Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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, City or Town | Milwaukee, | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53202 | |
City Area Code | (414) | |
Local Phone Number | 347-6480 | |
Title of each class | Common stock | |
Trading Symbol | MTG | |
Security Exchange Name | NYSE | |
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 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 259,233,744 | |
Entity Central Index Key | 0000876437 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investment portfolio: | ||
Fixed income available-for-sale | $ 5,789,968 | |
Equity securities, at fair value (cost 2024 - $16,084; 2023 - $16,025) | 14,636 | $ 14,771 |
Other invested assets, at cost | 1,109 | 850 |
Total investment portfolio | 5,805,713 | 5,738,734 |
Cash and cash equivalents | 281,788 | 363,666 |
Restricted cash and cash equivalents | 6,020 | 6,978 |
Accrued investment income | 60,402 | 58,774 |
Reinsurance recoverable on loss reserves | 42,346 | 33,302 |
Reinsurance recoverable on paid losses | 884 | 9,896 |
Premiums receivable | 56,597 | 58,499 |
Home office and equipment, net | 36,747 | 38,755 |
Deferred insurance policy acquisition costs | 13,126 | 14,591 |
Deferred income taxes, net | 90,629 | 79,782 |
Other assets | 129,670 | 135,403 |
Total assets | 6,523,922 | 6,538,380 |
Liabilities: | ||
Loss reserves | 477,614 | 505,379 |
Unearned premiums | 138,885 | 157,779 |
Senior notes | 643,931 | 643,196 |
Other liabilities | 146,571 | 160,009 |
Total liabilities | 1,407,001 | 1,466,363 |
Contingencies | ||
Shareholders’ equity: | ||
Common stock | 371,353 | 371,353 |
Paid-in capital | 1,795,231 | 1,808,113 |
Treasury stock at cost | (1,624,791) | (1,384,293) |
Accumulated other comprehensive income (loss), net of tax | (333,055) | (316,281) |
Retained earnings | 4,908,183 | 4,593,125 |
Total shareholders’ equity | 5,116,921 | 5,072,017 |
Total liabilities and shareholders’ equity | 6,523,922 | 6,538,380 |
Fixed income | ||
Investment portfolio: | ||
Fixed income available-for-sale | 5,553,549 | 5,601,540 |
Short-Term Investments | ||
Investment portfolio: | ||
Fixed income available-for-sale | $ 236,419 | $ 121,573 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fixed maturities, amortized cost | $ 6,150,471 | |
Cost | $ 16,084 | $ 16,025 |
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) | 261,390,000 | 272,494,000 |
Treasury stock at cost (in shares) | 109,963,000 | 98,859,000 |
Fixed income | ||
Fixed maturities, amortized cost | $ 5,914,023 | $ 5,939,483 |
Short-Term Investments | ||
Fixed maturities, amortized cost | $ 236,448 | $ 121,539 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Premiums written: | ||||
Direct | $ 273,337 | $ 273,079 | $ 548,540 | $ 547,326 |
Assumed | 3,353 | 3,017 | 6,769 | 5,768 |
Ceded | (43,212) | (44,872) | (88,031) | (91,678) |
Net premiums written | 233,478 | 231,224 | 467,278 | 461,416 |
Decrease in unearned premiums, net | 10,050 | 11,587 | 18,894 | 23,410 |
Net premiums earned | 243,528 | 242,811 | 486,172 | 484,826 |
Investment income, net of expenses | 61,479 | 52,340 | 121,223 | 101,563 |
Net gains (losses) on investments and other financial instruments | (276) | (4,987) | (8,785) | (12,685) |
Other revenue | 546 | 511 | 1,028 | 936 |
Total revenues | 305,277 | 290,675 | 599,638 | 574,640 |
Losses and expenses: | ||||
Losses incurred, net | (18,272) | (17,691) | (13,717) | (11,245) |
Amortization of deferred insurance policy acquisition costs | 2,150 | 2,609 | 4,159 | 5,087 |
Other underwriting and operating expenses, net | 52,675 | 53,998 | 111,693 | 124,061 |
Interest expense | 8,899 | 9,377 | 17,798 | 18,751 |
Total losses and expenses | 45,452 | 48,293 | 119,933 | 136,654 |
Income before tax | 259,825 | 242,382 | 479,705 | 437,986 |
Provision for income tax | 55,597 | 51,328 | 101,380 | 92,385 |
Net income | $ 204,228 | $ 191,054 | $ 378,325 | $ 345,601 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.77 | $ 0.67 | $ 1.41 | $ 1.20 |
Diluted (in dollars per share) | $ 0.77 | $ 0.66 | $ 1.40 | $ 1.19 |
Weighted average common shares outstanding - basic (in shares) | 265,315 | 285,906 | 267,814 | 288,434 |
Weighted average common shares outstanding - diluted (in shares) | 266,872 | 289,566 | 269,990 | 292,125 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 204,228 | $ 191,054 | $ 378,325 | $ 345,601 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized investment gains and losses | (7,459) | (30,234) | (17,851) | 50,425 |
Benefit plan adjustments | 538 | 846 | 1,077 | 6,199 |
Other comprehensive income (loss), net of tax | (6,921) | (29,388) | (16,774) | 56,624 |
Comprehensive income (loss) | $ 197,307 | $ 161,666 | $ 361,551 | $ 402,225 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Paid-in capital | Treasury stock | Accumulated other comprehensive income (loss) | Retained earnings |
Balance, beginning of period at Dec. 31, 2022 | $ 371,353 | $ 1,798,842 | $ (1,050,238) | $ (481,511) | $ 4,004,294 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Reissuance of treasury stock, net under share-based compensation plans | (16,912) | 9,713 | ||||
Equity compensation | 17,514 | |||||
Repurchase of common stock | (152,258) | |||||
Other comprehensive income (loss), net of tax | $ 56,624 | 56,624 | ||||
Net income | 345,601 | 345,601 | ||||
Cash dividends | (58,760) | |||||
Balance, end of period at Jun. 30, 2023 | 4,844,262 | 371,353 | 1,799,444 | (1,192,783) | (424,887) | 4,291,135 |
Balance, beginning of period at Dec. 31, 2022 | 371,353 | 1,798,842 | (1,050,238) | (481,511) | 4,004,294 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Repurchase of common stock | (340,600) | |||||
Balance, end of period at Dec. 31, 2023 | 5,072,017 | 371,353 | 1,808,113 | (1,384,293) | (316,281) | 4,593,125 |
Balance, beginning of period at Mar. 31, 2023 | 371,353 | 1,791,609 | (1,119,048) | (395,499) | 4,129,229 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Reissuance of treasury stock, net under share-based compensation plans | 0 | 0 | ||||
Equity compensation | 7,835 | |||||
Repurchase of common stock | (73,735) | |||||
Other comprehensive income (loss), net of tax | (29,388) | (29,388) | ||||
Net income | 191,054 | 191,054 | ||||
Cash dividends | (29,148) | |||||
Balance, end of period at Jun. 30, 2023 | 4,844,262 | 371,353 | 1,799,444 | (1,192,783) | (424,887) | 4,291,135 |
Balance, beginning of period at Dec. 31, 2023 | 5,072,017 | 371,353 | 1,808,113 | (1,384,293) | (316,281) | 4,593,125 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Reissuance of treasury stock, net under share-based compensation plans | (31,168) | 12,122 | ||||
Equity compensation | 18,286 | |||||
Repurchase of common stock | (250,300) | (252,620) | ||||
Other comprehensive income (loss), net of tax | (16,774) | (16,774) | ||||
Net income | 378,325 | 378,325 | ||||
Cash dividends | (63,300) | (63,267) | ||||
Balance, end of period at Jun. 30, 2024 | 5,116,921 | 371,353 | 1,795,231 | (1,624,791) | (333,055) | 4,908,183 |
Balance, beginning of period at Mar. 31, 2024 | 371,353 | 1,788,050 | (1,466,224) | (326,134) | 4,735,298 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Reissuance of treasury stock, net under share-based compensation plans | 0 | 0 | ||||
Equity compensation | 7,181 | |||||
Repurchase of common stock | (158,567) | |||||
Other comprehensive income (loss), net of tax | (6,921) | (6,921) | ||||
Net income | 204,228 | 204,228 | ||||
Cash dividends | (31,343) | |||||
Balance, end of period at Jun. 30, 2024 | $ 5,116,921 | $ 371,353 | $ 1,795,231 | $ (1,624,791) | $ (333,055) | $ 4,908,183 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 378,325 | $ 345,601 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,969 | 19,372 |
Deferred tax expense (benefit) | 4,508 | (1,065) |
Equity compensation | 18,286 | 17,514 |
Net gains (losses) on investments and other financial instruments | (8,785) | (12,685) |
Change in certain assets and liabilities: | ||
Accrued investment income | (1,628) | 12 |
Reinsurance recoverable on loss reserves | (9,044) | (6,235) |
Reinsurance recoverable on paid losses | 9,012 | 17,841 |
Premiums receivable | 1,902 | 934 |
Deferred insurance policy acquisition costs | 1,465 | 2,162 |
Loss reserves | (27,765) | (27,307) |
Unearned premiums | (18,894) | (23,410) |
Return premium accrual | (5,700) | (2,300) |
Current income taxes | 26,993 | 7,846 |
Other, net | (37,439) | (6,702) |
Net cash provided by (used in) operating activities | 359,775 | 356,948 |
Cash flows from investing activities: | ||
Purchases of investments | (737,607) | (830,773) |
Proceeds from sales of investments | 12,841 | 269,728 |
Proceeds from maturity of fixed income securities | 616,633 | 404,546 |
Proceeds from sale of equipment | 0 | 142 |
Additions to property and equipment | (279) | (671) |
Net cash provided by (used in) investing activities | (108,412) | (157,028) |
Cash flows from financing activities: | ||
Repurchase of common stock | (251,217) | (150,192) |
Dividends paid | (63,936) | (58,718) |
Payment of withholding taxes related to share-based compensation net share settlement | (19,046) | (7,199) |
Net cash provided by (used in) financing activities | (334,199) | (216,109) |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | (82,836) | (16,189) |
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period | 370,644 | 332,913 |
Cash and cash equivalents and restricted cash and cash equivalents at end of period | $ 287,808 | $ 316,724 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation 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. 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. The accompanying unaudited consolidated financial statements of MGIC Investment Corporation and its wholly-owned subsidiaries have been prepared in accordance with the instructions to Form 10-Q as prescribed by the Securities and Exchange Commission (“SEC”) for interim reporting and do not include all of the other information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K. As used below, “we,” “our” and “us” refer to MGIC Investment Corporation’s consolidated operations or to MGIC Investment Corporation, as the context requires. In the opinion of management, the accompanying financial statements include all adjustments, consisting primarily of normal recurring accruals, necessary to fairly state our consolidated financial position and consolidated results of operations for the periods indicated. The consolidated results of operations for an interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The substantial majority of our NIW has been 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 June 30, 2024, 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. Subsequent events |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies 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 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt obligations The aggregate carrying value of our 5.25% Senior Notes (“5.25% Notes”) and the par value as of June 30, 2024 and December 31, 2023 is presented in table 3.1 below. Long-term debt obligation, carrying value Table 3.1 (In thousands) June 30, 2024 December 31, 2023 5.25% Notes, due August 2028 (par value: $650 million) $ 643,931 $ 643,196 The 5.25% Notes are an obligation of our holding company, MGIC Investment Corporation. See Note 7 - “Debt” in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information pertaining to our debt obligation. As of June 30, 2024 we are in compliance with our debt covenants. Interest payments Interest payments for the six months ended June 30, 2024 and 2023 were $17.1 million and $18.0 million. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2024 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance We have in place reinsurance agreements executed under quota share reinsurance (“QSR”) transactions and excess-of-loss (“XOL”) transactions as discussed below. The effect of all of our reinsurance transactions on our consolidated statement of operations is shown in table 4.1 below. Reinsurance Table 4.1 Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Premiums earned: Direct $ 283,363 $ 284,636 $ 567,384 $ 570,670 Assumed 3,377 3,047 6,819 5,834 Ceded - quota share reinsurance (1) (26,643) (27,442) (55,358) (57,319) Ceded - excess-of-loss reinsurance (16,569) (17,430) (32,673) (34,359) Total ceded (43,212) (44,872) (88,031) (91,678) Net premiums earned $ 243,528 $ 242,811 $ 486,172 $ 484,826 Losses incurred: Direct $ (14,196) $ (15,706) $ (3,217) $ (4,583) Assumed (46) (31) (17) (27) Ceded - quota share reinsurance (4,030) (1,954) (10,483) (6,635) Losses incurred, net $ (18,272) $ (17,691) $ (13,717) $ (11,245) Other Reinsurance Impacts: Profit commission on quota share reinsurance (1) $ 27,301 $ 34,809 $ 51,885 $ 66,520 Ceding commission on quota share reinsurance 10,789 12,450 21,449 24,768 (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 certain annual loss ratios as defined below. 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 ratio caps of 200% . Table 4.2 below provides additional detail regarding our QSR Transactions. Quota Share Reinsurance Table 4.2 Quota Share Contract Covered Policy Years Quota Share % Annual Loss Ratio to Exhaust Profit Commission (1) Contractual Termination Date 2020 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 2024 QSR 2024 30.0 % 56.0 % ' December 31, 2035 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. 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 4.3 provides additional details 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 4.2 to the percentage shown in table 4.3. Quota Share Reinsurance Table 4.3 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 December 31, 2024 July 1, 2024 14.5% or 12% 2021 QSR and 2022 QSR 2021 December 31, 2024 July 1, 2024 10.5% or 8% 2021 QSR and 2022 QSR 2022 December 31, 2024 July 1, 2024 12.5% or 10% 2022 QSR and 2023 QSR 2022 December 31, 2024 July 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% 2024 QSR 2024 December 31, 2027 December 31, 2027 23% or 15% (1) We can elect early termination of the QSR Transaction beginning on this date, and semi-annually thereafter. (2) We can elect to reduce the quota share percentage beginning on this date, and semi-annually thereafter. Under the terms of our QSR Transactions, ceded premiums earned, ceding commissions, profit commission, and ceded paid loss and LAE are settled net on a quarterly basis. The ceded premiums earned 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 $42.3 million as of June 30, 2024 and $33.3 million as of December 31, 2023. The reinsurance recoverable balance is 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 QSR Transactions 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. 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 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. 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 June 30, 2024, a "Trigger Event" has occurred on our Home Re 2019-1 ILN 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 each 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. were redeemed in full. Table 4.4a, 4.4b, and 4.4c provide a summary of our XOL Transactions as of June 30, 2024 and December 31, 2023. Tables 4.4b and 4.4c exclude the 2024 Traditional XOL which is still in its fill up period. Excess of Loss Reinsurance Table 4.4a ($ in thousands) Issue Date Policy In force Dates Optional Call Date (1) Legal Maturity 2024 Traditional XOL (2) April 1, 2024 January 1, 2024 - December 31, 2024 January 1, 2030 10 years 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 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. (2) The 2024 Traditional XOL Transaction provides up to $187 million of reinsurance coverage on eligible NIW in 2024. Excess of Loss Reinsurance Table 4.4b Remaining First Layer Retention ($ in thousands) Initial First Layer Retention June 30, 2024 December 31, 2023 2023 Traditional XOL $ 70,578 $ 70,544 $ 70,578 2022 Traditional XOL 82,523 81,999 82,346 Home Re 2023-1, Ltd. 272,961 272,850 272,961 Home Re 2022-1, Ltd. 325,589 323,797 325,001 Home Re 2021-2, Ltd. 190,159 189,007 189,403 Home Re 2021-1, Ltd. 211,159 210,376 210,831 Home Re 2020-1, Ltd. 275,283 — 261,280 Home Re 2019-1, Ltd. 185,730 182,464 182,722 Home Re 2018-1, Ltd. 168,691 164,108 164,335 Table 4.4c Remaining Excess of Loss Reinsurance Coverage (1) ($ in thousands) Initial Excess of Loss Reinsurance Coverage (1) Initial Funding Percentage (2) Funding Percentage at 6/30/2024 (2) June 30, 2024 December 31, 2023 2023 Traditional XOL $ 96,942 N/A N/A $ 95,034 $ 96,942 2022 Traditional XOL 142,642 N/A N/A 136,629 142,642 Home Re 2023-1, Ltd. 330,277 97 % 97 % 330,277 330,277 Home Re 2022-1, Ltd. 473,575 100 % 100 % 368,553 420,731 Home Re 2021-2, Ltd. (3) 398,429 100 % 79 % 162,140 173,960 Home Re 2021-1, Ltd. (3) 398,848 100 % 83 % 117,564 117,982 Home Re 2020-1, Ltd. 412,917 100 % — % — 41,846 Home Re 2019-1, Ltd. (3) 315,739 100 % 10 % 21,039 21,039 Home Re 2018-1, Ltd. 318,636 100 % 100 % 38,998 69,762 (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 a 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 June 30, 2024 and December 31, 2023, were not material to our consolidated balance sheet and the change in fair value during the three and six months ended June 30, 2024 and June 30, 2023 were not material to our consolidated statements of operations. (See Note 7 - “Investments” and Note 8 - “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 June 30, 2024, and December 31, 2023, 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 4.5 presents the total assets of the Home Re Entities as of June 30, 2024 and December 31, 2023. Home Re total assets Table 4.5 (In thousands) Total VIE Assets Home Re Entity June 30, 2024 December 31, 2023 Home Re 2023-1 Ltd. $ 330,277 $ 330,277 Home Re 2022-1 Ltd. 378,663 427,279 Home Re 2021-2 Ltd. 165,994 174,431 Home Re 2021-1 Ltd. 117,633 118,043 Home Re 2020-1 Ltd. — 41,846 Home Re 2019-1 Ltd. 21,039 21,039 Home Re 2018-1 Ltd. 47,439 73,872 The reinsurance trust agreements provide that the trust assets may generally only be invested in certain money market funds that (i) 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, (ii) have a principal stability fund rating of “AAAm” by S&P or a money market fund rating of “Aaamf” by Moody’s as of the Closing Date and thereafter maintain any rating with either S&P or Moody’s, and (iii) 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 are 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 Basis of Presentation” .) |
Litigation and Contingencies
Litigation and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 condition or results of operations. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 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, including participating securities. Our “participating securities” are comprised 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. The determination of whether components are dilutive is calculated independently for each period. 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 unvested RSUs result in the issuance of common stock. Under the if-converted method, diluted EPS reflects the potential dilution that would have occurred if our 9% Debentures resulted in the issuance of 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. In the third quarter of 2023, under the terms of our 9% Debentures, we exercised our option to redeem the outstanding principal. Table 6.1 reconciles the numerators and denominators used to calculate basic and diluted EPS. Earnings per share Table 6.1 Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2024 2023 2024 2023 Basic earnings per share: Net income $ 204,228 $ 191,054 $ 378,325 $ 345,601 Weighted average common shares outstanding - basic 265,315 285,906 267,814 288,434 Basic earnings per share $ 0.77 $ 0.67 $ 1.41 $ 1.20 Diluted earnings per share: Net income $ 204,228 $ 191,054 $ 378,325 $ 345,601 Interest expense, net of tax: (1) 9% Debentures — 375 — 750 Diluted income available to common shareholders $ 204,228 $ 191,429 $ 378,325 $ 346,351 Weighted average common shares outstanding - basic 265,315 285,906 267,814 288,434 Effect of dilutive securities: Unvested RSUs 1,557 2,016 2,176 2,047 9% Debentures — 1,644 — 1,644 Weighted average common shares outstanding - diluted 266,872 289,566 269,990 292,125 Diluted earnings per share $ 0.77 $ 0.66 $ 1.40 $ 1.19 (1) Interest expense has been tax effected at a rate of 21%. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments [Abstract] | |
Investments | Investments Fixed income securities Our fixed income securities classified as available-for-sale at June 30, 2024 and December 31, 2023 are shown in tables 7.1a and 7.1b below. Details of fixed income securities by category as of June 30, 2024 Table 7.1a (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 $ 270,158 $ 66 $ (6,311) $ 263,913 Obligations of U.S. states and political subdivisions 2,068,272 2,141 (197,033) 1,873,380 Corporate debt securities 2,654,262 7,893 (130,214) 2,531,941 ABS 174,794 1,098 (2,020) 173,872 RMBS 381,258 2,459 (25,400) 358,317 CMBS 275,559 26 (12,759) 262,826 CLOs 291,461 542 (275) 291,728 Foreign government debt 4,487 — (717) 3,770 Commercial paper 30,220 1 — 30,221 Total fixed income securities $ 6,150,471 $ 14,226 $ (374,729) $ 5,789,968 Details of fixed income securities by category as of December 31, 2023 Table 7.1b (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 $ 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 We had $12.1 million and $12.2 million of investments at fair value on deposit with various states as of June 30, 2024 and December 31, 2023, 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 $197.9 million and $156.9 million at June 30, 2024 and December 31, 2023, respectively. The amortized cost and fair values of fixed income securities at June 30, 2024, by contractual maturity, are shown in table 7.2 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 periodic payments throughout their lives, they are listed in separate categories. Fixed income securities maturity schedule Table 7.2 June 30, 2024 (In thousands) Amortized cost Fair Value Due in one year or less $ 724,100 $ 718,932 Due after one year through five years 1,549,563 1,498,402 Due after five years through ten years 1,797,579 1,670,721 Due after ten years 956,157 815,170 5,027,399 4,703,225 ABS 174,794 173,872 RMBS 381,258 358,317 CMBS 275,559 262,826 CLOs 291,461 291,728 Total $ 6,150,471 $ 5,789,968 Equity securities The cost and fair value of investments in equity securities at June 30, 2024 and December 31, 2023 are shown in tables 7.3a and 7.3b below. Details of equity security investments as of June 30, 2024 Table 7.3a (In thousands) Cost Fair Value Gains Fair Value Losses Fair Value Equity securities $ 16,084 $ 3 $ (1,451) $ 14,636 Details of equity security investments as of December 31, 2023 Table 7.3b (In thousands) Cost Fair Value Gains Fair Value Losses Fair Value Equity securities $ 16,025 $ 5 $ (1,259) $ 14,771 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 securities are shown in table 7.4 below. Details of net gains (losses) on investments and other financial instruments Table 7.4 Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2024 2023 2024 2023 Fixed income securities Gains on sales 425 107 480 166 Losses on sales (1,262) (6,415) (6,747) (10,548) Equity securities gains (losses) Changes in fair value (92) (164) (195) 196 Change in embedded derivative on Home Re Transactions 646 1,497 (2,330) (2,479) Other Gains (losses) on sales 16 (6) 17 — Market adjustment (9) (6) (10) (20) Net gains (losses) on investments and other financial instruments (276) (4,987) (8,785) (12,685) Proceeds from sales of fixed income securities — 236,777 14,886 268,958 Other invested assets Our other invested assets balance includes an investment in 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, subject to certain conditions, which includes requirements to post collateral and to maintain a minimum investment in FHLB stock. Unrealized investment losses Tables 7.5a and 7.5b below summarize, for all available-for-sale investments in an unrealized loss position at June 30, 2024 and December 31, 2023, 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 7.5a and 7.5b are estimated using the process described in Note 8 - “Fair Value Measurements” to these consolidated financial statements and in Note 3 - “Significant Accounting Policies” to the consolidated financial statements in our 2023 Annual Report on Form 10-K. Unrealized loss aging for securities by type and length of time as of June 30, 2024 Table 7.5a 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 $ 77,946 $ (159) $ 100,540 $ (6,152) $ 178,486 $ (6,311) Obligations of U.S. states and political subdivisions 433,539 (3,733) 1,340,359 (193,300) 1,773,898 (197,033) Corporate debt securities 704,646 (8,593) 1,362,682 (121,621) 2,067,328 (130,214) ABS 53,203 (987) 40,590 (1,033) 93,793 (2,020) RMBS 78,939 (4,990) 172,749 (20,410) 251,688 (25,400) CMBS 2,767 (25) 261,570 (12,734) 264,337 (12,759) CLOs 19,870 (274) 16,929 (1) 36,799 (275) Foreign government debt — — 3,770 (717) 3,770 (717) Total $ 1,370,910 $ (18,761) $ 3,299,189 $ (355,968) $ 4,670,099 $ (374,729) Unrealized loss aging for securities by type and length of time as of December 31, 2023 Table 7.5b 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 $ 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) There were 1,188 and 1,021 securities in an unrealized loss position at June 30, 2024 and December 31, 2023, respectively. Based on current facts and circumstances, we believe the unrealized losses as of June 30, 2024 presented in table 7.5a above are not indicative of the ultimate collectability of the current amortized cost of the securities. The unrealized losses in all categories of our investments at June 30, 2024 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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 spreads 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, which has an original maturity greater than 90 days , is valued using market data for comparable instruments of similar maturity and average yields. These securities are generally 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: Consist 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 June 30, 2024 and December 31, 2023 are shown in tables 8.1a and 8.1b 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 our 2023 Annual Report on Form 10-K. Assets carried at fair value by hierarchy level as of June 30, 2024 Table 8.1a (In thousands) Total 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 $ 263,913 $ 212,375 $ 51,538 Obligations of U.S. states and political subdivisions 1,873,380 — 1,873,380 Corporate debt securities 2,531,941 — 2,531,941 ABS 173,872 — 173,872 RMBS 358,317 — 358,317 CMBS 262,826 — 262,826 CLOs 291,728 — 291,728 Foreign government debt 3,770 — 3,770 Commercial paper 30,221 — 30,221 Total fixed income securities 5,789,968 212,375 5,577,593 Equity securities 14,636 14,636 — Cash equivalents (1) 283,185 203,570 79,615 Total $ 6,087,789 $ 430,581 $ 5,657,208 Assets carried at fair value by hierarchy level as of December 31, 2023 Table 8.1b (In thousands) Total 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 (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 7 – “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 June 30, 2024 and December 31, 2023, the fair value of the embedded derivatives was an asset of less than $0.1 million and an asset of $2.4 million, respectively. (See Note 4 - "Reinsurance" for more information about our reinsurance programs.) 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. For the six months ended June 30, 2024, and 2023, purchases of real estate acquired were $2.3 million and $0.1 million, respectively. For the six months ended June 30, 2024, and 2023, sales of real estate acquired were $0.5 million and $1.2 million, respectively. Financial assets and 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 obligation. The fair value of our 5.25% Notes was based on observable market prices and is categorized as level 2. Table 8.2 presents the carrying value and fair value of our financial assets and liabilities disclosed, but not carried, at fair value at June 30, 2024 and December 31, 2023. Financial assets and liabilities not measured at fair value Table 8.2 June 30, 2024 December 31, 2023 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Financial assets Other invested assets $ 1,109 $ 1,109 $ 850 $ 850 Financial liabilities 5.25% Senior Notes 643,931 633,939 643,196 634,498 |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The pretax and related income tax benefit (expense) components of our other comprehensive income (loss) for the three and six months ended June 30, 2024 and 2023 are included in table 9.1 below. Components of other comprehensive income (loss) Table 9.1 Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Net unrealized investment (losses) gains arising during the period $ (9,442) $ (38,270) $ (22,596) $ 63,829 Total income tax benefit (expense) 1,983 8,036 4,745 (13,404) Net of tax (7,459) (30,234) (17,851) 50,425 Net changes in benefit plan assets and obligations 681 1,071 1,363 7,847 Total income tax benefit (expense) (143) (225) (286) (1,648) Net of tax 538 846 1,077 6,199 Total other comprehensive income (loss) $ (8,761) (37,199) (21,233) 71,676 Total income tax benefit (expense) 1,840 7,811 4,459 (15,052) Total other comprehensive income (loss), net of tax $ (6,921) $ (29,388) $ (16,774) $ 56,624 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 three and six months ended June 30, 2024 and 2023 are included in table 9.2 below. Reclassifications from AOCI Table 9.2 Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Reclassification adjustment for net realized (losses) gains (1) $ (2,061) $ (5,771) $ (12,034) $ (9,935) Income tax benefit (expense) 433 1,212 2,527 2,086 Net of tax (1,628) (4,559) (9,507) (7,849) Reclassification adjustment related to benefit plan assets and obligations (2) (681) (1,071) (1,363) (10,003) Income tax benefit (expense) 143 225 286 2,101 Net of tax (538) (846) (1,077) (7,902) Total reclassifications (2,742) (6,842) (13,397) (19,938) Income tax benefit (expense) 576 1,437 2,813 4,187 Total reclassifications, net of tax $ (2,166) $ (5,405) $ (10,584) $ (15,751) (1) Increases (decreases) Net realized investment gains (losses) on the consolidated statements of operations. (2) Decreases (increases) Other underwriting and operating expenses, net on the consolidated statements of operations. A rollforward of AOCI for the six months ended June 30, 2024, including amounts reclassified from AOCI, are included in table 9.3 below. Rollforward of AOCI Table 9.3 Six Months Ended June 30, 2024 (In thousands) Net unrealized gains and (losses) on available-for-sale securities Net benefit plan assets and (obligations) recognized in shareholders' equity Total accumulated other comprehensive income (loss) Balance at December 31, 2023, net of tax $ (266,948) $ (49,333) $ (316,281) Other comprehensive income (loss) before reclassifications (27,358) — (27,358) Less: Amounts reclassified from AOCI (9,507) (1,077) (10,584) Balance, June 30, 2024, net of tax $ (284,799) $ (48,256) $ (333,055) |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2024 | |
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. Tables 10.1 and 10.2 provide the components of net periodic benefit cost for our pension, supplemental executive retirement and other postretirement benefit plans for the three and six months ended June 30, 2024 and 2023. Components of net periodic benefit cost Table 10.1 Three Months Ended June 30, Pension and Supplemental Executive Retirement Plans Other Postretirement Benefit Plans (In thousands) 2024 2023 2024 2023 Company service cost $ — $ — $ 417 $ 362 Interest cost 3,247 3,299 375 418 Expected return on plan assets (3,644) (3,425) (2,494) (2,054) Amortization of: Net actuarial losses (gains) 523 530 (380) (11) Prior service cost (credit) 86 86 453 466 Cost of settlements and curtailments — 1,000 — — Net periodic benefit cost (benefit) $ 212 $ 1,490 $ (1,629) $ (819) Components of net periodic benefit cost Table 10.2 Six Months Ended June 30, Pension and Supplemental Executive Retirement Plans Other Postretirement Benefit Plans (In thousands) 2024 2023 2024 2023 Company service cost $ — $ — $ 834 $ 748 Interest cost 6,494 6,981 750 816 Expected return on plan assets (7,288) (7,006) (4,988) (4,117) Amortization of: Net actuarial losses (gains) 1,046 1,127 (760) (75) Prior service cost (credit) 172 172 906 931 Cost of settlements and curtailments — 8,847 — — Net periodic benefit cost (benefit) $ 424 $ 10,121 $ (3,258) $ (1,697) In the first quarter of 2024, we made a contribution to our qualified pension plan of $23.0 million. |
Loss Reserves
Loss Reserves | 3 Months Ended |
Jun. 30, 2024 | |
Insurance Loss Reserves [Abstract] | |
Loss Reserves | Loss Reserves We establish case reserves and 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. Even in a stable environment, changes to our estimates could result in a material impact to our consolidated results of operations and financial position. 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 results 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 changes in unemployment, 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 results of operations even in a stable economic environment. For example, as of June 30, 2024, 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 +/- $7 million. A one percentage point increase/decrease in the average claim rate reserve factor would change the loss reserve amount by approximately +/- $15 million. The “Losses incurred” section of table 11.1 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 that occurred in the current year increased for the six months ended June 30, 2024, compared to the same period last year. The increase is primarily due to an increase in estimated severity on current year delinquencies and an increase in new delinquencies reported. For the six months ended June 30, 2024 and June 30, 2023 we experienced favorable loss development of $116.3 million and $100.7 million, respectively, on previously received delinquencies. 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 11.1 below shows the amount of losses paid on delinquencies that occurred in the current year and losses paid on delinquencies that occurred in prior years. Table 11.1 provides a reconciliation of beginning and ending loss reserves as of and for the six months ended June 30, 2024 and 2023. Development of reserves for losses and loss adjustment expenses Table 11.1 Six Months Ended June 30, (In thousands) 2024 2023 Reserve at beginning of period $ 505,379 $ 557,988 Less reinsurance recoverable 33,302 28,240 Net reserve at beginning of period 472,077 529,748 Losses incurred: Losses and LAE incurred in respect of delinquency notices received in: Current year 102,553 89,465 Prior years (1) (116,270) (100,710) Total losses incurred (13,717) (11,245) Losses paid: Losses and LAE paid in respect of delinquency notices received in: Current year 52 25 Prior years 23,040 22,272 Total losses paid 23,092 22,297 Net reserve at end of period 435,268 496,206 Plus reinsurance recoverable 42,346 34,475 Reserve at end of period $ 477,614 $ 530,681 (1) A positive number for prior year loss reserve development indicates a deficiency of prior year reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves. See the following table for more information about prior year loss reserve development. The prior year loss reserve development for the six months ended June 30, 2024 and 2023 is shown in table 11.2 below. Reserve development on previously received delinquencies Table 11.2 Six Months Ended June 30, (In thousands) 2024 2023 Increase (decrease) in estimated claim rate on primary defaults $ (101,008) $ (99,148) Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other (15,262) (1,562) Total prior year loss development (1) $ (116,270) $ (100,710) (1) A positive number for prior year loss reserve development indicates a deficiency of prior year loss reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves. Premium refunds Our estimate of premiums to be refunded on expected claim payments is accrued for separately in “Other Liabilities” on our consolidated balance sheets were $15.4 million and $21.1 million at June 30, 2024 and December 31, 2023, respectively. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share repurchase programs Repurchases of our common stock may be made from time to time on the open market (including through 10b5-1 plans) or through privately negotiated transactions. In the six months ended June 30, 2024, we repurchased 12.3 million shares for $250.3 million, which included commissions. In 2023, we repurchased approximately 21.7 million shares of our common stock for $340.6 million, which included commissions. At June 30, 2024, we had remaining authorization to repurchase $773 million remaining under our existing share repurchase programs. Through July 26, 2024, we repurchased an additional 2.2 million shares totaling $49.0 million under the remaining authorization through December 31, 2026. Cash dividends In the first and second quarters of 2024, we paid quarterly cash dividends of $0.115 per share which totaled $63.3 million. On July 25, 2024, the Board of Directors declared a quarterly cash dividend to the holders of the company’s common stock of $0.13 per share payable on August 22, 2024, to shareholders of record on August 8, 2024. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 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 Table 13.1 shows the number of restricted stock units (RSUs) granted to employees and non-employee directors and the weighted average fair value per share during the periods presented. Restricted stock unit grants Table 13.1 Six months ended June 30, 2024 2023 RSUs Granted (in thousands) Weighted Average Share Fair Value RSUs Granted (in thousands) Weighted Average Share Fair Value RSUs subject to performance conditions (1) 634 $ 19.81 949 $ 14.17 RSUs subject only to service conditions 248 19.81 354 14.17 Non-employee director RSUs 76 19.81 106 14.17 (1) Shares granted are subject to performance conditions under which the target number of shares granted may vest from 0% to 200%. |
Statutory Information
Statutory Information | 3 Months Ended |
Jun. 30, 2024 | |
Statutory Capital [Abstract] | |
Insurance Disclosure | Statutory Information 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, as 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 June 30, 2024, MGIC’s risk-to-capital ratio was 10.0 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. If MGIC is not allowed an agreed level of credit under either the State Capital Requirements or the financial requirements of the PMIERs, MGIC may terminate the reinsurance agreements without penalty. 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. 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 MGIC is subject to statutory regulations as to payment of dividends. The maximum amount of dividends that MGIC 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 Statutory Financial Information 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 their 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 loss reserves of our insurance subsidiaries, including MGIC, are shown in table 14.1. Financial information of our insurance subsidiaries (including MGIC) Table 14.1 As of and for the Six Months Ended June 30, (In thousands) 2024 2023 Statutory net income $ 175,577 $ 135,182 Statutory policyholders' surplus 468,757 778,893 Contingency loss reserves 5,450,485 4,936,541 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 204,228 | $ 191,054 | $ 378,325 | $ 345,601 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
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) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Prospective Accounting Standards | 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 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-term debt | The aggregate carrying value of our 5.25% Senior Notes (“5.25% Notes”) and the par value as of June 30, 2024 and December 31, 2023 is presented in table 3.1 below. Long-term debt obligation, carrying value Table 3.1 (In thousands) June 30, 2024 December 31, 2023 5.25% Notes, due August 2028 (par value: $650 million) $ 643,931 $ 643,196 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Reinsurance Disclosures [Abstract] | |
Effect of reinsurance transactions | The effect of all of our reinsurance transactions on our consolidated statement of operations is shown in table 4.1 below. Reinsurance Table 4.1 Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Premiums earned: Direct $ 283,363 $ 284,636 $ 567,384 $ 570,670 Assumed 3,377 3,047 6,819 5,834 Ceded - quota share reinsurance (1) (26,643) (27,442) (55,358) (57,319) Ceded - excess-of-loss reinsurance (16,569) (17,430) (32,673) (34,359) Total ceded (43,212) (44,872) (88,031) (91,678) Net premiums earned $ 243,528 $ 242,811 $ 486,172 $ 484,826 Losses incurred: Direct $ (14,196) $ (15,706) $ (3,217) $ (4,583) Assumed (46) (31) (17) (27) Ceded - quota share reinsurance (4,030) (1,954) (10,483) (6,635) Losses incurred, net $ (18,272) $ (17,691) $ (13,717) $ (11,245) Other Reinsurance Impacts: Profit commission on quota share reinsurance (1) $ 27,301 $ 34,809 $ 51,885 $ 66,520 Ceding commission on quota share reinsurance 10,789 12,450 21,449 24,768 (1) Ceded premiums earned are shown net of profit commission. |
Schedule Of Quota Share Reinsurance Transactions | Table 4.2 below provides additional detail regarding our QSR Transactions. Quota Share Reinsurance Table 4.2 Quota Share Contract Covered Policy Years Quota Share % Annual Loss Ratio to Exhaust Profit Commission (1) Contractual Termination Date 2020 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 2024 QSR 2024 30.0 % 56.0 % ' December 31, 2035 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. Table 4.3 provides additional details 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 4.2 to the percentage shown in table 4.3. Quota Share Reinsurance Table 4.3 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 December 31, 2024 July 1, 2024 14.5% or 12% 2021 QSR and 2022 QSR 2021 December 31, 2024 July 1, 2024 10.5% or 8% 2021 QSR and 2022 QSR 2022 December 31, 2024 July 1, 2024 12.5% or 10% 2022 QSR and 2023 QSR 2022 December 31, 2024 July 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% 2024 QSR 2024 December 31, 2027 December 31, 2027 23% or 15% (1) We can elect early termination of the QSR Transaction beginning on this date, and semi-annually thereafter. |
Schedule of coverages and retention | Table 4.4a, 4.4b, and 4.4c provide a summary of our XOL Transactions as of June 30, 2024 and December 31, 2023. Tables 4.4b and 4.4c exclude the 2024 Traditional XOL which is still in its fill up period. Excess of Loss Reinsurance Table 4.4a ($ in thousands) Issue Date Policy In force Dates Optional Call Date (1) Legal Maturity 2024 Traditional XOL (2) April 1, 2024 January 1, 2024 - December 31, 2024 January 1, 2030 10 years 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 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. (2) The 2024 Traditional XOL Transaction provides up to $187 million of reinsurance coverage on eligible NIW in 2024. Excess of Loss Reinsurance Table 4.4b Remaining First Layer Retention ($ in thousands) Initial First Layer Retention June 30, 2024 December 31, 2023 2023 Traditional XOL $ 70,578 $ 70,544 $ 70,578 2022 Traditional XOL 82,523 81,999 82,346 Home Re 2023-1, Ltd. 272,961 272,850 272,961 Home Re 2022-1, Ltd. 325,589 323,797 325,001 Home Re 2021-2, Ltd. 190,159 189,007 189,403 Home Re 2021-1, Ltd. 211,159 210,376 210,831 Home Re 2020-1, Ltd. 275,283 — 261,280 Home Re 2019-1, Ltd. 185,730 182,464 182,722 Home Re 2018-1, Ltd. 168,691 164,108 164,335 Table 4.4c Remaining Excess of Loss Reinsurance Coverage (1) ($ in thousands) Initial Excess of Loss Reinsurance Coverage (1) Initial Funding Percentage (2) Funding Percentage at 6/30/2024 (2) June 30, 2024 December 31, 2023 2023 Traditional XOL $ 96,942 N/A N/A $ 95,034 $ 96,942 2022 Traditional XOL 142,642 N/A N/A 136,629 142,642 Home Re 2023-1, Ltd. 330,277 97 % 97 % 330,277 330,277 Home Re 2022-1, Ltd. 473,575 100 % 100 % 368,553 420,731 Home Re 2021-2, Ltd. (3) 398,429 100 % 79 % 162,140 173,960 Home Re 2021-1, Ltd. (3) 398,848 100 % 83 % 117,564 117,982 Home Re 2020-1, Ltd. 412,917 100 % — % — 41,846 Home Re 2019-1, Ltd. (3) 315,739 100 % 10 % 21,039 21,039 Home Re 2018-1, Ltd. 318,636 100 % 100 % 38,998 69,762 (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 | Table 4.5 presents the total assets of the Home Re Entities as of June 30, 2024 and December 31, 2023. Home Re total assets Table 4.5 (In thousands) Total VIE Assets Home Re Entity June 30, 2024 December 31, 2023 Home Re 2023-1 Ltd. $ 330,277 $ 330,277 Home Re 2022-1 Ltd. 378,663 427,279 Home Re 2021-2 Ltd. 165,994 174,431 Home Re 2021-1 Ltd. 117,633 118,043 Home Re 2020-1 Ltd. — 41,846 Home Re 2019-1 Ltd. 21,039 21,039 Home Re 2018-1 Ltd. 47,439 73,872 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Calculation of earnings (loss) per share | Table 6.1 reconciles the numerators and denominators used to calculate basic and diluted EPS. Earnings per share Table 6.1 Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2024 2023 2024 2023 Basic earnings per share: Net income $ 204,228 $ 191,054 $ 378,325 $ 345,601 Weighted average common shares outstanding - basic 265,315 285,906 267,814 288,434 Basic earnings per share $ 0.77 $ 0.67 $ 1.41 $ 1.20 Diluted earnings per share: Net income $ 204,228 $ 191,054 $ 378,325 $ 345,601 Interest expense, net of tax: (1) 9% Debentures — 375 — 750 Diluted income available to common shareholders $ 204,228 $ 191,429 $ 378,325 $ 346,351 Weighted average common shares outstanding - basic 265,315 285,906 267,814 288,434 Effect of dilutive securities: Unvested RSUs 1,557 2,016 2,176 2,047 9% Debentures — 1,644 — 1,644 Weighted average common shares outstanding - diluted 266,872 289,566 269,990 292,125 Diluted earnings per share $ 0.77 $ 0.66 $ 1.40 $ 1.19 (1) Interest expense has been tax effected at a rate of 21%. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments [Abstract] | |
Amortized cost, gross unrealized gains and losses and fair value of fixed income securities | Our fixed income securities classified as available-for-sale at June 30, 2024 and December 31, 2023 are shown in tables 7.1a and 7.1b below. Details of fixed income securities by category as of June 30, 2024 Table 7.1a (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 $ 270,158 $ 66 $ (6,311) $ 263,913 Obligations of U.S. states and political subdivisions 2,068,272 2,141 (197,033) 1,873,380 Corporate debt securities 2,654,262 7,893 (130,214) 2,531,941 ABS 174,794 1,098 (2,020) 173,872 RMBS 381,258 2,459 (25,400) 358,317 CMBS 275,559 26 (12,759) 262,826 CLOs 291,461 542 (275) 291,728 Foreign government debt 4,487 — (717) 3,770 Commercial paper 30,220 1 — 30,221 Total fixed income securities $ 6,150,471 $ 14,226 $ (374,729) $ 5,789,968 Details of fixed income securities by category as of December 31, 2023 Table 7.1b (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 $ 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 |
Amortized cost and fair values of fixed income securities by contractual maturity | The amortized cost and fair values of fixed income securities at June 30, 2024, by contractual maturity, are shown in table 7.2 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 periodic payments throughout their lives, they are listed in separate categories. Fixed income securities maturity schedule Table 7.2 June 30, 2024 (In thousands) Amortized cost Fair Value Due in one year or less $ 724,100 $ 718,932 Due after one year through five years 1,549,563 1,498,402 Due after five years through ten years 1,797,579 1,670,721 Due after ten years 956,157 815,170 5,027,399 4,703,225 ABS 174,794 173,872 RMBS 381,258 358,317 CMBS 275,559 262,826 CLOs 291,461 291,728 Total $ 6,150,471 $ 5,789,968 |
Cost and fair value of investments in equity securities | The cost and fair value of investments in equity securities at June 30, 2024 and December 31, 2023 are shown in tables 7.3a and 7.3b below. Details of equity security investments as of June 30, 2024 Table 7.3a (In thousands) Cost Fair Value Gains Fair Value Losses Fair Value Equity securities $ 16,084 $ 3 $ (1,451) $ 14,636 Details of equity security investments as of December 31, 2023 Table 7.3b (In thousands) Cost Fair Value Gains Fair Value Losses Fair Value Equity securities $ 16,025 $ 5 $ (1,259) $ 14,771 |
Schedule of realized gains (losses) and proceeds from sale of securities | 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 securities are shown in table 7.4 below. Details of net gains (losses) on investments and other financial instruments Table 7.4 Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2024 2023 2024 2023 Fixed income securities Gains on sales 425 107 480 166 Losses on sales (1,262) (6,415) (6,747) (10,548) Equity securities gains (losses) Changes in fair value (92) (164) (195) 196 Change in embedded derivative on Home Re Transactions 646 1,497 (2,330) (2,479) Other Gains (losses) on sales 16 (6) 17 — Market adjustment (9) (6) (10) (20) Net gains (losses) on investments and other financial instruments (276) (4,987) (8,785) (12,685) Proceeds from sales of fixed income securities — 236,777 14,886 268,958 |
Aging of the fair values of securities in an unrealized loss position | Tables 7.5a and 7.5b below summarize, for all available-for-sale investments in an unrealized loss position at June 30, 2024 and December 31, 2023, 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 7.5a and 7.5b are estimated using the process described in Note 8 - “Fair Value Measurements” to these consolidated financial statements and in Note 3 - “Significant Accounting Policies” to the consolidated financial statements in our 2023 Annual Report on Form 10-K. Unrealized loss aging for securities by type and length of time as of June 30, 2024 Table 7.5a 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 $ 77,946 $ (159) $ 100,540 $ (6,152) $ 178,486 $ (6,311) Obligations of U.S. states and political subdivisions 433,539 (3,733) 1,340,359 (193,300) 1,773,898 (197,033) Corporate debt securities 704,646 (8,593) 1,362,682 (121,621) 2,067,328 (130,214) ABS 53,203 (987) 40,590 (1,033) 93,793 (2,020) RMBS 78,939 (4,990) 172,749 (20,410) 251,688 (25,400) CMBS 2,767 (25) 261,570 (12,734) 264,337 (12,759) CLOs 19,870 (274) 16,929 (1) 36,799 (275) Foreign government debt — — 3,770 (717) 3,770 (717) Total $ 1,370,910 $ (18,761) $ 3,299,189 $ (355,968) $ 4,670,099 $ (374,729) Unrealized loss aging for securities by type and length of time as of December 31, 2023 Table 7.5b 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 $ 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) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements for items measured at fair value | Assets measured at fair value, by hierarchy level, as of June 30, 2024 and December 31, 2023 are shown in tables 8.1a and 8.1b 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 our 2023 Annual Report on Form 10-K. Assets carried at fair value by hierarchy level as of June 30, 2024 Table 8.1a (In thousands) Total 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 $ 263,913 $ 212,375 $ 51,538 Obligations of U.S. states and political subdivisions 1,873,380 — 1,873,380 Corporate debt securities 2,531,941 — 2,531,941 ABS 173,872 — 173,872 RMBS 358,317 — 358,317 CMBS 262,826 — 262,826 CLOs 291,728 — 291,728 Foreign government debt 3,770 — 3,770 Commercial paper 30,221 — 30,221 Total fixed income securities 5,789,968 212,375 5,577,593 Equity securities 14,636 14,636 — Cash equivalents (1) 283,185 203,570 79,615 Total $ 6,087,789 $ 430,581 $ 5,657,208 Assets carried at fair value by hierarchy level as of December 31, 2023 Table 8.1b (In thousands) Total 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 (1) Includes restricted cash equivalents |
Carrying value and fair value of financial assets and liabilities | Table 8.2 presents the carrying value and fair value of our financial assets and liabilities disclosed, but not carried, at fair value at June 30, 2024 and December 31, 2023. Financial assets and liabilities not measured at fair value Table 8.2 June 30, 2024 December 31, 2023 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Financial assets Other invested assets $ 1,109 $ 1,109 $ 850 $ 850 Financial liabilities 5.25% Senior Notes 643,931 633,939 643,196 634,498 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other comprehensive income | The pretax and related income tax benefit (expense) components of our other comprehensive income (loss) for the three and six months ended June 30, 2024 and 2023 are included in table 9.1 below. Components of other comprehensive income (loss) Table 9.1 Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Net unrealized investment (losses) gains arising during the period $ (9,442) $ (38,270) $ (22,596) $ 63,829 Total income tax benefit (expense) 1,983 8,036 4,745 (13,404) Net of tax (7,459) (30,234) (17,851) 50,425 Net changes in benefit plan assets and obligations 681 1,071 1,363 7,847 Total income tax benefit (expense) (143) (225) (286) (1,648) Net of tax 538 846 1,077 6,199 Total other comprehensive income (loss) $ (8,761) (37,199) (21,233) 71,676 Total income tax benefit (expense) 1,840 7,811 4,459 (15,052) Total other comprehensive income (loss), net of tax $ (6,921) $ (29,388) $ (16,774) $ 56,624 |
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 three and six months ended June 30, 2024 and 2023 are included in table 9.2 below. Reclassifications from AOCI Table 9.2 Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Reclassification adjustment for net realized (losses) gains (1) $ (2,061) $ (5,771) $ (12,034) $ (9,935) Income tax benefit (expense) 433 1,212 2,527 2,086 Net of tax (1,628) (4,559) (9,507) (7,849) Reclassification adjustment related to benefit plan assets and obligations (2) (681) (1,071) (1,363) (10,003) Income tax benefit (expense) 143 225 286 2,101 Net of tax (538) (846) (1,077) (7,902) Total reclassifications (2,742) (6,842) (13,397) (19,938) Income tax benefit (expense) 576 1,437 2,813 4,187 Total reclassifications, net of tax $ (2,166) $ (5,405) $ (10,584) $ (15,751) (1) Increases (decreases) Net realized investment gains (losses) on the consolidated statements of operations. (2) Decreases (increases) Other underwriting and operating expenses, net on the consolidated statements of operations. |
Accumulated other comprehensive income (loss) | A rollforward of AOCI for the six months ended June 30, 2024, including amounts reclassified from AOCI, are included in table 9.3 below. Rollforward of AOCI Table 9.3 Six Months Ended June 30, 2024 (In thousands) Net unrealized gains and (losses) on available-for-sale securities Net benefit plan assets and (obligations) recognized in shareholders' equity Total accumulated other comprehensive income (loss) Balance at December 31, 2023, net of tax $ (266,948) $ (49,333) $ (316,281) Other comprehensive income (loss) before reclassifications (27,358) — (27,358) Less: Amounts reclassified from AOCI (9,507) (1,077) (10,584) Balance, June 30, 2024, net of tax $ (284,799) $ (48,256) $ (333,055) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | Tables 10.1 and 10.2 provide the components of net periodic benefit cost for our pension, supplemental executive retirement and other postretirement benefit plans for the three and six months ended June 30, 2024 and 2023. Components of net periodic benefit cost Table 10.1 Three Months Ended June 30, Pension and Supplemental Executive Retirement Plans Other Postretirement Benefit Plans (In thousands) 2024 2023 2024 2023 Company service cost $ — $ — $ 417 $ 362 Interest cost 3,247 3,299 375 418 Expected return on plan assets (3,644) (3,425) (2,494) (2,054) Amortization of: Net actuarial losses (gains) 523 530 (380) (11) Prior service cost (credit) 86 86 453 466 Cost of settlements and curtailments — 1,000 — — Net periodic benefit cost (benefit) $ 212 $ 1,490 $ (1,629) $ (819) Components of net periodic benefit cost Table 10.2 Six Months Ended June 30, Pension and Supplemental Executive Retirement Plans Other Postretirement Benefit Plans (In thousands) 2024 2023 2024 2023 Company service cost $ — $ — $ 834 $ 748 Interest cost 6,494 6,981 750 816 Expected return on plan assets (7,288) (7,006) (4,988) (4,117) Amortization of: Net actuarial losses (gains) 1,046 1,127 (760) (75) Prior service cost (credit) 172 172 906 931 Cost of settlements and curtailments — 8,847 — — Net periodic benefit cost (benefit) $ 424 $ 10,121 $ (3,258) $ (1,697) |
Loss Reserves (Tables)
Loss Reserves (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance Loss Reserves [Abstract] | |
Reconciliation of beginning and ending loss reserves | Table 11.1 provides a reconciliation of beginning and ending loss reserves as of and for the six months ended June 30, 2024 and 2023. Development of reserves for losses and loss adjustment expenses Table 11.1 Six Months Ended June 30, (In thousands) 2024 2023 Reserve at beginning of period $ 505,379 $ 557,988 Less reinsurance recoverable 33,302 28,240 Net reserve at beginning of period 472,077 529,748 Losses incurred: Losses and LAE incurred in respect of delinquency notices received in: Current year 102,553 89,465 Prior years (1) (116,270) (100,710) Total losses incurred (13,717) (11,245) Losses paid: Losses and LAE paid in respect of delinquency notices received in: Current year 52 25 Prior years 23,040 22,272 Total losses paid 23,092 22,297 Net reserve at end of period 435,268 496,206 Plus reinsurance recoverable 42,346 34,475 Reserve at end of period $ 477,614 $ 530,681 (1) A positive number for prior year loss reserve development indicates a deficiency of prior year reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves. See the following table for more information about prior year loss reserve development. |
Prior year development of the reserves | The prior year loss reserve development for the six months ended June 30, 2024 and 2023 is shown in table 11.2 below. Reserve development on previously received delinquencies Table 11.2 Six Months Ended June 30, (In thousands) 2024 2023 Increase (decrease) in estimated claim rate on primary defaults $ (101,008) $ (99,148) Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other (15,262) (1,562) Total prior year loss development (1) $ (116,270) $ (100,710) (1) A positive number for prior year loss reserve development indicates a deficiency of prior year loss reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation, activity | Table 13.1 shows the number of restricted stock units (RSUs) granted to employees and non-employee directors and the weighted average fair value per share during the periods presented. Restricted stock unit grants Table 13.1 Six months ended June 30, 2024 2023 RSUs Granted (in thousands) Weighted Average Share Fair Value RSUs Granted (in thousands) Weighted Average Share Fair Value RSUs subject to performance conditions (1) 634 $ 19.81 949 $ 14.17 RSUs subject only to service conditions 248 19.81 354 14.17 Non-employee director RSUs 76 19.81 106 14.17 (1) Shares granted are subject to performance conditions under which the target number of shares granted may vest from 0% to 200%. |
Statutory Information Statutory
Statutory Information Statutory Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Statutory Capital [Abstract] | |
Summary of amounts disclosed under statutory accounting practices | The statutory net income, policyholders’ surplus, and contingency loss reserves of our insurance subsidiaries, including MGIC, are shown in table 14.1. Financial information of our insurance subsidiaries (including MGIC) Table 14.1 As of and for the Six Months Ended June 30, (In thousands) 2024 2023 Statutory net income $ 175,577 $ 135,182 Statutory policyholders' surplus 468,757 778,893 Contingency loss reserves 5,450,485 4,936,541 |
Debt - Summary of Debt Obligati
Debt - Summary of Debt Obligations (Details) - Senior Notes - 5.25% Senior Notes Due 2028 - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 643,931 | $ 643,196 |
Stated interest rate | 5.25% | 5.25% |
Debt instrument, face amount | $ 650,000 | $ 650,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||
Total interest payments | $ 17,100 | $ 18,000 |
Reinsurance - Summary of Premiu
Reinsurance - Summary of Premiums Earned and Losses Incurred (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Premiums earned: | ||||
Direct | $ 283,363 | $ 284,636 | $ 567,384 | $ 570,670 |
Assumed | 3,377 | 3,047 | 6,819 | 5,834 |
Ceded | (43,212) | (44,872) | (88,031) | (91,678) |
Net premiums earned | 243,528 | 242,811 | 486,172 | 484,826 |
Losses incurred: | ||||
Direct | (14,196) | (15,706) | (3,217) | (4,583) |
Assumed | (46) | (31) | (17) | (27) |
Losses incurred, net | (18,272) | (17,691) | (13,717) | (11,245) |
Quota Share Reinsurance Transactions | ||||
Premiums earned: | ||||
Ceded | (26,643) | (27,442) | (55,358) | (57,319) |
Losses incurred: | ||||
Ceded | (4,030) | (1,954) | (10,483) | (6,635) |
Profit commission on reinsurance | 27,301 | 34,809 | 51,885 | 66,520 |
Ceding commission on reinsurance | 10,789 | 12,450 | 21,449 | 24,768 |
Excess of Loss Reinsurance Transactions | ||||
Premiums earned: | ||||
Ceded | $ (16,569) | $ (17,430) | $ (32,673) | $ (34,359) |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable on loss reserves | $ 42,346 | $ 33,302 | $ 34,475 | $ 28,240 |
Quota Share Reinsurance Transactions | ||||
Effects of Reinsurance [Line Items] | ||||
Ceding commission, percentage (as a percent) | 20% | |||
Reinsurance, quote share reinsurance agreement, annual loss ratio cap (as a percent) | 300% | |||
Reinsurance, quota reinsurance agreement, lifetime loss ratio cap (as a percent) | 200% | |||
Threshold for private mortgage insurer eligibility requirements for termination election (less than) (as a percent) | 90% | |||
Reinsurance recoverable on loss reserves | $ 42,300 | $ 33,300 | ||
Credit Union QSR Transaction | ||||
Effects of Reinsurance [Line Items] | ||||
Threshold for private mortgage insurer eligibility requirements for termination election (less than) (as a percent) | 80% | |||
Excess of Loss Reinsurance Transactions, Home Re Transactions | ||||
Effects of Reinsurance [Line Items] | ||||
Percent of reinsurance coverage threshold (as a percent) | 10% | |||
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 | 99.50% |
Reinsurance - Quota Share Trans
Reinsurance - Quota Share Transactions Terms (Details) | 6 Months Ended |
Jun. 30, 2024 | |
2020 QSR and 2021 QSR - 2021 NIW | |
Effects of Reinsurance [Line Items] | |
Quota share for all policies covered (as a percent) | 17.50% |
Loss ratio threshold for profit commissions (as a percent) | 61.90% |
Cede rate, option 1 (as a percent) | 14.50% |
Cede rate, option 2 (as a percent) | 12% |
2021 QSR and 2022 QSR - 2021 NIW | |
Effects of Reinsurance [Line Items] | |
Quota share for all policies covered (as a percent) | 12.50% |
Loss ratio threshold for profit commissions (as a percent) | 57.50% |
Cede rate, option 1 (as a percent) | 10.50% |
Cede rate, option 2 (as a percent) | 8% |
2021 QSR and 2022 QSR - 2022 NIW | |
Effects of Reinsurance [Line Items] | |
Quota share for all policies covered (as a percent) | 15% |
Loss ratio threshold for profit commissions (as a percent) | 57.50% |
Cede rate, option 1 (as a percent) | 12.50% |
Cede rate, option 2 (as a percent) | 10% |
2022 QSR and 2023 QSR - 2022 NIW | |
Effects of Reinsurance [Line Items] | |
Quota share for all policies covered (as a percent) | 15% |
Loss ratio threshold for profit commissions (as a percent) | 62% |
Cede rate, option 1 (as a percent) | 12.50% |
Cede rate, option 2 (as a percent) | 10% |
2022 QSR and 2023 QSR - 2023 NIW | |
Effects of Reinsurance [Line Items] | |
Quota share for all policies covered (as a percent) | 15% |
Loss ratio threshold for profit commissions (as a percent) | 62% |
Cede rate, option 1 (as a percent) | 12.50% |
Cede rate, option 2 (as a percent) | 10% |
2023 QSR - 2023 NIW | |
Effects of Reinsurance [Line Items] | |
Quota share for all policies covered (as a percent) | 10% |
Loss ratio threshold for profit commissions (as a percent) | 58.50% |
Cede rate, option 1 (as a percent) | 8% |
Cede rate, option 2 (as a percent) | 7% |
2024 QSR - 2024 NIW | |
Effects of Reinsurance [Line Items] | |
Quota share for all policies covered (as a percent) | 30% |
Loss ratio threshold for profit commissions (as a percent) | 56% |
Cede rate, option 1 (as a percent) | 23% |
Cede rate, option 2 (as a percent) | 15% |
Credit Union QSR Transaction | |
Effects of Reinsurance [Line Items] | |
Quota share for all policies covered (as a percent) | 65% |
Loss ratio threshold for profit commissions (as a percent) | 50% |
Reinsurance - Excess of Loss Re
Reinsurance - Excess of Loss Reinsurance (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||||
Apr. 01, 2024 USD ($) | Oct. 23, 2023 USD ($) | 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 ($) | Oct. 30, 2018 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
2024 Traditional XOL | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amortization period excess of loss reinsurance coverage | 10 years | |||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 187,000 | |||||||||||
2023 Traditional XOL | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amortization period excess of loss reinsurance coverage | 10 years | |||||||||||
Initial first layer retention | $ 70,578 | |||||||||||
Remaining first layer retention | $ 70,544 | $ 70,578 | ||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 96,942 | 95,034 | 96,942 | |||||||||
2022 Traditional XOL | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Amortization period excess of loss reinsurance coverage | 10 years | |||||||||||
Initial first layer retention | $ 82,523 | |||||||||||
Remaining first layer retention | 81,999 | 82,346 | ||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 142,642 | 136,629 | 142,642 | |||||||||
Home Re 2023-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Term of mortgage insurance-linked notes | 10 years | |||||||||||
Initial first layer retention | $ 272,961 | |||||||||||
Remaining first layer retention | 272,850 | 272,961 | ||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 330,277 | $ 330,277 | 330,277 | |||||||||
Reinsurance Retention Policy, Funding Percentage | 0.97 | 0.97 | ||||||||||
Home Re 2022-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Term of mortgage insurance-linked notes | 12 years 6 months | |||||||||||
Initial first layer retention | $ 325,589 | |||||||||||
Remaining first layer retention | $ 323,797 | 325,001 | ||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 473,575 | $ 368,553 | 420,731 | |||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 1 | ||||||||||
Home Re 2021-2 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Term of mortgage insurance-linked notes | 12 years 6 months | |||||||||||
Initial first layer retention | $ 190,159 | |||||||||||
Remaining first layer retention | $ 189,007 | 189,403 | ||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 398,429 | $ 162,140 | 173,960 | |||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 0.79 | ||||||||||
Home Re 2021-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Term of mortgage insurance-linked notes | 12 years 6 months | |||||||||||
Initial first layer retention | $ 211,159 | |||||||||||
Remaining first layer retention | $ 210,376 | 210,831 | ||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 398,848 | $ 117,564 | 117,982 | |||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 0.83 | ||||||||||
Home Re 2020-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Initial first layer retention | $ 275,283 | |||||||||||
Remaining first layer retention | $ 0 | 261,280 | ||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 412,917 | $ 0 | 41,846 | |||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 0 | ||||||||||
Home Re 2019-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Term of mortgage insurance-linked notes | 10 years | |||||||||||
Initial first layer retention | $ 185,730 | |||||||||||
Remaining first layer retention | $ 182,464 | 182,722 | ||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 315,739 | $ 21,039 | 21,039 | |||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 0.10 | ||||||||||
Home Re 2018-1 | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Term of mortgage insurance-linked notes | 10 years | |||||||||||
Initial first layer retention | $ 168,691 | |||||||||||
Remaining first layer retention | $ 164,108 | 164,335 | ||||||||||
Excess of loss reinsurance coverage, initial and remaining | $ 318,636 | $ 38,998 | $ 69,762 | |||||||||
Reinsurance Retention Policy, Funding Percentage | 1 | 1 |
Reinsurance - Variable Interest
Reinsurance - Variable Interest Entity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Effects of Reinsurance [Line Items] | ||
Assets | $ 6,523,922 | $ 6,538,380 |
Home Re 2023-1 | ||
Effects of Reinsurance [Line Items] | ||
Assets | 330,277 | 330,277 |
Home Re 2022-1 | ||
Effects of Reinsurance [Line Items] | ||
Assets | 378,663 | 427,279 |
Home Re 2021-2 | ||
Effects of Reinsurance [Line Items] | ||
Assets | 165,994 | 174,431 |
Home Re 2021-1 | ||
Effects of Reinsurance [Line Items] | ||
Assets | 117,633 | 118,043 |
Home Re 2020-1 | ||
Effects of Reinsurance [Line Items] | ||
Assets | 0 | 41,846 |
Home Re 2019-1 | ||
Effects of Reinsurance [Line Items] | ||
Assets | 21,039 | 21,039 |
Home Re 2018-1 | ||
Effects of Reinsurance [Line Items] | ||
Assets | $ 47,439 | $ 73,872 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic earnings per share: | ||||
Net income | $ 204,228 | $ 191,054 | $ 378,325 | $ 345,601 |
Weighted average common shares outstanding - basic (in shares) | 265,315 | 285,906 | 267,814 | 288,434 |
Basic earnings per share (in dollars per share) | $ 0.77 | $ 0.67 | $ 1.41 | $ 1.20 |
Diluted earnings per share: | ||||
Net income | $ 204,228 | $ 191,054 | $ 378,325 | $ 345,601 |
Dilutive securities | 0 | 375 | 0 | 750 |
Diluted income available to common shareholders | $ 204,228 | $ 191,429 | $ 378,325 | $ 346,351 |
Weighted average common shares outstanding - basic (in shares) | 265,315 | 285,906 | 267,814 | 288,434 |
Effect of dilutive securities: | ||||
Unvested RSUs (in shares) | 1,557 | 2,016 | 2,176 | 2,047 |
Dilutive securities (in shares) | 0 | 1,644 | 0 | 1,644 |
Weighted average common shares outstanding - diluted (in shares) | 266,872 | 289,566 | 269,990 | 292,125 |
Diluted earnings per share (in dollars per share) | $ 0.77 | $ 0.66 | $ 1.40 | $ 1.19 |
Federal statutory income tax rate (in hundredths) | 21% | 21% | 21% | 21% |
9% Convertible Junior Subordinated Debentures | ||||
Effect of dilutive securities: | ||||
Stated interest rate | 9% | 9% |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 6,150,471 | |
Fair Value | 5,789,968 | |
Assets held by insurance regulatory requirements | 12,100 | $ 12,200 |
Assets held in trust for the benefit of contractual counterparties | 197,900 | 156,900 |
Total fixed income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,150,471 | 6,061,022 |
Gross Unrealized Gains | 14,226 | 28,235 |
Gross Unrealized Losses | (374,729) | (366,144) |
Fair Value | 5,789,968 | 5,723,113 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 270,158 | 167,995 |
Gross Unrealized Gains | 66 | 51 |
Gross Unrealized Losses | (6,311) | (6,364) |
Fair Value | 263,913 | 161,682 |
Obligations of U.S. states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,068,272 | 2,092,754 |
Gross Unrealized Gains | 2,141 | 5,159 |
Gross Unrealized Losses | (197,033) | (189,835) |
Fair Value | 1,873,380 | 1,908,078 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,654,262 | 2,626,401 |
Gross Unrealized Gains | 7,893 | 17,391 |
Gross Unrealized Losses | (130,214) | (128,211) |
Fair Value | 2,531,941 | 2,515,581 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 174,794 | 173,256 |
Gross Unrealized Gains | 1,098 | 1,292 |
Gross Unrealized Losses | (2,020) | (3,275) |
Fair Value | 173,872 | 171,273 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 381,258 | 347,132 |
Gross Unrealized Gains | 2,459 | 4,297 |
Gross Unrealized Losses | (25,400) | (20,656) |
Fair Value | 358,317 | 330,773 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 275,559 | 293,204 |
Gross Unrealized Gains | 26 | 5 |
Gross Unrealized Losses | (12,759) | (15,752) |
Fair Value | 262,826 | 277,457 |
CLOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 291,461 | 327,467 |
Gross Unrealized Gains | 542 | 37 |
Gross Unrealized Losses | (275) | (1,408) |
Fair Value | 291,728 | 326,096 |
Foreign government debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,487 | 4,486 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (717) | (643) |
Fair Value | 3,770 | 3,843 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 30,220 | 28,327 |
Gross Unrealized Gains | 1 | 3 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 30,221 | $ 28,330 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Values of Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized cost | ||
Due in one year or less | $ 724,100 | |
Due after one year through five years | 1,549,563 | |
Due after five years through ten years | 1,797,579 | |
Due after ten years | 956,157 | |
Total debt securities with single maturity date, amortized cost | 5,027,399 | |
Amortized Cost | 6,150,471 | |
Fair Value | ||
Due in one year or less | 718,932 | |
Due after one year through five years | 1,498,402 | |
Due after five years through ten years | 1,670,721 | |
Due after ten years | 815,170 | |
Total debt securities with single maturity date, fair value | 4,703,225 | |
Total at end of period | 5,789,968 | |
ABS | ||
Amortized cost | ||
Total debt securities without single maturity date, amortized cost | 174,794 | |
Amortized Cost | 174,794 | $ 173,256 |
Fair Value | ||
Total debt securities without single maturity date, fair value | 173,872 | |
Total at end of period | 173,872 | 171,273 |
RMBS | ||
Amortized cost | ||
Total debt securities without single maturity date, amortized cost | 381,258 | |
Amortized Cost | 381,258 | 347,132 |
Fair Value | ||
Total debt securities without single maturity date, fair value | 358,317 | |
Total at end of period | 358,317 | 330,773 |
CMBS | ||
Amortized cost | ||
Total debt securities without single maturity date, amortized cost | 275,559 | |
Amortized Cost | 275,559 | 293,204 |
Fair Value | ||
Total debt securities without single maturity date, fair value | 262,826 | |
Total at end of period | 262,826 | 277,457 |
CLOs | ||
Amortized cost | ||
Total debt securities without single maturity date, amortized cost | 291,461 | |
Amortized Cost | 291,461 | 327,467 |
Fair Value | ||
Total debt securities without single maturity date, fair value | 291,728 | |
Total at end of period | $ 291,728 | $ 326,096 |
Investments - Equity Securities
Investments - Equity Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||
Cost | $ 16,084 | $ 16,025 |
Fair Value Gains | 3 | 5 |
Fair Value Losses | (1,451) | (1,259) |
Equity securities | $ 14,636 | $ 14,771 |
Investments - Net Gains (Losses
Investments - Net Gains (Losses) On Investments and Other Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fixed income securities | ||||
Gross realized gains on sales of fixed income securities | $ 425 | $ 107 | $ 480 | $ 166 |
Gross realized losses on sales of fixed income securities | (1,262) | (6,415) | (6,747) | (10,548) |
Equity securities gains (losses) | ||||
Equity securities, gains (losses), market adjustment | (92) | (164) | (195) | 196 |
Change in embedded derivative on Home Re Transactions | 646 | 1,497 | (2,330) | (2,479) |
Other | ||||
Other, gains (losses) on sales | 16 | (6) | 17 | 0 |
Other, market adjustment | (9) | (6) | (10) | (20) |
Net gains (losses) on investments and other financial instruments | (276) | (4,987) | (8,785) | (12,685) |
Proceeds from sales of fixed income securities | $ 0 | $ 236,777 | $ 14,886 | $ 268,958 |
Investments - Securities In Unr
Investments - Securities In Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Schedule of Investments [Line Items] | ||
Less Than 12 Months - Fair Value | $ 1,370,910 | $ 694,898 |
12 Months or Greater - Fair Value | 3,299,189 | 3,664,661 |
Total - Fair Value | 4,670,099 | 4,359,559 |
Less Than 12 Months - Unrealized Losses | (18,761) | (12,254) |
12 Months or Greater - Unrealized Losses | (355,968) | (353,890) |
Total - Unrealized Losses | $ (374,729) | $ (366,144) |
Number of securities in unrealized loss position (in securities) | security | 1,188 | 1,021 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months - Fair Value | $ 77,946 | $ 26,550 |
12 Months or Greater - Fair Value | 100,540 | 98,359 |
Total - Fair Value | 178,486 | 124,909 |
Less Than 12 Months - Unrealized Losses | (159) | (75) |
12 Months or Greater - Unrealized Losses | (6,152) | (6,289) |
Total - Unrealized Losses | (6,311) | (6,364) |
Obligations of U.S. states and political subdivisions | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months - Fair Value | 433,539 | 275,727 |
12 Months or Greater - Fair Value | 1,340,359 | 1,200,533 |
Total - Fair Value | 1,773,898 | 1,476,260 |
Less Than 12 Months - Unrealized Losses | (3,733) | (3,622) |
12 Months or Greater - Unrealized Losses | (193,300) | (186,213) |
Total - Unrealized Losses | (197,033) | (189,835) |
Corporate debt securities | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months - Fair Value | 704,646 | 270,956 |
12 Months or Greater - Fair Value | 1,362,682 | 1,604,021 |
Total - Fair Value | 2,067,328 | 1,874,977 |
Less Than 12 Months - Unrealized Losses | (8,593) | (6,060) |
12 Months or Greater - Unrealized Losses | (121,621) | (122,151) |
Total - Unrealized Losses | (130,214) | (128,211) |
ABS | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months - Fair Value | 53,203 | 41,549 |
12 Months or Greater - Fair Value | 40,590 | 62,611 |
Total - Fair Value | 93,793 | 104,160 |
Less Than 12 Months - Unrealized Losses | (987) | (1,234) |
12 Months or Greater - Unrealized Losses | (1,033) | (2,041) |
Total - Unrealized Losses | (2,020) | (3,275) |
RMBS | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months - Fair Value | 78,939 | 44,867 |
12 Months or Greater - Fair Value | 172,749 | 176,349 |
Total - Fair Value | 251,688 | 221,216 |
Less Than 12 Months - Unrealized Losses | (4,990) | (872) |
12 Months or Greater - Unrealized Losses | (20,410) | (19,784) |
Total - Unrealized Losses | (25,400) | (20,656) |
CMBS | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months - Fair Value | 2,767 | 35,249 |
12 Months or Greater - Fair Value | 261,570 | 244,216 |
Total - Fair Value | 264,337 | 279,465 |
Less Than 12 Months - Unrealized Losses | (25) | (391) |
12 Months or Greater - Unrealized Losses | (12,734) | (15,361) |
Total - Unrealized Losses | (12,759) | (15,752) |
CLOs | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months - Fair Value | 19,870 | 0 |
12 Months or Greater - Fair Value | 16,929 | 274,729 |
Total - Fair Value | 36,799 | 274,729 |
Less Than 12 Months - Unrealized Losses | (274) | 0 |
12 Months or Greater - Unrealized Losses | (1) | (1,408) |
Total - Unrealized Losses | (275) | (1,408) |
Foreign government debt | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months - Fair Value | 0 | 0 |
12 Months or Greater - Fair Value | 3,770 | 3,843 |
Total - Fair Value | 3,770 | 3,843 |
Less Than 12 Months - Unrealized Losses | 0 | 0 |
12 Months or Greater - Unrealized Losses | (717) | (643) |
Total - Unrealized Losses | $ (717) | $ (643) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 5,789,968 | ||
Equity securities | 14,636 | $ 14,771 | |
Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 5,789,968 | 5,723,113 | |
Equity securities | 14,636 | 14,771 | |
Cash equivalents (1) | 283,185 | 367,517 | |
Total assets | 6,087,789 | 6,105,401 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 212,375 | 95,828 | |
Equity securities | 14,636 | 14,771 | |
Cash equivalents (1) | 203,570 | 367,301 | |
Total assets | 430,581 | 477,900 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 5,577,593 | 5,627,285 | |
Equity securities | 0 | 0 | |
Cash equivalents (1) | 79,615 | 216 | |
Total assets | 5,657,208 | 5,627,501 | |
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 | 100 | 2,400 | |
Significant Unobservable Inputs (Level 3) | Real Estate Acquired | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Purchases of real estate assets acquired | 2,300 | $ 100 | |
Sales of real estate assets acquired | 500 | $ 1,200 | |
Total fixed income securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 5,789,968 | 5,723,113 | |
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] | |||
Fair Value | 263,913 | 161,682 | |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 263,913 | 161,682 | |
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, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 212,375 | 95,828 | |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 51,538 | 65,854 | |
Obligations of U.S. states and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,873,380 | 1,908,078 | |
Obligations of U.S. states and political subdivisions | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,873,380 | 1,908,078 | |
Obligations of U.S. states and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Obligations of U.S. states and political subdivisions | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 1,873,380 | 1,908,078 | |
Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,531,941 | 2,515,581 | |
Corporate debt securities | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,531,941 | 2,515,581 | |
Corporate debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Corporate debt securities | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,531,941 | 2,515,581 | |
ABS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 173,872 | 171,273 | |
ABS | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 173,872 | 171,273 | |
ABS | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
ABS | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 173,872 | 171,273 | |
RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 358,317 | 330,773 | |
RMBS | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 358,317 | 330,773 | |
RMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
RMBS | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 358,317 | 330,773 | |
CMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 262,826 | 277,457 | |
CMBS | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 262,826 | 277,457 | |
CMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
CMBS | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 262,826 | 277,457 | |
CLOs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 291,728 | 326,096 | |
CLOs | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 291,728 | 326,096 | |
CLOs | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
CLOs | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 291,728 | 326,096 | |
Foreign government debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 3,770 | 3,843 | |
Foreign government debt | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 3,770 | 3,843 | |
Foreign government debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Foreign government debt | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 3,770 | 3,843 | |
Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 30,221 | 28,330 | |
Commercial paper | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 30,221 | 28,330 | |
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Commercial paper | Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 30,221 | $ 28,330 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | $ 1,109 | $ 850 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | $ 1,109 | $ 850 |
Senior Notes | 5.25% Senior Notes Due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate | 5.25% | 5.25% |
Senior Notes | 5.25% Senior Notes Due 2028 | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes Payable | $ 643,931 | $ 643,196 |
Senior Notes | 5.25% Senior Notes Due 2028 | Fair Value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes Payable | $ 633,939 | $ 634,498 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total other comprehensive income (loss) | $ (8,761) | $ (37,199) | $ (21,233) | $ 71,676 |
Income tax benefit (expense) | 1,840 | 7,811 | 4,459 | (15,052) |
Other comprehensive income (loss), net of tax | (6,921) | (29,388) | (16,774) | 56,624 |
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract] | ||||
Total reclassifications before tax | 259,825 | 242,382 | 479,705 | 437,986 |
Income tax benefit (expense) | (55,597) | (51,328) | (101,380) | (92,385) |
Total reclassifications, net of tax | 204,228 | 191,054 | 378,325 | 345,601 |
Reclassification from Accumulated Other Comprehensive Income | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract] | ||||
Total reclassifications before tax | (2,742) | (6,842) | (13,397) | (19,938) |
Income tax benefit (expense) | 576 | 1,437 | 2,813 | 4,187 |
Total reclassifications, net of tax | (2,166) | (5,405) | (10,584) | (15,751) |
Accumulated other comprehensive income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other comprehensive income (loss), net of tax | (6,921) | (29,388) | (16,774) | 56,624 |
Net unrealized gains and (losses) on available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total other comprehensive income (loss) | (9,442) | (38,270) | (22,596) | 63,829 |
Income tax benefit (expense) | 1,983 | 8,036 | 4,745 | (13,404) |
Other comprehensive income (loss), net of tax | (7,459) | (30,234) | (17,851) | 50,425 |
Net unrealized gains and (losses) on available-for-sale securities | Reclassification from Accumulated Other Comprehensive Income | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract] | ||||
Total reclassifications before tax | (2,061) | (5,771) | (12,034) | (9,935) |
Income tax benefit (expense) | 433 | 1,212 | 2,527 | 2,086 |
Total reclassifications, net of tax | (1,628) | (4,559) | (9,507) | (7,849) |
Net benefit plan assets and (obligations) recognized in shareholders' equity | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total other comprehensive income (loss) | 681 | 1,071 | 1,363 | 7,847 |
Income tax benefit (expense) | (143) | (225) | (286) | (1,648) |
Other comprehensive income (loss), net of tax | 538 | 846 | 1,077 | 6,199 |
Net benefit plan assets and (obligations) recognized in shareholders' equity | Reclassification from Accumulated Other Comprehensive Income | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract] | ||||
Total reclassifications before tax | (681) | (1,071) | (1,363) | (10,003) |
Income tax benefit (expense) | 143 | 225 | 286 | 2,101 |
Total reclassifications, net of tax | $ (538) | $ (846) | $ (1,077) | $ (7,902) |
Other Comprehensive Income - Ro
Other Comprehensive Income - Rollforward of AOCI (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance, beginning of period | $ 5,072,017 |
Other comprehensive income (loss) before reclassifications | (27,358) |
Less: Amounts reclassified from AOCI | (10,584) |
Balance, end of period | 5,116,921 |
Accumulated other comprehensive income (loss) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance, beginning of period | (316,281) |
Balance, end of period | (333,055) |
Net unrealized gains and (losses) on available-for-sale securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance, beginning of period | (266,948) |
Other comprehensive income (loss) before reclassifications | (27,358) |
Less: Amounts reclassified from AOCI | (9,507) |
Balance, end of period | (284,799) |
Net benefit plan assets and (obligations) recognized in shareholders' equity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance, beginning of period | (49,333) |
Other comprehensive income (loss) before reclassifications | 0 |
Less: Amounts reclassified from AOCI | (1,077) |
Balance, end of period | $ (48,256) |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pension and Supplemental Executive Retirement Plans | |||||
Components of Net Periodic Benefit Cost [Abstract] | |||||
Company service cost | $ 0 | $ 0 | $ 0 | $ 0 | |
Interest cost | 3,247 | 3,299 | 6,494 | 6,981 | |
Expected return on plan assets | (3,644) | (3,425) | (7,288) | (7,006) | |
Net actuarial losses (gains) | 523 | 530 | 1,046 | 1,127 | |
Prior service cost (credit) | 86 | 86 | 172 | 172 | |
Cost of settlements and curtailments | 0 | 1,000 | 0 | 8,847 | |
Net periodic benefit cost (benefit) | 212 | 1,490 | 424 | 10,121 | |
Other Postretirement Benefit Plans | |||||
Components of Net Periodic Benefit Cost [Abstract] | |||||
Company service cost | 417 | 362 | 834 | 748 | |
Interest cost | 375 | 418 | 750 | 816 | |
Expected return on plan assets | (2,494) | (2,054) | (4,988) | (4,117) | |
Net actuarial losses (gains) | (380) | (11) | (760) | (75) | |
Prior service cost (credit) | 453 | 466 | 906 | 931 | |
Cost of settlements and curtailments | 0 | 0 | 0 | 0 | |
Net periodic benefit cost (benefit) | $ (1,629) | $ (819) | $ (3,258) | $ (1,697) | |
Pension Plan | |||||
Components of Net Periodic Benefit Cost [Abstract] | |||||
Company contribution to qualified pension plan | $ 23,000 |
Loss Reserves (Details)
Loss Reserves (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Increase (decrease) in loss reserves | $ (27,765) | $ (27,307) | |
Losses incurred related to prior year notices | (116,270) | (100,710) | |
Premium refund liability, expected claim payments | 15,400 | $ 21,100 | |
$1,000 Increase/Decrease In Average Severity Reserve Factor | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Increase (decrease) in loss reserves | 7,000 | ||
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] | |||
Increase (decrease) in loss reserves | 15,000 | ||
Increase (decrease) in estimated claim rate on primary defaults | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred related to prior year notices | (101,008) | (99,148) | |
Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred related to prior year notices | $ (15,262) | $ (1,562) |
Loss Reserves - Reconciliation
Loss Reserves - Reconciliation of Beginning and Ending Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Loss Reserve [Roll Forward] | ||
Reserve at beginning of period | $ 505,379 | $ 557,988 |
Less reinsurance recoverable | 33,302 | 28,240 |
Net reserve at beginning of period | 472,077 | 529,748 |
Losses and LAE incurred in respect of delinquency notices received in: | ||
Current year | 102,553 | 89,465 |
Prior years | (116,270) | (100,710) |
Total losses incurred | (13,717) | (11,245) |
Losses and LAE paid in respect of delinquency notices received in: | ||
Current year | 52 | 25 |
Prior years | 23,040 | 22,272 |
Total losses paid | 23,092 | 22,297 |
Net reserve at end of period | 435,268 | 496,206 |
Plus reinsurance recoverable | 42,346 | 34,475 |
Reserve at end of period | $ 477,614 | $ 530,681 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jul. 25, 2024 | Jul. 26, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||||
Shares repurchased in period (in shares) | 12.3 | 21.7 | ||
Repurchase of common stock amount, including commissions | $ 250.3 | $ 340.6 | ||
Remaining authorized repurchase amount | $ 773 | |||
Quarterly cash dividend paid (per share) | $ 0.115 | |||
Cash dividends | $ 63.3 | |||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Shares repurchased in period (in shares) | 2.2 | |||
Repurchase of common stock amount, including commissions | $ 49 | |||
Quarterly cash dividend declared (per share) | $ 0.13 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
RSUs subject to performance conditions | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 634 | 949 |
Weighted Average Share Fair Value (in dollars per share) | $ 19.81 | $ 14.17 |
RSUs subject only to service conditions | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 248 | 354 |
Weighted Average Share Fair Value (in dollars per share) | $ 19.81 | $ 14.17 |
Non-employee director RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 76 | 106 |
Weighted Average Share Fair Value (in dollars per share) | $ 19.81 | $ 14.17 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 1 year | |
Minimum | RSUs subject to performance conditions | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of shares that may vest (as a percent) | 0% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years | |
Maximum | RSUs subject to performance conditions | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of shares that may vest (as a percent) | 200% |
Statutory Information (Details)
Statutory Information (Details) $ in Millions | 1 Months Ended | 6 Months Ended |
Apr. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) jurisdiction | |
Statutory capital requirements [Abstract] | ||
Number of jurisdictions with risk-to-capital requirements (in jurisdictions) | jurisdiction | 16 | |
Maximum permitted risk-to-capital ratio commonly applied | 25 to 1 | |
Mortgage Guaranty Insurance Corporation | ||
Statutory capital requirements [Abstract] | ||
Maximum risk-to-capital ratio | 25 | |
Risk to capital ratio at end of period | 10.0 to 1 | |
Risk-to-capital ratio | 10 | |
Amount of policyholders position above or below required MPP | $ 3,600 | |
Amount of required MPP | $ 2,200 | |
Percentage of statutory policyholders surplus used to determine maximum allowable dividends (as a percent) | 10% | |
Adjusted statutory net income measurement period (in years) | 3 years | |
Adjusted statutory net income dividend payment measurement period (in years) | 2 years | |
Dividend paid to MGIC Investment Corporation | $ 350 |
Statutory Information - Summary
Statutory Information - Summary of Amounts Disclosed Under Statutory Accounting Practices (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statutory Capital [Abstract] | ||
Statutory net income | $ 175,577 | $ 135,182 |
Statutory policyholders' surplus | 468,757 | 778,893 |
Contingency loss reserves | $ 5,450,485 | $ 4,936,541 |