trade data, benchmark quotes and spreads and incorporating this information in the valuation process are categorized as Level 2 of the fair value hierarchy. Corporate Debt Securities are valued by obtaining relevant trade data, benchmark quotes and spread, and broker/dealer quotes and incorporating this information into the valuation process. These securities are generally categorized in Level 2 of the fair value hierarchy. Obligations of U.S. States & Political Subdivisions are valued by tracking, capturing, and analyzing quotes for active issues and trades reported via the Municipal Securities Rulemaking Board records. Daily briefings and reviews of current economic conditions, trading levels, spread relationships, and the slope of the yield curve provide further data for evaluation. These securities are generally categorized in Level 2 of the fair value hierarchy. Residential Mortgage-Backed Securities ("RMBS") are valued by monitoring interest rate movements, and other pertinent data daily. Incoming market data is enriched to derive spread, yield and/or price data as appropriate, enabling known data points to be extrapolated for valuation application across a range of related securities. These securities are generally categorized in Level 2 of the fair value hierarchy. Commercial Mortgage-Backed Securities ("CMBS") are valued using techniques that reflect market participants’ assumptions and maximize the use of relevant observable inputs including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. Evaluation uses regular reviews of the inputs for securities covered, including executed trades, broker quotes, credit information, collateral attributes and/or cash flow waterfall as applicable. These securities are generally categorized in Level 2 of the fair value hierarchy. Asset-Backed Securities ("ABS") are valued using spreads and other information solicited from market buy-and-sell-side sources, including primary and secondary dealers, portfolio managers, and research analysts. Cash flows are generated for each tranche, benchmark yields are determined, and deal collateral performance and tranche level attributes including trade activity, bids, and offers are applied, resulting in tranche specific prices. These securities are generally categorized in Level 2 of the fair value hierarchy. Collateralized loan obligations ("CLOs") are valued by evaluating manager rating, seniority in the capital structure, assumptions about prepayment, default and recovery and their impact on cash flow generation. Loan level net asset values are determined and aggregated for tranches and as a final step prices are checked against available recent trade activity. These securities are generally categorized in Level 2 of the fair value hierarchy. Foreign government debt is valued by surveying the dealer community, obtaining relevant trade data, benchmark quotes and spreads and incorporating this information into the valuation process. These securities are generally categorized in Level 2 of the fair value hierarchy. Commercial Paper, with an original maturity greater than 90 days , is valued using market data for comparable instruments of similar maturity and average yields. These securities are categorized in Level 2 of the fair value hierarchy. • Equity securities: Consist of actively traded, exchange-listed equity securities, including exchange traded funds (“ETFs”) and Bond Mutual Funds, with valuations derived from quoted prices for identical assets in active markets that we can access. These securities are valued in Level 1 of the fair value hierarchy. • Cash Equivalents: Consists of money market funds and treasury bills with valuations derived from quoted prices for identical assets in active markets that we can access. These securities are valued in level 1 of the fair value hierarchy. Instruments in this category valued using market data for comparable instruments are classified as level 2 in the fair value hierarchy. Assets measured at fair value, by hierarchy level, as of December 31, 2023 and 2022 are shown in tables 6.1a and 6.1b below. The fair value of the assets is estimated using the process described above, and more fully in Note 3 - "Significant Accounting Policies" to the consolidated financial statements in this Form 10-K. Assets carried at fair value by hierarchy level as of December 31, 2023 Table 6.1a (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 161,682 $ 95,828 $ 65,854 Obligations of U.S. states and political subdivisions 1,908,078 — 1,908,078 Corporate debt securities 2,515,581 — 2,515,581 ABS 171,273 — 171,273 RMBS 330,773 — 330,773 CMBS 277,457 — 277,457 CLOs 326,096 — 326,096 Foreign government debt 3,843 — 3,843 Commercial paper 28,330 — 28,330 Total fixed income securities 5,723,113 95,828 5,627,285 Equity securities 14,771 14,771 — Cash equivalents (1) 367,517 367,301 216 Total $ 6,105,401 $ 477,900 $ 5,627,501 Assets carried at fair value by hierarchy level as of December 31, 2022 Table 6.1b (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 135,900 $ 116,897 $ 19,003 Obligations of U.S. states and political subdivisions 2,149,054 — 2,149,054 Corporate debt securities 2,221,141 — 2,221,141 ABS 120,687 — 120,687 RMBS 198,009 — 198,009 CMBS 237,216 — 237,216 CLOs 329,832 — 329,832 Foreign government debt 3,787 — 3,787 Commercial Paper 14,072 — 14,072 Total fixed income securities 5,409,698 116,897 5,292,801 Equity securities 14,140 14,140 — Cash equivalents (1) 328,756 324,129 4,627 Total $ 5,752,594 $ 455,166 $ 5,297,428 (1) Includes restricted cash equivalents Certain financial instruments, including insurance contracts, are excluded from these fair value disclosure requirements. Additional fair value disclosures related to our investment portfolio are included in Note 5 - "Investments." In addition to the assets carried at fair value discussed above, we have embedded derivatives carried at fair value related to our Home Re Transactions that are classified as Other liabilities or Other assets in our consolidated balance sheets. The estimated fair value related to our embedded derivatives reflects the present value impact of the variation in investment income on the assets held by the reinsurance trusts and the contractual reference rate on the Home Re Transactions used to calculate the reinsurance premiums we estimate we will pay over the estimated remaining life. These liabilities or assets are categorized in Level 3 of the fair value hierarchy. At December 31, 2023 and 2022, the fair value of the embedded derivatives was an asset of $2.4 million and $2.5 million, respectively. (See Note 4 - "Reinsurance" for more information about our Home Re Transactions.) Real estate acquired through claim settlement is carried at fair values and is reported in “Other assets” on the consolidated balance sheet. These assets are categorized as Level 3 of the fair value hierarchy. Purchases of real estate acquired was $0.6 million and $3.5 million for the years ended December 31, 2023, and 2022, respectively. Sales of real estate acquired were $3.8 million and $4.0 million for the years ended December 31, 2023, and 2022, respectively. FINANCIAL LIABILITIES NOT MEASURED AT FAIR VALUE Other invested assets include an investment in FHLB stock that is carried at cost, which due to restrictions that require it to be redeemed or sold only to the security issuer at par value, approximates fair value. The fair value of other invested assets is categorized as Level 2. Financial liabilities include our outstanding debt obligations. The fair values of our 5.25% Notes and 9% Debentures were based on observable market prices. In all cases the fair values of the financial liabilities below are categorized as level 2. Table 6.3 presents the carrying value and fair value of our financial assets and liabilities disclosed, but not carried, at fair value as of December 31, 2023 and 2022. Financial liabilities not carried at fair value Table 6.3 December 31, 2023 December 31, 2022 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Financial assets Other invested assets $ 850 $ 850 $ 850 $ 850 Financial liabilities 5.25% Notes $ 643,196 $ 634,498 $ 641,724 $ 600,938 9% Debentures — — 21,086 28,085 Total financial liabilities $ 643,196 $ 634,498 $ 662,810 $ 629,023 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt DEBT OBLIGATIONS Table 7.1 shows the carrying value of our long-term debt obligations as of December 31, 2023 and 2022. Long-term debt obligations Table 7.1 December 31, (In thousands) 2023 2022 5.25% Notes, due August 2028 (par value: $650 million) $ 643,196 $ 641,724 9% Debentures, due April 2063 — 21,086 Long-term debt obligations, carrying value $ 643,196 $ 662,810 The 5.25% Senior Notes ("5.25% Notes") is an obligation of our holding company, MGIC Investment Corporation. 2023 Transactions In the third quarter of 2023, under the terms of our 9% Debentures, we exercised our option to redeem the outstanding principal of $21.1 million. The 9% Debentures were convertible into shares of MGIC common stock at a rate of 77.9620 shares per $1,000 principal amount. Prior to the redemption date, substantially all holders elected to convert into shares of common stock. Under the terms of the 9% Debentures, we paid cash of $28.6 million in lieu of issuing shares of common stock. The conversion of our 9% Debentures resulted in a $5.3 million reduction in our shareholders’ equity, net of tax, and a reduction of 1.6 million potentially dilutive shares. 2022 Transactions During 2022, we repurchased $89.1 million in aggregate principal of our 9% Debentures at a purchase price of $121.2 million plus accrued interest. The repurchase of our 9% Debentures resulted in a $32.1 million loss on debt extinguishment on our consolidated statement of operations and a reduction of 6.8 million potentially dilutive shares. The Federal Home Loan Bank Advance (the “FHLB Advance”) was an obligation of MGIC. In 2022, we repaid the outstanding principal balance of the FHLB Advance at a prepayment price of $156.3 million, incurring a prepayment fee of $1.3 million. In July 2022, we redeemed the outstanding principal balance of the 5.75% Senior Notes (“5.75% Notes”) through a make-whole price of $248.4 million plus accrued interest. The excess of the make-whole price over the carrying value, plus the write-off of unamortized issuance costs on the par value, resulted in a $6.8 million loss on debt extinguishment. The make-whole amount was calculated as the sum of the present values of the remaining scheduled payments of principal and interest discounted at the treasury rate defined in the notes plus 50 basis points and accrued interest. The 5.75% Notes were an obligation of our holding company. 2021 Transactions In December 2021, we repurchased $98.6 million in aggregate principal amount of our 9% Debentures at a purchase price of $135.5 million, plus accrued interest. The repurchase of our 9% Debentures resulted in a $36.9 million loss on debt extinguishment on our consolidated statement of operations and a reduction in our potentially dilutive shares by approximately 7.5 million shares. 5.25% Notes Interest on the 5.25% Notes is payable semi-annually on February 15 and August 15. Until August 15, 2024, we may redeem the notes at 102.625% of principal; on or after August 15, 2024, we may redeem the notes at 101.313% of principal; and on or after August 15, 2025, we may redeem the notes at 100% of principal; in each case, plus accrued and unpaid interest. The 5.25% Notes have covenants and events of default, which are customary for securities of this nature, and further provide that the trustee or holders of at least 25% in aggregate principal amount of the outstanding 5.25% Notes may declare them immediately due and payable upon the occurrence of certain events of default after the expiration of the applicable grace period. In addition, in the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization relating to the Company or any of its significant subsidiaries, the 5.25% Notes will become due and payable immediately. This description is not intended to be complete in all respects and is qualified in its entirety by the terms of the 5.25% Notes, including their covenants and events of default. We were in compliance with all covenants as of December 31, 2023. 9% Debentures Interest on the 9% Debentures was payable semi-annually on April 1 and October 1 of each year. The 9% Debentures were convertible, at the holders' option, into common shares. The 9% Debentures included a feature that allowed us, at our option, to make a cash payment to converting holders in lieu of issuing shares of common stock upon conversion of the 9% Debentures. INTEREST PAYMENTS Interest payments were $35.1 million during 2023, $53.7 million during 2022 and $71.7 million during 2021. |
Loss Reserves
Loss Reserves | 12 Months Ended |
Dec. 31, 2023 | |
Insurance Loss Reserves [Abstract] | |
Loss Reserves | Loss Reserves As described in Note 3 – “Summary of Significant Accounting Policies – Loss Reserves,” we establish case reserves and loss adjustment expenses ("LAE") reserves on delinquent loans that were reported to us as two or more payments past due and have not become current or resulted in a claim payment. Such loans are referred to as being in our delinquency inventory. Case reserves are established by estimating the number of loans in our delinquency inventory that will result in a claim payment, which is referred to as the claim rate, and further estimating the amount of the claim payment, which is referred to as claim severity. IBNR reserves are established for estimated losses from delinquencies we estimate have occurred prior to the close of an accounting period, but have not yet been reported to us. IBNR reserves are also established using estimated claim rates and claim severities. Estimation of losses is inherently judgmental. The conditions that affect the claim rate and claim severity include the current and future state of the domestic economy, including unemployment and the current and future strength of local housing markets; exposure on insured loans; the amount of time between delinquency and claim filing (all else being equal, the longer the period between delinquency and claim filing, the greater the severity); and curtailments and rescissions. The actual amount of the claim payments may be substantially different than our loss reserve estimates. Our estimates could be adversely affected by several factors, including a deterioration of regional or national economic conditions, including unemployment, leading to a reduction in borrowers’ income and thus their ability to make mortgage payments, the impact of past and future government initiatives and actions taken by the GSEs (including mortgage forbearance programs and foreclosure moratoriums), and a drop in housing values which may affect borrower willingness to continue to make mortgage payments when the value of the home is below the mortgage balance. Loss reserves in future periods will also be dependent on the number of loans reported to us as delinquent. Changes to our estimates could result in a material impact to our consolidated statements of operations and financial position, even in a stable economic environment. Given the uncertainty of the macroeconomic environment, including the effectiveness of loss mitigation efforts, changes in home prices, and level of employment, our loss reserve estimates may continue to be impacted. In considering the potential sensitivity of the factors underlying our estimate of loss reserves, it is possible that even a relatively small change in our estimated claim rate or claim severity could have a material impact on loss reserves and, correspondingly, on our consolidated statements of operations even in a stable economic environment. For example, as of December 31, 2023, assuming all other factors remain constant, a $1,000 increase/decrease in the average severity reserve factor would change the loss reserve amount by approximately +/- $8 million. A one percentage point increase/decrease in the average claim rate reserve factor would change the loss reserve amount by approximately +/- $16 million. The “Losses incurred” section of table 8.1 below shows losses incurred on delinquencies that occurred in the current year and in prior years. The amount of losses incurred relating to delinquencies that occurred in the current year represents the estimated amount to be ultimately paid on such delinquencies. The amount of losses incurred relating to delinquencies that occurred in prior years represents the difference between the actual claim rate and claim severity associated with those delinquencies resolved in the current year compared to the estimated claim rate and claim severity at the prior year-end, as well as a re-estimation of amounts to be ultimately paid on delinquencies continuing from the end of the prior year. This re-estimation of the claim rate and claim severity is the result of our review of current trends in the delinquency inventory, such as percentages of delinquencies that have resulted in a claim, the amount of the claims relative to the average loan exposure, changes in the relative level of delinquencies by geography and changes in average loan exposure. Losses incurred on delinquencies received in the current year increased in 2023 compared to 2022. The increase is primarily due to an increase in estimated severity on current year delinquencies and an increase in new delinquencies reported. In 2023 and 2022, we experienced favorable loss development of $208.5 million and $404.1 million, respectively, on delinquencies received in prior years. The favorable development for both periods primarily resulted from a decrease in the expected claim rate on previously received delinquencies. Home price appreciation experienced in recent years has allowed some borrowers to cure their delinquencies through the sale of their property. The “Losses paid” section of table 8.1 below shows the amount of losses paid on delinquencies received in the current year and losses paid on delinquencies that occurred in prior years. Table 8.1 provides a reconciliation of beginning and ending loss reserves as of and for the past three years: Development of loss reserves Table 8.1 (In thousands) 2023 2022 2021 Reserve at beginning of year $ 557,988 $ 883,522 $ 880,537 Less reinsurance recoverable 28,240 66,905 95,042 Net reserve at beginning of year 529,748 816,617 785,495 Losses incurred: Losses and LAE incurred in respect of delinquent notices received in: Current year 187,658 149,565 124,592 Prior years (1) (208,514) (404,130) (60,015) Total losses incurred (20,856) (254,565) 64,577 Losses paid: Losses and LAE paid in respect of delinquent notices received in: Current year 566 362 664 Prior years 45,645 49,626 68,769 Reinsurance terminations (2) (9,396) (17,684) (35,978) Total losses paid 36,815 32,304 33,455 Net reserve at end of year 472,077 529,748 816,617 Plus reinsurance recoverables 33,302 28,240 66,905 Reserve at end of year $ 505,379 $ 557,988 $ 883,522 (1) A positive number for prior year loss development indicates a deficiency of prior year reserves. A negative number for prior year loss development indicates a redundancy of prior year loss reserves. See the following table for more information about prior year loss development. (2) In a reinsurance termination, amounts for any incurred but unpaid losses are due to us from the reinsurers. As a result, the amount due from the reinsurers is reclassified from reinsurance recoverable on loss reserves to reinsurance recoverable on paid losses, resulting in no impact to losses incurred. (See Note 9 - "Reinsurance" ) The prior year loss reserve development for the past three years is reflected in the table 8.2 below. Reserve development on previously received delinquencies Table 8.2 (In thousands) 2023 2022 2021 Increase (decrease) in estimated claim rate on primary defaults $ (200,983) $ (400,577) $ (82,904) Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other (7,531) (3,553) 22,889 Total prior year loss development (1) $ (208,514) $ (404,130) $ (60,015) (1) A positive number for prior year loss development indicates a deficiency of prior year loss reserves. A negative number for prior year loss development indicates a redundancy of prior year loss reserves. DELINQUENCY INVENTORY A roll-forward of our primary delinquency inventory for the years ended December 31, 2023, 2022, and 2021 appears in table 8.3 below. The information concerning new notices and cures is compiled from monthly reports received from loan servicers. The level of new notice and cure activity reported in a particular month can be influenced by, among other things, the date on which a servicer generates its report, the number of business days in a month and transfers of servicing between loan servicers. Primary delinquency inventory roll-forward Table 8.3 2023 2022 2021 Beginning delinquent inventory 26,387 33,290 57,710 New Notices 46,825 42,988 42,432 Cures (46,108) (48,262) (64,896) Paid claims (1,328) (1,305) (1,223) Rescissions and denials (45) (35) (38) Other items removed from inventory (81) (289) (695) Ending delinquent inventory 25,650 26,387 33,290 Historically as a delinquency ages it is more likely to result in a claim. The number of consecutive months that a borrower has been delinquent is shown in table 8.4 below. Primary delinquency inventory - consecutive months delinquent Table 8.4 December 31, 2023 2022 2021 3 months or less 9,175 8,820 7,586 4 - 11 months 8,900 8,217 7,990 12 months or more (1) 7,575 9,350 17,714 Total 25,650 26,387 33,290 3 months or less 36 % 33 % 23 % 4 - 11 months 35 % 31 % 24 % 12 months or more 29 % 36 % 53 % Total 100 % 100 % 100 % Primary claims received inventory included in ending delinquent inventory 302 267 211 (1) Approximately 37%, 36%, and 20% of the delinquent inventory that has been delinquent for 12 consecutive months or more has been delinquent for at least 36 consecutive months as of December 31, 2023, 2022 and 2021, respectively. PREMIUM REFUNDS |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance Our consolidated financial statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance involves transferring certain insurance risks we have underwritten to other insurance companies who agree to share these risks. The purpose of ceded reinsurance is to protect us, at a cost, against losses arising from our mortgage guaranty policies covered by the agreement and to manage our capital requirements under PMIERs. Reinsurance is currently placed on a quota share and excess of loss basis. Table 9.1 below shows the effect of all reinsurance agreements on premiums earned and losses incurred as reflected in the consolidated statements of operations. Reinsurance Table 9.1 Years ended December 31, (In thousands) 2023 2022 2021 Premiums earned: Direct $ 1,142,412 $ 1,154,728 $ 1,167,592 Assumed 12,960 8,778 9,858 Ceded - quota share reinsurance (1) (123,955) (86,435) (118,537) Ceded - excess-of-loss reinsurance (78,866) (69,938) (44,494) Total ceded (202,821) (156,373) (163,031) Net premiums earned $ 952,551 $ 1,007,133 $ 1,014,419 Losses incurred: Direct $ (5,200) $ (274,072) $ 74,496 Assumed (33) (330) (57) Ceded - quota share reinsurance (15,623) 19,837 (9,862) Losses incurred, net $ (20,856) $ (254,565) $ 64,577 Other Reinsurance Impacts: Profit commission on quota share reinsurance (1) $ 133,145 $ 176,084 $ 153,759 Ceding commission on quota share reinsurance 50,397 52,071 53,460 (1) Ceded premiums earned are shown net of profit commission. QUOTA SHARE REINSURANCE We have entered into QSR transactions with panels of third-party reinsurers to cede a fixed percentage of premiums earned and received and losses incurred on insurance covered by the transactions. We receive the benefit of a ceding commission equal to 20% of premiums ceded before profit commission. We also receive the benefit of a profit commission through a reduction of premiums we cede. The profit commission varies inversely with the level of losses on a “dollar for dollar” basis and can be eliminated at annual loss ratios higher than we have experienced on our QSR transactions. Ceded losses incurred are impacted by the delinquencies covered by our QSR Transactions, our estimates of payments that will be ultimately made on those delinquencies, and claim payments covered by our QSR Transactions. Each of our QSR transactions typically have annual loss ratio caps of 300% and lifetime loss ratios of 200% . Table 9.2 below provides additional detail regarding our QSR transactions in effect during 2023. Reinsurance Table 9.2 Quota Share Contract Covered Policy Years Quota Share % Annual Loss Ratio to Exhaust Profit Commission (1) Contractual Termination Date 2020 QSR 2020 12.5 % 62.0 % (2) 2020 QSR and 2021 QSR 2020 17.5 % 62.0 % (2) 2020 QSR and 2021 QSR 2021 17.5 % 61.9 % December 31, 2032 2021 QSR and 2022 QSR 2021 12.5 % 57.5 % December 31, 2032 2021 QSR and 2022 QSR 2022 15.0 % 57.5 % December 31, 2033 2022 QSR and 2023 QSR 2022 15.0 % 62.0 % December 31, 2033 2022 QSR and 2023 QSR 2023 15.0 % 62.0 % December 31, 2034 2023 QSR 2023 10.0 % 58.5 % December 31, 2034 Credit Union QSR 2020-2025 65.0 % 50.0 % December 31, 2039 (1) We will receive a profit commission provided the annual loss ratio on policies covered under the transaction remains below this ratio. (2) 2020 QSR Transactions covering 2020 policy year were terminated effective December 31, 2023. We executed a 30.0% QSR Transaction with a group of unaffiliated reinsurers for a reinsurance transaction with an effective date of January 1, 2024 with a similar structure to our existing QSR transactions that will cover most of our NIW in 2024. Generally, we will receive an annual profit commission provided the annual loss ratio on the loans covered under the transaction remains below 56.0%. We can elect to terminate the QSR Transactions under specified scenarios without penalty upon prior written notice, including if we will receive less than 90% (80% for the Credit Union QSR Transaction) of the full credit amount under the PMIERs, full financial statement credit or full credit under applicable regulatory capital requirements for the risk ceded in any required calculation period. Table 9.3 provides additional detail regarding optional termination dates and optional reductions to our quota share percentage which can, in each case be elected by us for a fee. Under the optional reduction to the quota share percentage, we may reduce our quota share percentage from the original percentage shown in table 9.2 to the percentage showed in 9.3. Reinsurance Table 9.3 Quota Share Contract Covered Policy Years Optional Termination Date (1) Optional Quota Share % Reduction Date (2) Optional Reduced Quota Share % 2020 QSR and 2021 QSR 2021 June 30, 2024 January 1, 2024 14.5% or 12% 2021 QSR and 2022 QSR 2021 June 30, 2024 January 1, 2024 10.5% or 8% 2021 QSR and 2022 QSR 2022 December 31, 2024 January 1, 2024 12.5% or 10% 2022 QSR and 2023 QSR 2022 December 31, 2024 January 1, 2024 12.5% or 10% 2022 QSR and 2023 QSR 2023 December 31, 2025 July 1, 2024 12.5% or 10% 2023 QSR 2023 December 31, 2025 July 1, 2024 8% or 7% (1) We can elect early termination of the QSR transaction beginning on this date, and bi-annually thereafter. (2) We can elect to reduce the quota share percentage beginning on this date, and bi-annually thereafter. We incurred an early termination fee of $5.1 million for our 2020 QSR Transaction effective December 31, 2023, $2.2 million for the termination of our 2019 QSR Transaction effective December 31, 2022 and $5.0 million for the termination of our 2017 and 2018 QSR Transactions effective December 31, 2021. We also terminated our 2015 QSR Transaction effective December 31, 2022. The reinsurance recoverable on paid losses due from reinsurers for loss and LAE reserves incurred at the time of termination includes $9.4 million as December 31, 2023 from reinsurer participating in the 2020 QSR Transaction and $17.7 million as of December 31, 2022 from reinsurers participating in the 2015 and 2019 QSR Transactions. Under the terms of our QSR Transactions, ceded premiums, ceding commissions, profit commission, and ceded loss paid and LAE paid are settled net on a quarterly basis. The ceded premiums due after deducting the related ceding commission and profit commission is reported within "Other liabilities" on the consolidated balance sheets. The reinsurance recoverable on loss reserves related to our QSR Transactions was $33.3 million as of December 31, 2023 and $28.2 million as of December 31, 2022. The reinsurance recoverable balance is secured by funds on deposit from the reinsurers (which does not include letters of credit), the minimum amount of which is based on the greater of 1) a reinsurer's funding requirements under PMIERs or 2) ceded reserves and unpaid losses. Each of the reinsurers under our quota share reinsurance agreements described above has an insurer financial strength rating of A- or better (or a comparable rating) by Standard and Poor's Rating Services, A.M. Best, Moody's, or a combination of the three. An allowance for credit losses was not required as of December 31, 2023 or December 31, 2022 EXCESS OF LOSS REINSURANCE We have XOL Transactions with a panel of unaffiliated reinsurers executed through the traditional reinsurance market (“Traditional XOL Transactions”) and with unaffiliated special purpose insurers (“Home Re Transactions”). For the policies covered under our Traditional XOL Transactions, we retain the first layer of the aggregate losses paid, and the reinsurers will then provide second layer coverage up to the outstanding reinsurance coverage amount. We retain losses paid in excess of the outstanding reinsurance coverage amount. The reinsurance coverage is subject to adjustment based on the risk characteristics of the covered loans until the initial excess of loss reinsurance coverage layer has been finalized. We can elect to terminate our Traditional XOL Transactions under specified scenarios without penalty upon prior written notice, including if we will receive less than the full credit amount under the PMIERs, full financial statement credit or full credit under applicable regulatory capital requirements for the risk ceded in any required calculation period. The reinsurance premiums ceded under the Traditional XOL Transactions are based off the remaining reinsurance coverage levels. The reinsured coverage levels are secured by funds on deposit from reinsurers (which does not include letters of credit), the minimum amount of which is based on the greater of 1) a reinsurer's funding requirements under PMIERs or 2) ceded reserves and unpaid losses. Each of the reinsurers under our Traditional XOL Transactions has an insurer financial strength rating of A- or better (or a comparable rating) by Standard and Poor’s Rating Services, A.M. Best, Moody’s, or a combination of the three. The Home Re Transactions are executed with unaffiliated special purpose insurers (“Home Re Entities”). For the reinsurance coverage periods, we retain the first layer of the respective aggregate losses paid, and a Home Re Entity will then provide second layer coverage up to the outstanding reinsurance coverage amount. We retain losses paid in excess of the outstanding reinsurance coverage amount. Subject to certain conditions, the reinsurance coverage decreases as the underlying covered mortgages amortize or are repaid, or mortgage insurance losses are paid. The Home Re Entities financed the coverages by issuing mortgage insurance-linked notes (“ILNs”) to unaffiliated investors in an aggregate amount equal to the initial reinsurance coverage amounts. Each ILN is non-recourse to any assets of MGIC or affiliates. The proceeds of the ILNs, which were deposited into reinsurance trusts for the benefit of MGIC, will be the source of reinsurance claim payments to MGIC and principal repayments on the ILNs. In October 2023, Home Re 2019-1 Ltd., Home Re 2021-1 Ltd., and Home Re 2021-2 Ltd conducted tender offers for certain tranches of the mortgage insurance-linked notes that supported the reinsurance agreements with MGIC. The tender offer resulted in the reduction in the insurance-linked notes of $187.1 million for the Home Re 2019-1 Ltd, $91.1 million for the Home Re 2021-1 Ltd., and $106.7 million for the Home Re 2021-2 Ltd. The reinsurance coverage corresponding to the tendered notes was terminated. MGIC incurred $8.0 million of additional ceded premium in the fourth quarter associated with the cost of the tender offer premiums and associated expenses. Payment of principal on the related insurance-linked notes will be suspended and the reinsurance coverage available to MGIC under the transactions will not be reduced by such principal payments until a target level of credit enhancement is obtained or if certain thresholds or “Trigger Events” are reached, as defined in the related insurance-linked notes transaction agreement. As of December 31, 2023, a "Trigger Event" has occurred on our Home Re 2019-1 transaction because the reinsured principal balance of loans that were reported 60 or more days delinquent exceeded a percentage of the total reinsured principal balance of loans specified under the transaction. A "Trigger Event" has also occurred on the Home Re 2023-1 transaction because the target level of credit enhancement on the most senior tranche has not been met. In January 2024, we exercised our optional call feature to terminate the reinsurance agreement with Home Re 2020-1, Ltd. In connection with the termination, the insurance linked notes issued by Home Re 2020-1 Ltd. will be redeemed in full. Table 9.4a , 9.4b, and 9.4c provide a summary of our XOL Transactions as of December 31, 2023, December 31, 2022 and December 31, 2021. Excess of Loss Reinsurance 9.4a ($ in thousands) Issue Date Policy In force Dates Optional Call/ Termination Date (1) Legal Maturity 2023 Traditional XOL April 1, 2023 January 1, 2023 - December 29, 2023 January 1, 2031 10 years 2022 Traditional XOL April 1, 2022 January 1, 2022 - December 30, 2022 January 1, 2030 10 years Home Re 2023-1, Ltd. October 23, 2023 June 1, 2022 - August 31, 2023 October 25, 2028 10 years Home Re 2022-1, Ltd. April 26, 2022 May 29, 2021 - December 31, 2021 April 25, 2028 12.5 years Home Re 2021-2, Ltd. August 3, 2021 January 1, 2021 - May 28, 2021 July 25, 2028 12.5 years Home Re 2021-1, Ltd. February 2, 2021 August 1, 2020 - December 31, 2020 January 25, 2028 12.5 years Home Re 2020-1, Ltd. October 29, 2020 January 1, 2020 - July 31, 2020 October 25, 2027 10 years Home Re 2019-1, Ltd. May 25, 2019 January 1, 2018 - March 31, 2019 May 25, 2026 10 years Home Re 2018-1, Ltd. October 30, 2018 July 1, 2016 - December 31, 2017 October 25, 2025 10 years (1) We have the right to terminate the Home Re Transactions under certain circumstances, including an optional call feature that provides us the right to terminate if the outstanding principal balance of the related insurance-linked notes falls below 10% of the initial principal balance of the related insurance-linked notes, and on any payment date on or after the respective Optional Call Date. We can elect early termination of the Traditional XOL Transactions beginning on this date, and quarterly thereafter. Excess of Loss Reinsurance 9.4b Remaining First Layer Retention ($ in thousands) Initial First Layer Retention December 31, 2023 December 31, 2022 December 31, 2021 2023 Traditional XOL $70,578 $ 70,578 $ $ 2022 Traditional XOL 82,523 82,346 82,517 Home Re 2023-1, Ltd. 272,961 272,961 Home Re 2022-1, Ltd. 325,589 325,001 325,576 Home Re 2021-2, Ltd. 190,159 189,403 190,097 190,159 Home Re 2021-1, Ltd. 211,159 210,831 211,102 211,142 Home Re 2020-1, Ltd. 275,283 261,280 275,051 275,204 Home Re 2019-1, Ltd. 185,730 182,722 183,540 183,917 Home Re 2018-1, Ltd. 168,691 164,335 164,849 165,365 9.4c Remaining Excess of Loss Reinsurance Coverage (1) ($ in thousands) Initial Excess of Loss Reinsurance Coverage (1) Initial Funding Percentage (2) Funding Percentage at 12/31/2023 (2) December 31, 2023 December 31, 2022 December 31, 2021 2023 Traditional XOL $ 96,942 N/A N/A $ 96,942 $ $ 2022 Traditional XOL 142,642 N/A N/A 142,642 142,642 Home Re 2023-1, Ltd. 330,277 97 % 97 % 330,277 Home Re 2022-1, Ltd. 473,575 100 % 100 % 420,731 473,575 Home Re 2021-2, Ltd. (3) 398,429 100 % 68 % 173,960 352,084 398,429 Home Re 2021-1, Ltd. (3) 398,848 100 % 65 % 117,982 277,053 387,830 Home Re 2020-1, Ltd. 412,917 100 % 100 % 41,846 113,247 234,312 Home Re 2019-1, Ltd. (3) 315,739 100 % 10 % 21,039 208,146 208,146 Home Re 2018-1, Ltd. 318,636 100 % 100 % 69,762 140,993 218,343 (1) The initial and remaining excess of loss reinsurance coverage is reduced by the applicable funding percentage. (2) The funding percentage represents the aggregate outstanding note balances divided by the aggregate ending coverage amounts. (3) The funding percentage on the 2021-1, 2021-2, and 2019-1 were reduced from 100% after the tender offers were conducted in the fourth quarter of 2023. The reinsurance premiums ceded to each Home Re Entity are composed of coverage, initial expense and supplemental premiums. The coverage premiums are generally calculated as the difference between the amount of interest payable by the Home Re Entity on the remaining reinsurance coverage levels, and the investment income collected on the collateral assets held in reinsurance trust account and used to collateralize the Home Re Entity's reinsurance obligation to MGIC. The amount of monthly reinsurance coverage premium ceded will fluctuate due to changes in the reference rate and changes in money market rates that affect investment income collected on the assets in the reinsurance trust. As a result, we concluded that each Home Re Transaction contains an embedded derivative that is accounted for separately as a freestanding derivative. The fair values of the derivatives at December 31, 2023 and December 31, 2022, were not material to our consolidated balance sheet, and the change in fair values during the years ended December 31, 2023, December 31, 2022 and December 31, 2021 were not material to our consolidated statements of operations. (see Note 5 - "Investments" and Note 6 - "Fair Value Measurements" ). At the time the Home Re Transactions were entered into, we concluded that each Home Re Entity is a variable interest entity (“VIE”). A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make sufficient decisions relating to the entity’s operations through voting rights or do not substantively participate in gains and losses of the entity. Given that MGIC (1) does not have the unilateral power to direct the activities that most significantly affect each Home Re Entity’s economic performance and (2) does not have the obligation, outside the terms of the reinsurance agreement, to absorb losses or the right to receive benefits of each Home Re Entity that could be significant to the Home Re Entity, consolidation of the Home Re Entities is not required. We are required to disclose our maximum exposure to loss, which we consider to be an amount that we could be required to record in our statements of operations, as a result of our involvement with the VIEs under our Home Re Transactions. As of December 31, 2023, December 31, 2022 and December 31, 2021, we did not have material exposure to the VIEs as we have no investment in the VIEs and had no reinsurance claim payments due from the VIEs under our reinsurance transactions. We are unable to determine the timing or extent of claims from losses that are ceded under the reinsurance transactions. The VIE assets are deposited in reinsurance trusts for the benefit of MGIC that will be the source of reinsurance claim payments to MGIC. The purpose of the reinsurance trusts is to provide security to MGIC for the obligations of the VIEs under the reinsurance transactions. The trustee of the reinsurance trusts, a recognized provider of corporate trust services, has established segregated accounts within the reinsurance trusts for the benefit of MGIC, pursuant to the trust agreements. The trust agreements are governed by, and construed in accordance with, the laws of the State of New York. If the trustee of the reinsurance trusts failed to distribute claim payments to us as provided in the reinsurance trusts, we would incur a loss related to our losses ceded under the reinsurance transactions and deemed unrecoverable. We are also unable to determine the impact such possible failure by the trustee to perform pursuant to the reinsurance trust agreements may have on our consolidated financial statements. As a result, we are unable to quantify our maximum exposure to loss related to our involvement with the VIEs. MGIC has certain termination rights under the reinsurance transactions should its claims not be paid. We consider our exposure to loss from our reinsurance transactions with the VIEs to be remote. Table 9.5 presents the total assets of the Home Re Entities as of December 31, 2023 , December 31, 2022 and December 31, 2021. Home Re Entities total assets Table 9.5 (In thousands) Home Re Entity Total VIE Assets December 31, 2023 December 31, 2022 December 31, 2021 Home Re 2023-1 Ltd. $ 330,277 $ — $ — Home Re 2022-2 Ltd. 427,279 473,575 — Home Re 2021-2 Ltd. 174,431 357,340 398,429 Home Re 2021-1 Ltd. 118,043 285,039 398,848 Home Re 2020-1 Ltd. 41,846 119,159 251,387 Home Re 2019-1 Ltd. 21,039 208,146 208,146 Home Re 2018-1 Ltd. 73,872 146,822 218,343 The reinsurance trust agreements provide that the trust assets may generally only be invested in certain money market funds that (1) invest at least 99.5% of their total assets in cash or direct U.S. federal government obligations, such as U.S. Treasury bills, as well as other short-term securities backed by the full faith and credit of the U.S. federal government or issued by an agency of the U.S. federal government, (2) have a principal stability fund rating of “AAAm” by S&P or a money market fund rating of “Aaa-mf” by Moody’s as of the Closing Date and thereafter maintain any rating with either S&P or Moody’s, and (3) are permitted investments under the applicable credit for reinsurance laws and applicable PMIERs credit for reinsurance requirements. The total calculated PMIERs credit for risk ceded under our XOL Transactions is generally based on the PMIERs requirement of the covered policies and the attachment and detachment points of the coverage, all of which fluctuate over time. (see Note 1 - "Nature of Business" and Note 2 - "Basis of Presentation" |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The pretax components of our other comprehensive income (loss) and related income tax benefit (expense) for the years ended December 31, 2023, 2022 and 2021 are included in table 10.1 below. Components of other comprehensive income (loss) Table 10.1 (In thousands) 2023 2022 2021 Net unrealized investment (losses) gains arising during the period $ 179,174 $ (707,005) $ (154,555) Income tax (expense) benefit (37,626) 148,471 32,456 Net of taxes 141,548 (558,534) (122,099) Net changes in benefit plan assets and obligations 29,978 (54,017) 31,613 Income tax benefit (expense) (6,296) 11,343 (6,638) Net of taxes 23,682 (42,674) 24,975 Total other comprehensive income (loss) 209,152 (761,022) (122,942) Total income tax benefit (expense) (43,922) 159,814 25,818 Total other comprehensive income (loss), net of tax $ 165,230 $ (601,208) $ (97,124) The pretax and related income tax benefit (expense) components of the amounts reclassified from our accumulated other comprehensive income (loss) ( "AOCI") to our consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 are included in table 10.2 below. Reclassifications from Accumulated Other Comprehensive Income (Loss) Table 10.2 (In thousands) 2023 2022 2021 Reclassification adjustment for net realized (losses) gains (1) $ (27,100) $ (9,860) $ 10,455 Income tax benefit (expense) 5,691 2,070 (2,195) Net of taxes (21,409) (7,790) 8,260 Reclassification adjustment related to benefit plan assets and obligations (2) (13,990) (16,750) (9,779) Income tax benefit (expense) 2,938 3,518 2,053 Net of taxes (11,052) (13,232) (7,726) Total reclassifications (41,090) (26,610) 676 Income tax benefit (expense) 8,629 5,588 (142) Total reclassifications, net of tax $ (32,461) $ (21,022) $ 534 (1) (Decreases) increases Net gains (losses) on investments and other financial instruments on the consolidated statements of operations. (2) Decreases (increases) Other underwriting and operating expenses, net on the consolidated statements of operations. A roll-forward of AOCI for the years ended December 31, 2023, 2022, and 2021, including amounts reclassified from AOCI, is included in table 10.3 below. Roll-forward of Accumulated Other Comprehensive Income (Loss) Table 10.3 (In thousands) Net unrealized gains and losses on available-for-sale securities Net benefit plan assets and obligations recognized in shareholders' equity Total AOCI Balance, December 31, 2020, net of tax $ 272,137 $ (55,316) $ 216,821 Other comprehensive income (loss) before reclassifications (113,839) 17,249 (96,590) Less: Amounts reclassified from AOCI 8,260 (7,726) 534 Balance, December 31, 2021, net of tax 150,038 (30,341) 119,697 Other comprehensive income (loss) before reclassifications (566,324) (55,906) (622,230) Less: Amounts reclassified from AOCI (7,790) (13,232) (21,022) Balance, December 31, 2022, net of tax (408,496) (73,015) (481,511) Other comprehensive income (loss) before reclassifications 120,139 12,630 132,769 Less: Amounts reclassified from AOCI (21,409) (11,052) (32,461) Balance, December 31, 2023, net of tax $ (266,948) $ (49,333) $ (316,281) |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans We have a non-contributory defined benefit pension plan, as well as a supplemental executive retirement plan, that covered eligible employees through December 31, 2022. Effective January 1, 2023, these plans were frozen (no future benefits will be accrued for participants due to employment and no new participants will be added). Participants in these plans were fully vested in their benefits as of December 31, 2022. We also offer both medical and dental benefits for retired domestic employees and their eligible spouses and dependents under a postretirement benefit plan. The following tables 11.1, 11.2, and 11.3 provide the components of aggregate annual net periodic benefit cost for each of the years ended December 31, 2023, 2022, and 2021 and changes in the benefit obligation and the funded status of the pension, supplemental executive retirement and other postretirement benefit plans as recognized in the consolidated balance sheets as of December 31, 2023 and 2022. Components of net periodic benefit cost Table 11.1 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2021 12/31/2023 12/31/2022 12/31/2021 Company Service Cost $ — $ 7,153 $ 7,569 $ 1,497 $ 1,307 $ 1,508 Interest Cost 13,787 12,461 11,276 1,633 694 648 Expected Return on Plan Assets (13,517) (18,064) (20,657) (8,235) (10,502) (8,863) Amortization of: Net Transition Obligation (Asset) — — — — — — Prior Service Cost (Credit) 345 (163) (239) 1,861 489 213 Net Actuarial Losses (Gains) 2,185 5,726 5,490 (150) (3,103) (1,697) Cost of Settlements and Curtailments 9,749 13,801 6,012 — — — Net Periodic Benefit Cost (Benefit) $ 12,549 $ 20,914 $ 9,451 $ (3,394) $ (11,115) $ (8,191) Development of funded status Table 11.2 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Actuarial Value of Benefit Obligations Measurement Date 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Accumulated Benefit Obligation $ 261,330 $ 274,975 $ 30,238 $ 29,580 Funded Status/Asset (Liability) on the Consolidated Balance Sheet Benefit Obligation $ (261,330) $ (274,975) $ (30,238) $ (29,580) Plan Assets at Fair Value 235,612 250,674 134,371 111,154 Funded Status - Overfunded/Asset N/A N/A $ 104,133 $ 81,574 Funded Status - Underfunded/Liability (25,718) (24,301) N/A N/A Accumulated other comprehensive (income) loss Table 11.3 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Net Actuarial Losses (Gains) $ 79,309 $ 89,711 $ (30,804) $ (13,781) Prior Service Cost (Credit) 2,900 3,245 11,041 13,249 Net Transition Obligation (Asset) — — — — Total at Year End $ 82,209 $ 92,956 $ (19,763) $ (532) The amortization of gains and losses resulting from differences in actual experience from expected experience or changes in assumptions including discount rates is included as a component of Net Periodic Benefit Cost/(Income) for the year. The gain or loss in excess of a 10% corridor is amortized by the average remaining life expectancy for the pension and supplemental executive retirement plans and by the average remaining service period of participating employees expected to receive benefits under the other postretirement benefits plan. Table 11.4 shows the changes in the projected benefit obligation for the years ended December 31, 2023 and 2022. Change in projected benefit / accumulated benefit Table 11.4 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Benefit Obligation at Beginning of Year $ 274,975 $ 391,698 $ 29,580 $ 25,635 Company Service Cost — 7,153 1,497 1,307 Interest Cost 13,787 12,461 1,633 694 Plan Participants' Contributions — — 311 463 Net Actuarial Losses (Gains) 16,995 (83,240) 1,294 (8,123) Benefit Payments from Fund (13,549) (13,165) (3,439) (1,504) Benefit and Settlement Payments Paid Directly by Company (384) (114) — — Plan Amendments — 3,247 (346) 11,278 Curtailments — (352) — — Settlement Payments from Fund (1) (30,494) (42,713) — — Other Adjustment — — (292) (170) Benefit Obligation at End of Year $ 261,330 $ 274,975 $ 30,238 $ 29,580 (1) Represents lump sum payments from our pension plan to eligible participants, who were former employees with vested benefits. The change in the net actuarial losses (gains) on the benefit obligation from 2022 to 2023 is primarily due to changes in the discount rate used to calculate the benefit obligation. When the discount rate decreases, the impact on the benefit obligation is an increase, resulting in an actuarial loss. When the discount rate increases, the impact on the benefit obligation is a decrease, resulting in an actuarial gain. The discount rate decreased to 5.20% at December 31, 2023 from 5.60% at December 31, 2022, compared to an increase to 5.60% at December 31, 2022 from 3.05% at December 31, 2021. See Table 11.7 for the actuarial assumptions used to calculate the benefit obligations of our plans for 2023 and 2022. Tables 11.5 and 11.6 shows the changes in the fair value of the net assets available for plan benefits and changes in other comprehensive income (loss) for the years ended December 31, 2023 and 2022. Change in plan assets Table 11.5 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Fair Value of Plan Assets at Beginning of Year $ 250,674 $ 391,555 $ 111,154 $ 140,839 Actual Return on Plan Assets 28,981 (91,303) 26,703 (28,088) Company Contributions 384 6,414 — — Plan Participants' Contributions — — 311 463 Benefit Payments from Fund (13,549) (13,165) (3,439) (1,504) Benefit and Settlement Payments Paid Directly by Company (384) (114) — — Settlement Payments from Fund (30,494) (42,713) — — Other Adjustment — — (358) (556) Fair Value of Plan Assets at End of Year $ 235,612 $ 250,674 $ 134,371 $ 111,154 Change in accumulated other comprehensive income (loss) ("AOCI") Table 11.6 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 AOCI in Prior Year $ 92,956 $ 83,298 $ (532) $ (44,891) Increase (Decrease) in AOCI Recognized during year - Prior Service (Cost) Credit (345) 745 (1,861) (489) Recognized during year - Net Actuarial (Losses) Gains (11,933) (20,109) 150 3,103 Occurring during year - Prior Service Cost — 3,247 (346) 11,277 Occurring during year - Net Actuarial Losses (Gains) 1,531 25,775 (17,174) 30,468 AOCI in Current Year $ 82,209 $ 92,956 $ (19,763) $ (532) The projected benefit obligations, net periodic benefit costs and accumulated postretirement benefit obligation for the plans were determined using the following weighted average assumptions. Actuarial assumptions Table 11.7 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Weighted-Average Assumptions Used to Determine Benefit Obligations at year end 1. Discount Rate 5.20 % 5.60 % 5.20 % 5.60 % 2. Rate of Compensation Increase N/A 3.00 % N/A N/A 3. Cash balance interest crediting rate 4.03 % 3.97 % N/A N/A Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Year 1. Discount Rate 5.50 % 3.70 % 5.60 % 2.85 % 2. Expected Long-term Return on Plan Assets 6.00 % 5.25 % 7.50 % 7.50 % 3. Rate of Compensation Increase N/A 3.00 % N/A N/A Assumed Health Care Cost Trend Rates at year end 1. Health Care Cost Trend Rate Assumed for Next Year N/A N/A 6.75 % 7.00 % 2. Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate) N/A N/A 5.00 % 5.00 % 3. Year That the Rate Reaches the Ultimate Trend Rate N/A N/A 2031 2031 In selecting a discount rate, we performed a hypothetical cash flow bond matching exercise, matching our expected pension plan and postretirement medical plan cash flows, respectively, against a selected portfolio of high quality corporate bonds. The modeling was performed using a bond portfolio of noncallable bonds with at least $50 million outstanding. The average yield of these hypothetical bond portfolios was used as the benchmark for determining the discount rate. In selecting the expected long-term rate of return on assets, we considered the average rate of earnings expected on the classes of funds invested or to be invested to provide for the benefits of these plans. This included considering the trusts' targeted asset allocation for the year and the expected returns likely to be earned over the next 20 years. The year-end asset allocations of the plans are shown in table 11.8 below. Plan assets Table 11.8 Pension Plan Other Postretirement Benefits 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Equity Securities 21 % 20 % 100 % 100 % Debt Securities 79 % 80 % — % — % Total 100 % 100 % 100 % 100 % Fair value is disclosed using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as described in Note 6 - "Fair Value Measurements" and Note 3 - "Significant Accounting Policies" . The following describes the valuation methodologies used for pension plan and other postretirement benefits plan assets at fair value. • Domestic and International Mutual Funds: Securities are priced at the net asset value ("NAV"), which is the closing price published by the mutual fund on the reporting date. These financial assets are categorized as Level 1 in the fair value hierarchy. • U.S. Government Securities: See Note 6 - "Fair Value Measurements" for a discussion of the valuation methodologies for U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. • Corporate Debt Securities: See Note 6 - "Fair Value Measurements" for a discussion of the valuation methodologies for Corporate Debt. • Non-Government Foreign Debt Securities: These financial assets are represented by corporate debt securities issued by entities domiciled outside of the United States. See Note 6 - "Fair Value Measurements" for a discussion of the valuation methodologies for Corporate Debt. • Municipal Bonds: See Note 6 - "Fair Value Measurements" for a discussion of the valuation methodologies for Obligations of U.S. States & Political Subdivisions. • Pooled Equity Accounts: Pooled Equity Account assets are represented by the units held by the plan. The redemption value is determined based on the NAV of the underlying units. The NAV is derived from the aggregate fair value of the underlying investments less any liabilities as of the reporting date. These financial assets are categorized as Level 2 in the fair value hierarchy. The pension plan assets and related accrued investment income at fair value, by hierarchy level, as of December 31, 2023 and 2022, are shown in tables 11.9a and 11.9b below. There were no securities valued using Level 3 inputs. Pension plan assets at fair value as of December 31, 2023 Table 11.9a (In thousands) Level 1 Level 2 Total Domestic mutual funds $ 2,836 $ — $ 2,836 U.S. government securities 10,301 — 10,301 Corporate debt securities Corporate debt securities and other — 145,908 145,908 Non-government foreign debt securities — 21,843 21,843 Municipal bonds — 9,220 9,220 Pooled equity accounts — 45,504 45,504 Total Assets at fair value $ 13,137 $ 222,475 $ 235,612 Pension plan assets at fair value as of December 31, 2022 Table 11.9b (In thousands) Level 1 Level 2 Total Domestic mutual funds $ 67 $ — $ 67 U.S. government securities 13,328 — 13,328 Corporate debt Securities Corporate debt securities and other — 146,854 146,854 Non-government foreign debt securities — 20,793 20,793 Municipal bonds — 18,336 18,336 Pooled equity accounts — 51,296 51,296 Total Assets at fair value $ 13,395 $ 237,279 $ 250,674 The pension plan has implemented a strategy to reduce risk through the use of a targeted funded ratio. The liability driven component is key to the asset allocation. The liability driven component seeks to align the duration of the fixed income asset allocation with the expected duration of the plan liabilities or benefit payments. Overall asset allocation is dynamic and specifies target allocation weights and ranges based on the funded status. An improvement in funded status results in the de-risking of the portfolio, allocating more funds to fixed income and less to equity. A decline in funded status would result in a higher allocation to equity. The maximum equity allocation is 40%. The equity investments use combinations of mutual funds, ETFs, and pooled equity account structures focused on the following strategies: Strategy Objective Investment types Return seeking growth Funded ratio improvement over the long term ● Global quality growth ● Global low volatility Return seeking bridge Downside protection in the event of a declining equity market ● Enduring asset ● Durable company The fixed income objective is to preserve capital and to provide monthly cash flows for the payment of plan liabilities. Fixed income investments can include government, government agency, corporate, mortgage-backed, asset-backed, and municipal securities, and other classes of bonds. The duration of the fixed income portfolio has an objective of being within one year of the duration of the accumulated benefit obligation. The fixed income investments have an objective of a weighted average credit of A3/A-/A- by Moody’s, S&P, and Fitch, respectively. Tables 11.10a and 11.10b set forth the other postretirement benefits plan assets at fair value as of December 31, 2023 and 2022. All are Level 1 assets. Other postretirement benefits plan assets at fair value as of December 31, 2023 Table 11.10a (In thousands) Level 1 Domestic mutual funds $ 109,575 International mutual funds 24,796 Total Assets at fair value $ 134,371 Other postretirement benefits plan assets at fair value as of December 31, 2022 Table 11.10b (In thousands) Level 1 Domestic mutual funds $ 89,584 International mutual funds 21,570 Total Assets at fair value $ 111,154 Our postretirement plan portfolio is designed to achieve the following objectives over each market cycle and for at least 5 years: è Total return should exceed growth in the Consumer Price Index by 5.75% annually è Achieve competitive investment results The primary focus in developing asset allocation ranges for the portfolio is the assessment of the portfolio's investment objectives and the level of risk that is acceptable to obtain those objectives. To achieve these objectives the minimum and maximum allocation ranges for fixed income securities and equity securities are: Minimum Maximum Equities (long only) 70 % 100 % Real estate 0 % 15 % Commodities 0 % 10 % Fixed income/Cash 0 % 10 % Given the long term nature of this portfolio and the lack of any immediate need for significant cash flow, it is anticipated that the equity investments will consist of growth stocks and will typically be at the higher end of the allocation ranges above. Investment in international mutual funds is limited to a maximum of 30% of the equity range. The allocation as of December 31, 2023 included 2% that was primarily invested in equity securities of emerging market countries and another 16% was invested in securities of companies primarily based in Europe and the Pacific Basin. For the year ended December 31, 2023, we contributed $0.4 million to the pension and supplemental executive retirement plans to fund distributions from the supplemental executive retirement plan. We expect to make a contribution to the pension plan in 2024 of $25.0 million and distributions from the supplemental executive retirement plan will be funded as incurred. We did not make a contribution to the other postretirement benefits plan in 2023 and we do not expect to make a contribution in 2024. Expected future benefit payments from the plans are shown in Table 11.11 below. Expected future benefit payments Table 11.11 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2023 Current + 1 23,110 2,761 Current + 2 22,771 2,849 Current + 3 23,116 2,715 Current + 4 23,226 2,630 Current + 5 22,236 2,825 Current + 6 - 10 100,929 15,326 PROFIT SHARING AND 401(K) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Net deferred tax assets (liabilities) as reported on the consolidated balance sheets as of December 31, 2023 and 2022 are shown in table 12.1 below. Deferred tax assets and liabilities Table 12.1 (In thousands) 2023 2022 Total deferred tax assets $ 109,391 $ 144,819 Total deferred tax liabilities (29,609) (20,050) Net deferred tax asset (liability) $ 79,782 $ 124,769 Table 12.2 includes the components of the net deferred tax asset (liability) as of December 31, 2023 and 2022. Deferred tax components Table 12.2 (In thousands) 2023 2022 Unearned premium reserves $ 13,862 $ 16,209 Benefit plans (19,142) (9,444) Loss reserves 1,921 1,785 Unrealized losses on investments 70,961 108,588 Deferred policy acquisition cost (3,064) (4,003) Deferred compensation 7,466 6,806 Research and experimental costs 13,351 9,719 Other, net (5,573) (4,891) Net deferred tax asset (liability) $ 79,782 $ 124,769 We believe that all gross deferred tax assets at December 31, 2023 and 2022 are fully realizable and no valuation allowance has been established. Table 12.3 summarizes the components of the provision for income taxes: Provision for (benefit from) income taxes Table 12.3 (In thousands) 2023 2022 2021 Current federal $ 187,246 $ 228,259 $ 161,055 Deferred federal 1,550 (5,235) 4,392 Other 484 1,661 1,347 Provision for income taxes $ 189,280 $ 224,685 $ 166,794 Current federal income tax payments were $188.2 million, $236.5 million, and $155.3 million in 2023, 2022 and 2021, respectively. At December 31, 2023 we owned $848.6 million of tax and loss bonds. Table 12.4 reconciles the federal statutory income tax rate to our effective tax provision rate. Effective tax rate reconciliation Table 12.4 2023 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Tax exempt municipal bond interest (0.5) % (0.5) % (0.6) % Other, net 0.5 % 0.1 % 0.4 % Effective tax rate 21.0 % 20.6 % 20.8 % We have not recorded any uncertain tax positions during 2023 and 2022 and have no unrecognized tax benefits at December 31, 2023 and December 31, 2022. We recognize interest accrued and penalties related to unrecognized tax benefits in income taxes. The statute of limitations related to the consolidated federal income tax return is closed for all years prior to 2020. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity CHANGE IN ACCOUNTING POLICY As of January 1, 2021, we adopted the updated guidance for "A ccounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The application of this guidance resulted in a $68.3 million cumulative effect adjustment to our 2021 beginning retained earnings and paid-in capital to reflect the 9% Debenture as if we had always accounted for the debt as a liability in its entirety. SHARE REPURCHASE PROGRAMS Repurchases may be made from time to time on the open market (including through 10b5-1 plans) or through privately negotiated transactions. In 2023, we repurchased approximately 21.7 million shares of our common stock at a weighted average cost per share of $15.71, which included commissions. We may repurchase up to an additional $273.7 million of our common stock through July 1, 2025 under a share repurchase program approved by our Board of Directors in 2023. In 2024, through February 16, we repurchased approximately 2.9 million shares of our common stock at a weighted average cost per share of $19.43, which included commissions. In 2022, we repurchased approximately 27.8 million shares of our common stock at a weighted average cost per share of $13.89, which included commissions. In 2021, we repurchased approximately 19.0 million shares of our common stock at a weighted average cost per share of $15.30, which included commissions. CASH DIVIDENDS In the first and second quarters of 2023, we paid quarterly cash dividends of $0.10 per share to shareholders which totaled $58.8 million. In the third and fourth quarters of 2023, we paid quarterly cash dividends of $0.115 per share which totaled $65.3 million. On January 23, 2024, the Board of Directors declared a quarterly cash dividend to holders of the company's common stock of $0.115 per share payable on March 5, 2023, to shareholders of record at the close of business on February 15, 2024. |
Statutory Information
Statutory Information | 12 Months Ended |
Dec. 31, 2023 | |
Statutory Capital [Abstract] | |
Statutory Information | Statutory Information STATUTORY ACCOUNTING PRINCIPLES The statutory financial statements of our insurance companies are presented on the basis of accounting principles prescribed, or practices permitted, by the Office of the Commissioner of Insurance of the State of Wisconsin (the "OCI"), which has adopted the National Association of Insurance Commissioners ("NAIC") Statements of Statutory Accounting Principles ("SSAP") as the basis of its statutory accounting principles, except as described below. In converting from statutory to GAAP, typical adjustments include deferral of policy acquisition costs, the inclusion of net unrealized holding gains or losses in shareholders' equity relating to fixed income securities, and the inclusion of statutory non-admitted assets. In addition to the typical adjustments from statutory to GAAP, mortgage insurance companies are required to maintain contingency loss reserves equal to 50% of premiums earned under SSAP and principles prescribed by the OCI. Such amounts cannot be withdrawn for a period of ten years except as permitted by insurance regulations. With regulatory approval, a mortgage guaranty insurance company may make early withdrawals from the contingency reserve when incurred losses exceed 35% of premiums earned in a calendar year. For the year ended 2023, MGIC did not withdraw amounts from its contingency reserve. Changes in contingency loss reserves impact the statutory statement of operations. Contingency loss reserves are not reflected as liabilities under GAAP and changes in contingency loss reserves do not impact the GAAP consolidated statements of operations. As a mortgage guaranty insurer, we are eligible for a tax deduction, subject to certain limitations, under Section 832(e) of the IRC 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 tax and loss bonds (“T&L Bonds”) in an amount equal to the tax benefit derived from deducting any portion of our statutory contingency reserves. Under statutory accounting practices, purchases of T&L Bonds are accounted for as investments. Under GAAP, purchases of T&L Bonds are accounted for as a payment of current taxes. The OCI recognizes only statutory accounting principles prescribed, or practices permitted, by the State of Wisconsin for determining and reporting the financial condition and results of operations of an insurance company. The OCI has adopted certain prescribed accounting practices that differ from those found in other states. Specifically, Wisconsin domiciled companies record changes in the contingency loss reserves through the income statement as a change in underwriting deduction. As a result, in periods in which MGIC is increasing contingency loss reserves, statutory net income is reduced. The statutory net income, policyholders’ surplus, and contingency reserve liability of our insurance subsidiaries, including MGIC, are shown in table 14.1. Statutory financial information of insurance subsidiaries Table 14.1 As of and for the Years Ended December 31, (In thousands) 2023 2022 2021 Statutory net income $ 279,145 $ 440,944 $ 295,811 Statutory policyholders' surplus 639,878 924,977 1,220,714 Contingency reserve 5,199,405 4,669,724 4,126,604 The decrease in statutory policyholders' surplus for the years ended December 31, 2023 and December 31, 2022 is primarily due to dividend payments to MGIC Investment Corporation ("the holding company") (discussed below), offset by statutory net income. For the years ended December 31, 2023, 2022, and 2021 there were no contributions made to MGIC or distributions from other insurance subsidiaries to us. Dividends paid by MGIC are shown in table 14.2 below. Surplus contributions and dividends of insurance subsidiaries Table 14.2 Years Ended December 31, (In thousands) 2023 2022 2021 Dividends paid by MGIC to the holding company (1) $ 600,000 800,000 400,000 (1) Dividends paid in cash and/or investment securities. Also, in 2021 MGIC distributed to the holding company, as a dividend, its investment in MGIC Credit Assurance Corporation at an amount of $8.9 million. STATUTORY CAPITAL REQUIREMENTS The insurance laws of 16 jurisdictions, including Wisconsin, our domiciliary state, require a mortgage insurer to maintain a minimum amount of statutory capital relative to the RIF (or a similar measure) in order for the mortgage insurer to continue to write new business. We refer to these requirements as the “State Capital Requirements” and, together with the GSE Financial Requirements, the “Financial Requirements.” While they vary among jurisdictions, the most common State Capital Requirements allow for a maximum risk-to-capital ratio of 25 to 1. A risk-to-capital ratio will increase if (i) the percentage decrease in capital exceeds the percentage decrease in insured risk, or (ii) the percentage increase in capital is less than the percentage increase in insured risk. Wisconsin does not regulate capital by using a risk-to-capital measure but instead requires a minimum policyholder position ("MPP"). MGIC's “policyholder position” includes its net worth or surplus, and its contingency loss reserve. At December 31, 2023, MGIC’s risk-to-capital ratio was 10.2 to 1, below the maximum allowed by the jurisdictions with State Capital Requirements and its policyholder position was $3.6 billion above the required MPP of $2.2 billion. The calculation of our risk-to-capital ratio and MPP reflect credit for the risk ceded under our reinsurance transactions. The NAIC established a Mortgage Guaranty Insurance Working Group to determine and make recommendations to the NAIC’s Financial Condition Committee as to what, if any, changes to make to the solvency and other regulations relating to mortgage guaranty insurers. A draft of a revised Mortgage Guaranty Insurance Model Act was adopted by the Financial Condition Committee in July 2023 and by the Executive Committee and Plenary NAIC in August 2023. The revised Model Act includes requirements relating to, among other things: (i) capital and minimum capital requirements, and contingency reserves; (ii) restrictions on mortgage insurers’ investments in notes secured by mortgages; (iii) prudent underwriting standards and formal underwriting guidelines; (iv) the establishment of formal, internal “Mortgage Guaranty Quality Control Programs” with respect to in-force business; and (v) reinsurance and prohibitions on captive reinsurance arrangements. It is uncertain when the revised Model Act will be adopted in any jurisdiction. The provisions of the Model Act, if adopted in their final form, are not expected to have a material adverse effect on our business. It is unknown whether any changes will be made by state legislatures prior to adoption, and the effect changes, if any, will have on the mortgage guaranty insurance market generally, or on our business. DIVIDEND RESTRICTIONS three two three |
Share-based Compensation Plans
Share-based Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation Plans | Share-based Compensation Plans We have certain share-based compensation plans. Under the fair value method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period which generally corresponds to the vesting period. Awards under our plans generally vest over periods ranging from one We have an omnibus incentive plan that was adopted on April 23, 2020. When the 2020 plan was adopted, no further awards could be made under our previous 2015 plan. The purpose of the 2020 plan is to motivate and incentivize performance by, and to retain the services of, key employees and non-employee directors through receipt of equity-based and other incentive awards under the plan. Awards issued under the plan that are subsequently forfeited will not count against the limit on the maximum number of shares that may be issued under the plan. The 2020 plan provides for the award of stock options, stock appreciation rights, restricted stock and restricted stock units, as well as cash incentive awards. No awards may be granted after April 23, 2030 under the 2020 plan. The vesting provisions of options, restricted stock and restricted stock units are determined at the time of grant. At December 31, 2023, 5.1 million shares were available for future grant under the 2020 plan. The compensation cost that has been charged against income for share-based plans was $31.5 million, $24.7 million, and $17.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. The related income tax benefit recognized for share-based plans was $2.9 million, $2.1 million, and $1.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. Table 15.1 summarizes restricted stock or restricted stock unit (collectively called “restricted stock”) activity during 2023. Restricted stock Table 15.1 Weighted Average Grant Date Fair Market Value Shares Restricted stock outstanding at December 31, 2022 $ 14.02 3,576,679 Granted (1) 14.17 1,415,329 Vested 13.18 (1,263,746) Forfeited 14.01 (545,471) Restricted stock outstanding at December 31, 2023 $ 13.89 3,182,791 (1) Approximately 67% of the shares granted in 2023 are subject to performance conditions under which the target number of shares granted may vest from 0% to 200%. At December 31, 2023, the 3.2 million shares of restricted stock outstanding consisted of 2.4 million shares that are subject to performance conditions (“performance shares”), 0.6 million shares that are subject only to service conditions (“time vested shares”), and 0.2 million shares related to non-employee director shares. The weighted-average grant date fair value of restricted stock granted during 2022 and 2021 was $15.45 and $12.83, respectively. The fair value of restricted stock granted is the closing price of the common stock on the New York Stock Exchange on the date of grant or previous trading day if the New York Stock Exchange is closed on the date of grant. The total fair value of restricted stock vested during 2023, 2022 and 2021 was $17.3 million, $23.3 million, and $15.1 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We lease data processing equipment and vehicles under operating leases that expire during the next four years. Generally, rental payments are fixed. Table 16.1 shows minimum the future operating lease payments as of December 31, 2023. Minimum future operating lease payments Table 16.1 (In thousands) Amount 2024 $ 1,141 2025 1,018 2026 360 2027 19 2028 and thereafter — Total $ 2,538 Total lease expense under operating leases was $1.6 million in 2023, $1.2 million in 2022, and $1.3 million in 2021. |
Litigation and Contingencies
Litigation and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | Litigation and Contingencies We operate in a highly regulated industry that is subject to the risk of litigation and regulatory proceedings, including related to our claims paying practices. From time to time, we are involved in disputes and legal proceedings in the ordinary course of business. In our opinion, based on the facts known at this time, the ultimate resolution of these ordinary course disputes and legal proceedings will not have a material adverse effect on our financial position or results of operations. |
SCHEDULE I - SUMMARY OF INVESTM
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | SCHEDULE I — Summary of investments - Other than investments in related parties - December 31, 2023 (In thousands) Amortized Cost Fair Value Amount at which shown in the balance sheet Fixed income: Bonds: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 167,995 $ 161,682 $ 161,682 Obligations of U.S. states and political subdivisions 2,092,754 1,908,078 1,908,078 Foreign government debt 4,486 3,843 3,843 Public utilities 251,151 250,952 250,952 ABS 173,256 171,273 171,273 CLOs 327,467 326,096 326,096 Mortgage-backed 640,336 608,230 608,230 All other corporate debt securities 2,375,250 2,264,629 2,264,629 Commercial paper 28,327 28,330 28,330 Total fixed income 6,061,022 5,723,113 5,723,113 Equity securities: Common stocks: Industrial, miscellaneous and all other 16,025 14,771 14,771 Total equity securities 16,025 14,771 14,771 Total investments $ 6,077,047 $ 5,737,884 $ 5,737,884 |
SCHEDULE II - CONDENSED FINANCI
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE II - Condensed Financial Information of Registrant December 31, (In thousands) 2023 2022 ASSETS Fixed income, available-for-sale, at fair value (amortized cost, 2023 – $597,944 ; 2022 – $299,649) $ 598,420 $ 287,332 Short-term, fixed income, available-for-sale, at fair value (amortized cost, 2023 – $110,889 ; 2022 – $120,102) 110,913 120,177 Total investment portfolio $ 709,333 407,509 Cash and cash equivalents 208,600 239,404 Investment in subsidiaries, at equity in net assets 4,777,121 4,502,261 Accounts receivable - affiliates 2,860 864 Income taxes - current and deferred 34,597 167,966 Accrued investment income 5,975 3,387 Total assets $ 5,738,486 $ 5,321,391 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Senior notes $ 643,196 $ 641,724 Convertible junior subordinated debentures — 21,086 Accrued interest 12,797 13,271 Other liabilities 10,476 2,570 Total liabilities 666,469 678,651 Shareholders’ equity: Common stock ($1.00 par value, shares authorized 1,000,000; shares issued 2023 - 371,353; 2022 - 371,353; shares outstanding 2023 - 272,494; 2022 - 293,433) 371,353 371,353 Paid-in capital 1,808,113 1,798,842 Treasury stock at cost (shares 2023 - 98,859; 2022 - 77,920) (1,384,293) (1,050,238) Accumulated other comprehensive income, net of tax (316,281) (481,511) Retained earnings 4,593,125 4,004,294 Total shareholders’ equity 5,072,017 4,642,740 Total liabilities and shareholders’ equity $ 5,738,486 $ 5,321,391 See accompanying supplementary notes to Parent Company condensed financial statements. MGIC INVESTMENT CORPORATION SCHEDULE II - Condensed Financial Information of Registrant Condensed Statements of Operations Parent Company Only Years Ended December 31, (In thousands) 2023 2022 2021 Revenues: Investment income, net of expenses $ 30,123 $ 7,193 $ 3,850 Net realized investment gains (losses) (47) (2,628) 490 Total revenues 30,076 4,565 4,340 Expenses: Operating expenses 1,555 1,575 1,644 Interest expense 36,905 47,601 68,359 Loss on debt extinguishment — 38,870 36,914 Total expenses 38,460 88,046 106,917 Loss before tax (8,384) (83,481) (102,577) (Benefit from) provision for income taxes (1,734) (17,851) (21,240) Equity in net income of subsidiaries 719,599 930,979 716,320 Net income 712,949 865,349 634,983 Other comprehensive income (loss), net of tax 165,230 (601,208) (97,124) Comprehensive income $ 878,179 $ 264,141 $ 537,859 See accompanying supplementary notes to Parent Company condensed financial statements. MGIC INVESTMENT CORPORATION SCHEDULE II - Condensed Financial Information of Registrant Condensed Statements of Cash Flows Parent Company Only Years Ended December 31, (In thousands) 2023 2022 2021 Cash flows from operating activities: Net income $ 712,949 $ 865,349 $ 634,983 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of subsidiaries (719,599) (930,979) (716,320) Dividends received from subsidiaries 326,013 626,695 400,000 Deferred tax (benefit) expense 86,219 119,588 (21,551) Loss on debt extinguishment — 38,870 36,914 Other 26,726 33,619 29,799 Change in certain assets and liabilities: Accounts receivable - affiliates (1,996) 1,266 (680) Income taxes receivable 45,913 (43,123) (306) Accrued investment income (499) 931 1,118 Accrued interest 349 (7,230) (2,503) Net cash provided by operating activities 476,075 704,986 361,454 Cash flows from investing activities: Purchases of investments (566,795) (1,457) (339,384) Proceeds from sales of investments 555,957 287,924 556,384 Net cash provided by (used in) investing activities (10,838) 286,467 217,000 Cash flows from financing activities: Conversion/Purchase of convertible junior subordinated debentures (28,637) (89,118) (98,610) Redemption of 5.75% senior notes — (242,296) — Cash portion of loss on debt extinguishment — (38,185) (36,914) Repurchase of common stock (337,182) (385,573) (290,818) Dividends paid (122,965) (110,947) (94,219) Payment of withholding taxes related to share-based compensation net share settlement (7,257) (10,094) (6,729) Net cash provided by (used in) financing activities (496,041) (876,213) (527,290) Net increase (decrease) in cash and cash equivalents (30,804) 115,240 51,164 Cash and cash equivalents at beginning of year 239,404 124,164 73,000 Cash and cash equivalents at end of year $ 208,600 $ 239,404 $ 124,164 See accompanying supplementary notes to Parent Company condensed financial statements. SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY ONLY SUPPLEMENTARY NOTES Note A The accompanying Parent Company financial statements should be read in conjunction with the consolidated financial statements and notes to consolidated financial statements appearing this annual report. Note B Our insurance subsidiaries are subject to statutory regulations as to maintenance of policyholders’ surplus and payment of dividends. The maximum amount of dividends that the insurance subsidiaries may pay in any twelve-month period without regulatory approval by the OCI is the lesser of adjusted statutory net income or 10% of statutory policyholders’ surplus as of the preceding calendar year end. Adjusted statutory net income is defined for this purpose to be the greater of statutory net income, net of realized investment gains, for the calendar year preceding the date of the dividend or statutory net income, net of realized investment gains, for the three two three The payment of dividends from MGIC is the principal source of cash inflow for MGIC Investment Corporation, our holding company, other than investment income and raising capital in the public markets. The payment of dividends by our insurance subsidiaries is restricted by insurance regulation as discussed above. MGIC paid a total of $600 million, $800 million and $400 million in dividends in cash and fixed income securities to our holding company during 2023, 2022, and 2021, respectively. No contributions were made to our insurance subsidiaries in 2023, 2022, or 2021. Note C The 5.25% Senior Notes discussed in Note 7 – “Debt” |
SCHEDULE IV - REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SCHEDULE IV - REINSURANCE | SCHEDULE IV — Reinsurance Mortgage Insurance Premiums Earned Years Ended December 31, 2023, 2022 and 2021 (Dollars in thousands) Gross Amount Ceded to Other Companies Assumed From Other Companies Net Amount Percentage of Amount Assumed to Net Years ended December 31, 2023 $ 1,142,412 $ 202,821 $ 12,960 $ 952,551 1.4 % 2022 1,154,728 156,373 8,778 1,007,133 0.9 % 2021 1,167,592 163,031 9,858 1,014,419 1.0 % |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 712,949 | $ 865,349 | $ 634,983 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), as codified in the Accounting Standards Codification ("ASC"). Our consolidated financial statements include the accounts of MGIC Investment Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated. In accordance with GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Cash and Cash Equivalents | We consider money market funds and investments with original maturities of three months or less to be cash equivalents. |
Restricted Cash and Cash Equivalents | Restricted cash and cash equivalents consists of cash and money market funds held in trusts for the benefit of contractual counterparties under reinsurance agreements or for other contractual restrictions. |
Fair Value Measurements | We carry certain financial instruments at fair value and disclose the fair value of all financial instruments. Our financial instruments carried at fair value are predominantly measured on a recurring basis. Financial instruments measured on a nonrecurring basis are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). The fair value of an asset or liability is defined as the price that would be received upon a sale of an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Fair value is based on quoted market prices or inputs, where available. If prices or quotes are not available, fair value is based on valuation models or other valuation techniques that consider relevant transaction characteristics (such as maturity) and use as inputs observable or unobservable market parameters including yield curves, interest rates, volatilities, equity or debt prices, and credit curves. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, as described below. As of December 31, 2023 and 2022, we did not elect to measure any financial instruments acquired, or issued, such as our outstanding debt obligations, at fair value for which the primary basis of accounting is not fair value. Valuation process We use independent pricing sources to determine the fair value of a substantial majority of our financial instruments, which primarily consist of assets in our investment portfolio, but also includes cash and cash equivalents and restricted cash and cash equivalents. A variety of inputs are used; in approximate order of priority, they are: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, and reference data including market research publications. Market indicators, industry, and economic events are also considered. The inputs listed above are evaluated using a multidimensional pricing model. This model combines all inputs to arrive at a value assigned to each security. Quality controls are performed by the independent pricing sources throughout this process, which include reviewing tolerance reports, trading information, data changes, and directional moves compared to market moves. On a quarterly basis, we perform quality controls over values received from the pricing sources which also include reviewing tolerance reports, data changes, and directional moves compared to market moves. We have not made any adjustments to the prices obtained from the independent pricing sources. Valuation hierarchy A three-level valuation hierarchy has been established under GAAP for disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of a financial instrument as of the measurement date. To determine the fair value of securities available-for-sale in Level 1 and Level 2 of the fair value hierarchy, independent pricing sources, as described below, have been utilized. One price is provided per security based on observable market data. To ensure securities are appropriately classified in the fair value hierarchy, we review the pricing techniques and methodologies of the independent pricing sources and believe that their policies adequately consider market activity, either based on specific transactions for the issue valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. The three levels are defined as follows: è Level 1 Quoted prices for identical instruments in active markets that we can access. Financial assets using Level 1 inputs primarily include U.S. Treasury securities, money market funds, treasury bills, and certain equity securities. è Level 2 Quoted prices for similar instruments in active markets that we can access; quoted prices for identical or similar instruments in markets that are not active; and inputs, other than quoted prices, that are observable in the marketplace for the instrument. The observable inputs are used in valuation models to calculate the fair value of the instruments. Financial assets using Level 2 inputs primarily include obligations of U.S. government corporations and agencies, corporate bonds, mortgage-backed securities, asset-backed securities, most municipal bonds, and commercial paper. Note 6 - "Fair Value Measurements" for further information. è Level 3 Valuations derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The inputs used to derive the fair value of Level 3 securities reflect our own assumptions about the assumptions a market participant would use in pricing an asset or liability. Our non-financial assets that are classified as Level 3 securities consist of real estate acquired through claim settlement and embedded derivatives related to our Home Re Transactions. The fair value of real estate acquired is the lower of our acquisition cost or a percentage of the appraised value. The percentage applied to the appraised value is based upon our historical sales experience adjusted for current trends. The fair value of our embedded derivatives reflects the present value impact of the variation in investment income on the assets held by the reinsurance trusts and the contractual reference rate on Home Re Transactions used to calculate the reinsurance premiums we estimate we will pay over the estimated remaining life. |
Investments | Fixed income securities. Our fixed income securities are classified as available-for-sale and are reported at fair value. Fixed income securities with original maturities less than one year and greater than three months are classified as short-term on our consolidated balance sheet. The related unrealized investment gains or losses are, after considering the related tax expense or benefit, recognized as a component of accumulated other comprehensive income (loss) in shareholders' equity. Realized investment gains and losses on fixed income securities are reported in income based upon specific identification of securities within "Net gains (losses) on investments and other financial instruments" on the consolidated statement of operations, along with any changes in the credit allowance. Equity securities. Equity securities are reported at fair value, except for certain securities that are carried at cost. Equity securities carried at cost are reported as Other invested assets. Realized investment gains and losses on equity securities are reported in income based upon specific identification of securities sold within "Net gains (losses) on investments and other financial instruments" on the consolidated statement of operations, along with any changes in the fair value. Other invested assets. Other invested assets are carried at cost. These assets represent our investment in Federal Home Loan Bank of Chicago ("FHLB") stock, which due to restrictions, is required to be redeemed or sold only to the security issuer at par value. Accrued Investment Income. We report accrued investment income separately from securities. Accrued investment income is written off through net realized investment gains (losses) if, and at the time, the issuer of the security defaults or is expected to default on payments. Unrealized losses and allowance for credit losses Each quarter we determine whether securities in an unrealized loss position are impaired by considering several factors including, but not limited to: è our intent to sell the security or whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; è the present value of the discounted cash flows we expect to collect compared to the amortized cost basis of the security; è failure of the issuer to make scheduled interest or principal payments; è a change in rating to below investment grade; and è adverse conditions specifically related to the security, an industry, or a geographic area. Based on our evaluation, we will record an impairment on a security if we intend to sell, if it is more likely than not that we will be required to sell it prior to recovery of its amortized cost basis, or if the present value of the discounted cash flows we expect to collect is less than the amortized cost basis of the security. |
Home Office and Equipment | Home office and equipment is carried at cost net of depreciation. For financial reporting purposes, depreciation is determined on a straight-line basis for the home office and equipment over estimated lives ranging from 3 to 45 years. For income tax purposes, we use accelerated depreciation methods. |
Deferred Insurance Policy Acquisition Costs | Costs directly associated with the successful acquisition of mortgage insurance business, consisting of employee compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred insurance policy acquisition costs ("DAC"). The deferred costs are reported net of any ceding commissions received associated with our reinsurance transactions. For each underwriting year of business, these costs are amortized to income in proportion to estimated gross profits over the estimated life of the policies. We do not utilize anticipated investment income in our calculation. This includes accruing interest on the unamortized balance of DAC. The estimates for each underwriting year are reviewed quarterly and updated when necessary to reflect actual experience and any changes to key variables such as persistency or loss development. |
Loss Reserves | Loss reserves include case reserves, incurred but not reported ("IBNR") reserves, and loss adjustment expense ("LAE") reserves. Case reserves and LAE reserves are established when notices of delinquency on insured mortgage loans are received. Such loans are referred to as being in our delinquency inventory. For reporting purposes, we consider a loan delinquent when it is two or more payments past due and has not become current or resulted in a claim payment. Even though the accounting standard, ASC 944, regarding accounting and reporting by insurance entities specifically excludes mortgage insurance from its guidance relating to loss reserves, we establish loss reserves using the general principles contained in the insurance standard. However, consistent with industry standards for mortgage insurers, we do not establish case reserves for future claims on insured loans that are not currently delinquent. Case reserves are established by estimating the number of loans in our delinquency inventory that will result in a claim payment, which is referred to as the claim rate, and further estimating the amount of the claim payment, which is referred to as claim severity. Our case reserve estimates are primarily established based upon historical experience, including rescissions of policies, curtailments of claims, and loan modification activity. Adjustments to reserve estimates are reflected in the financial statements in the years in which the adjustments are made. Loss reserves for reinsurance assumed are based on information provided by the ceding companies. IBNR reserves are established for delinquencies estimated to have occurred prior to the close of an accounting period, but have not yet been reported to us. Consistent with case reserves for reported delinquencies, IBNR reserves are also established using estimated claim rates and claim severities. LAE reserves are established for the estimated costs of settling claims, including legal and other expenses, and general expenses of administering the claims settlement process. |
Premium Deficiency Reserve | After our loss reserves are established, we perform premium deficiency tests using our best estimate of future premium, losses and LAE paid. Premium deficiency reserves are established, if necessary, when the present value of expected future losses and LAE paid exceeds the present value of expected future premium and already established loss reserves. |
Revenue Recognition | We write policies which are guaranteed renewable at the insured's option on a monthly, single, or annual premium basis. We have no ability to re-underwrite or reprice these policies. Premiums written on monthly premium policies are earned as coverage is provided. Premiums written on single premium policies and annual premium policies are initially deferred as unearned premium reserve. Premiums written on annual premium policies are earned on a monthly pro rata basis. Premiums written on policies covering more than one year are amortized over the estimated policy life based on historical experience, which includes the anticipated incurred loss pattern. When a policy is cancelled for a reason other than rescission or claim payment, all premium that is non-refundable is immediately earned. Any refundable premium is returned to the servicer or borrower. When a policy is cancelled due to rescission, all previously collected premium is returned. When a policy is cancelled because a claim is paid, premium collected since the date of delinquency is returned. The liability associated with our estimate of premium to be returned is accrued for separately and included in "Other liabilities" on our consolidated balance sheets. Changes in this liability, and the actual return of premiums for all periods, affects premiums written and earned. We assess whether a credit loss allowance is required for our premium receivable. We consider collectability trends and industry development, among other things. Any estimated credit loss would be immediately recognized. Fee income of our non-insurance subsidiaries is earned and recognized as the services are provided and the customer is obligated to pay. Fee income consists primarily of contract underwriting and related fee-based services provided to lenders and is included in “Other revenue” on the consolidated statements of operations. |
Income Taxes | Deferred income taxes are provided under the liability method, which recognizes the future tax effects of temporary differences between amounts reported in the consolidated financial statements and the tax bases of these items. The estimated tax effects are computed at the enacted federal statutory income tax rate. Changes in tax laws, rates, regulations, and policies or the final determination of tax audits or examinations, could materially affect our estimates and can be significant to our operating results. We evaluate the realizability of the deferred tax assets based on the weight of all available positive and negative evidence. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. The recognition of a tax position is determined using a two-step approach. The first step applies a more-likely-than-not threshold for recognition and derecognition. The second step measures the tax position as the greatest amount of benefit that is cumulatively greater than 50% likely to be realized. When evaluating a tax position for recognition and measurement, we presume that the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. We recognize interest accrued and penalties related to unrecognized tax benefits in our provision for income taxes. |
Benefit Plans | We have a non-contributory defined benefit pension plan, as well as a supplemental executive retirement plan, that covered eligible employees as of December 31, 2022, utilizing a cash balance formula. Effective January 1, 2023, these plans were frozen (no future benefits will be accrued for participants due to employment and no new participants will be added). Participants will continue to earn interest credits on their retirement benefits. We recognize the ongoing retirement benefit costs of these plans as they are incurred. Our policy is to fund pension costs as required under the Employee Retirement Income Security Act of 1974. |
Reinsurance | We cede insurance risk through the use of quota share reinsurance transactions ("QSR") and excess of loss reinsurance transactions. We have excess of loss transactions executed through the traditional reinsurance market and with Home Re special purpose insurers. Premiums and losses incurred on our QSR Transactions are ceded pursuant to the terms of our reinsurance agreements. Reinsurance premiums ceded under our traditional reinsurance transactions are based off the remaining reinsured coverage levels. Reinsurance premiums ceded under our Home Re agreements are composed of coverage, initial expense and supplemental premiums. The coverage premiums are generally calculated as the difference between the amount of interest payable by the Home Re Entity on the remaining reinsurance coverage levels, and the investment income collected on the collateral assets held in the reinsurance trust account and used to collateralize the Home Re Entity's reinsurance obligation to MGIC. Loss reserves are reported before taking credit for amounts ceded under reinsurance transactions. Ceded loss reserves are reflected as "Reinsurance recoverable on loss reserves." Amounts due from reinsurers on paid claims are reflected as “Reinsurance recoverable on paid losses.” Ceded premiums payable, net of ceding commission and profit commission are included in “Other liabilities.” Profit commissions are included with “Premiums written – Ceded” and ceding commissions are included with “Other underwriting and operating expenses, net.” We remain liable for all insurance ceded. (See Note 9 – “Reinsurance.” ) We assess whether a credit loss allowance is required for our reinsurance recoverables. In assessing whether a credit allowance should be established, we consider several factors including, but not limited to, the credit ratings of individual reinsurers, investor reports for our Home Re Transactions, collateral held in trust accounts in which MGIC is the sole beneficiary, and aging of outstanding reinsurance recoverable balances. Assumed reinsurance is based on information received from the ceding company. See Note 9 – “Reinsurance " for discussion of our variable interest entity ("VIE") policy on the Home Re Transactions. |
Share-Based Compensation | We have certain share-based compensation plans. Under the fair value method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period which generally corresponds to the vesting period. Awards under our plans generally vest over periods ranging from one |
Earnings per Share | Basic earnings per share ("EPS") is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Our "participating securities" are composed of vested restricted stock and restricted stock units ("RSUs") with non-forfeitable rights to dividends. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. We calculate diluted EPS using the treasury stock method and if-converted method. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if our unvested restricted stock units result in the issuance of common stock. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our 9% Debentures are converted to common stock. The determination of potentially issuable shares does not consider the satisfaction of the conversion requirements and the shares are included in the determination of diluted EPS as of the beginning of the period, if dilutive. For purposes of calculating basic and diluted EPS, vested RSUs are considered outstanding. In the third quarter of 2023, under the terms of our 9% Debentures, we exercised our option to redeem the outstanding principal. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings (Loss) Per Share | Table 4.1 reconciles basic and diluted EPS amounts: Earnings per share Table 4.1 Years Ended December 31, (In thousands, except per share data) 2023 2022 2021 Basic earnings per share: Net income $ 712,949 $ 865,349 $ 634,983 Weighted average common shares outstanding - basic 283,605 305,847 334,330 Basic earnings per share $ 2.51 $ 2.83 $ 1.90 Diluted earnings per share: Net Income $ 712,949 $ 865,349 $ 634,983 Interest expense, net of tax (1) : 9% Debentures 1,026 3,228 14,343 Diluted income available to common shareholders $ 713,975 $ 868,577 $ 649,326 Weighted-average shares - basic 283,605 305,847 334,330 Effect of dilutive securities: Unvested restricted stock units 2,427 1,917 1,782 9% Debentures 1,123 3,465 15,196 Weighted average common shares outstanding - diluted 287,155 311,229 351,308 Diluted income per share $ 2.49 $ 2.79 $ 1.85 (1) Interest expense has been tax effected at a rate of 21%. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Amortized cost, gross unrealized gains and losses and fair value of investment portfolio | Our fixed income securities consisted of the following as of December 31, 2023 and 2022: Details of fixed income investment securities by category as of December 31, 2023 Table 5.1a (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 167,995 $ 51 $ (6,364) $ 161,682 Obligations of U.S. states and political subdivisions 2,092,754 5,159 (189,835) 1,908,078 Corporate debt securities 2,626,401 17,391 (128,211) 2,515,581 ABS 173,256 1,292 (3,275) 171,273 RMBS 347,132 4,297 (20,656) 330,773 CMBS 293,204 5 (15,752) 277,457 CLOs 327,467 37 (1,408) 326,096 Foreign government debt 4,486 — (643) 3,843 Commercial paper 28,327 3 — 28,330 Total fixed income securities $ 6,061,022 $ 28,235 $ (366,144) $ 5,723,113 Details of fixed income investment securities by category as of December 31, 2022 Table 5.1b (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 145,581 $ 2 $ (9,683) $ 135,900 Obligations of U.S. states and political subdivisions 2,400,261 4,866 (256,073) 2,149,054 Corporate debt securities 2,416,475 1,043 (196,377) 2,221,141 ABS 126,723 5 (6,041) 120,687 RMBS 223,743 10 (25,744) 198,009 CMBS 257,785 22 (20,591) 237,216 CLOs 337,656 5 (7,829) 329,832 Foreign government debt 4,486 — (699) 3,787 Commercial paper $ 14,075 $ — $ (3) $ 14,072 Total fixed income securities $ 5,926,785 $ 5,953 $ (523,040) $ 5,409,698 |
Amortized cost and fair values of debt securities by contractual maturity | The amortized cost and fair values of fixed income securities at December 31, 2023, by contractual maturity, are shown in table 5.2 below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most mortgage and asset-backed securities provide for periodic payments throughout their lives, they are listed in separate categories. Fixed income securities maturity schedule Table 5.2 December 31, 2023 (In thousands) Amortized Cost Fair Value Due in one year or less $ 645,017 $ 639,245 Due after one year through five years 1,530,186 1,487,270 Due after five years through ten years 1,824,666 1,708,591 Due after ten years 920,094 782,408 4,919,963 4,617,514 ABS 173,256 171,273 RMBS 347,132 330,773 CMBS 293,204 277,457 CLOs 327,467 326,096 Total as of December 31, 2023 $ 6,061,022 $ 5,723,113 |
Cost and fair value of investments in equity securities | The cost and fair value of investments in equity securities as of December 31, 2023 and December 31, 2022 are shown in tables 5.3a and 5.3b below. Details of equity investment securities as of December 31, 2023 Table 5.3a (In thousands) Cost Fair value gains Fair value losses Fair Value Equity securities $ 16,025 $ 5 $ (1,259) $ 14,771 Details of equity investment securities as of December 31, 2022 Table 5.3b (In thousands) Cost Fair value gains Fair value losses Fair Value Equity securities $ 15,924 $ — $ (1,784) $ 14,140 |
Schedule of net gains (losses) on investments and other financial instruments | The net gains (losses) on investments and other financial instruments and the proceeds from the sale of fixed income securities classified as available-for-sale and equity securities are shown in table 5.4 below. Details of net gains (losses) on investments and other financial instruments Table 5.4 (in thousands) December 31, 2023 December 31, 2022 December 31, 2021 Fixed income securities Gains on sales $ 3,071 $ 7,152 $ 8,980 Losses on sales (17,620) (15,477) (1,942) Change in credit allowance — — 49 Impairments — (1,415) — Equity securities gains (losses) Gains (losses) on sales — (7) 4 Changes in fair value 530 (2,013) (463) Change in embedded derivative on Home Re Transactions (1) (118) 4,269 (721) Other Gains (losses) on sales (1) 2 (33) Market adjustment (3) 26 (13) Net gains (losses) on investments and other financial instruments $ (14,141) $ (7,463) $ 5,861 Proceeds from sales of fixed income securities $ 375,788 $ 397,553 $ 471,783 Proceeds from sales of equity securities — 97 2,621 (1) See Note 6 "Fair Value Measurements" for discussion of the embedded derivative on the Home Re Transactions. |
Aging of the fair values of securities in an unrealized loss position | Tables 5.5a and 5.5b below summarize, for all available-for-sale investments in an unrealized loss position as of December 31, 2023 and 2022, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in tables 5.5a and 5.5b below are estimated using the process described in Note 6 - "Fair Value Measurements" to these consolidated financial statements. Unrealized loss aging for securities by type and length of time as of December 31, 2023 Table 5.5a Less Than 12 Months 12 Months or Greater Total (In thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 26,550 $ (75) $ 98,359 $ (6,289) $ 124,909 $ (6,364) Obligations of U.S. states and political subdivisions 275,727 (3,622) 1,200,533 (186,213) 1,476,260 (189,835) Corporate debt securities 270,956 (6,060) 1,604,021 (122,151) 1,874,977 (128,211) ABS 41,549 (1,234) 62,611 (2,041) 104,160 (3,275) RMBS 44,867 (872) 176,349 (19,784) 221,216 (20,656) CMBS 35,249 (391) 244,216 (15,361) 279,465 (15,752) CLOs — — 274,729 (1,408) 274,729 (1,408) Foreign government debt — — 3,843 (643) 3,843 (643) Total $ 694,898 $ (12,254) $ 3,664,661 $ (353,890) $ 4,359,559 $ (366,144) Unrealized loss aging for securities by type and length of time as of December 31, 2022 Table 5.5b Less Than 12 Months 12 Months or Greater Total (In thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 67,531 $ (3,583) $ 76,246 $ (6,100) $ 143,777 $ (9,683) Obligations of U.S. states and political subdivisions 1,344,272 (157,903) 360,956 (98,170) 1,705,228 (256,073) Corporate debt securities 1,488,255 (109,976) 758,732 (86,401) 2,246,987 (196,377) ABS 53,201 (1,008) 67,073 (5,033) 120,274 (6,041) RMBS 77,563 (8,572) 136,179 (17,172) 213,742 (25,744) CMBS 166,973 (12,951) 70,792 (7,640) 237,765 (20,591) CLOs 213,461 (4,644) 114,459 (3,185) 327,920 (7,829) Foreign government debt — — 3,787 (699) 3,787 (699) Commercial paper — — 3,816 (3) 3,816 (3) Total $ 3,411,256 $ (298,637) $ 1,592,040 $ (224,403) $ 5,003,296 $ (523,040) |
Net unrealized gains (losses) of investments | The change in net unrealized gains (losses) of investments is shown in table 5.6 below. Change in net unrealized gains (losses) Table 5.6 (In thousands) 2023 2022 2021 Fixed income securities $ 179,174 $ (707,005) $ (154,555) |
Investment income | The source of net investment income is shown in table 5.7 below. Net investment income Table 5.7 (In thousands) 2023 2022 2021 Fixed income securities $ 202,655 $ 166,306 $ 160,030 Equity securities 529 437 471 Cash equivalents 16,111 5,049 75 Other 44 51 22 Investment income 219,339 171,843 160,598 Investment expenses (4,599) (4,367) (4,160) Net investment income $ 214,740 $ 167,476 $ 156,438 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements for Items Measured at Fair Value | Assets measured at fair value, by hierarchy level, as of December 31, 2023 and 2022 are shown in tables 6.1a and 6.1b below. The fair value of the assets is estimated using the process described above, and more fully in Note 3 - "Significant Accounting Policies" to the consolidated financial statements in this Form 10-K. Assets carried at fair value by hierarchy level as of December 31, 2023 Table 6.1a (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 161,682 $ 95,828 $ 65,854 Obligations of U.S. states and political subdivisions 1,908,078 — 1,908,078 Corporate debt securities 2,515,581 — 2,515,581 ABS 171,273 — 171,273 RMBS 330,773 — 330,773 CMBS 277,457 — 277,457 CLOs 326,096 — 326,096 Foreign government debt 3,843 — 3,843 Commercial paper 28,330 — 28,330 Total fixed income securities 5,723,113 95,828 5,627,285 Equity securities 14,771 14,771 — Cash equivalents (1) 367,517 367,301 216 Total $ 6,105,401 $ 477,900 $ 5,627,501 Assets carried at fair value by hierarchy level as of December 31, 2022 Table 6.1b (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 135,900 $ 116,897 $ 19,003 Obligations of U.S. states and political subdivisions 2,149,054 — 2,149,054 Corporate debt securities 2,221,141 — 2,221,141 ABS 120,687 — 120,687 RMBS 198,009 — 198,009 CMBS 237,216 — 237,216 CLOs 329,832 — 329,832 Foreign government debt 3,787 — 3,787 Commercial Paper 14,072 — 14,072 Total fixed income securities 5,409,698 116,897 5,292,801 Equity securities 14,140 14,140 — Cash equivalents (1) 328,756 324,129 4,627 Total $ 5,752,594 $ 455,166 $ 5,297,428 (1) Includes restricted cash equivalents |
Schedule of Carrying Value and Fair Value of Financial Liabilities Measured on a Recurring Basis | Table 6.3 presents the carrying value and fair value of our financial assets and liabilities disclosed, but not carried, at fair value as of December 31, 2023 and 2022. Financial liabilities not carried at fair value Table 6.3 December 31, 2023 December 31, 2022 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Financial assets Other invested assets $ 850 $ 850 $ 850 $ 850 Financial liabilities 5.25% Notes $ 643,196 $ 634,498 $ 641,724 $ 600,938 9% Debentures — — 21,086 28,085 Total financial liabilities $ 643,196 $ 634,498 $ 662,810 $ 629,023 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Table 7.1 shows the carrying value of our long-term debt obligations as of December 31, 2023 and 2022. Long-term debt obligations Table 7.1 December 31, (In thousands) 2023 2022 5.25% Notes, due August 2028 (par value: $650 million) $ 643,196 $ 641,724 9% Debentures, due April 2063 — 21,086 Long-term debt obligations, carrying value $ 643,196 $ 662,810 |
Loss Reserves (Tables)
Loss Reserves (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance Loss Reserves [Abstract] | |
Reconciliation of Beginning and Ending Loss Reserves | Table 8.1 provides a reconciliation of beginning and ending loss reserves as of and for the past three years: Development of loss reserves Table 8.1 (In thousands) 2023 2022 2021 Reserve at beginning of year $ 557,988 $ 883,522 $ 880,537 Less reinsurance recoverable 28,240 66,905 95,042 Net reserve at beginning of year 529,748 816,617 785,495 Losses incurred: Losses and LAE incurred in respect of delinquent notices received in: Current year 187,658 149,565 124,592 Prior years (1) (208,514) (404,130) (60,015) Total losses incurred (20,856) (254,565) 64,577 Losses paid: Losses and LAE paid in respect of delinquent notices received in: Current year 566 362 664 Prior years 45,645 49,626 68,769 Reinsurance terminations (2) (9,396) (17,684) (35,978) Total losses paid 36,815 32,304 33,455 Net reserve at end of year 472,077 529,748 816,617 Plus reinsurance recoverables 33,302 28,240 66,905 Reserve at end of year $ 505,379 $ 557,988 $ 883,522 (1) A positive number for prior year loss development indicates a deficiency of prior year reserves. A negative number for prior year loss development indicates a redundancy of prior year loss reserves. See the following table for more information about prior year loss development. (2) In a reinsurance termination, amounts for any incurred but unpaid losses are due to us from the reinsurers. As a result, the amount due from the reinsurers is reclassified from reinsurance recoverable on loss reserves to reinsurance recoverable on paid losses, resulting in no impact to losses incurred. (See Note 9 - "Reinsurance" ) |
Prior Year Development of the Reserves | The prior year loss reserve development for the past three years is reflected in the table 8.2 below. Reserve development on previously received delinquencies Table 8.2 (In thousands) 2023 2022 2021 Increase (decrease) in estimated claim rate on primary defaults $ (200,983) $ (400,577) $ (82,904) Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other (7,531) (3,553) 22,889 Total prior year loss development (1) $ (208,514) $ (404,130) $ (60,015) (1) |
Rollforward of Delinquent Inventory Roll-Forward | A roll-forward of our primary delinquency inventory for the years ended December 31, 2023, 2022, and 2021 appears in table 8.3 below. The information concerning new notices and cures is compiled from monthly reports received from loan servicers. The level of new notice and cure activity reported in a particular month can be influenced by, among other things, the date on which a servicer generates its report, the number of business days in a month and transfers of servicing between loan servicers. Primary delinquency inventory roll-forward Table 8.3 2023 2022 2021 Beginning delinquent inventory 26,387 33,290 57,710 New Notices 46,825 42,988 42,432 Cures (46,108) (48,262) (64,896) Paid claims (1,328) (1,305) (1,223) Rescissions and denials (45) (35) (38) Other items removed from inventory (81) (289) (695) Ending delinquent inventory 25,650 26,387 33,290 |
Aging of the Primary Default Inventory | The number of consecutive months that a borrower has been delinquent is shown in table 8.4 below. Primary delinquency inventory - consecutive months delinquent Table 8.4 December 31, 2023 2022 2021 3 months or less 9,175 8,820 7,586 4 - 11 months 8,900 8,217 7,990 12 months or more (1) 7,575 9,350 17,714 Total 25,650 26,387 33,290 3 months or less 36 % 33 % 23 % 4 - 11 months 35 % 31 % 24 % 12 months or more 29 % 36 % 53 % Total 100 % 100 % 100 % Primary claims received inventory included in ending delinquent inventory 302 267 211 (1) Approximately 37%, 36%, and 20% of the delinquent inventory that has been delinquent for 12 consecutive months or more has been delinquent for at least 36 consecutive months as of December 31, 2023, 2022 and 2021, respectively. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Effect of Reinsurance Agreements on Premiums Earned and Losses Incurred | Table 9.1 below shows the effect of all reinsurance agreements on premiums earned and losses incurred as reflected in the consolidated statements of operations. Reinsurance Table 9.1 Years ended December 31, (In thousands) 2023 2022 2021 Premiums earned: Direct $ 1,142,412 $ 1,154,728 $ 1,167,592 Assumed 12,960 8,778 9,858 Ceded - quota share reinsurance (1) (123,955) (86,435) (118,537) Ceded - excess-of-loss reinsurance (78,866) (69,938) (44,494) Total ceded (202,821) (156,373) (163,031) Net premiums earned $ 952,551 $ 1,007,133 $ 1,014,419 Losses incurred: Direct $ (5,200) $ (274,072) $ 74,496 Assumed (33) (330) (57) Ceded - quota share reinsurance (15,623) 19,837 (9,862) Losses incurred, net $ (20,856) $ (254,565) $ 64,577 Other Reinsurance Impacts: Profit commission on quota share reinsurance (1) $ 133,145 $ 176,084 $ 153,759 Ceding commission on quota share reinsurance 50,397 52,071 53,460 (1) Ceded premiums earned are shown net of profit commission. |
Schedule of Quota Share Reinsurance Agreements | Table 9.2 below provides additional detail regarding our QSR transactions in effect during 2023. Reinsurance Table 9.2 Quota Share Contract Covered Policy Years Quota Share % Annual Loss Ratio to Exhaust Profit Commission (1) Contractual Termination Date 2020 QSR 2020 12.5 % 62.0 % (2) 2020 QSR and 2021 QSR 2020 17.5 % 62.0 % (2) 2020 QSR and 2021 QSR 2021 17.5 % 61.9 % December 31, 2032 2021 QSR and 2022 QSR 2021 12.5 % 57.5 % December 31, 2032 2021 QSR and 2022 QSR 2022 15.0 % 57.5 % December 31, 2033 2022 QSR and 2023 QSR 2022 15.0 % 62.0 % December 31, 2033 2022 QSR and 2023 QSR 2023 15.0 % 62.0 % December 31, 2034 2023 QSR 2023 10.0 % 58.5 % December 31, 2034 Credit Union QSR 2020-2025 65.0 % 50.0 % December 31, 2039 (1) We will receive a profit commission provided the annual loss ratio on policies covered under the transaction remains below this ratio. (2) 2020 QSR Transactions covering 2020 policy year were terminated effective December 31, 2023. Table 9.3 provides additional detail regarding optional termination dates and optional reductions to our quota share percentage which can, in each case be elected by us for a fee. Under the optional reduction to the quota share percentage, we may reduce our quota share percentage from the original percentage shown in table 9.2 to the percentage showed in 9.3. Reinsurance Table 9.3 Quota Share Contract Covered Policy Years Optional Termination Date (1) Optional Quota Share % Reduction Date (2) Optional Reduced Quota Share % 2020 QSR and 2021 QSR 2021 June 30, 2024 January 1, 2024 14.5% or 12% 2021 QSR and 2022 QSR 2021 June 30, 2024 January 1, 2024 10.5% or 8% 2021 QSR and 2022 QSR 2022 December 31, 2024 January 1, 2024 12.5% or 10% 2022 QSR and 2023 QSR 2022 December 31, 2024 January 1, 2024 12.5% or 10% 2022 QSR and 2023 QSR 2023 December 31, 2025 July 1, 2024 12.5% or 10% 2023 QSR 2023 December 31, 2025 July 1, 2024 8% or 7% (1) We can elect early termination of the QSR transaction beginning on this date, and bi-annually thereafter. |
Reinsurance Retention Policy | Table 9.4a , 9.4b, and 9.4c provide a summary of our XOL Transactions as of December 31, 2023, December 31, 2022 and December 31, 2021. Excess of Loss Reinsurance 9.4a ($ in thousands) Issue Date Policy In force Dates Optional Call/ Termination Date (1) Legal Maturity 2023 Traditional XOL April 1, 2023 January 1, 2023 - December 29, 2023 January 1, 2031 10 years 2022 Traditional XOL April 1, 2022 January 1, 2022 - December 30, 2022 January 1, 2030 10 years Home Re 2023-1, Ltd. October 23, 2023 June 1, 2022 - August 31, 2023 October 25, 2028 10 years Home Re 2022-1, Ltd. April 26, 2022 May 29, 2021 - December 31, 2021 April 25, 2028 12.5 years Home Re 2021-2, Ltd. August 3, 2021 January 1, 2021 - May 28, 2021 July 25, 2028 12.5 years Home Re 2021-1, Ltd. February 2, 2021 August 1, 2020 - December 31, 2020 January 25, 2028 12.5 years Home Re 2020-1, Ltd. October 29, 2020 January 1, 2020 - July 31, 2020 October 25, 2027 10 years Home Re 2019-1, Ltd. May 25, 2019 January 1, 2018 - March 31, 2019 May 25, 2026 10 years Home Re 2018-1, Ltd. October 30, 2018 July 1, 2016 - December 31, 2017 October 25, 2025 10 years (1) We have the right to terminate the Home Re Transactions under certain circumstances, including an optional call feature that provides us the right to terminate if the outstanding principal balance of the related insurance-linked notes falls below 10% of the initial principal balance of the related insurance-linked notes, and on any payment date on or after the respective Optional Call Date. We can elect early termination of the Traditional XOL Transactions beginning on this date, and quarterly thereafter. Excess of Loss Reinsurance 9.4b Remaining First Layer Retention ($ in thousands) Initial First Layer Retention December 31, 2023 December 31, 2022 December 31, 2021 2023 Traditional XOL $70,578 $ 70,578 $ $ 2022 Traditional XOL 82,523 82,346 82,517 Home Re 2023-1, Ltd. 272,961 272,961 Home Re 2022-1, Ltd. 325,589 325,001 325,576 Home Re 2021-2, Ltd. 190,159 189,403 190,097 190,159 Home Re 2021-1, Ltd. 211,159 210,831 211,102 211,142 Home Re 2020-1, Ltd. 275,283 261,280 275,051 275,204 Home Re 2019-1, Ltd. 185,730 182,722 183,540 183,917 Home Re 2018-1, Ltd. 168,691 164,335 164,849 165,365 9.4c Remaining Excess of Loss Reinsurance Coverage (1) ($ in thousands) Initial Excess of Loss Reinsurance Coverage (1) Initial Funding Percentage (2) Funding Percentage at 12/31/2023 (2) December 31, 2023 December 31, 2022 December 31, 2021 2023 Traditional XOL $ 96,942 N/A N/A $ 96,942 $ $ 2022 Traditional XOL 142,642 N/A N/A 142,642 142,642 Home Re 2023-1, Ltd. 330,277 97 % 97 % 330,277 Home Re 2022-1, Ltd. 473,575 100 % 100 % 420,731 473,575 Home Re 2021-2, Ltd. (3) 398,429 100 % 68 % 173,960 352,084 398,429 Home Re 2021-1, Ltd. (3) 398,848 100 % 65 % 117,982 277,053 387,830 Home Re 2020-1, Ltd. 412,917 100 % 100 % 41,846 113,247 234,312 Home Re 2019-1, Ltd. (3) 315,739 100 % 10 % 21,039 208,146 208,146 Home Re 2018-1, Ltd. 318,636 100 % 100 % 69,762 140,993 218,343 (1) The initial and remaining excess of loss reinsurance coverage is reduced by the applicable funding percentage. (2) The funding percentage represents the aggregate outstanding note balances divided by the aggregate ending coverage amounts. (3) The funding percentage on the 2021-1, 2021-2, and 2019-1 were reduced from 100% after the tender offers were conducted in the fourth quarter of 2023. |
Schedule of Total Assets of Home Re Entities | Table 9.5 presents the total assets of the Home Re Entities as of December 31, 2023 , December 31, 2022 and December 31, 2021. Home Re Entities total assets Table 9.5 (In thousands) Home Re Entity Total VIE Assets December 31, 2023 December 31, 2022 December 31, 2021 Home Re 2023-1 Ltd. $ 330,277 $ — $ — Home Re 2022-2 Ltd. 427,279 473,575 — Home Re 2021-2 Ltd. 174,431 357,340 398,429 Home Re 2021-1 Ltd. 118,043 285,039 398,848 Home Re 2020-1 Ltd. 41,846 119,159 251,387 Home Re 2019-1 Ltd. 21,039 208,146 208,146 Home Re 2018-1 Ltd. 73,872 146,822 218,343 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other comprehensive income | The pretax components of our other comprehensive income (loss) and related income tax benefit (expense) for the years ended December 31, 2023, 2022 and 2021 are included in table 10.1 below. Components of other comprehensive income (loss) Table 10.1 (In thousands) 2023 2022 2021 Net unrealized investment (losses) gains arising during the period $ 179,174 $ (707,005) $ (154,555) Income tax (expense) benefit (37,626) 148,471 32,456 Net of taxes 141,548 (558,534) (122,099) Net changes in benefit plan assets and obligations 29,978 (54,017) 31,613 Income tax benefit (expense) (6,296) 11,343 (6,638) Net of taxes 23,682 (42,674) 24,975 Total other comprehensive income (loss) 209,152 (761,022) (122,942) Total income tax benefit (expense) (43,922) 159,814 25,818 Total other comprehensive income (loss), net of tax $ 165,230 $ (601,208) $ (97,124) |
Reclassification out of accumulated other comprehensive income | The pretax and related income tax benefit (expense) components of the amounts reclassified from our accumulated other comprehensive income (loss) ( "AOCI") to our consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 are included in table 10.2 below. Reclassifications from Accumulated Other Comprehensive Income (Loss) Table 10.2 (In thousands) 2023 2022 2021 Reclassification adjustment for net realized (losses) gains (1) $ (27,100) $ (9,860) $ 10,455 Income tax benefit (expense) 5,691 2,070 (2,195) Net of taxes (21,409) (7,790) 8,260 Reclassification adjustment related to benefit plan assets and obligations (2) (13,990) (16,750) (9,779) Income tax benefit (expense) 2,938 3,518 2,053 Net of taxes (11,052) (13,232) (7,726) Total reclassifications (41,090) (26,610) 676 Income tax benefit (expense) 8,629 5,588 (142) Total reclassifications, net of tax $ (32,461) $ (21,022) $ 534 (1) (Decreases) increases Net gains (losses) on investments and other financial instruments on the consolidated statements of operations. (2) |
Accumulated other comprehensive income (loss) | A roll-forward of AOCI for the years ended December 31, 2023, 2022, and 2021, including amounts reclassified from AOCI, is included in table 10.3 below. Roll-forward of Accumulated Other Comprehensive Income (Loss) Table 10.3 (In thousands) Net unrealized gains and losses on available-for-sale securities Net benefit plan assets and obligations recognized in shareholders' equity Total AOCI Balance, December 31, 2020, net of tax $ 272,137 $ (55,316) $ 216,821 Other comprehensive income (loss) before reclassifications (113,839) 17,249 (96,590) Less: Amounts reclassified from AOCI 8,260 (7,726) 534 Balance, December 31, 2021, net of tax 150,038 (30,341) 119,697 Other comprehensive income (loss) before reclassifications (566,324) (55,906) (622,230) Less: Amounts reclassified from AOCI (7,790) (13,232) (21,022) Balance, December 31, 2022, net of tax (408,496) (73,015) (481,511) Other comprehensive income (loss) before reclassifications 120,139 12,630 132,769 Less: Amounts reclassified from AOCI (21,409) (11,052) (32,461) Balance, December 31, 2023, net of tax $ (266,948) $ (49,333) $ (316,281) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Components of net periodic benefit cost | The following tables 11.1, 11.2, and 11.3 provide the components of aggregate annual net periodic benefit cost for each of the years ended December 31, 2023, 2022, and 2021 and changes in the benefit obligation and the funded status of the pension, supplemental executive retirement and other postretirement benefit plans as recognized in the consolidated balance sheets as of December 31, 2023 and 2022. Components of net periodic benefit cost Table 11.1 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2021 12/31/2023 12/31/2022 12/31/2021 Company Service Cost $ — $ 7,153 $ 7,569 $ 1,497 $ 1,307 $ 1,508 Interest Cost 13,787 12,461 11,276 1,633 694 648 Expected Return on Plan Assets (13,517) (18,064) (20,657) (8,235) (10,502) (8,863) Amortization of: Net Transition Obligation (Asset) — — — — — — Prior Service Cost (Credit) 345 (163) (239) 1,861 489 213 Net Actuarial Losses (Gains) 2,185 5,726 5,490 (150) (3,103) (1,697) Cost of Settlements and Curtailments 9,749 13,801 6,012 — — — Net Periodic Benefit Cost (Benefit) $ 12,549 $ 20,914 $ 9,451 $ (3,394) $ (11,115) $ (8,191) |
Development of funded status | Development of funded status Table 11.2 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Actuarial Value of Benefit Obligations Measurement Date 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Accumulated Benefit Obligation $ 261,330 $ 274,975 $ 30,238 $ 29,580 Funded Status/Asset (Liability) on the Consolidated Balance Sheet Benefit Obligation $ (261,330) $ (274,975) $ (30,238) $ (29,580) Plan Assets at Fair Value 235,612 250,674 134,371 111,154 Funded Status - Overfunded/Asset N/A N/A $ 104,133 $ 81,574 Funded Status - Underfunded/Liability (25,718) (24,301) N/A N/A Accumulated other comprehensive (income) loss Table 11.3 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Net Actuarial Losses (Gains) $ 79,309 $ 89,711 $ (30,804) $ (13,781) Prior Service Cost (Credit) 2,900 3,245 11,041 13,249 Net Transition Obligation (Asset) — — — — Total at Year End $ 82,209 $ 92,956 $ (19,763) $ (532) |
Change in projected benefit obligation | Table 11.4 shows the changes in the projected benefit obligation for the years ended December 31, 2023 and 2022. Change in projected benefit / accumulated benefit Table 11.4 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Benefit Obligation at Beginning of Year $ 274,975 $ 391,698 $ 29,580 $ 25,635 Company Service Cost — 7,153 1,497 1,307 Interest Cost 13,787 12,461 1,633 694 Plan Participants' Contributions — — 311 463 Net Actuarial Losses (Gains) 16,995 (83,240) 1,294 (8,123) Benefit Payments from Fund (13,549) (13,165) (3,439) (1,504) Benefit and Settlement Payments Paid Directly by Company (384) (114) — — Plan Amendments — 3,247 (346) 11,278 Curtailments — (352) — — Settlement Payments from Fund (1) (30,494) (42,713) — — Other Adjustment — — (292) (170) Benefit Obligation at End of Year $ 261,330 $ 274,975 $ 30,238 $ 29,580 (1) Represents lump sum payments from our pension plan to eligible participants, who were former employees with vested benefits. |
Changes in fair value of plan assets and other comprehensive income (loss) | Tables 11.5 and 11.6 shows the changes in the fair value of the net assets available for plan benefits and changes in other comprehensive income (loss) for the years ended December 31, 2023 and 2022. Change in plan assets Table 11.5 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Fair Value of Plan Assets at Beginning of Year $ 250,674 $ 391,555 $ 111,154 $ 140,839 Actual Return on Plan Assets 28,981 (91,303) 26,703 (28,088) Company Contributions 384 6,414 — — Plan Participants' Contributions — — 311 463 Benefit Payments from Fund (13,549) (13,165) (3,439) (1,504) Benefit and Settlement Payments Paid Directly by Company (384) (114) — — Settlement Payments from Fund (30,494) (42,713) — — Other Adjustment — — (358) (556) Fair Value of Plan Assets at End of Year $ 235,612 $ 250,674 $ 134,371 $ 111,154 Change in accumulated other comprehensive income (loss) ("AOCI") Table 11.6 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2022 12/31/2023 12/31/2022 AOCI in Prior Year $ 92,956 $ 83,298 $ (532) $ (44,891) Increase (Decrease) in AOCI Recognized during year - Prior Service (Cost) Credit (345) 745 (1,861) (489) Recognized during year - Net Actuarial (Losses) Gains (11,933) (20,109) 150 3,103 Occurring during year - Prior Service Cost — 3,247 (346) 11,277 Occurring during year - Net Actuarial Losses (Gains) 1,531 25,775 (17,174) 30,468 AOCI in Current Year $ 82,209 $ 92,956 $ (19,763) $ (532) |
Actuarial assumptions | The projected benefit obligations, net periodic benefit costs and accumulated postretirement benefit obligation for the plans were determined using the following weighted average assumptions. Actuarial assumptions Table 11.7 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Weighted-Average Assumptions Used to Determine Benefit Obligations at year end 1. Discount Rate 5.20 % 5.60 % 5.20 % 5.60 % 2. Rate of Compensation Increase N/A 3.00 % N/A N/A 3. Cash balance interest crediting rate 4.03 % 3.97 % N/A N/A Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Year 1. Discount Rate 5.50 % 3.70 % 5.60 % 2.85 % 2. Expected Long-term Return on Plan Assets 6.00 % 5.25 % 7.50 % 7.50 % 3. Rate of Compensation Increase N/A 3.00 % N/A N/A Assumed Health Care Cost Trend Rates at year end 1. Health Care Cost Trend Rate Assumed for Next Year N/A N/A 6.75 % 7.00 % 2. Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate) N/A N/A 5.00 % 5.00 % 3. Year That the Rate Reaches the Ultimate Trend Rate N/A N/A 2031 2031 |
Year-end asset allocations of the plans | The year-end asset allocations of the plans are shown in table 11.8 below. Plan assets Table 11.8 Pension Plan Other Postretirement Benefits 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Equity Securities 21 % 20 % 100 % 100 % Debt Securities 79 % 80 % — % — % Total 100 % 100 % 100 % 100 % |
Schedule of investment allocation strategies | The equity investments use combinations of mutual funds, ETFs, and pooled equity account structures focused on the following strategies: Strategy Objective Investment types Return seeking growth Funded ratio improvement over the long term ● Global quality growth ● Global low volatility Return seeking bridge Downside protection in the event of a declining equity market ● Enduring asset ● Durable company |
Minimum and maximum allocation ranges for fixed income securities and equity securities | The primary focus in developing asset allocation ranges for the portfolio is the assessment of the portfolio's investment objectives and the level of risk that is acceptable to obtain those objectives. To achieve these objectives the minimum and maximum allocation ranges for fixed income securities and equity securities are: Minimum Maximum Equities (long only) 70 % 100 % Real estate 0 % 15 % Commodities 0 % 10 % Fixed income/Cash 0 % 10 % |
Schedule of expected future benefit payments | Expected future benefit payments from the plans are shown in Table 11.11 below. Expected future benefit payments Table 11.11 Pension and Supplemental Executive Retirement Plans Other Postretirement Benefits (In thousands) 12/31/2023 12/31/2023 Current + 1 23,110 2,761 Current + 2 22,771 2,849 Current + 3 23,116 2,715 Current + 4 23,226 2,630 Current + 5 22,236 2,825 Current + 6 - 10 100,929 15,326 |
Pension Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Schedule of fair value of plan assets | The pension plan assets and related accrued investment income at fair value, by hierarchy level, as of December 31, 2023 and 2022, are shown in tables 11.9a and 11.9b below. There were no securities valued using Level 3 inputs. Pension plan assets at fair value as of December 31, 2023 Table 11.9a (In thousands) Level 1 Level 2 Total Domestic mutual funds $ 2,836 $ — $ 2,836 U.S. government securities 10,301 — 10,301 Corporate debt securities Corporate debt securities and other — 145,908 145,908 Non-government foreign debt securities — 21,843 21,843 Municipal bonds — 9,220 9,220 Pooled equity accounts — 45,504 45,504 Total Assets at fair value $ 13,137 $ 222,475 $ 235,612 Pension plan assets at fair value as of December 31, 2022 Table 11.9b (In thousands) Level 1 Level 2 Total Domestic mutual funds $ 67 $ — $ 67 U.S. government securities 13,328 — 13,328 Corporate debt Securities Corporate debt securities and other — 146,854 146,854 Non-government foreign debt securities — 20,793 20,793 Municipal bonds — 18,336 18,336 Pooled equity accounts — 51,296 51,296 Total Assets at fair value $ 13,395 $ 237,279 $ 250,674 |
Other Postretirement Benefit Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
Schedule of fair value of plan assets | Tables 11.10a and 11.10b set forth the other postretirement benefits plan assets at fair value as of December 31, 2023 and 2022. All are Level 1 assets. Other postretirement benefits plan assets at fair value as of December 31, 2023 Table 11.10a (In thousands) Level 1 Domestic mutual funds $ 109,575 International mutual funds 24,796 Total Assets at fair value $ 134,371 Other postretirement benefits plan assets at fair value as of December 31, 2022 Table 11.10b (In thousands) Level 1 Domestic mutual funds $ 89,584 International mutual funds 21,570 Total Assets at fair value $ 111,154 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Net deferred tax assets and liabilities | Net deferred tax assets (liabilities) as reported on the consolidated balance sheets as of December 31, 2023 and 2022 are shown in table 12.1 below. Deferred tax assets and liabilities Table 12.1 (In thousands) 2023 2022 Total deferred tax assets $ 109,391 $ 144,819 Total deferred tax liabilities (29,609) (20,050) Net deferred tax asset (liability) $ 79,782 $ 124,769 |
Components of the net deferred tax asset (liability) | Table 12.2 includes the components of the net deferred tax asset (liability) as of December 31, 2023 and 2022. Deferred tax components Table 12.2 (In thousands) 2023 2022 Unearned premium reserves $ 13,862 $ 16,209 Benefit plans (19,142) (9,444) Loss reserves 1,921 1,785 Unrealized losses on investments 70,961 108,588 Deferred policy acquisition cost (3,064) (4,003) Deferred compensation 7,466 6,806 Research and experimental costs 13,351 9,719 Other, net (5,573) (4,891) Net deferred tax asset (liability) $ 79,782 $ 124,769 |
Components of the provision for (benefit from) income taxes | Table 12.3 summarizes the components of the provision for income taxes: Provision for (benefit from) income taxes Table 12.3 (In thousands) 2023 2022 2021 Current federal $ 187,246 $ 228,259 $ 161,055 Deferred federal 1,550 (5,235) 4,392 Other 484 1,661 1,347 Provision for income taxes $ 189,280 $ 224,685 $ 166,794 |
Reconciliation of federal statutory income tax rate | Table 12.4 reconciles the federal statutory income tax rate to our effective tax provision rate. Effective tax rate reconciliation Table 12.4 2023 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Tax exempt municipal bond interest (0.5) % (0.5) % (0.6) % Other, net 0.5 % 0.1 % 0.4 % Effective tax rate 21.0 % 20.6 % 20.8 % |
Statutory Information (Tables)
Statutory Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statutory Capital [Abstract] | |
Summary of amounts disclosed under statutory accounting practices | The statutory net income, policyholders’ surplus, and contingency reserve liability of our insurance subsidiaries, including MGIC, are shown in table 14.1. Statutory financial information of insurance subsidiaries Table 14.1 As of and for the Years Ended December 31, (In thousands) 2023 2022 2021 Statutory net income $ 279,145 $ 440,944 $ 295,811 Statutory policyholders' surplus 639,878 924,977 1,220,714 Contingency reserve 5,199,405 4,669,724 4,126,604 The decrease in statutory policyholders' surplus for the years ended December 31, 2023 and December 31, 2022 is primarily due to dividend payments to MGIC Investment Corporation ("the holding company") (discussed below), offset by statutory net income. For the years ended December 31, 2023, 2022, and 2021 there were no contributions made to MGIC or distributions from other insurance subsidiaries to us. Dividends paid by MGIC are shown in table 14.2 below. Surplus contributions and dividends of insurance subsidiaries Table 14.2 Years Ended December 31, (In thousands) 2023 2022 2021 Dividends paid by MGIC to the holding company (1) $ 600,000 800,000 400,000 (1) |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Stock or Restricted Stock Unit Activity | Table 15.1 summarizes restricted stock or restricted stock unit (collectively called “restricted stock”) activity during 2023. Restricted stock Table 15.1 Weighted Average Grant Date Fair Market Value Shares Restricted stock outstanding at December 31, 2022 $ 14.02 3,576,679 Granted (1) 14.17 1,415,329 Vested 13.18 (1,263,746) Forfeited 14.01 (545,471) Restricted stock outstanding at December 31, 2023 $ 13.89 3,182,791 (1) Approximately 67% of the shares granted in 2023 are subject to performance conditions under which the target number of shares granted may vest from 0% to 200%. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Table 16.1 shows minimum the future operating lease payments as of December 31, 2023. Minimum future operating lease payments Table 16.1 (In thousands) Amount 2024 $ 1,141 2025 1,018 2026 360 2027 19 2028 and thereafter — Total $ 2,538 |
Nature of Business (Details)
Nature of Business (Details) $ in Billions | Dec. 31, 2023 USD ($) |
Nature of Business [Abstract] | |
Direct domestic primary insurance in force | $ 293.5 |
Direct domestic primary risk in force | $ 77.2 |
Significant Accounting Polici_3
Significant Accounting Policies - Home Office and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies [Line Items] | |||
Accumulated depreciation of home office and equipment | $ 59.2 | $ 57.1 | |
Depreciation expense of home office and equipment | $ 4.6 | $ 4.9 | $ 5.6 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life (in years) | 45 years |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
Significant Accounting Policies [Line Items] | ||
Minimum number of payments past due to be in default | loan | 2 | |
Related party transaction amount | $ | $ 0 | $ 0 |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Award vesting period | 1 year | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Award vesting period | 3 years |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic earnings per share [Abstract] | |||
Net income | $ 712,949 | $ 865,349 | $ 634,983 |
Weighted average common shares outstanding - basic (in shares) | 283,605 | 305,847 | 334,330 |
Basic earnings per share (in dollars per share) | $ 2.51 | $ 2.83 | $ 1.90 |
Diluted earnings per share [Abstract] | |||
Net income | $ 712,949 | $ 865,349 | $ 634,983 |
Diluted income available to common shareholders | $ 713,975 | $ 868,577 | $ 649,326 |
Weighted-average shares - basic (in shares) | 283,605 | 305,847 | 334,330 |
Effect of dilutive securities [Abstract] | |||
Weighted-average shares - diluted (in shares) | 287,155 | 311,229 | 351,308 |
Diluted income per share (in dollars per share) | $ 2.49 | $ 2.79 | $ 1.85 |
Federal statutory income tax rate (in hundredths) | 21% | 21% | 21% |
9% Convertible Junior Subordinated Debentures due 2063 | |||
Diluted earnings per share [Abstract] | |||
Dilutive securities | $ 1,026 | $ 3,228 | $ 14,343 |
Effect of dilutive securities [Abstract] | |||
Dilutive securities (in shares) | 1,123 | 3,465 | 15,196 |
Stated interest rate (in hundredths) | 9% | 9% | 9% |
Unvested Restricted Stock Units | |||
Effect of dilutive securities [Abstract] | |||
Dilutive securities - Share based compensation (in shares) | 2,427 | 1,917 | 1,782 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Assets held by insurance regulatory requirements | $ 12,200 | $ 11,800 |
Assets held in trust for the benefit of contractual counterparties | 156,900 | 128,400 |
Fixed income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 6,061,022 | 5,926,785 |
Gross Unrealized Gains | 28,235 | 5,953 |
Gross Unrealized Losses | (366,144) | (523,040) |
Fixed income, available-for-sale | 5,723,113 | 5,409,698 |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 167,995 | 145,581 |
Gross Unrealized Gains | 51 | 2 |
Gross Unrealized Losses | (6,364) | (9,683) |
Fixed income, available-for-sale | 161,682 | 135,900 |
Obligations of U.S. states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 2,092,754 | 2,400,261 |
Gross Unrealized Gains | 5,159 | 4,866 |
Gross Unrealized Losses | (189,835) | (256,073) |
Fixed income, available-for-sale | 1,908,078 | 2,149,054 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 2,626,401 | 2,416,475 |
Gross Unrealized Gains | 17,391 | 1,043 |
Gross Unrealized Losses | (128,211) | (196,377) |
Fixed income, available-for-sale | 2,515,581 | 2,221,141 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 173,256 | 126,723 |
Gross Unrealized Gains | 1,292 | 5 |
Gross Unrealized Losses | (3,275) | (6,041) |
Fixed income, available-for-sale | 171,273 | 120,687 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 347,132 | 223,743 |
Gross Unrealized Gains | 4,297 | 10 |
Gross Unrealized Losses | (20,656) | (25,744) |
Fixed income, available-for-sale | 330,773 | 198,009 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 293,204 | 257,785 |
Gross Unrealized Gains | 5 | 22 |
Gross Unrealized Losses | (15,752) | (20,591) |
Fixed income, available-for-sale | 277,457 | 237,216 |
CLOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 327,467 | 337,656 |
Gross Unrealized Gains | 37 | 5 |
Gross Unrealized Losses | (1,408) | (7,829) |
Fixed income, available-for-sale | 326,096 | 329,832 |
Foreign government debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 4,486 | 4,486 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (643) | (699) |
Fixed income, available-for-sale | 3,843 | 3,787 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total at end of period | 28,327 | 14,075 |
Gross Unrealized Gains | 3 | 0 |
Gross Unrealized Losses | 0 | (3) |
Fixed income, available-for-sale | $ 28,330 | $ 14,072 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Values of Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 645,017 | |
Due after one year through five years | 1,530,186 | |
Due after five years through ten years | 1,824,666 | |
Due after ten years | 920,094 | |
Total debt securities with single maturity date | 4,919,963 | |
Fair Value | ||
Due in one year or less | 639,245 | |
Due after one year through five years | 1,487,270 | |
Due after five years through ten years | 1,708,591 | |
Due after ten years | 782,408 | |
Total debt securities with single maturity date | 4,617,514 | |
ABS | ||
Amortized Cost | ||
Total debt securities without single maturity date, amortized cost | 173,256 | |
Amortized Cost | 173,256 | $ 126,723 |
Fair Value | ||
Total debt securities without single maturity date, fair value | 171,273 | |
Total at end of period | 171,273 | 120,687 |
RMBS | ||
Amortized Cost | ||
Total debt securities without single maturity date, amortized cost | 347,132 | |
Amortized Cost | 347,132 | 223,743 |
Fair Value | ||
Total debt securities without single maturity date, fair value | 330,773 | |
Total at end of period | 330,773 | 198,009 |
CMBS | ||
Amortized Cost | ||
Total debt securities without single maturity date, amortized cost | 293,204 | |
Amortized Cost | 293,204 | 257,785 |
Fair Value | ||
Total debt securities without single maturity date, fair value | 277,457 | |
Total at end of period | 277,457 | 237,216 |
CLOs | ||
Amortized Cost | ||
Total debt securities without single maturity date, amortized cost | 327,467 | |
Amortized Cost | 327,467 | 337,656 |
Fair Value | ||
Total debt securities without single maturity date, fair value | 326,096 | |
Total at end of period | 326,096 | 329,832 |
Total fixed income securities | ||
Amortized Cost | ||
Amortized Cost | 6,061,022 | 5,926,785 |
Fair Value | ||
Total at end of period | $ 5,723,113 | $ 5,409,698 |
Investments - Equity Securities
Investments - Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||
Equity securities, at fair value | $ 14,771 | $ 14,140 |
Equity securities | ||
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||
Cost | 16,025 | 15,924 |
Fair value gains | 5 | 0 |
Fair value losses | (1,259) | (1,784) |
Equity securities, at fair value | $ 14,771 | $ 14,140 |
Investments - Net Gains (Losses
Investments - Net Gains (Losses) On Investments and Other Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fixed income securities | |||
Gross realized gains on sale of fixed income securities | $ 3,071 | $ 7,152 | $ 8,980 |
Gross realized losses on sale of fixed income securities | (17,620) | (15,477) | (1,942) |
Change in credit allowance | 0 | 0 | 49 |
Impairments | 0 | (1,415) | 0 |
Equity securities gains (losses) | |||
Equity securities gains (losses), on sales | 0 | (7) | 4 |
Equity securities, gains (losses), changes in fair value | 530 | (2,013) | (463) |
Change in embedded derivative on Home Re Transactions | (118) | 4,269 | (721) |
Other | |||
Other, gains (losses) on sales | (1) | 2 | (33) |
Other, market adjustment | (3) | 26 | (13) |
Net gains (losses) on investments and other financial instruments | (14,141) | (7,463) | 5,861 |
Proceeds from sales of fixed income securities | 375,788 | 397,553 | 471,783 |
Proceeds from sales of equity securities | $ 0 | $ 97 | $ 2,621 |
Investments - Securities In Unr
Investments - Securities In Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Schedule of Investments [Line Items] | ||
Less than 12 months | $ 694,898 | $ 3,411,256 |
12 months or greater | 3,664,661 | 1,592,040 |
Total | 4,359,559 | 5,003,296 |
Less than 12 months | (12,254) | (298,637) |
12 months or greater | (353,890) | (224,403) |
Total | $ (366,144) | $ (523,040) |
Number of securities in unrealized loss position | security | 1,021 | 1,226 |
U.S. government securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | $ 26,550 | $ 67,531 |
12 months or greater | 98,359 | 76,246 |
Total | 124,909 | 143,777 |
Less than 12 months | (75) | (3,583) |
12 months or greater | (6,289) | (6,100) |
Total | (6,364) | (9,683) |
Obligations of U.S. states and political subdivisions | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 275,727 | 1,344,272 |
12 months or greater | 1,200,533 | 360,956 |
Total | 1,476,260 | 1,705,228 |
Less than 12 months | (3,622) | (157,903) |
12 months or greater | (186,213) | (98,170) |
Total | (189,835) | (256,073) |
Corporate debt securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 270,956 | 1,488,255 |
12 months or greater | 1,604,021 | 758,732 |
Total | 1,874,977 | 2,246,987 |
Less than 12 months | (6,060) | (109,976) |
12 months or greater | (122,151) | (86,401) |
Total | (128,211) | (196,377) |
ABS | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 41,549 | 53,201 |
12 months or greater | 62,611 | 67,073 |
Total | 104,160 | 120,274 |
Less than 12 months | (1,234) | (1,008) |
12 months or greater | (2,041) | (5,033) |
Total | (3,275) | (6,041) |
RMBS | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 44,867 | 77,563 |
12 months or greater | 176,349 | 136,179 |
Total | 221,216 | 213,742 |
Less than 12 months | (872) | (8,572) |
12 months or greater | (19,784) | (17,172) |
Total | (20,656) | (25,744) |
CMBS | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 35,249 | 166,973 |
12 months or greater | 244,216 | 70,792 |
Total | 279,465 | 237,765 |
Less than 12 months | (391) | (12,951) |
12 months or greater | (15,361) | (7,640) |
Total | (15,752) | (20,591) |
CLOs | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 0 | 213,461 |
12 months or greater | 274,729 | 114,459 |
Total | 274,729 | 327,920 |
Less than 12 months | 0 | (4,644) |
12 months or greater | (1,408) | (3,185) |
Total | (1,408) | (7,829) |
Foreign government debt | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 0 | 0 |
12 months or greater | 3,843 | 3,787 |
Total | 3,843 | 3,787 |
Less than 12 months | 0 | 0 |
12 months or greater | (643) | (699) |
Total | $ (643) | (699) |
Commercial paper | ||
Schedule of Investments [Line Items] | ||
Less than 12 months | 0 | |
12 months or greater | 3,816 | |
Total | 3,816 | |
Less than 12 months | 0 | |
12 months or greater | (3) | |
Total | $ (3) |
Investments - Net Unrealized Ga
Investments - Net Unrealized Gains (Losses) of Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||
Fixed income securities | $ 179,174 | $ (707,005) | $ (154,555) |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||
Investment income | $ 219,339 | $ 171,843 | $ 160,598 |
Investment expenses | (4,599) | (4,367) | (4,160) |
Investment income, net of expenses | 214,740 | 167,476 | 156,438 |
Total fixed income securities | |||
Schedule of Investments [Line Items] | |||
Investment income | 202,655 | 166,306 | 160,030 |
Equity securities | |||
Schedule of Investments [Line Items] | |||
Investment income | 529 | 437 | 471 |
Cash equivalents | |||
Schedule of Investments [Line Items] | |||
Investment income | 16,111 | 5,049 | 75 |
Other | |||
Schedule of Investments [Line Items] | |||
Investment income | $ 44 | $ 51 | $ 22 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 14,771 | $ 14,140 |
Cash equivalents(1) | 367,517 | 328,756 |
Total assets | 6,105,401 | 5,752,594 |
Real Estate Acquired | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchases of real estate assets acquired | 600 | 3,500 |
Sales of real estate assets acquired | 3,800 | 4,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents(1) | 367,301 | 324,129 |
Total assets | 477,900 | 455,166 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents(1) | 216 | 4,627 |
Total assets | 5,627,501 | 5,297,428 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded derivative related to Home Re transactions | 2,400 | 2,500 |
Total fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 5,723,113 | 5,409,698 |
Total fixed income securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 95,828 | 116,897 |
Total fixed income securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 5,627,285 | 5,292,801 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 161,682 | 135,900 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 95,828 | 116,897 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 65,854 | 19,003 |
Obligations of U.S. states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 1,908,078 | 2,149,054 |
Obligations of U.S. states and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 0 | 0 |
Obligations of U.S. states and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 1,908,078 | 2,149,054 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 2,515,581 | 2,221,141 |
Corporate debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 0 | 0 |
Corporate debt securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 2,515,581 | 2,221,141 |
ABS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 171,273 | 120,687 |
ABS | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 0 | 0 |
ABS | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 171,273 | 120,687 |
RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 330,773 | 198,009 |
RMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 0 | 0 |
RMBS | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 330,773 | 198,009 |
CMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 277,457 | 237,216 |
CMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 0 | 0 |
CMBS | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 277,457 | 237,216 |
CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 326,096 | 329,832 |
CLOs | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 0 | 0 |
CLOs | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 326,096 | 329,832 |
Foreign government debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 3,843 | 3,787 |
Foreign government debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 0 | 0 |
Foreign government debt | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 3,843 | 3,787 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 28,330 | 14,072 |
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 0 | 0 |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed income, available-for-sale | 28,330 | 14,072 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 14,771 | 14,140 |
Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 14,771 | 14,140 |
Equity securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Senior Notes | 5.25% Senior Notes due 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate (in hundredths) | 5.25% | ||
9% Convertible Junior Subordinated Debentures due 2063 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate (in hundredths) | 9% | 9% | 9% |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | $ 850 | $ 850 | |
9% Debentures | 0 | 21,086 | |
Total financial liabilities | 643,196 | 662,810 | |
Carrying Value | Senior Notes | 5.25% Senior Notes due 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes | 643,196 | 641,724 | |
Fair Value | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 850 | 850 | |
9% Debentures | 0 | 28,085 | |
Total financial liabilities | 634,498 | 629,023 | |
Fair Value | Significant Other Observable Inputs (Level 2) | Senior Notes | 5.25% Senior Notes due 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes | $ 634,498 | $ 600,938 |
Debt - Summary of Obligations (
Debt - Summary of Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 643,196 | $ 662,810 |
Senior Notes | 5.25% Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | 643,196 | 641,724 |
Convertible Junior Subordinated Debentures, at 9% per annum, Due 2063 | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 0 | $ 21,086 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Loss on debt extinguishment | $ 0 | $ 40,199,000 | $ 36,914,000 | ||
Interest paid | $ 35,100,000 | 53,700,000 | 71,700,000 | ||
Convertible Junior Subordinated Debentures, at 9% per annum, Due 2063 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (in hundredths) | 9% | ||||
Extinguishment of debt | $ 21,100,000 | 89,100,000 | 98,600,000 | ||
Conversion rate (in shares per $1,000 note) | 77.9620 | ||||
Principal amount of notes used in determining conversion rate | $ 1,000 | ||||
Repayments of long-term debt | 28,600,000 | 121,200,000 | 135,500,000 | ||
Adjustments To Additional Paid In Capital, Conversion of Convertible Debt | $ 5,300,000 | ||||
Loss on debt extinguishment | $ 32,100,000 | $ 36,900,000 | |||
Reduction in potentially dilutive shares due to debt extinguishment | 1,600,000 | 6,800,000 | 7,500,000 | ||
Federal Home Loan Bank Advances (FHLB) | |||||
Debt Instrument [Line Items] | |||||
Loss on debt extinguishment | $ 1,300,000 | ||||
Federal Home Loan Bank Advance prepayment amount | $ 156,300,000 | ||||
Senior Notes | 5.75% Senior Notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (in hundredths) | 5.75% | ||||
Loss on debt extinguishment | $ 6,800,000 | ||||
Purchase of senior notes | $ 248,400,000 | ||||
Senior Notes | 5.75% Senior Notes due 2023 | US Treasury (UST) Interest Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Senior Notes | 5.25% Senior Notes due 2028 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (in hundredths) | 5.25% | ||||
Debt instrument, face amount | $ 650,000,000 | ||||
Ownership percentage threshold for declaration of due and payable | 25% | ||||
Senior Notes | 5.25% Senior Notes due 2028 | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage (in hundredths) | 102.625% | ||||
Senior Notes | 5.25% Senior Notes due 2028 | Debt Instrument, Redemption, Period Three | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage (in hundredths) | 101.313% | ||||
Senior Notes | 5.25% Senior Notes due 2028 | Debt Instrument, Redemption, Period Four | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage (in hundredths) | 100% |
Loss Reserves - Narrative (Deta
Loss Reserves - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Change in loss reserves (+/-) | $ (52,609) | $ (325,534) | $ 2,985 |
Total prior year loss development | (208,514) | (404,130) | $ (60,015) |
Premium refund liability, expected claim payments | 21,100 | $ 25,500 | |
$1,000 Increase/Decrease In Average Severity Reserve Factor | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Change in loss reserves (+/-) | 8,000 | ||
One Percentage Point Increase/Decrease In Average Claim Rate Reserve Factor | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Change in loss reserves (+/-) | $ 16,000 |
Loss Reserves - Reconciliation
Loss Reserves - Reconciliation of Changes in Loss Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Reserve [Roll Forward] | ||||
Reserve at beginning of year | $ 557,988 | $ 883,522 | $ 880,537 | |
Less reinsurance recoverable | 28,240 | 66,905 | 95,042 | |
Net reserve at beginning of year | 472,077 | 529,748 | 816,617 | $ 785,495 |
Losses and LAE incurred in respect of delinquent notices received in: | ||||
Current year | 187,658 | 149,565 | 124,592 | |
Prior years | (208,514) | (404,130) | (60,015) | |
Total losses incurred | (20,856) | (254,565) | 64,577 | |
Losses and LAE paid in respect of delinquent notices received in: | ||||
Current year | 566 | 362 | 664 | |
Prior years | 45,645 | 49,626 | 68,769 | |
Reinsurance terminations | (9,396) | (17,684) | (35,978) | |
Total losses paid | 36,815 | 32,304 | 33,455 | |
Net reserve at end of year | 472,077 | 529,748 | 816,617 | |
Plus reinsurance recoverables | 33,302 | 28,240 | 66,905 | |
Reserve at end of year | $ 505,379 | $ 557,988 | $ 883,522 |
Loss Reserves - Prior Year Loss
Loss Reserves - Prior Year Loss Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Total prior year loss development | $ (208,514) | $ (404,130) | $ (60,015) |
Increase (decrease) in estimated claim rate on primary defaults | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Total prior year loss development | (200,983) | (400,577) | (82,904) |
Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Total prior year loss development | $ (7,531) | $ (3,553) | $ 22,889 |
Loss Reserves - Default Invento
Loss Reserves - Default Inventory Reconciliation (Details) - loan | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Primary Default Inventory [Roll Forward] | |||
Beginning delinquent inventory | 26,387 | 33,290 | 57,710 |
New Notices | 46,825 | 42,988 | 42,432 |
Cures | (46,108) | (48,262) | (64,896) |
Paid claims | (1,328) | (1,305) | (1,223) |
Rescissions and denials | (45) | (35) | (38) |
Other items removed from inventory | (81) | (289) | (695) |
Ending delinquent inventory | 25,650 | 26,387 | 33,290 |
Loss Reserves - Aging of Primar
Loss Reserves - Aging of Primary Default Inventory (Details) - loan | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Aging of the Primary Default Inventory [Abstract] | ||||
3 months or less | 9,175 | 8,820 | 7,586 | |
4 - 11 months | 8,900 | 8,217 | 7,990 | |
12 months or more | 7,575 | 9,350 | 17,714 | |
Total primary default inventory | 25,650 | 26,387 | 33,290 | 57,710 |
3 months of less (in hundreds, as a percent) | 36% | 33% | 23% | |
4 - 11 months (in hundredths, as a percent) | 35% | 31% | 24% | |
12 months or more (in hundredths, as a percent) | 29% | 36% | 53% | |
Total primary default inventory (in hundredths, as a percent) | 100% | 100% | 100% | |
Primary claims received inventory included in ending delinquent inventory | 302 | 267 | 211 | |
Percent of inventory in default for more than 36 consecutive months (as a percent) | 37% | 36% | 20% |
Reinsurance - Summary of Reinsu
Reinsurance - Summary of Reinsurance Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Premiums Earned, Net [Abstract] | |||
Premiums earned, direct | $ 1,142,412 | $ 1,154,728 | $ 1,167,592 |
Premiums earned, assumed | 12,960 | 8,778 | 9,858 |
Premiums earned, ceded | (202,821) | (156,373) | (163,031) |
Net premiums earned | 952,551 | 1,007,133 | 1,014,419 |
Policyholder Benefits and Claims Incurred, Net [Abstract] | |||
Losses incurred, direct | (5,200) | (274,072) | 74,496 |
Losses incurred, assumed | (33) | (330) | (57) |
Net losses incurred | (20,856) | (254,565) | 64,577 |
Quota Share Reinsurance Transactions | |||
Premiums Earned, Net [Abstract] | |||
Premiums earned, ceded | (123,955) | (86,435) | (118,537) |
Policyholder Benefits and Claims Incurred, Net [Abstract] | |||
Losses incurred, ceded | (15,623) | 19,837 | (9,862) |
Profit commission | 133,145 | 176,084 | 153,759 |
Ceding commisisons | 50,397 | 52,071 | 53,460 |
Excess of Loss Reinsurance Transactions | |||
Premiums Earned, Net [Abstract] | |||
Premiums earned, ceded | $ (78,866) | $ (69,938) | $ (44,494) |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effects of Reinsurance [Line Items] | ||||||
Reinsurance recoverable on paid losses | $ 9,896 | $ 9,896 | $ 18,081 | |||
Reinsurance recoverable on loss reserves | $ 33,302 | 33,302 | 28,240 | $ 66,905 | $ 95,042 | |
Ceded premiums earned | $ 202,821 | 156,373 | 163,031 | |||
Quota Share Reinsurance Transactions | ||||||
Effects of Reinsurance [Line Items] | ||||||
Ceding commission, percentage | 20% | |||||
Annual loss ratio cap, percentage | 300% | 300% | ||||
Lifetime loss ratio cap, percentage | 200% | 200% | ||||
Threshold for private mortgage insurer eligibility requirements for termination election | 90% | |||||
Reinsurance recoverable on loss reserves | $ 33,300 | $ 33,300 | 28,200 | |||
Credit Union QSR Transaction | ||||||
Effects of Reinsurance [Line Items] | ||||||
Quota Share % | 65% | |||||
Annual Loss Ratio to Exhaust Profit Commission | 50% | |||||
Threshold for private mortgage insurer eligibility requirements for termination election | 80% | |||||
2020 QSR | ||||||
Effects of Reinsurance [Line Items] | ||||||
Quota Share % | 12.50% | |||||
Annual Loss Ratio to Exhaust Profit Commission | 62% | |||||
Contingent termination fee | $ 5,100 | |||||
Reinsurance recoverable on paid losses | 9,400 | $ 9,400 | ||||
2020 QSR and 2021 QSR - 2020 NIW | ||||||
Effects of Reinsurance [Line Items] | ||||||
Quota Share % | 17.50% | |||||
Annual Loss Ratio to Exhaust Profit Commission | 62% | |||||
2019 QSR Transaction | ||||||
Effects of Reinsurance [Line Items] | ||||||
Contingent termination fee | 2,200 | |||||
Quota Share Reinsurance Transactions, 2015 & 2019 | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance recoverable on paid losses | $ 17,700 | |||||
Quota Share Reinsurance Transactions, 2017 & 2018 | ||||||
Effects of Reinsurance [Line Items] | ||||||
Contingent termination fee | $ 5,000 | |||||
Home Re 2019-1, Home Re 2021-1 and Home Re 2021-2 | ||||||
Effects of Reinsurance [Line Items] | ||||||
Ceded premiums earned | $ 8,000 | |||||
Excess of Loss Reinsurance Transactions, Home Re Transactions | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance Agreement, Optional Right, Percent Of Reinsurance Coverage Threshold | 10% | |||||
Home Re 2019-1 | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance Retention Policy, Reduction in Insurance Linked Notes | $ 187,100 | |||||
Home Re 2021-1 | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance Retention Policy, Reduction in Insurance Linked Notes | 91,100 | |||||
Home Re 2021-2 | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance Retention Policy, Reduction in Insurance Linked Notes | $ 106,700 | |||||
Home Re special purpose insurers | ||||||
Effects of Reinsurance [Line Items] | ||||||
Percent of total trust assets invested in cash or direct U.S. federal government obligations (as a percent) | 99.50% |
Reinsurance - Quota Share Agree
Reinsurance - Quota Share Agreement Terms (Details) | 12 Months Ended | |
Dec. 31, 2024 | Dec. 31, 2023 | |
2020 QSR and 2021 QSR - 2021 NIW | ||
Effects of Reinsurance [Line Items] | ||
Quota Share % | 17.50% | |
Annual Loss Ratio to Exhaust Profit Commission | 61.90% | |
Cede rate, option 1 | 14.50% | |
Cede rate, option 2 | 12% | |
2021 QSR and 2022 QSR - 2021 NIW | ||
Effects of Reinsurance [Line Items] | ||
Quota Share % | 12.50% | |
Annual Loss Ratio to Exhaust Profit Commission | 57.50% | |
Cede rate, option 1 | 10.50% | |
Cede rate, option 2 | 8% | |
2021 QSR and 2022 QSR - 2022 NIW | ||
Effects of Reinsurance [Line Items] | ||
Quota Share % | 15% | |
Annual Loss Ratio to Exhaust Profit Commission | 57.50% | |
Cede rate, option 1 | 12.50% | |
Cede rate, option 2 | 10% | |
2022 QSR and 2023 QSR - 2022 NIW | ||
Effects of Reinsurance [Line Items] | ||
Quota Share % | 15% | |
Annual Loss Ratio to Exhaust Profit Commission | 62% | |
Cede rate, option 1 | 12.50% | |
Cede rate, option 2 | 10% | |
2022 QSR and 2023 QSR - 2023 NIW | ||
Effects of Reinsurance [Line Items] | ||
Quota Share % | 15% | |
Annual Loss Ratio to Exhaust Profit Commission | 62% | |
Cede rate, option 1 | 12.50% | |
Cede rate, option 2 | 10% | |
QSR 2023 - 2023 NIW | ||
Effects of Reinsurance [Line Items] | ||
Quota Share % | 10% | |
Annual Loss Ratio to Exhaust Profit Commission | 58.50% | |
Cede rate, option 1 | 8% | |
Cede rate, option 2 | 7% | |
Credit Union QSR Transaction | ||
Effects of Reinsurance [Line Items] | ||
Quota Share % | 65% | |
Annual Loss Ratio to Exhaust Profit Commission | 50% | |
QSR 2024 - 2024 NIW | Forecast | ||
Effects of Reinsurance [Line Items] | ||
Quota Share % | 30% | |
Annual Loss Ratio to Exhaust Profit Commission | 56% |
Reinsurance - Excess of Loss Re
Reinsurance - Excess of Loss Reinsurance (Details) $ in Thousands | 12 Months Ended | |||||||||||
Oct. 23, 2023 USD ($) | Apr. 01, 2023 USD ($) | Apr. 26, 2022 USD ($) | Apr. 01, 2022 USD ($) | Aug. 03, 2021 USD ($) | Feb. 02, 2021 USD ($) | Oct. 29, 2020 USD ($) | May 25, 2019 USD ($) | Oct. 30, 2018 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
2023 Traditional XOL | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amortization period excess of loss reinsurance coverage | 10 years | |||||||||||
Reinsurance Retention Policy, Initial Amount Retained | $ 70,578 | |||||||||||
Remaining First Layer Retention | $ 70,578 | |||||||||||
Remaining Excess of Loss Reinsurance Coverage (1) | $ 96,942 | 96,942 | ||||||||||
2022 Traditional XOL | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amortization period excess of loss reinsurance coverage | 10 years | |||||||||||
Reinsurance Retention Policy, Initial Amount Retained | $ 82,523 | |||||||||||
Remaining First Layer Retention | 82,346 | $ 82,517 | ||||||||||
Remaining Excess of Loss Reinsurance Coverage (1) | $ 142,642 | 142,642 | 142,642 | |||||||||
Home Re 2023-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Legal Maturity | 10 years | |||||||||||
Reinsurance Retention Policy, Initial Amount Retained | $ 272,961 | |||||||||||
Remaining First Layer Retention | 272,961 | |||||||||||
Remaining Excess of Loss Reinsurance Coverage (1) | $ 330,277 | $ 330,277 | ||||||||||
Reinsurance Retention Policy, Funding Percentage | 0.97 | 0.97 | ||||||||||
Home Re 2022-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Legal Maturity | 12 years 6 months | |||||||||||
Reinsurance Retention Policy, Initial Amount Retained | $ 325,589 | |||||||||||
Remaining First Layer Retention | $ 325,001 | 325,576 | ||||||||||
Remaining Excess of Loss Reinsurance Coverage (1) | $ 473,575 | $ 420,731 | 473,575 | |||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 1 | ||||||||||
Home Re 2021-2 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Legal Maturity | 12 years 6 months | |||||||||||
Reinsurance Retention Policy, Initial Amount Retained | $ 190,159 | |||||||||||
Remaining First Layer Retention | $ 189,403 | 190,097 | $ 190,159 | |||||||||
Remaining Excess of Loss Reinsurance Coverage (1) | $ 398,429 | $ 173,960 | 352,084 | 398,429 | ||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 0.68 | ||||||||||
Home Re 2021-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Legal Maturity | 12 years 6 months | |||||||||||
Reinsurance Retention Policy, Initial Amount Retained | $ 211,159 | |||||||||||
Remaining First Layer Retention | $ 210,831 | 211,102 | 211,142 | |||||||||
Remaining Excess of Loss Reinsurance Coverage (1) | $ 398,848 | $ 117,982 | 277,053 | 387,830 | ||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 0.65 | ||||||||||
Home Re 2020-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Legal Maturity | 10 years | |||||||||||
Reinsurance Retention Policy, Initial Amount Retained | $ 275,283 | |||||||||||
Remaining First Layer Retention | $ 261,280 | 275,051 | 275,204 | |||||||||
Remaining Excess of Loss Reinsurance Coverage (1) | $ 412,917 | $ 41,846 | 113,247 | 234,312 | ||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 1 | ||||||||||
Home Re 2019-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Legal Maturity | 10 years | |||||||||||
Reinsurance Retention Policy, Initial Amount Retained | $ 185,730 | |||||||||||
Remaining First Layer Retention | $ 182,722 | 183,540 | 183,917 | |||||||||
Remaining Excess of Loss Reinsurance Coverage (1) | $ 315,739 | $ 21,039 | 208,146 | 208,146 | ||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 0.10 | ||||||||||
Home Re 2018-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Legal Maturity | 10 years | |||||||||||
Reinsurance Retention Policy, Initial Amount Retained | $ 168,691 | |||||||||||
Remaining First Layer Retention | $ 164,335 | 164,849 | 165,365 | |||||||||
Remaining Excess of Loss Reinsurance Coverage (1) | $ 318,636 | $ 69,762 | $ 140,993 | $ 218,343 | ||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 1 |
Reinsurance - Home Re Entities
Reinsurance - Home Re Entities Total Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Effects of Reinsurance [Line Items] | |||
Total assets | $ 6,538,380 | $ 6,213,793 | |
Home Re 2023-1 | |||
Effects of Reinsurance [Line Items] | |||
Total assets | 330,277 | ||
Home Re 2022-1 | |||
Effects of Reinsurance [Line Items] | |||
Total assets | 427,279 | 473,575 | |
Home Re 2021-2 | |||
Effects of Reinsurance [Line Items] | |||
Total assets | 174,431 | 357,340 | $ 398,429 |
Home Re 2021-1 | |||
Effects of Reinsurance [Line Items] | |||
Total assets | 118,043 | 285,039 | 398,848 |
Home Re 2020-1 | |||
Effects of Reinsurance [Line Items] | |||
Total assets | 41,846 | 119,159 | 251,387 |
Home Re 2019-1 | |||
Effects of Reinsurance [Line Items] | |||
Total assets | 21,039 | 208,146 | 208,146 |
Home Re 2018-1 | |||
Effects of Reinsurance [Line Items] | |||
Total assets | $ 73,872 | $ 146,822 | $ 218,343 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Pretax Components of Other Comprehensive Income (Loss) and Related Income Tax Benefit (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Other Comprehensive Income (Loss) [Abstract] | |||
Net unrealized investment (losses) gains arising during the period | $ 179,174 | $ (707,005) | $ (154,555) |
Income tax (expense) benefit | (37,626) | 148,471 | 32,456 |
Net of taxes | 141,548 | (558,534) | (122,099) |
Net changes in benefit plan assets and obligations | 29,978 | (54,017) | 31,613 |
Income tax benefit (expense) | (6,296) | 11,343 | (6,638) |
Net of taxes | 23,682 | (42,674) | 24,975 |
Total other comprehensive income (loss) | 209,152 | (761,022) | (122,942) |
Total income tax benefit (expense) | (43,922) | 159,814 | 25,818 |
Other comprehensive income (loss), net of tax | $ 165,230 | $ (601,208) | $ (97,124) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Pretax and Related Income Tax Benefit (Expense) Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract] | |||
Total reclassifications | $ 902,229 | $ 1,090,034 | $ 801,777 |
Income tax benefit (expense) | (189,280) | (224,685) | (166,794) |
Net income | 712,949 | 865,349 | 634,983 |
Reclassification from Accumulated Other Comprehensive Income | |||
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract] | |||
Total reclassifications | (41,090) | (26,610) | 676 |
Income tax benefit (expense) | 8,629 | 5,588 | (142) |
Net income | (32,461) | (21,022) | 534 |
Reclassification from Accumulated Other Comprehensive Income | Net unrealized gains and losses on available-for-sale securities | |||
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract] | |||
Total reclassifications | (27,100) | (9,860) | 10,455 |
Income tax benefit (expense) | 5,691 | 2,070 | (2,195) |
Net income | (21,409) | (7,790) | 8,260 |
Reclassification from Accumulated Other Comprehensive Income | Net benefit plan assets and obligations recognized in shareholders' equity | |||
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract] | |||
Total reclassifications | (13,990) | (16,750) | (9,779) |
Income tax benefit (expense) | 2,938 | 3,518 | 2,053 |
Net income | $ (11,052) | $ (13,232) | $ (7,726) |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) - Roll-Forward for AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of year | $ 4,642,740 | $ 4,861,382 | |
Balance, end of year | 5,072,017 | 4,642,740 | $ 4,861,382 |
Accumulated other comprehensive income (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of year | (481,511) | 119,697 | 216,821 |
Other comprehensive income (loss) before reclassifications | 132,769 | (622,230) | (96,590) |
Less: Amounts reclassified from AOCI | (32,461) | (21,022) | 534 |
Balance, end of year | (316,281) | (481,511) | 119,697 |
Net unrealized gains and losses on available-for-sale securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of year | (408,496) | 150,038 | 272,137 |
Other comprehensive income (loss) before reclassifications | 120,139 | (566,324) | (113,839) |
Less: Amounts reclassified from AOCI | (21,409) | (7,790) | 8,260 |
Balance, end of year | (266,948) | (408,496) | 150,038 |
Net benefit plan assets and obligations recognized in shareholders' equity | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of year | (73,015) | (30,341) | (55,316) |
Other comprehensive income (loss) before reclassifications | 12,630 | (55,906) | 17,249 |
Less: Amounts reclassified from AOCI | (11,052) | (13,232) | (7,726) |
Balance, end of year | $ (49,333) | $ (73,015) | $ (30,341) |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension and Supplemental Executive Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company Service Cost | $ 0 | $ 7,153 | $ 7,569 |
Interest Cost | 13,787 | 12,461 | 11,276 |
Expected Return on Assets | (13,517) | (18,064) | (20,657) |
Amortization of Net Transition Obligation/(Asset) | 0 | 0 | 0 |
Amortization of Net Prior Service Cost/(Credit) | 345 | (163) | (239) |
Amortization of Net Losses/(Gains) | 2,185 | 5,726 | 5,490 |
Cost of Settlements and Curtailments | 9,749 | 13,801 | 6,012 |
Net Periodic Benefit Cost (Benefit) | 12,549 | 20,914 | 9,451 |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company Service Cost | 1,497 | 1,307 | 1,508 |
Interest Cost | 1,633 | 694 | 648 |
Expected Return on Assets | (8,235) | (10,502) | (8,863) |
Amortization of Net Transition Obligation/(Asset) | 0 | 0 | 0 |
Amortization of Net Prior Service Cost/(Credit) | 1,861 | 489 | 213 |
Amortization of Net Losses/(Gains) | (150) | (3,103) | (1,697) |
Cost of Settlements and Curtailments | 0 | 0 | 0 |
Net Periodic Benefit Cost (Benefit) | $ (3,394) | $ (11,115) | $ (8,191) |
Benefit Plans - Development of
Benefit Plans - Development of Funded Status (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Pension and Supplemental Executive Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | $ 261,330 | $ 274,975 | |
Projected Benefit Obligation | (261,330) | (274,975) | $ (391,698) |
Plan Assets at Fair Value | 235,612 | 250,674 | 391,555 |
Funded Status - Overfunded/(Underfunded) | (25,718) | (24,301) | |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | 30,238 | 29,580 | |
Projected Benefit Obligation | (30,238) | (29,580) | (25,635) |
Plan Assets at Fair Value | 134,371 | 111,154 | $ 140,839 |
Funded Status - Overfunded/(Underfunded) | $ 104,133 | $ 81,574 |
Benefit Plans - Accumulated Oth
Benefit Plans - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Pension and Supplemental Executive Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Actuarial (Gain)/Loss | $ 79,309 | $ 89,711 | |
Net Prior Service Cost/(Credit) | 2,900 | 3,245 | |
Net Transition Obligation/(Asset) | 0 | 0 | |
Total at Year End | 82,209 | 92,956 | $ 83,298 |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Actuarial (Gain)/Loss | (30,804) | (13,781) | |
Net Prior Service Cost/(Credit) | 11,041 | 13,249 | |
Net Transition Obligation/(Asset) | 0 | 0 | |
Total at Year End | $ (19,763) | $ (532) | $ (44,891) |
Benefit Plans - Change in Proje
Benefit Plans - Change in Project Benefit/Accumulated Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension and Supplemental Executive Retirement Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation at Beginning of Year | $ 274,975 | $ 391,698 | |
Company Service Cost | 0 | 7,153 | $ 7,569 |
Interest Cost | 13,787 | 12,461 | 11,276 |
Plan Participants' Contributions | 0 | 0 | |
Net Actuarial (Gain)/Loss | 16,995 | (83,240) | |
Benefit Payments from Fund | (13,549) | (13,165) | |
Benefit and Settlement Payments Paid Directly by Company | (384) | (114) | |
Plan Amendments | 0 | 3,247 | |
Curtailments | 0 | (352) | |
Settlement Payments from Fund (1) | (30,494) | (42,713) | |
Other Adjustment | 0 | 0 | |
Benefit Obligation at End of Year | 261,330 | 274,975 | 391,698 |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation at Beginning of Year | 29,580 | 25,635 | |
Company Service Cost | 1,497 | 1,307 | 1,508 |
Interest Cost | 1,633 | 694 | 648 |
Plan Participants' Contributions | 311 | 463 | |
Net Actuarial (Gain)/Loss | 1,294 | (8,123) | |
Benefit Payments from Fund | (3,439) | (1,504) | |
Benefit and Settlement Payments Paid Directly by Company | 0 | 0 | |
Plan Amendments | (346) | 11,278 | |
Curtailments | 0 | 0 | |
Settlement Payments from Fund (1) | 0 | 0 | |
Other Adjustment | (292) | (170) | |
Benefit Obligation at End of Year | $ 30,238 | $ 29,580 | $ 25,635 |
Benefit Plans - Change in Plan
Benefit Plans - Change in Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pension and Supplemental Executive Retirement Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value of Plan Assets at Beginning of Year | $ 250,674 | $ 391,555 |
Actual Return on Plan Assets | 28,981 | (91,303) |
Company Contributions | 384 | 6,414 |
Plan Participants' Contributions | 0 | 0 |
Benefit Payments from Fund | (13,549) | (13,165) |
Benefit and Settlement Payments Paid Directly by Company | (384) | (114) |
Settlement Payments from Fund | (30,494) | (42,713) |
Other Adjustment | 0 | 0 |
Fair Value of Plan Assets at End of Year | 235,612 | 250,674 |
Other Postretirement Benefit Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value of Plan Assets at Beginning of Year | 111,154 | 140,839 |
Actual Return on Plan Assets | 26,703 | (28,088) |
Company Contributions | 0 | 0 |
Plan Participants' Contributions | 311 | 463 |
Benefit Payments from Fund | (3,439) | (1,504) |
Benefit and Settlement Payments Paid Directly by Company | 0 | 0 |
Settlement Payments from Fund | 0 | 0 |
Other Adjustment | (358) | (556) |
Fair Value of Plan Assets at End of Year | $ 134,371 | $ 111,154 |
Benefit Plans - Change in Accum
Benefit Plans - Change in Accumulated Other Comprehensive Income (AOCI) and Expected Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pension and Supplemental Executive Retirement Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
AOCI in Prior Year | $ 92,956 | $ 83,298 |
Recognized during year - Prior Service (Cost) Credit | (345) | 745 |
Recognized during year - Net Actuarial (Losses) Gains | (11,933) | (20,109) |
Occurring during year - Prior Service Cost | 0 | 3,247 |
Occurring during year - Net Actuarial Losses (Gains) | 1,531 | 25,775 |
AOCI in Current Year | 82,209 | 92,956 |
Other Postretirement Benefit Plan | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
AOCI in Prior Year | (532) | (44,891) |
Recognized during year - Prior Service (Cost) Credit | (1,861) | (489) |
Recognized during year - Net Actuarial (Losses) Gains | 150 | 3,103 |
Occurring during year - Prior Service Cost | (346) | 11,277 |
Occurring during year - Net Actuarial Losses (Gains) | (17,174) | 30,468 |
AOCI in Current Year | $ (19,763) | $ (532) |
Benefit Plans - Actuarial Assum
Benefit Plans - Actuarial Assumptions and Year-End Asset Allocations (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension and Supplemental Executive Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate Used to Determine Benefit Obligation(in hundredths) | 5.20% | 5.60% | 3.05% |
Rate of Compensation Increase Used to Determine Benefit Obligation (in hundredths) | 3% | ||
Cash Balance Interest Crediting Rate Used to Determine Benefit Obligation (in hundredths) | 4.03% | 3.97% | |
Discount Rate Used to Determine Net Periodic Benefit Cost (in hundredths) | 5.50% | 3.70% | |
Expected Long-term Return on Plan Assets Used to Determine Net Periodic Benefit Cost (in hundredths) | 6% | 5.25% | |
Rate of Compensation Increase Used to Determine Net Periodic Benefit Cost (in hundredths) | 3% | ||
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate Used to Determine Benefit Obligation(in hundredths) | 5.20% | 5.60% | |
Discount Rate Used to Determine Net Periodic Benefit Cost (in hundredths) | 5.60% | 2.85% | |
Expected Long-term Return on Plan Assets Used to Determine Net Periodic Benefit Cost (in hundredths) | 7.50% | 7.50% | |
Health Care Cost Trend Rate Assumed for Next Year (in hundredths) | 6.75% | 7% | |
Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate) (in hundredths) | 5% | 5% | |
Weighted-average asset allocations of plans (in hundredths) | 100% | 100% | |
Other Postretirement Benefit Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average asset allocations of plans (in hundredths) | 100% | 100% | |
Other Postretirement Benefit Plan | Total fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average asset allocations of plans (in hundredths) | 0% | 0% | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average asset allocations of plans (in hundredths) | 100% | 100% | |
Pension Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average asset allocations of plans (in hundredths) | 21% | 20% | |
Pension Plan | Total fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average asset allocations of plans (in hundredths) | 79% | 80% |
Benefit Plans - Fair Value of P
Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | $ 235,612 | $ 250,674 | |
Pension Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 13,137 | 13,395 | |
Pension Plan | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 222,475 | 237,279 | |
Pension Plan | Domestic Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 2,836 | 67 | |
Pension Plan | Domestic Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 2,836 | 67 | |
Pension Plan | Domestic Mutual Funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 0 | 0 | |
Pension Plan | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 10,301 | 13,328 | |
Pension Plan | U.S. government securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 10,301 | 13,328 | |
Pension Plan | U.S. government securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 0 | 0 | |
Pension Plan | Corporate debt securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 145,908 | 146,854 | |
Pension Plan | Corporate debt securities and other | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 0 | 0 | |
Pension Plan | Corporate debt securities and other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 145,908 | 146,854 | |
Pension Plan | Non-government foreign debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 21,843 | 20,793 | |
Pension Plan | Non-government foreign debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 0 | 0 | |
Pension Plan | Non-government foreign debt securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 21,843 | 20,793 | |
Pension Plan | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 9,220 | 18,336 | |
Pension Plan | Municipal bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 0 | 0 | |
Pension Plan | Municipal bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 9,220 | 18,336 | |
Pension Plan | Pooled Equity Accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 45,504 | 51,296 | |
Pension Plan | Pooled Equity Accounts | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 0 | 0 | |
Pension Plan | Pooled Equity Accounts | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 45,504 | 51,296 | |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 134,371 | 111,154 | $ 140,839 |
Other Postretirement Benefit Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 134,371 | 111,154 | |
Other Postretirement Benefit Plan | Domestic Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | 109,575 | 89,584 | |
Other Postretirement Benefit Plan | International mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | $ 24,796 | $ 21,570 |
Benefit Plans - Additional Disc
Benefit Plans - Additional Disclosures (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Other Postretirement Benefit Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Benefit Payments for the Year Ending: Current plus 1 | $ 2,761 |
Expected Benefit Payments for the Year Ending: Current plus 2 | 2,849 |
Expected Benefit Payments for the Year Ending: Current plus 3 | 2,715 |
Expected Benefit Payments for the Year Ending: Current plus 4 | 2,630 |
Expected Benefit Payments for the Year Ending: Current plus 5 | 2,825 |
Expected Benefit Payments for the Year Ending: Current plus 6 - 10 | $ 15,326 |
Other Postretirement Benefit Plan | Equity securities | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations (in hundredths) | 70% |
Other Postretirement Benefit Plan | Equity securities | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations (in hundredths) | 100% |
Other Postretirement Benefit Plan | Real Estate | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations (in hundredths) | 0% |
Other Postretirement Benefit Plan | Real Estate | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations (in hundredths) | 15% |
Other Postretirement Benefit Plan | Commodities | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations (in hundredths) | 0% |
Other Postretirement Benefit Plan | Commodities | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations (in hundredths) | 10% |
Other Postretirement Benefit Plan | Fixed Income/Cash | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations (in hundredths) | 0% |
Other Postretirement Benefit Plan | Fixed Income/Cash | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations (in hundredths) | 10% |
Pension and Supplemental Executive Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Benefit Payments for the Year Ending: Current plus 1 | $ 23,110 |
Expected Benefit Payments for the Year Ending: Current plus 2 | 22,771 |
Expected Benefit Payments for the Year Ending: Current plus 3 | 23,116 |
Expected Benefit Payments for the Year Ending: Current plus 4 | 23,226 |
Expected Benefit Payments for the Year Ending: Current plus 5 | 22,236 |
Expected Benefit Payments for the Year Ending: Current plus 6 - 10 | $ 100,929 |
Pension Plan | Equity securities | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocations (in hundredths) | 40% |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum percentages of gain loss consider for amortization (in hundredths) | 10% | ||
Minimum value of outstanding noncallable bonds used in hypothetical cash flow bond matching exercise | $ 50,000 | ||
Future earnings period used in determining the expected average rate of earnings | 20 years | ||
Discretionary profit sharing contribution as a percentage of participant's eligible compensation (in hundredths) | 5% | ||
Matching contribution rate on employees' contributions (in hundredths) | 200% | ||
Employee contributions subject to employer match (in hundredths) | 2% | ||
Matching contribution for the next two percent, as a percent | 100% | ||
Matching contribution, percent of employee's gross pay, next two percent contributed, as a percent | 2% | ||
Profit sharing and 401(k) savings plan expenses | $ 9,500 | $ 7,600 | $ 8,000 |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum percentage return should exceed growth in consumer price index annually (in hundredths) | 5.75% | ||
Maximum investment in international mutual funds (in hundredths) | 30% | ||
Percent of international mutual funds equity allocation in emerging markets (in hundredths) | 2% | ||
Percent of international mutual funds equity allocation in companies primarily based in Europe and the Pacific Basin (in hundredths) | 16% | ||
Company Contributions | $ 0 | 0 | |
Pension and Supplemental Executive Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company Contributions | 384 | $ 6,414 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan contribution expected to be made in next fiscal year | $ 25,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net deferred tax assets and liabilities [Abstract] | |||
Total deferred tax assets | $ 109,391 | $ 144,819 | |
Total deferred tax liabilities | (29,609) | (20,050) | |
Net deferred tax asset | 79,782 | 124,769 | |
Components of net deferred tax asset [Abstract] | |||
Unearned premium reserves | 13,862 | 16,209 | |
Benefit plans | (19,142) | (9,444) | |
Loss reserves | 1,921 | 1,785 | |
Unrealized losses on investments | 70,961 | 108,588 | |
Deferred policy acquisition cost | (3,064) | (4,003) | |
Deferred compensation | 7,466 | 6,806 | |
Research and experimental costs | 13,351 | 9,719 | |
Other, net | (5,573) | (4,891) | |
Components of provisions for (benefit from) income taxes [Abstract] | |||
Current federal | 187,246 | 228,259 | $ 161,055 |
Deferred federal | 1,550 | (5,235) | 4,392 |
Other | 484 | 1,661 | 1,347 |
Provision for income taxes | $ 189,280 | $ 224,685 | $ 166,794 |
Reconciliation of effective income tax rate [Abstract] | |||
Federal statutory income tax rate (in hundredths) | 21% | 21% | 21% |
Tax exempt municipal bond interest (in hundredths) | (0.50%) | (0.50%) | (0.60%) |
Other, net (in hundredths) | 0.50% | 0.10% | 0.40% |
Effective income tax provision rate (in hundredths) | 21% | 20.60% | 20.80% |
Income taxes paid | $ 188,200 | $ 236,500 | $ 155,300 |
Amount of tax and loss bonds held | 848,600 | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 2 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jan. 23, 2024 | Feb. 16, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Class of Stock [Line Items] | ||||||||
Retained earnings | $ 4,593,125 | $ 4,593,125 | $ 4,004,294 | |||||
Shares repurchased during period (in shares) | 21.7 | 27.8 | 19 | |||||
Shares repurchased, weighted average price per share (in dollars per share) | $ 15.71 | $ 13.89 | $ 15.30 | |||||
Remaining authorized repurchase amount | $ 273,700 | $ 273,700 | ||||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.115 | $ 0.10 | ||||||
Cash dividends | $ 65,300 | $ 58,800 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Class of Stock [Line Items] | ||||||||
Retained earnings | $ 68,300 | |||||||
Additional Paid in Capital | $ 68,300 | |||||||
Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Shares repurchased during period (in shares) | 2.9 | |||||||
Shares repurchased, weighted average price per share (in dollars per share) | $ 19.43 | |||||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.115 |
Statutory Information - Narrati
Statutory Information - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) jurisdiction | |
Statutory capital requirements [Abstract] | |
Number of jurisdictions with risk-to-capital requirements | jurisdiction | 16 |
Maximum permitted risk-to-capital ratio commonly applied | 25 to 1 |
Insurance Subsidiaries | |
Statutory capital requirements [Abstract] | |
Percentage of statutory policyholders surplus used to determine maximum allowable dividends | 10% |
Adjusted statutory net income measurement period | 3 years |
Adjusted statutory net income dividend payment measurement period | 2 years |
Maximum | |
Statutory capital requirements [Abstract] | |
Risk to capital ratio | 25 |
Mortgage Guaranty Insurance Corporation | |
Statutory capital requirements [Abstract] | |
Risk to capital ratio at end of period | 10.2 to 1 |
Risk to capital ratio | 10.2 |
Amount of policyholders position above or below required MPP | $ 3,600,000 |
Amount of required MPP | $ 2,200,000 |
Statutory Information - Statuto
Statutory Information - Statutory financial information of insurance subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statutory Capital [Abstract] | |||
Statutory net income | $ 279,145 | $ 440,944 | $ 295,811 |
Statutory policyholders' surplus | 639,878 | 924,977 | 1,220,714 |
Contingency reserve | $ 5,199,405 | $ 4,669,724 | $ 4,126,604 |
Statutory Information - Surplus
Statutory Information - Surplus contributions and dividends of insurance subsidiaries (Details) - Mortgage Guaranty Insurance Corporation - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Proceeds from contribution from holding company | $ 0 | $ 0 | $ 0 |
Dividends paid to the holding company | $ 600,000,000 | $ 800,000,000 | 400,000,000 |
Dividend to holding company, distribution of investment in subsidiary | $ 8,900,000 |
Share-based Compensation Plan_2
Share-based Compensation Plans (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares [Roll Forward] | |||
Restricted stock outstanding at end of period (in shares) | 3,200,000 | ||
Restricted Stock/Restricted Stock Units | |||
Weighted average grant date fair market value [Abstract] | |||
Restricted stock outstanding at end of period (in dollars per share) | $ 14.02 | ||
Granted (in dollars per share) | 14.17 | $ 15.45 | $ 12.83 |
Vested (in dollars per share) | 13.18 | ||
Forfeited (in dollars per share) | 14.01 | ||
Restricted stock outstanding at end of period (in dollars per share) | $ 13.89 | $ 14.02 | |
Shares [Roll Forward] | |||
Restricted stock outstanding at beginning of period (in shares) | 3,576,679 | ||
Granted (in shares) | 1,415,329 | ||
Vested (in shares) | (1,263,746) | ||
Forfeited (in shares) | (545,471) | ||
Restricted stock outstanding at end of period (in shares) | 3,182,791 | 3,576,679 | |
RSUs subject to performance conditions | |||
Shares [Roll Forward] | |||
Restricted stock outstanding at end of period (in shares) | 2,400,000 | ||
Share-based compensation arrangement, percent granted subject to performance conditions | 67% | ||
RSUs subject only to service conditions | |||
Shares [Roll Forward] | |||
Restricted stock outstanding at end of period (in shares) | 600,000 | ||
RSUs Non-Employee Directors | |||
Shares [Roll Forward] | |||
Restricted stock outstanding at end of period (in shares) | 200,000 | ||
Minimum | RSUs subject to performance conditions | |||
Shares [Roll Forward] | |||
Percentage of shares that may vest (as a percent) | 0% | ||
Maximum | RSUs subject to performance conditions | |||
Shares [Roll Forward] | |||
Percentage of shares that may vest (as a percent) | 200% |
Share-based Compensation Plan_3
Share-based Compensation Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | $ 31.5 | $ 24.7 | $ 17.1 |
Income tax benefit from compensation cost | 2.9 | 2.1 | 1.8 |
Restricted Stock/Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of restricted stock vested | 17.3 | $ 23.3 | $ 15.1 |
Unrecognized compensation cost | $ 21.9 | ||
Weighted-average period for recognition of compensation cost | 1 year 7 months 6 days | ||
2020 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants (in shares) | 5,100,000 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Remaining term of operating leases (in years) | 4 years | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
2024 | $ 1,141 | ||
2025 | 1,018 | ||
2026 | 360 | ||
2027 | 19 | ||
2028 | 0 | ||
Total | 2,538 | ||
Operating lease, expense | $ 1,600 | $ 1,200 | $ 1,300 |
SCHEDULE I - SUMMARY OF INVES_2
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | $ 6,077,047 |
Fair Value | 5,737,884 |
Amount at which shown in the balance sheet | 5,737,884 |
Fixed income | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 6,061,022 |
Fair Value | 5,723,113 |
Amount at which shown in the balance sheet | 5,723,113 |
Fixed income | U.S. Treasury securities and obligations of U.S. government corporations and agencies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 167,995 |
Fair Value | 161,682 |
Amount at which shown in the balance sheet | 161,682 |
Fixed income | Obligations of U.S. states and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,092,754 |
Fair Value | 1,908,078 |
Amount at which shown in the balance sheet | 1,908,078 |
Fixed income | Foreign government debt | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 4,486 |
Fair Value | 3,843 |
Amount at which shown in the balance sheet | 3,843 |
Fixed income | Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 251,151 |
Fair Value | 250,952 |
Amount at which shown in the balance sheet | 250,952 |
Fixed income | ABS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 173,256 |
Fair Value | 171,273 |
Amount at which shown in the balance sheet | 171,273 |
Fixed income | CLOs | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 327,467 |
Fair Value | 326,096 |
Amount at which shown in the balance sheet | 326,096 |
Fixed income | Mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 640,336 |
Fair Value | 608,230 |
Amount at which shown in the balance sheet | 608,230 |
Fixed income | All other corporate debt securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,375,250 |
Fair Value | 2,264,629 |
Amount at which shown in the balance sheet | 2,264,629 |
Fixed income | Commercial paper | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 28,327 |
Fair Value | 28,330 |
Amount at which shown in the balance sheet | 28,330 |
Equity Securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 16,025 |
Fair Value | 14,771 |
Amount at which shown in the balance sheet | 14,771 |
Equity Securities | Industrial, miscellaneous and all other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 16,025 |
Fair Value | 14,771 |
Amount at which shown in the balance sheet | $ 14,771 |
SCHEDULE II - CONDENSED FINAN_2
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Investments | $ 5,738,734 | $ 5,424,688 | |
Cash and cash equivalents | 363,666 | 327,384 | |
Accrued investment income | 58,774 | 55,178 | |
Total assets | 6,538,380 | 6,213,793 | |
Liabilities: | |||
Senior notes | 643,196 | 641,724 | |
Convertible junior subordinated debentures | 0 | 21,086 | |
Other liabilities | 160,009 | 154,966 | |
Total liabilities | 1,466,363 | 1,571,053 | |
Shareholders’ equity: | |||
Common stock | 371,353 | 371,353 | |
Paid-in capital | 1,808,113 | 1,798,842 | |
Treasury stock, at cost | (1,384,293) | (1,050,238) | |
Accumulated other comprehensive income, net of tax | (316,281) | (481,511) | |
Retained earnings | 4,593,125 | 4,004,294 | |
Total shareholders' equity | 5,072,017 | 4,642,740 | $ 4,861,382 |
Total liabilities and shareholders' equity | $ 6,538,380 | $ 6,213,793 | |
Parenthetical information [Abstract] | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 371,353,000 | 371,353,000 | |
Common stock, shares outstanding (in shares) | 272,494,000 | 293,433,000 | |
Treasury stock, shares at cost (in shares) | 98,859,000 | 77,920,000 | |
Revenues: | |||
Investment income, net of expenses | $ 214,740 | $ 167,476 | 156,438 |
Net gains (losses) on investments and other financial instruments | (14,141) | (7,463) | 5,861 |
Total revenues | 1,155,102 | 1,172,785 | 1,185,675 |
Expenses: | |||
Interest expense | 36,905 | 48,054 | 71,360 |
Loss on debt extinguishment | 0 | 40,199 | 36,914 |
Total losses and expenses | 252,873 | 82,751 | 383,898 |
Income before tax | 902,229 | 1,090,034 | 801,777 |
Provision for income taxes | 189,280 | 224,685 | 166,794 |
Net income | 712,949 | 865,349 | 634,983 |
Other comprehensive income (loss), net of tax | 165,230 | (601,208) | (97,124) |
Comprehensive income | 878,179 | 264,141 | 537,859 |
Cash flows from operating activities: | |||
Net income | 712,949 | 865,349 | 634,983 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred federal | 1,550 | (5,235) | 4,392 |
Loss on debt extinguishment | 0 | 40,199 | 36,914 |
Change in certain assets and liabilities: | |||
Accrued investment income | (3,596) | (3,276) | (1,905) |
Net cash provided by operating activities | 712,962 | 650,012 | 696,317 |
Cash flows from investing activities: | |||
Purchases of investments | (1,469,540) | (674,406) | (1,531,129) |
Proceeds from sales of investments | 376,598 | 399,661 | 473,904 |
Net cash (used in) provided by investing activities | (179,190) | 410,485 | (160,749) |
Cash flows from financing activities: | |||
Conversion / purchase of convertible junior subordinated debentures | (28,637) | (89,118) | (98,610) |
Redemption of 5.75% senior notes | 0 | (242,296) | 0 |
Cash portion of loss on debt extinguishment | 0 | (39,514) | (36,914) |
Repurchase of common stock | (337,182) | (385,573) | (290,818) |
Dividends paid | (122,965) | (110,947) | (94,219) |
Payment of withholding taxes related to share-based compensation net share settlement | (7,257) | (10,094) | (6,729) |
Net cash used in financing activities | (496,041) | (1,032,542) | (527,290) |
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 37,731 | 27,955 | 8,278 |
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year | 332,913 | 304,958 | 296,680 |
Cash and cash equivalents and restricted cash and cash equivalents at end of year | 370,644 | 332,913 | 304,958 |
Fixed income | |||
Assets | |||
Fixed income, available-for-sale | 5,601,540 | 5,342,667 | |
Parenthetical information [Abstract] | |||
Fixed income, amortized cost | 5,939,483 | 5,859,688 | |
Short-Term Investments | |||
Assets | |||
Fixed income, available-for-sale | 121,573 | 67,031 | |
Parenthetical information [Abstract] | |||
Fixed income, amortized cost | 121,539 | 67,097 | |
Parent Company | |||
Assets | |||
Investments | 709,333 | 407,509 | |
Cash and cash equivalents | 208,600 | 239,404 | |
Investment in subsidiaries, at equity in net assets | 4,777,121 | 4,502,261 | |
Accounts receivable - affiliates | 2,860 | 864 | |
Income taxes - current and deferred | 34,597 | 167,966 | |
Accrued investment income | 5,975 | 3,387 | |
Total assets | 5,738,486 | 5,321,391 | |
Liabilities: | |||
Senior notes | 643,196 | 641,724 | |
Convertible junior subordinated debentures | 0 | 21,086 | |
Accrued interest | 12,797 | 13,271 | |
Other liabilities | 10,476 | 2,570 | |
Total liabilities | 666,469 | 678,651 | |
Shareholders’ equity: | |||
Common stock | 371,353 | 371,353 | |
Paid-in capital | 1,808,113 | 1,798,842 | |
Treasury stock, at cost | (1,384,293) | (1,050,238) | |
Accumulated other comprehensive income, net of tax | (316,281) | (481,511) | |
Retained earnings | 4,593,125 | 4,004,294 | |
Total shareholders' equity | 5,072,017 | 4,642,740 | |
Total liabilities and shareholders' equity | $ 5,738,486 | $ 5,321,391 | |
Parenthetical information [Abstract] | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 371,353,000 | 371,353,000 | |
Common stock, shares outstanding (in shares) | 272,494,000 | 293,433,000 | |
Treasury stock, shares at cost (in shares) | 98,859,000 | 77,920,000 | |
Revenues: | |||
Investment income, net of expenses | $ 30,123 | $ 7,193 | 3,850 |
Net gains (losses) on investments and other financial instruments | (47) | (2,628) | 490 |
Total revenues | 30,076 | 4,565 | 4,340 |
Expenses: | |||
Operating expenses | 1,555 | 1,575 | 1,644 |
Interest expense | 36,905 | 47,601 | 68,359 |
Loss on debt extinguishment | 0 | 38,870 | 36,914 |
Total losses and expenses | 38,460 | 88,046 | 106,917 |
Income before tax | (8,384) | (83,481) | (102,577) |
Provision for income taxes | (1,734) | (17,851) | (21,240) |
Equity in net income of subsidiaries | 719,599 | 930,979 | 716,320 |
Net income | 712,949 | 865,349 | 634,983 |
Other comprehensive income (loss), net of tax | 165,230 | (601,208) | (97,124) |
Comprehensive income | 878,179 | 264,141 | 537,859 |
Cash flows from operating activities: | |||
Net income | 712,949 | 865,349 | 634,983 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in net income of subsidiaries | (719,599) | (930,979) | (716,320) |
Dividends received from subsidiaries | 326,013 | 626,695 | 400,000 |
Deferred federal | 86,219 | 119,588 | (21,551) |
Loss on debt extinguishment | 0 | 38,870 | 36,914 |
Other | 26,726 | 33,619 | 29,799 |
Change in certain assets and liabilities: | |||
Accounts receivable - affiliates | (1,996) | 1,266 | (680) |
Income taxes receivable | 45,913 | (43,123) | (306) |
Accrued investment income | (499) | 931 | 1,118 |
Accrued interest | 349 | (7,230) | (2,503) |
Net cash provided by operating activities | 476,075 | 704,986 | 361,454 |
Cash flows from investing activities: | |||
Purchases of investments | (566,795) | (1,457) | (339,384) |
Proceeds from sales of investments | 555,957 | 287,924 | 556,384 |
Net cash (used in) provided by investing activities | (10,838) | 286,467 | 217,000 |
Cash flows from financing activities: | |||
Conversion / purchase of convertible junior subordinated debentures | (28,637) | (89,118) | (98,610) |
Redemption of 5.75% senior notes | 0 | (242,296) | 0 |
Cash portion of loss on debt extinguishment | 0 | (38,185) | (36,914) |
Repurchase of common stock | (337,182) | (385,573) | (290,818) |
Dividends paid | (122,965) | (110,947) | (94,219) |
Payment of withholding taxes related to share-based compensation net share settlement | (7,257) | (10,094) | (6,729) |
Net cash used in financing activities | (496,041) | (876,213) | (527,290) |
Net increase in cash and cash equivalents and restricted cash and cash equivalents | (30,804) | 115,240 | 51,164 |
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year | 239,404 | 124,164 | 73,000 |
Cash and cash equivalents and restricted cash and cash equivalents at end of year | 208,600 | 239,404 | $ 124,164 |
Parent Company | Fixed income | |||
Assets | |||
Fixed income, available-for-sale | 598,420 | 287,332 | |
Parenthetical information [Abstract] | |||
Fixed income, amortized cost | 597,944 | 299,649 | |
Parent Company | Short-Term Investments | |||
Assets | |||
Fixed income, available-for-sale | 110,913 | 120,177 | |
Parenthetical information [Abstract] | |||
Fixed income, amortized cost | $ 110,889 | $ 120,102 |
SCHEDULE II - CONDENSED FINAN_3
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - SUPPLEMENTARY NOTES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Senior Notes | 5.25% Senior Notes due 2028 | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Stated interest rate (in hundredths) | 5.25% | ||
Insurance Subsidiaries | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Percentage of statutory policyholders surplus used to determine maximum allowable dividends | 10% | ||
Adjusted statutory net income measurement period | 3 years | ||
Adjusted statutory net income dividend payment measurement period | 2 years | ||
Proceeds from contribution from holding company | $ 0 | $ 0 | $ 0 |
Mortgage Guaranty Insurance Corporation | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Dividends paid to the holding company | 600,000,000 | 800,000,000 | 400,000,000 |
Proceeds from contribution from holding company | $ 0 | $ 0 | $ 0 |
SCHEDULE IV - REINSURANCE (Deta
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||
Gross Amount | $ 1,142,412 | $ 1,154,728 | $ 1,167,592 |
Ceded to Other Companies | 202,821 | 156,373 | 163,031 |
Assumed From Other Companies | 12,960 | 8,778 | 9,858 |
Net Amount | $ 952,551 | $ 1,007,133 | $ 1,014,419 |
Percentage of Amount Assumed to Net | 1.40% | 0.90% | 1% |