Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 24, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | Radian Group Inc. | ||
Entity Central Index Key | 890926 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 191,135,153 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $2,809,401,966 |
Consolidated_Balance_Sheets_St
Consolidated Balance Sheets Statement (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Assets | |||
Fixed-maturities held to maturity—at amortized cost (fair value $0 and $351) | $0 | $358 | |
Fixed-maturities available for sale—at fair value (amortized cost $528,660 and $35,511) | 536,890 | 35,145 | |
Equity securities available for sale—at fair value (cost $76,900 and $76,900) | 143,368 | 129,161 | |
Trading securities—at fair value | 1,633,584 | 2,238,741 | |
Short-term investments—at fair value | 1,300,872 | 935,852 | |
Other invested assets | 14,585 | 22,421 | |
Total investments | 3,629,299 | 3,361,678 | |
Cash | 30,465 | 22,880 | |
Restricted cash | 14,031 | 22,527 | |
Accounts and notes receivable | 85,792 | 46,440 | |
Deferred income taxes, net | 700,201 | 17,902 | |
Goodwill and other intangible assets, net | 288,240 | 2,300 | |
Other assets (Note 9) | 375,491 | 379,903 | |
Assets held for sale (Note 3) | 1,736,444 | [1] | 1,768,061 |
Total assets | 6,859,963 | 5,621,691 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Unearned premiums | 644,504 | 567,072 | |
Reserve for losses and loss adjustment expenses (“LAEâ€) | 1,560,032 | 2,164,353 | |
Long-term debt | 1,209,926 | 930,072 | |
Other liabilities | 326,743 | 377,930 | |
Liabilities held for sale (Note 3) | 947,008 | 642,619 | |
Total liabilities | 4,688,213 | 4,682,046 | |
Commitments and Contingencies (Note 17) | |||
Equity component of currently redeemable convertible senior notes (Note 11) | 74,690 | 0 | |
Stockholders’ equity | |||
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2014 and 2013; 208,601,020 and 190,636,972 shares issued at December 31, 2014 and 2013, respectively; 191,053,530 and 173,099,515 shares outstanding at December 31, 2014 and 2013, respectively | 209 | 191 | |
Treasury stock, at cost: 17,547,490 and 17,537,457 shares at December 31, 2014 and 2013, respectively | -892,961 | -892,807 | |
Additional paid-in capital | 2,531,513 | 2,347,104 | |
Retained earnings (deficit) | 406,814 | -552,226 | |
Accumulated other comprehensive income (“AOCIâ€) | 51,485 | 37,383 | |
Total stockholders’ equity | 2,097,060 | 939,645 | |
Total liabilities and stockholders’ equity | $6,859,963 | $5,621,691 | |
[1] | Assets held for sale are not part of the mortgage insurance or MRES segments. |
Balance_Sheet_Parenthetical_Pa
Balance Sheet Parenthetical (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Held-to-maturity Securities, Fair Value Disclosure | $0 | $351 |
Available-for-sale Debt Securities, Amortized Cost Basis | 528,660 | 35,511 |
Available-for-sale Equity Securities, Amortized Cost Basis | $76,900 | $76,900 |
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 |
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 |
Common Stock, Shares, Issued | 208,601,020 | 190,636,972 |
Common Stock, Shares, Outstanding | 191,053,530 | 173,099,515 |
Treasury Stock, Shares | 17,547,490 | 17,537,457 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Premiums written—insurance: | |||||
Direct | $982,976 | $1,033,323 | $892,650 | ||
Assumed | -882 | -904 | -903 | ||
Ceded | -56,913 | -81,421 | -85,442 | ||
Net premiums written | 925,181 | 950,998 | 806,305 | ||
(Increase) decrease in unearned premiums | -80,653 | -169,578 | -103,920 | ||
Net premiums earned—insurance | 844,528 | 781,420 | 702,385 | ||
Services revenue | 76,693 | 0 | 0 | ||
Net investment income | 65,655 | 68,121 | 72,679 | ||
Net gains (losses) on investments | 83,869 | [1] | -98,945 | [1] | 114,282 |
Net (losses) gains on other financial instruments | -3,880 | -7,580 | 7,802 | ||
Other income | 5,820 | 6,890 | 5,595 | ||
Total revenues | 1,072,685 | 749,906 | 902,743 | ||
Expenses: | |||||
Provision for losses | 246,083 | 562,747 | 921,548 | ||
Policy acquisition costs | 24,446 | 28,485 | 34,131 | ||
Direct cost of services | 43,605 | 0 | 0 | ||
Other operating expenses | 252,283 | 257,402 | 167,660 | ||
Interest expense | 90,464 | 74,618 | 51,832 | ||
Increase (Decrease) in Goodwill and Intangible Assets | 8,648 | 0 | 0 | ||
Total expenses | 665,529 | 923,252 | 1,175,171 | ||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | 407,156 | -173,346 | -272,428 | ||
Income tax benefit | -852,418 | -31,495 | -48,323 | ||
Net income (loss) from continuing operations | 1,259,574 | [2] | -141,851 | -224,105 | |
Loss from discontinued operations, net of tax | -300,057 | [3] | -55,134 | -227,363 | |
Net income (loss) | $959,517 | ($196,985) | ($451,468) | ||
Income (Loss) from Continuing Operations, Per Basic Share | $6.83 | ($0.85) | ($1.69) | ||
Loss from discontinued operations, per basic share | ($1.63) | ($0.33) | ($1.72) | ||
Net income (loss), per basic share | $5.20 | ($1.18) | ($3.41) | ||
Income (Loss) from Continuing Operations, Per Diluted Share | $5.44 | ($0.85) | ($1.69) | ||
Loss from discontinued operations and disposal of discontinued operations, net of tax, per diluted share | ($1.28) | ($0.33) | ($1.72) | ||
Net income (loss) per diluted share | $4.16 | [4],[5] | ($1.18) | [4],[5] | ($3.41) |
Weighted-average number of common shares outstanding—basic | 184,551 | 166,366 | 132,533 | ||
Weighted-average number of common and common equivalent shares outstanding—diluted | 233,902 | [4] | 166,366 | [4] | 132,533 |
Dividends per share | $0.01 | $0.01 | $0.01 | ||
[1] | The 2014 and 2013 amounts reflect unrealized gains (losses), respectively, on our trading securities. | ||||
[2] | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter. | ||||
[3] | This amount reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter. | ||||
[4] | Diluted net income (loss) per share and average shares outstanding per the accounting standard regarding earnings per share. | ||||
[5] | Diluted net income (loss) per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income (loss) per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income (loss) from continuing operations. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income (loss) | $959,517 | ($196,985) | ($451,468) |
Foreign currency translation adjustments: | |||
Net foreign currency translation adjustments | -226 | 0 | -7 |
Unrealized gains (losses) on investments: | |||
Unrealized holding gains arising during the period | 13,650 | 19,149 | 12,266 |
Less: Reclassification adjustment for net (losses) gains included in net income (loss) | -1,039 | 656 | 6,918 |
Net unrealized gains on investments | 14,689 | 18,493 | 5,348 |
Net unrealized (losses) gains on investments recorded as Assets Held for Sale | -302 | 2,597 | -488 |
Other comprehensive income, net of tax | 14,161 | 21,090 | 4,853 |
Comprehensive income (loss) | $973,678 | ($175,895) | ($446,615) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Common Stockholders' Equity (USD $) | Total | Parent [Member] | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings/(Deficit) | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | |||||||
Balance, at Dec. 31, 2011 | $1,182,291 | $151 | ($892,052) | $1,966,565 | $96,227 | $11,400 | |
Net income (loss) | -451,468 | -451,468 | -451,468 | 0 | |||
Net foreign currency translation adjustment, net of tax | -7 | -7 | -7 | ||||
Net unrealized gain on investments, net of tax | 5,348 | 4,860 | 4,860 | ||||
Repurchases of common stock under incentive plans | -42 | -42 | 0 | ||||
Issuance of common stock under benefit plans | 489 | 0 | 489 | ||||
Amortization of restricted stock | 57 | 57 | |||||
Net actuarial gain (loss) | -158 | -158 | |||||
Stock-based compensation expense, net | 1,638 | 1,638 | |||||
Dividends declared | -1,335 | -1,335 | |||||
Dividends, Common Stock | 0 | ||||||
Balance, at Dec. 31, 2012 | 736,325 | 151 | -892,094 | 1,967,414 | -355,241 | 16,095 | |
Net income (loss) | -196,985 | -196,985 | -196,985 | ||||
Net foreign currency translation adjustment, net of tax | 0 | ||||||
Net unrealized gain on investments, net of tax | 18,493 | 21,090 | 21,090 | ||||
Repurchases of common stock under incentive plans | -713 | -713 | 0 | ||||
Issuance of common stock - stock offering | 299,410 | 39 | 299,371 | ||||
Issuance of common stock under incentive plans | 63 | 1 | 62 | ||||
Issuance of common stock under benefit plans | 0 | 672 | 0 | 672 | |||
Issuance of convertible debt (See Note 11) | 77,026 | 77,026 | |||||
Amortization of restricted stock | 21 | 21 | |||||
Net actuarial gain (loss) | 198 | 198 | |||||
Stock-based compensation expense, net | 4,170 | 4,170 | |||||
Debt Instrument, Convertible, Gross Amount of Equity Component | 0 | ||||||
Dividends declared | -1,632 | -1,632 | |||||
Dividends, Common Stock | 0 | ||||||
Balance, at Dec. 31, 2013 | 939,645 | 939,645 | 191 | -892,807 | 2,347,104 | -552,226 | 37,383 |
Net income (loss) | 959,517 | 959,517 | 959,517 | ||||
Net foreign currency translation adjustment, net of tax | -226 | -226 | -226 | ||||
Net unrealized gain on investments, net of tax | 14,689 | 14,387 | 14,387 | ||||
Repurchases of common stock under incentive plans | -154 | -154 | 0 | ||||
Issuance of common stock - stock offering | 247,188 | 18 | 247,170 | ||||
Issuance of common stock under incentive plans | 182 | 0 | 0 | 182 | |||
Issuance of common stock under benefit plans | 959 | 0 | 959 | ||||
Net actuarial gain (loss) | -59 | 0 | 0 | 0 | 0 | -59 | |
Stock-based compensation expense, net | 12,176 | 12,176 | |||||
Reclassification to equity component of currently redeemable convertible senior notes | -74,690 | -74,690 | |||||
Debt Instrument, Convertible, Gross Amount of Equity Component | 74,690 | ||||||
Dividends declared | -1,865 | -1,388 | |||||
Dividends, Common Stock | -477 | ||||||
Balance, at Dec. 31, 2014 | $2,097,060 | $2,097,060 | $209 | ($892,961) | $2,531,513 | $406,814 | $51,485 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities [Abstract] | ||||
Net income (loss) | $959,517 | ($196,985) | ($451,468) | |
Loss from discontinued operations, net of tax | 300,057 | [1] | 55,134 | 227,363 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
Net (gains) losses on investments and other financial instruments recognized in earnings | -79,989 | 105,890 | -121,892 | |
Net payments related to derivative contracts and VIEs | -125 | -8,574 | -4,515 | |
Net cash received (paid) for commutations, terminations and recaptures | 1,105 | -254,667 | 3,190 | |
Deferred income tax (benefit) provision | -825,843 | -31,847 | 7,817 | |
Increase (Decrease) in Goodwill and Intangible Assets | 8,648 | 0 | 0 | |
Depreciation and other amortization, net | 57,301 | 69,726 | 53,257 | |
Change in: | ||||
Unearned premiums | 77,432 | 184,659 | 148,967 | |
Deferred policy acquisition costs | 17,738 | 8,736 | 13,617 | |
Reinsurance recoverables | 18,156 | 42,358 | 66,385 | |
Reserve for losses and LAE | -604,906 | -664,588 | -164,439 | |
Other assets | -26,744 | 16,764 | -50,080 | |
Other liabilities | -55,592 | 54,354 | 24,635 | |
Net cash used in operating activities, continuing operations | -153,245 | -619,040 | -247,163 | |
Net cash provided by (used in) operating activities, discontinued operations | 17,071 | -45,897 | -263,337 | |
Net cash used in operating activities | -136,174 | -664,937 | -510,500 | |
Cash flows from investing activities: | ||||
Proceeds from sales of fixed-maturity investments available for sale | 19,672 | 17,185 | 30,966 | |
Proceeds from sales of equity securities available for sale | 0 | 0 | 31,235 | |
Proceeds from sales of trading securities | 671,179 | 533,340 | 3,759,095 | |
Proceeds from redemptions of fixed-maturity investments available for sale | 4,985 | 538 | 5,815 | |
Proceeds from redemptions of fixed-maturity investments held to maturity | 350 | 325 | 2,076 | |
Proceeds from redemptions of equity securities available for sale | 0 | 10,503 | 0 | |
Purchases of fixed-maturity investments available for sale | -519,166 | -21,432 | 0 | |
Purchases of trading securities | 0 | -259,897 | -3,877,633 | |
(Purchases) sales and redemptions of short-term investments, net | -364,855 | -363,446 | 356,274 | |
Sales of other assets, net | 7,836 | 41,397 | 12,691 | |
Purchases of property and equipment, net | -18,495 | -6,004 | -2,199 | |
Acquisitions, net of cash received | -295,977 | 0 | 0 | |
Net cash (used in) provided by investing activities, continuing operations | -494,471 | -47,491 | 318,320 | |
Net cash provided by investing activities, discontinued operations | 156,839 | 107,790 | 342,753 | |
Net cash (used in) provided by investing activities | -337,632 | 60,299 | 661,073 | |
Cash flows from financing activities: | ||||
Dividends paid | -1,865 | -1,632 | -1,335 | |
Proceeds/payments related to issuance or exchange of debt, net | 293,809 | 377,783 | 0 | |
Redemption of long-term debt | -57,223 | -79,372 | -153,261 | |
Issuance of common stock | 247,188 | 299,410 | 0 | |
Excess tax benefits from stock-based awards | 107 | 752 | 0 | |
Net cash provided by (used in) financing activities, continuing operations | 482,016 | 596,941 | -154,596 | |
Net cash provided by (used in) financing activities, discontinued operations | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | 482,016 | 596,941 | -154,596 | |
Effect of exchange rate changes on cash | -68 | 0 | -11 | |
Increase (decrease) in cash | 8,142 | -7,697 | -4,034 | |
Cash, beginning of period | 22,880 | 29,408 | 33,020 | |
Change in cash of business held for sale | -557 | 1,169 | 422 | |
Cash, end of period | 30,465 | 22,880 | 29,408 | |
Supplemental disclosures of cash flow information: | ||||
Income Taxes Paid, Net | -4,312 | 4,436 | -32,820 | |
Interest paid | $50,702 | $40,380 | $38,378 | |
[1] | This amount reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter. |
Note_1_Description_of_Business
Note 1 - Description of Business and Recent Developments Level 1 (Notes) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Condensed Consolidated Financial Statements Basis Of Presentation [Abstract] | ||||
Business Description and Basis of Presentation [Text Block] | Description of Business and Recent Developments | |||
Business Overview | ||||
We provide mortgage and real estate products and services with a primary strategic focus on domestic, residential mortgage insurance on First-lien mortgage loans. We currently have two reportable business segments—mortgage insurance and MRES. On December 22, 2014, Radian Guaranty entered into the Radian Asset Assurance Stock Purchase Agreement to sell 100% of the issued and outstanding shares of Radian Asset Assurance, our financial guaranty insurance subsidiary, and as a result we have reclassified the operating results related to the pending disposition as discontinued operations for all periods presented in our consolidated statements of operations and no longer present a financial guaranty segment. Prior periods have been revised to conform to the current period presentation for these changes. See Note 3 for additional information related to discontinued operations. | ||||
Mortgage Insurance | ||||
Our mortgage insurance segment provides credit-related insurance coverage, principally through private mortgage insurance, to mortgage lending institutions. We provide our mortgage insurance products and services mainly through our wholly-owned subsidiary, Radian Guaranty. Private mortgage insurance protects mortgage lenders from all or a portion of default-related losses on residential mortgage loans made to home buyers who generally make down payments of less than 20% of the home’s purchase price. Private mortgage insurance also facilitates the sale of these mortgage loans in the secondary mortgage market, most of which are sold to the GSEs. | ||||
Our mortgage insurance segment offers primary mortgage insurance coverage on residential First-liens. At December 31, 2014, primary insurance on First-liens represented approximately 96.6% of our $44.8 billion total direct RIF. At December 31, 2014, pool insurance represented approximately 3.2% of our total direct RIF. Additionally, in the past we offered other forms of credit enhancement on residential mortgage assets. These products included mortgage insurance on Second-liens and primary mortgage insurance on international mortgages (collectively, we refer to the risk associated with these transactions as “non-traditional”). Our non-traditional RIF was $73.0 million as of December 31, 2014, representing less than 1% of our total direct RIF. | ||||
MRES | ||||
Our MRES segment provides services and solutions to the mortgage and real estate industries. Our MRES business is a leading provider of services and solutions to the mortgage and real estate industries, providing outsourced services, information-based analytics and specialty consulting for buyers and sellers of, and investors in, mortgage- and real estate-related loans and securities and other debt instruments. The primary services of our MRES business include: | ||||
• | Loan Review/Due Diligence—Loan-level due diligence for various asset classes and securitizations, with a primary focus on the mortgage and RMBS markets, utilizing skilled professionals and proprietary technology, with offerings focused on credit underwriting, regulatory compliance and collateral valuation; | |||
• | Surveillance—Third-party performance oversight, risk management and consulting services, with offerings focused on RMBS surveillance, loan servicer oversight, loan-level servicing compliance reviews and operational reviews of mortgage servicers and originators; | |||
• | Component Services—Outsourced solutions offered through Clayton’s subsidiary, Green River Capital, focused on the single family rental market, including valuations, property inspections, title reviews, lease reviews, tax lien reviews and due diligence reviews for single family rental properties; | |||
• | REO Management—REO asset management services offered through Clayton’s subsidiary, Green River Capital, which include management of the entire REO disposition process for our clients; and | |||
• | EuroRisk—Outsourced mortgage services in the United Kingdom and Europe, with offerings that include due diligence services, quality control reviews, valuation reviews and consulting services. | |||
The results of Clayton’s operations, included in our financial statements from the June 30, 2014 date of acquisition, are reflected in our MRES segment. See “Item 7.—Recent Developments—Acquisition of Clayton.” | ||||
Financial Guaranty and Discontinued Operations | ||||
On December 22, 2014, Radian Guaranty entered into the Radian Asset Assurance Stock Purchase Agreement to sell Radian Asset Assurance to Assured, for a purchase price of approximately $810 million. After closing costs and other adjustments, we expect net proceeds of approximately $790 million. Radian expects to complete the sale of Radian Asset Assurance to Assured in the first half of 2015, subject to satisfaction of customary closing conditions including regulatory approvals. | ||||
The divestiture is part of Radian’s strategy to focus on the mortgage and real estate markets and to accelerate its ability to comply with the proposed PMIERs. The consummation of the transaction is expected to increase Radian Guaranty’s Available Assets, as required under the PMIERs, by the net proceeds of approximately $790 million, after closing costs and other adjustments. For additional information related to discontinued operations, see Note 3. | ||||
The business activities of Radian Asset Assurance primarily comprised our financial guaranty segment and, as a result, we have reclassified the operating results related to the pending disposition as discontinued operations for all periods presented in our consolidated statements of operations and no longer present a financial guaranty segment. Certain corporate income and expenses that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations, such as investment income, interest expense and corporate overhead expenses, have been reallocated to the mortgage insurance segment. | ||||
Acquisition of Clayton | ||||
On June 30, 2014, we acquired all of the outstanding equity interests of Clayton for a purchase price, including working capital adjustments, of approximately $312 million. The acquisition is consistent with Radian’s growth and diversification strategy to pursue opportunities to provide additional mortgage- and real estate-related products and services to the mortgage finance market. | ||||
The acquisition of Clayton was treated as a purchase for accounting purposes. Therefore, the assets and liabilities were recorded based on their fair values as of June 30, 2014, the date of acquisition. At acquisition, the fair value of assets acquired was $152.4 million and the fair value of liabilities assumed was $31.8 million. The excess of the acquisition price over the estimated fair value of the net assets acquired resulted in goodwill of $191.9 million. The goodwill represents the estimated future economic benefits arising from the assets acquired that did not qualify to be identified and recognized individually, and includes the value of discounted expected future cash flows of Clayton, Clayton’s workforce, expected synergies with our other affiliates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, whenever circumstances indicate potential impairment. Currently, we believe approximately $189.0 million of the goodwill related to this transaction will be deductible for tax purposes over a period of 15 years. See Note 7 for additional information regarding goodwill and other intangible assets. | ||||
The allocation of the purchase price, based on the fair values of assets and liabilities as of the acquisition date, was as follows: | ||||
(in thousands) | June 30, | |||
2014 | ||||
Cash | $ | 16,521 | ||
Restricted cash | 1,591 | |||
Accounts receivable, net | 11,236 | |||
Property and equipment, net | 2,419 | |||
Goodwill | 191,932 | |||
Other intangible assets, net | 102,750 | |||
Other assets | 17,852 | |||
Less: | ||||
Other liabilities | 31,803 | |||
Total purchase price | $ | 312,498 | ||
Historical results for Clayton for the periods prior to our acquisition were not material to our consolidated financial results for those periods. | ||||
We used a portion of the proceeds from our May 2014 issuance of equity and debt to fund this acquisition. See Note 11 for additional information related to our May 2014 issuance of debt. Acquisition-related costs of $6.5 million, which include costs such as advisory, legal, accounting, valuation and other professional or consulting fees, have been expensed as incurred and classified as other operating expenses. | ||||
BofA Settlement Agreement | ||||
On September 16, 2014, Radian Guaranty entered into the BofA Settlement Agreement in order to resolve actual and potential claims or disputes related to the parties’ respective rights and duties as to mortgage insurance coverage on the Subject Loans. The required consent of the GSEs to implement the BofA Settlement Agreement was received in December 2014, and implementation of the agreement for Subject Loans owned by the GSEs or held in portfolio by the Insureds commenced on February 1, 2015. | ||||
Approximately 12% of the Subject Loans were neither held in portfolio by the Insureds nor owned by the GSEs, and will require the consent of certain other investors for these loans to be included in the BofA Settlement Agreement except with respect to certain limited rights of cancellation. See Note 10 for additional information about the BofA Settlement Agreement. | ||||
Mortgage Insurance Capital Requirements | ||||
The FHFA, the GSEs and state insurance regulators impose various capital requirements on our insurance subsidiaries. These include financial requirements, such as Risk-to-capital, other risk-based capital measures and surplus requirements, that potentially may limit the amount of insurance that our insurance subsidiaries may write. The GSEs and our state insurance regulators also possess significant discretion with respect to our insurance subsidiaries. | ||||
Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, a minimum ratio of statutory capital relative to the level of net RIF, or “Risk-to-capital.” The sixteen RBC States currently impose a Statutory RBC Requirement. The most common Statutory RBC Requirement is that a mortgage insurer’s Risk-to-capital may not exceed 25 to 1. In certain of the RBC States, a mortgage insurer must satisfy an MPP Requirement. The statutory capital requirements for the non-RBC States are de minimis (ranging from $1 million to $5 million); however, the insurance laws of these states generally grant broad supervisory powers to state agencies or officials to enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. Unless an RBC State grants a waiver or other form of relief, if a mortgage insurer is not in compliance with the Statutory RBC Requirement of that state, the mortgage insurer may be prohibited from writing new mortgage insurance business in that state. Radian Guaranty’s domiciliary state, Pennsylvania, is not one of the RBC States. In 2014 and 2013, the RBC States accounted for approximately 56.3% and 55.7%, respectively, of Radian Guaranty’s total primary NIW. Radian Guaranty’s Risk-to-capital as of December 31, 2014, after giving effect to a $100 million capital contribution from Radian Group in February 2015, had improved to 17.9 to 1 from 19.5 to 1 as of December 31, 2013. Radian Guaranty was in compliance with all other applicable Statutory RBC Requirements as of December 31, 2014. | ||||
The NAIC is in the process of reviewing the minimum capital and surplus requirements for mortgage insurers and considering changes to the Model Act. While the outcome of this process is not known, it is possible that among other changes, the NAIC will recommend and adopt more stringent capital requirements that could increase the capital requirements for Radian Guaranty in states that adopt the new Model Act. | ||||
The GSEs are in the process of revising their eligibility requirements for private mortgage insurers. As part of this process, the FHFA released proposed PMIERs for public comment on July 10, 2014. The PMIERs, when finalized and adopted, will establish the new requirements that will be imposed on private mortgage insurers, including Radian Guaranty, to remain eligible insurers of mortgage loans purchased by the GSEs. The proposed PMIERs include the PMIERs Financial Requirements, which are expected to replace the capital adequacy standards under the current GSE eligibility requirements. The proposed PMIERs Financial Requirements require a mortgage insurer’s Available Assets to meet or exceed Minimum Required Assets that are calculated based on RIF and a variety of measures designed to evaluate credit quality. Among other things, the proposed PMIERs exclude from Available Assets: (i) an amount equal to Unearned Premium Reserves; and (ii) certain subsidiary capital, including Radian Guaranty’s capital that is attributable to its ownership of Radian Asset Assurance. | ||||
The public comment period for the proposed PMIERs ended on September 8, 2014. The FHFA is currently reviewing and considering input before adopting the final PMIERs. All aspects of the final PMIERs are expected to become effective 180 days after their final publication. It is anticipated that approved insurers who fail to meet the PMIERs Financial Requirements when they become effective would, at the discretion of the GSEs, be permitted to operate under a transition plan during an extended transition period of up to two years from the final publication date, and would continue to be eligible insurers during that period. We expect the final PMIERs to be published during the first half of 2015 and to be effective by December 31, 2015. | ||||
In order for Radian Guaranty to comply with the PMIERs Financial Requirements as proposed, we expect to contribute a substantial portion of our holding company cash and investments to Radian Guaranty, while maintaining a sufficient level of holding company cash and investments to carry out our business strategy, and also that we will be successful in: (1) completing the pending sale of Radian Asset Assurance to Assured pursuant to the Radian Asset Assurance Stock Purchase Agreement; and (2) leveraging other options such as commutations of existing risk or external reinsurance for a portion of our mortgage insurance RIF in a manner that provides capital relief and is compliant with the PMIERs. In the event we are unable to successfully execute these or similar transactions or strategies, or such transactions are not available on terms that are attractive to us, we may seek additional capital by incurring additional debt, by issuing additional equity, or by selling assets, which we may not be able to do on favorable terms, if at all. | ||||
The amount of capital or capital relief that may be required to comply with the PMIERs also may be impacted by: (1) the performance of our mortgage insurance business, including our level of defaults, the losses we incur on new or existing defaults and the amount and credit characteristics of new business we write, among other factors; and (2) changes in the final PMIERs Financial Requirements from their proposed form that impact the amount of Radian Guaranty’s Minimum Required Assets or its Available Assets. | ||||
Capital Stock Issuance | ||||
In May 2014, we issued 17.825 million shares of our common stock at a public offering price of $14.50 per share, and we received aggregate net proceeds of approximately $247.2 million after deducting underwriting discounts and commissions and offering expenses. | ||||
Risks and Uncertainties | ||||
Radian Group and its subsidiaries are subject to risks and uncertainties that could affect amounts reported in our financial statements in future periods. Our future performance and financial condition are subject to significant risks and uncertainties that could cause actual results to be materially different from our estimates and forward-looking statements. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Significant Accounting Policies [Abstract] | ||
Significant Accounting Policies [Text Block] | Significant Accounting Policies | |
Basis of Presentation | ||
Our consolidated financial statements are prepared in accordance with GAAP and include the accounts of all wholly-owned subsidiaries. Companies in which we, or one of our subsidiaries, exercise significant influence (generally ownership interests ranging from 20% to 50%), are accounted for in accordance with the equity method of accounting. Any VIEs for which we are the primary beneficiary are consolidated. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our consolidated financial statements include our best estimates and assumptions, actual results may vary materially. | ||
Held-For-Sale Classification | ||
We report a business as held for sale when management is committed to a formal plan to sell the assets, the business is available for immediate sale and is being actively marketed at a price that is reasonable in relation to its fair value, an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated, the sale is probable and expected to be completed within one year, and it is deemed unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A business classified as held for sale is reflected at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the Consolidated Balance Sheets in the period in which the business is classified as held for sale. After a business is classified as held for sale, depreciation and amortization expense is not recognized on its assets. | ||
Discontinued Operations | ||
We report the results of operations of a business as discontinued operations if the business is classified as held for sale, the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a result of a disposal transaction and we will not have any significant continuing involvement in the operations of the business after the disposal transaction. In the period in which the business meets the criteria of a discontinued operation, its results are reported in income or loss from discontinued operations in the Consolidated Statements of Operations for current and prior periods, and include any required adjustment of the carrying amount to its fair value less cost to sell. In addition, tax is allocated to continuing operations and discontinued operations. The amount of tax allocated to discontinued operations is the difference between the tax originally allocated to continuing operations and the tax allocated to the restated amount of income from continuing operations in each period. | ||
Reserve for Losses and LAE | ||
We establish reserves to provide for losses and LAE and the estimated costs of settling claims in our mortgage insurance segment in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, we establish reserves for mortgage insurance as described below, using the guidance contained in this standard supplemented with other accounting guidance, due to the lack of specific guidance for mortgage insurance. | ||
Estimating our mortgage insurance loss reserves involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss, including an estimate of the number of defaulted loans that will be successfully rescinded or denied. The models, assumptions and estimates we use to establish loss reserves may prove to be inaccurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty. As such, we cannot be certain that our reserve estimate will be adequate to cover ultimate losses on incurred defaults. | ||
Commutations and other negotiated terminations of our insured risks in our mortgage insurance segment provide us with an opportunity to exit exposures for an agreed upon payment, or payments, sometimes at an amount less than the previously estimated ultimate liability. Once all exposures relating to such policies are extinguished, all reserves for losses and LAE and other balances relating to the insured policies are generally reversed, with any remaining net gain or loss typically recorded through provision for losses. We take into consideration the specific contractual and economic terms for each individual agreement when accounting for our commutations or other negotiated terminations, which may result in differences in the accounting for these transactions. | ||
Mortgage Insurance | ||
In the mortgage insurance segment, the default and claim cycle begins with the receipt of a default notice from the servicer. Reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We maintain an extensive database of claim payment history and use models based on a variety of loan characteristics to determine the likelihood that a default will reach claim status. During 2014, we continued to refine our loss reserving techniques and developed additional segmentations, primarily based on a loan’s Time in Default and its current Stage of Default, in assessing the likelihood that a default will result in a claim. Previously, we gave greater weight to other loan characteristics, including the status of the loan as reported by its servicer, as defined by the number of missed payments, and the type of loan product. Our process includes forecasting the impact of our loss mitigation efforts in protecting us against fraud, underwriting negligence, breach of representation and warranties, inadequate documentation of submitted claims and other items that may give rise to insurance rescissions or cancellations and claim denials, to help determine the Default to Claim Rate. Lastly, we project the Claim Severity, which is also impacted by Loss Mitigation Activity associated with claim curtailments due to servicer noncompliance with our insurance policies and servicing guidelines. When there is a claim under primary mortgage insurance, the coverage percentage is applied to the claim amount, which consists of the unpaid loan principal, plus past due interest (for which our liability is contractually capped in accordance with the terms of our Master Policies) and certain expenses associated with the default, to determine our maximum liability. Based on these estimates, we arrive at our estimate of loss reserves as of that time. | ||
With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. Loss reserves are generally increased as defaulted loans age, because historically, as defaulted loans age, they have been more likely to result in foreclosure, and therefore, have been more likely to result in a claim payment. In the past, as the number of missed payments increased, there was generally more certainty regarding these estimates. However, following the financial crisis we experienced significant delays in foreclosures. As a result, significant uncertainty remains with respect to the ultimate resolution of aged defaults. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. Once a default is considered to have reached Foreclosure Stage, the likelihood that the default will reach claim status increases. Once a claim is submitted, reserves are further increased to reflect the fact that the default has moved closer to resulting in a claim payment. If a default cures, the reserve for that loan is removed from the reserve for losses and LAE. | ||
We also establish reserves for defaults that we estimate have been incurred but have not been reported (“IBNR”) to us on a timely basis by the servicer, as well as for previously rescinded policies and denied claims that we estimate will be reinstated and subsequently paid. We generally give the policyholder up to 90 days to challenge our decision to rescind coverage before we consider a policy to be rescinded and remove it from our defaulted inventory; therefore, we currently expect only a limited percentage of policies that were rescinded to be reinstated. We currently expect a significant percentage of claims that were denied to be resubmitted as a perfected claim and ultimately paid. Most often, a claim denial is the result of a servicer’s inability to provide the loan origination file or other servicing documents for review. Under the terms of our Master Policies with our lending customers, our policyholders have up to one year after the acquisition of borrower’s title to provide to us the necessary documents to perfect a claim. All estimates are periodically reviewed and adjustments are made as they become necessary. | ||
We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default. For example, for those defaults in which we are in a “second loss position” (i.e., we are not required to make a payment until a certain aggregate amount of losses have already been recognized on a given group of loans), we initially calculate the reserve for defaulted loans in the transaction as if there were no deductible. If the existing deductible for a given Structured Transaction is greater than the aggregate reserve amount for the defaults contained within the transaction, we do not establish a reserve for the defaults, or if appropriate, we record a partial reserve. We do not establish loss reserves for expected future claims on insured mortgages that are not in default. See “—Reserve for PDR” below for an exception to this general principle. | ||
For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. The attributes currently used to define the groups for purposes of developing various assumptions include, but are not limited to, the Stage of Default, the Time in Default, product type (i.e., Prime, Alt-A or Subprime), type of insurance (i.e., primary or pool), loss position (i.e., with or without a deductible) and the state where the property is located (segregated into three state groups in order to adjust for differences in foreclosure timing). We use an actuarial projection methodology referred to as a “roll rate” analysis that uses historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default and Time in Default. The Default to Claim Rate also includes our estimates with respect to expected insurance rescissions and claim denials, which have the effect of reducing our Default to Claim Rates. | ||
Since 2009, we have experienced an elevated level of insurance rescissions and claim denials for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties and inadequate documentation, primarily related to our Legacy Portfolio. Although we expect the amount of estimated rescissions and denials embedded within our reserve analysis to remain elevated as compared to levels before 2009, we expect them to continue to decrease over time, as the defaults related to our Legacy Portfolio decline as a proportion of our total default portfolio and as we realize the results through actual rescissions and denials, or the commutations of insured loans. In addition, with respect to claims decisions on the population of Future Legacy Loans covered under the BofA Settlement Agreement, Radian Guaranty has agreed, subject to certain limited exceptions and conditions, that it will not effect any coverage rescissions, claim denials or curtailments. See Note 10 of Notes to Consolidated Financial Statements for additional information about the BofA Settlement Agreement. | ||
After estimating the Default to Claim Rate, we estimate the severity of each product type, type of insurance and state grouping based on the average of recently observed severity rates. These average severity estimates are then applied to individual loan coverage amounts to determine reserves. Senior management regularly reviews the modeled frequency, rescission, denial and severity estimates, which are based on historical trends as described above. If recent emerging or projected trends differ significantly from the historical trends used to develop the modeled estimates, management evaluates these trends in determining how they should be considered in its reserve estimates. | ||
In addition, as part of our claims review process, we assess whether defaulted loans were serviced appropriately in accordance with our insurance policies and servicing guidelines. To the extent a servicer has failed to satisfy its servicing obligations, our insurance policies provide that we may curtail the claim payment for such default, and in some circumstances, cancel coverage or deny the claim. Since 2011, claim curtailments have increased both in frequency and in size, which has contributed to a reduction in the severity of our claim payments during this period. While we cannot give assurance regarding the extent or level at which such claim curtailments will continue, we expect the level of claim curtailments to remain elevated compared to historical levels (excluding claims processed in accordance with the BofA Settlement Agreement), in light of well publicized issues in the servicing industry and our existing Legacy Portfolio of aged defaults. | ||
The elevated levels of our Loss Mitigation Activities have led to an increased risk of litigation. Our Master Policies specify the time period during which a suit or action arising from any right of the insured under the policy must be commenced. We continue to face a significant number of challenges from certain lender customers regarding our Loss Mitigation Activities, which have resulted in some reversals of our decisions regarding rescissions, denials and curtailments. Although we believe that our Loss Mitigation Activities are justified under our policies, if we are not successful in defending these actions in any potential legal or other proceedings, including negotiated settlements, we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. The assumptions embedded in our estimated Default to Claim Rate on our in-force default inventory include an adjustment to our estimated rescission and denial rate, to account for the fact that we expect a certain number of policies to be reinstated and ultimately to be paid, as a result of valid challenges by such policy holders. As discussed above, we also establish reserves for IBNR defaults related to previously rescinded policies and denied or curtailed claims, which we believe are likely to be reinstated (in the case of previously rescinded policies) or resubmitted and paid (in the case of previously denied claims). | ||
Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we consider our claim payments and our rescissions, denials and curtailments to be resolved for financial reporting purposes. Under the accounting standard regarding contingencies, an estimated loss is accrued only if we determine that the loss is probable and can be reasonably estimated. For populations of disputed rescissions, denials and curtailments where we determine that a settlement is probable and that a loss can be reasonably estimated, we reflect our best estimate of the expected loss related to the populations under discussion in our financial statements, primarily as a component of our IBNR reserve. While our reserves include our best estimate of such losses, the outcome of the discussions or potential legal proceedings that could ensue is uncertain, and it is reasonably possible that a loss exists in excess of the amount accrued. | ||
Included in our loss reserves is an estimate related to a potential additional payment to Freddie Mac under the Freddie Mac Agreement, which is dependent upon the Loss Mitigation Activity on the population of loans subject to that agreement. Our reserve related to this potential additional payment is based on the estimated rescissions, denials, curtailments, and cancellations for this population of loans, determined using assumptions that are consistent with those utilized to determine our overall loss reserves. | ||
Reserve for PDR | ||
Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product line. We reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and update our premium deficiency analyses accordingly. Expected future expenses include consideration of maintenance costs associated with maintaining records relating to insurance contracts and with the processing of premium collections. We also consider investment income in the premium deficiency calculation through the use of our pre-tax investment yield to discount certain cash flows for this analysis. | ||
For our mortgage insurance business, we group our mortgage insurance products into two categories: First-lien and Second-lien. To assess the need for a PDR on our First-lien insurance portfolio, we develop loss projections based on modeled loan defaults related to our current RIF. This projection is based on recent trends in default experience, severity and rates of defaulted loans moving to claim (such Default to Claim Rates are net of our estimates of rescissions and denials), as well as recent trends in the rate at which loans are prepaid. | ||
For our Second-lien insurance business, we project future premiums and losses for this business using historical results to help determine future performance for both prepayments and claims. An estimated expense factor is then applied, and the result is discounted using a rate of return that approximates our pre-tax investment yield. This net present value, less any existing reserves, is recorded as a premium deficiency and the reserve is updated at least quarterly based on actual results for that quarter, along with updated transaction level projections. | ||
Fair Value of Financial Instruments | ||
Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and changes in the value of underlying collateral or of any third-party guaranty or insurance, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||
In accordance with GAAP, we established a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below: | ||
Level I | — Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |
Level II | — Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and | |
Level III | — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available. | |
For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment necessary, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy. | ||
Available for sale securities, trading securities, and certain other assets are recorded at fair value as described in Note 5. All changes in fair value of trading securities and certain other assets are included in our consolidated statements of operations. All changes in the fair value of available for sale securities are recorded in AOCI. | ||
Insurance Premiums-Revenue Recognition | ||
Mortgage insurance premiums written on an annual and multi-year basis are initially recorded as unearned premiums and earned over time. Annual premiums are amortized on a monthly, straight-line basis. Multi-year premiums are amortized over the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Premiums written on a monthly basis are earned over the period that coverage is provided. When we rescind insurance coverage on a loan, we refund all premiums received in connection with such coverage. Premium revenue is recognized net of our accrual for estimated rescission refunds. With respect to our reinsurance transactions, ceded premiums written are initially set up as prepaid reinsurance and are amortized in a manner consistent with the recognition of income on direct premiums. Premiums on certain Structured Transactions in our mortgage insurance business are recognized over the period that coverage is provided. | ||
Deferred Policy Acquisition Costs | ||
Incremental, direct costs associated with the acquisition of mortgage insurance business, consisting of compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Amortization of these costs for each underwriting year book of business is charged against revenue in proportion to estimated gross profits over the estimated life of the policies. This includes accruing interest on the unamortized balance of deferred policy acquisition costs. Ceding commissions received under our reinsurance agreements related to these costs are also deferred and accounted for using similar assumptions. Estimates of expected gross profit, including persistency and loss development assumptions for each underwriting year used as a basis for amortization, are evaluated quarterly and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that previous estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions may have a significant effect on the amortization of deferred policy acquisition costs. | ||
Effective January 1, 2012, we adopted the FASB update to the accounting standard regarding accounting for costs associated with acquiring or renewing insurance contracts on a prospective basis. This update redefines acquisition costs as incremental costs that are related directly to the successful acquisition of new or renewal insurance contracts. Previously, acquisition costs were defined as costs that vary with and are primarily related to the acquisition of insurance contracts. The effect of this revised definition of acquisition costs has resulted in the recognition of additional expenses in our mortgage insurance business when incurred, rather than being deferred to subsequent periods. There was no change to the amortization requirements due to this update. The implementation of this new guidance significantly reduced the amount of our deferral of policy acquisition costs associated with acquiring mortgage insurance contracts. However, the lower amount of acquisition costs deferred will be offset by reduced amortization expense in subsequent periods. While the timing of the recognition of certain costs in our results of operations has changed as a result of the adoption of this update, there is no effect on the total acquisition costs recognized over time or on our cash flows. Amounts deferred as acquisition costs for 2014 and 2013 reflect a reduction for ceding commissions written on risk ceded under the QSR Reinsurance Transactions (as defined in Note 8). We amortized $24.4 million, $28.5 million and $34.1 million of deferred policy acquisition costs in our mortgage insurance business in 2014, 2013 and 2012, respectively. | ||
Revenue Recognition-Services Revenue | ||
Services revenue is recognized when pervasive evidence of an arrangement exists, the service has been performed, the fee is fixed and determinable and collection of the resulting receivable is reasonably assured. | ||
The MRES segment derives most of its revenue from professional service activities. A portion of these activities are provided under “time-and-materials” billing arrangements. Services revenue consisting of billed fees and pass-through expenses is recorded as work is performed and expenses are incurred. Services revenue also includes expenses billed to clients, which includes travel and other out-of-pocket expenses, and other reimbursable expenses. | ||
The MRES segment also derives revenue from REO management activities, and is generally paid a fixed fee or a percentage of the sale proceeds upon the sale of a property. Services revenue is recognized when the sale of a property closes and the client has confirmed receipt of the sale proceeds from a buyer. In certain instances, fees are received at the time that an asset is assigned to Radian for REO management. These fees are recorded as deferred revenue and are recognized on a straight-line basis over the average period of time required to sell an asset and complete the earnings process. | ||
The MRES segment also provides certain services under multiple element arrangements, including valuations, title reviews and tax lien reviews. Contracts for these services include provisions requiring the client to pay a per unit price for services that have been performed if the client cancels the contract. Each service qualifies as a separate unit of accounting on a per unit basis, and we recognize revenue as each individual service is performed. | ||
We do not recognize revenue or expense related to amounts advanced by us and subsequently reimbursed by clients for maintenance or repairs of REO properties because we are not the primary obligor and we have minimal credit risk. We record an expense if an advance is made that is not in accordance with a client contract and the client is not obligated to reimburse us. | ||
Direct Cost of Services | ||
Direct cost of services consists primarily of employee compensation and related payroll benefits, the cost of billable labor assigned to revenue-generating activities, as well as corresponding travel and related expenses incurred in providing such services to clients. Direct cost of services also includes costs paid to outside vendors, including real estate agents that provide valuation and related services. Direct cost of services does not include an allocation of overhead costs. | ||
Income Taxes | ||
We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our DTAs and DTLs are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. DTAs and DTLs are measured using the enacted tax rates expected to apply to taxable income in the periods in which the DTA or DTL is expected to be realized or settled. | ||
We are required to establish a valuation allowance against our DTA when it is more likely than not that all or some portion of our DTA will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our DTA will be realized in future periods. The primary negative evidence that we have considered has been our cumulative losses in recent years. We also consider positive evidence when assessing the need for a valuation allowance, such as future reversals of existing taxable temporary differences, future projections of taxable income, taxable income within the applicable carryback and carryforward periods, and potential tax planning strategies. The recognition of our DTA ultimately depends on the existence of sufficient taxable income of the appropriate character (ordinary income or capital gains) within the applicable carryback and carryforward periods provided under the tax law. In assessing our need for a valuation allowance, the weight assigned to the effect of both negative and positive evidence is commensurate with the extent to which such evidence can be objectively verified. As of December 31, 2014, after analyzing all positive and negative evidence available, we believe there is significant positive, objectively verifiable evidence that outweighs all negative evidence and supports a conclusion that it is more-likely-than-not that substantially all of the Company’s DTAs will be realized. | ||
Our provision for income taxes for interim financial periods is based on an estimate of our annual effective tax rate for the full year of 2014. When estimating our full year 2014 effective tax rate, we adjust our forecasted pre-tax income for gains and losses on our derivative transactions and investments, changes in the accounting for uncertainty in income taxes, changes in our beginning of year valuation allowance, and other adjustments. The impact of these items is accounted for discretely at the federal applicable tax rate. During 2012 and 2013, given the impact on our pre-tax results of net gains or losses resulting from our derivative transactions and our investment portfolio, and the continued uncertainty regarding our ability to rely on certain short-term financial projections, which directly affected our ability to estimate an effective tax rate for the full year, we recorded our interim period income tax provision (benefit) based on actual results of operations. | ||
Foreign Currency Revaluation/Translation | ||
Assets and liabilities denominated in foreign currencies are revalued or translated at year-end exchange rates. Operating results are translated at average rates of exchange prevailing during the year. Unrealized gains and losses, net of deferred taxes, resulting from translation are included in AOCI in stockholders’ equity. Realized gains and losses resulting from transactions in foreign currency are recorded in our statements of operations. | ||
Cash and Restricted Cash | ||
Included in our restricted cash balances as of December 31, 2014 were: (1) funds for a mortgage insurance reserve policy held in escrow for any future duties, rights and liabilities; (2) funds held as collateral under our insurance trust agreements related to health care benefits; and (3) funds held in trust for the benefit of certain policyholders. | ||
Within our consolidated statements of cash flows, we classify cash receipts and cash payments related to items measured at fair value according to their nature and purpose. Because our trading activity relates to overall strategic initiatives and is not trading related, it is recorded as cash flows from investing activities. While our securities trading activity was significant in 2012, this activity was primarily a result of strategic repositioning of the portfolio in order to: (1) shorten duration for liquidity purposes; and (2) increase our allocation to taxable bonds to maximize our after-tax yields. | ||
Investments | ||
We group assets in our investment portfolio into one of three main categories: held to maturity, available for sale or trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity are classified as held to maturity and are reported at amortized cost. Investments in securities not classified as held to maturity or trading securities are classified as available for sale and are reported at fair value, with unrealized gains and losses (net of tax) reported as a separate component of stockholders’ equity as AOCI. Investments classified as trading securities are reported at fair value, with unrealized gains and losses reported as a separate component of income. Short-term investments consist of money market instruments, certificates of deposit and highly liquid, interest-bearing instruments with an original maturity of three months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Notes 5 and 6 for further discussion on the fair value of investments. | ||
We record an other-than-temporary impairment adjustment on a security if we intend to sell the impaired security, if it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the present value of cash flows we expect to collect is less than the amortized cost basis of the security. If a sale is likely, the security is classified as other-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, losses on securities that are other-than-temporarily impaired are separated into: (i) the portion of loss that represents the credit loss; and (ii) the portion that is due to other factors. The credit loss portion is recognized as a loss in the statement of operations, while the loss due to other factors is recognized in AOCI, net of taxes. A credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less than the cost basis of the security. The present value of discounted cash flows is determined using the original yield of the security. In evaluating whether a decline in value is other-than-temporary, we consider several factors in addition to the above, including, but not limited to, the following: | ||
• | the extent and the duration of the decline in value; | |
• | the reasons for the decline in value (e.g., credit event, interest related or market fluctuations); and | |
• | the financial position, access to capital and near term prospects of the issuer, including the current and future impact of any specific events. | |
Accounts and Notes Receivable | ||
Accounts and notes receivable primarily consist of accrued premiums receivable due from our mortgage insurance customers, amounts due from our MRES customers for services our MRES segment has performed, and the profit commission receivable related to the Initial QSR Transaction. See Note 8 for details. Accounts and notes receivable are carried at their estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability based on past payment history and current economic conditions. | ||
Company-Owned Life Insurance (“COLI”) | ||
We are the beneficiary of insurance policies on the lives of certain of our current and past officers and employees. We have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our consolidated balance sheets. At December 31, 2014 and 2013, the cash surrender value of company-owned life insurance totaled $80.8 million and $78.4 million, respectively. | ||
Property and Equipment | ||
Property and equipment is carried at cost, net of depreciation. For financial statement reporting purposes, computer hardware and software is depreciated over three years and furniture, fixtures and office equipment is depreciated over seven years. Leasehold improvements are depreciated over the lesser of the life of the asset improved or the remaining term of the lease. For income tax purposes, we use accelerated depreciation methods. | ||
Goodwill and Other Intangible Assets, Net | ||
Goodwill and other intangible assets were established primarily in connection with our acquisition of Clayton. Goodwill represents the estimated future economic benefits arising from the assets we have acquired that did not qualify to be identified and recognized individually, and includes the value of discounted expected future cash flows of Clayton, Clayton’s workforce, expected synergies with our other affiliates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, whenever circumstances indicate potential impairment. The value of goodwill is supported by revenue, which is driven primarily by transaction volume. Lower earnings over sustained periods can lead to impairment of goodwill, which could result in a charge to earnings. | ||
Intangible assets, other than goodwill, primarily consist of Clayton’s client relationships, technology, trade name and trademarks, client backlog and non-competition agreements. Client relationships represent the value of the specifically acquired customer relationships and are valued using the excess earnings approach using estimated client revenues, attrition rates, implied royalty rates and discount rates. The excess earnings approach estimates the present value of expected earnings in excess of a traditional return on business assets. Technology represents proprietary software used for loan review and due diligence, managing the REO disposition process and performing surveillance of mortgage loan servicers. Trade name and trademarks reflect the value inherent in the recognition of the “Clayton” name and its reputation. For purposes of our intangible assets, we use the term client backlog to refer to the estimated present value of fees to be earned for services performed on loans currently under surveillance or REO assets under management. The value of a non-competition agreement is an appraisal of potential lost revenues that would arise from an individual leaving to work for a competitor or initiating a competing enterprise. For financial reporting purposes, intangible assets with finite lives are amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset. | ||
The calculation of the estimated fair value of goodwill and other intangibles requires the use of significant estimates and assumptions that are highly subjective in nature, such as attrition rates, discount rates, future expected cash flows and market conditions. The most significant assumptions relate to the valuation of goodwill and client relationships. Our estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. | ||
Accounting for Stock-Based Compensation | ||
The stock-based compensation cost related to share-based liability awards is based on the fair value as of the measurement date. The compensation cost for equity instruments is measured based on the grant-date fair value at the date of issuance. Compensation cost is recognized over the periods that an employee provides service in exchange for the award. See Note 15 for further information. | ||
Recent Accounting Pronouncements | ||
In July 2012, the FASB issued a new accounting standard update that simplifies the impairment test for indefinite-lived intangible assets other than goodwill. The update gives the option to first assess qualitative factors to determine if it is more likely than not that the carrying amount of an indefinite-lived intangible asset exceeds its fair value, in order to determine whether it is necessary to perform a quantitative valuation test. This update was effective for interim and annual reporting periods beginning on or after September 15, 2012. The adoption of this update did not have a significant impact on our financial position, results of operations or cash flows. | ||
In February 2013, the FASB issued an update to the accounting standard regarding comprehensive income, requiring additional information to be presented on the face of the financial statements or as separate disclosures. This update requires an entity to present the changes in each component of accumulated other comprehensive income. An entity is required to present certain amounts reclassified out of accumulated other comprehensive income to their respective line items in net income, by component. Other reclassifications out of accumulated other comprehensive income are required to be cross-referenced to existing disclosures. We adopted this update effective January 1, 2013. In Note 12 we have presented the changes in the balances for each component of accumulated other comprehensive income as well as current period reclassifications out of accumulated other comprehensive income. This update impacted disclosures only and did not affect our consolidated financial position, earnings or cash flows. | ||
In April 2014, the FASB issued an update to the accounting standard for reporting discontinued operations and disclosures of disposals of components of an entity. This update changes the requirements for reporting discontinued operations. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents (or would represent) a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (a) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (b) the component of an entity or group of components of an entity is disposed of by sale; or, (c) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spin-off). The amendments in this update require expanded disclosures about discontinued operations. The provisions of this update are effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. We did not elect early adoption of this update for the pending disposition of Radian Asset Assurance. The significance of this guidance for the Company is dependent on any future dispositions or disposals. | ||
In May 2014, the FASB issued an update to the accounting standard regarding revenue recognition. This update is intended to provide a consistent approach in recognizing revenue. In accordance with the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. While this update is not expected to change revenue recognition principles related to our insurance products, this update may be applicable to revenues from our new MRES segment, which has been included in our consolidated statements of operations beginning with the third quarter of 2014. The provisions of this update are effective for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact of this update, if any. |
Note_3_Discontinued_Operations
Note 3 - Discontinued Operations (Notes) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations | |||||||||||||||||
On December 22, 2014, Radian Guaranty entered into the Radian Asset Assurance Stock Purchase Agreement to sell 100% of the issued and outstanding shares of Radian Asset Assurance, Radian’s financial guaranty insurance subsidiary, to Assured, for a purchase price of approximately $810 million, subject to certain adjustments. The purchase price is payable in cash on the closing date. Radian expects to complete the sale of Radian Asset Assurance to Assured in the first half of 2015, subject to satisfaction of customary closing conditions including regulatory approvals. | ||||||||||||||||||
The divestiture is part of Radian’s strategy to focus its business toward the mortgage and real estate markets and to accelerate its ability to comply with the proposed PMIERs. The consummation of the transaction is expected to increase Radian Guaranty’s Available Assets, as required under the PMIERs, by the net proceeds of approximately $790 million. See Note 1 for additional information regarding the PMIERs. | ||||||||||||||||||
Based upon the applicable terms of the Radian Asset Assurance Stock Purchase Agreement, we determined that Radian Asset Assurance met the criteria for held for sale and discontinued operations accounting at December 31, 2014. As a result, we recognized an approximate $468 million pre-tax impairment charge for the year ended December 31, 2014, which is reported in loss from discontinued operations in the Consolidated Statements of Operations and in other liabilities in the table below summarizing the major components of assets and liabilities held for sale on the Consolidated Balance Sheets. We have reclassified the related operating results as discontinued operations for all periods presented in our consolidated statements of operations. No general corporate overhead or interest expense was allocated to discontinued operations. | ||||||||||||||||||
Previously, Radian Asset Assurance comprised substantially all of the financial guaranty segment. Radian Asset Assurance provides direct insurance and reinsurance on credit-based risks. As a result, the assets and liabilities associated with the discontinued operations have historically been a source of significant volatility to Radian’s results of operations, due to various factors including fluctuations in fair value and credit risk. | ||||||||||||||||||
Although closing under the Radian Asset Stock Purchase Agreement is subject to conditions, the purchase price is not subject to adjustment based on Radian Asset Assurance’s results of operations, changes in valuation or market conditions occurring after December 31, 2014 through the closing date. Therefore, assuming satisfaction of the closing conditions, which we expect will be satisfied, the financial results of Radian Asset Assurance are not expected to have an impact on Radian’s financial condition or results of operations after December 31, 2014 and therefore, significant estimates associated with Radian Asset Assurance’s assets and liabilities are not subject to risks and uncertainties that could materially affect amounts reported in our financial statements in future periods. | ||||||||||||||||||
Summarized financial information regarding discontinued operations is provided in the tables below. | ||||||||||||||||||
The loss from discontinued operations consisted of the following components for the periods indicated: | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Net premiums earned | $ | 37,194 | $ | 49,474 | $ | 36,598 | ||||||||||||
Net investment income | 35,633 | 39,966 | 41,657 | |||||||||||||||
Net gains (losses) on investments | 51,409 | (50,775 | ) | 70,606 | ||||||||||||||
Impairment losses on investments | — | (3 | ) | (3 | ) | |||||||||||||
Change in fair value of derivative instruments | 130,617 | (32,406 | ) | (143,834 | ) | |||||||||||||
Net gains (losses) on other financial instruments | 3,903 | 2,845 | (90,071 | ) | ||||||||||||||
Gain on sale of affiliate | — | — | 7,708 | |||||||||||||||
Other income | 88 | (20 | ) | 2 | ||||||||||||||
Total revenues | 258,844 | 9,081 | (77,337 | ) | ||||||||||||||
Provision for losses | 2,853 | 2,486 | 37,664 | |||||||||||||||
Policy acquisition costs | 6,340 | 13,178 | 27,745 | |||||||||||||||
Other operating expense | 23,726 | 27,127 | 29,010 | |||||||||||||||
Total expenses | 32,919 | 42,791 | 94,419 | |||||||||||||||
Equity in net (loss) income of affiliates | (13 | ) | 1 | (13 | ) | |||||||||||||
Income (loss) from operations of businesses held for sale | 225,912 | (33,709 | ) | (171,769 | ) | |||||||||||||
Loss on classification as held for sale | (467,527 | ) | — | — | ||||||||||||||
Income tax provision | 58,442 | 21,425 | 55,594 | |||||||||||||||
Loss from discontinued operations, net of tax | $ | (300,057 | ) | $ | (55,134 | ) | $ | (227,363 | ) | |||||||||
The assets and liabilities associated with the discontinued operations have been segregated in the consolidated balance sheets. The following table summarizes the major components of Radian Asset Assurance’s assets and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2014 and 2013: | ||||||||||||||||||
December 31, | ||||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||
Fixed-maturity investments | $ | 224,552 | $ | 85,408 | ||||||||||||||
Equity securities | 3,749 | — | ||||||||||||||||
Trading securities | 689,887 | 884,696 | ||||||||||||||||
Short-term investments | 435,413 | 493,376 | ||||||||||||||||
Other invested assets | 108,206 | 106,000 | ||||||||||||||||
Other assets | 274,637 | 198,581 | ||||||||||||||||
Total assets held for sale | $ | 1,736,444 | $ | 1,768,061 | ||||||||||||||
Unearned premiums | $ | 158,921 | $ | 201,798 | ||||||||||||||
Reserve for losses and LAE | 31,558 | 21,069 | ||||||||||||||||
VIE debt | 85,016 | 91,800 | ||||||||||||||||
Derivative liabilities | 183,370 | 307,185 | ||||||||||||||||
Other liabilities | 488,143 | 20,767 | ||||||||||||||||
Total liabilities held for sale | $ | 947,008 | $ | 642,619 | ||||||||||||||
The following table provides highlights of financial guaranty derivative contracts as of the dates indicated: | ||||||||||||||||||
December 31, | ||||||||||||||||||
($ in thousands) | 2014 | 2013 | ||||||||||||||||
Number of contracts | 74 | 93 | ||||||||||||||||
Par/notional amount | $ | 8,755,457 | $ | 12,269,421 | ||||||||||||||
Total net liability | $ | 159,335 | $ | 290,543 | ||||||||||||||
The following table provides financial guaranty gross and net claim liability details by internal surveillance category as of December 31, 2014: | ||||||||||||||||||
($ in thousands) | Number of Policies | Remaining weighted-average contract period (years) | Gross Claim Liability | Gross Potential Recoveries | Net Claim Liability (Asset) (1) | |||||||||||||
Performing | 5 | 21 | $ | 1 | $ | — | $ | — | ||||||||||
Special Mention | 166 | 15 | 14,803 | 1,733 | 4,540 | |||||||||||||
Intensified Surveillance | 85 | 18 | 219,594 | 269,442 | 37,328 | |||||||||||||
Case Reserves | 91 | 19 | 35,467 | 47,000 | (12,302 | ) | ||||||||||||
Total | 347 | 17 | $ | 269,865 | $ | 318,175 | $ | 29,566 | ||||||||||
________________ | ||||||||||||||||||
(1) Net of discount and unearned premium reserves. | ||||||||||||||||||
The following is a brief description of each of the surveillance categories listed above: | ||||||||||||||||||
Performing-Performing credits generally have investment grade internal ratings, denoting nominal to moderate credit risk. | ||||||||||||||||||
Special mention-This category includes insured transactions that are rated no more than two rating levels below investment grade. Although these insured transactions typically are not performing as expected, we have determined that such transactions are not expected to have severe, prolonged stress and we do not believe that claim payments are imminent. | ||||||||||||||||||
Intensified Surveillance-This category includes transactions in financial guaranty’s insured portfolio that are rated below investment grade and indicate a severe and often permanent adverse change in the transaction’s credit profile. Transactions in this category are still performing, meaning they have not yet defaulted on a payment, but our risk management department has determined that there is a substantial likelihood of default. | ||||||||||||||||||
Case Reserves-This category consists of insured transactions where a payment default on the insured obligation has occurred. |
Note_4_Segment_Reporting_Level
Note 4 - Segment Reporting Level 1 (Notes) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting Disclosure [Text Block] | Segment Reporting | ||||||||||||
We currently have two strategic business units that we manage separately—mortgage insurance and, effective with the June 30, 2014 acquisition of Clayton, MRES. As a result of the Radian Asset Assurance Stock Purchase Agreement to sell 100% of the issued and outstanding shares of Radian Asset Assurance, we have reclassified the operating results related to the pending disposition as discontinued operations for all periods presented in our consolidated statements of operations and no longer present a financial guaranty segment. Certain corporate income and expenses that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations, such as investment income, interest expense and corporate overhead expenses, have been reallocated to the mortgage insurance segment. Prior periods have been revised to conform to the current period presentation for these changes. See Note 3 for additional information related to discontinued operations. | |||||||||||||
In addition to amounts previously allocated to the financial guaranty segment, we allocate corporate expenses to our mortgage insurance segment based on an allocated percentage of time spent on the mortgage insurance segment. In addition, we have allocated all corporate cash and investments to our mortgage insurance segment, as well as all interest expense other than the expense related to the Senior Notes due 2019. | |||||||||||||
We allocate to our MRES segment: (i) corporate expenses based on an allocated percentage of time spent on the MRES segment; and (ii) as noted above, all interest expense related to the Senior Notes due 2019 as the issuance proceeds funded our acquisition of Clayton. No corporate cash or investments are allocated to the MRES segment. Because the Clayton acquisition occurred on June 30, 2014, we have included its results of operations from the date of acquisition. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation. | |||||||||||||
Effective with the fourth quarter of 2014, the MRES business undertook the management responsibilities of certain additional loan servicer surveillance functions previously considered part of the mortgage insurance segment. As a result, these activities are now reported in the MRES segment for all periods presented. | |||||||||||||
Adjusted Pretax Operating Income (Loss) | |||||||||||||
Our senior management, including our Chief Executive Officer (our chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of Radian’s business segments and to allocate resources to the segments. Adjusted pretax operating income (loss) is defined as pretax income (loss) from continuing operations excluding the effects of net gains (losses) on investments and other financial instruments, acquisition-related expenses, amortization and impairment of intangible assets and net impairment losses recognized in earnings. It also excludes gains and losses related to changes in fair value estimates on insured credit derivatives and instead includes the impact of changes in the present value of expected insurance claims and recoveries on insured credit derivatives, based on our ongoing insurance loss monitoring. Management’s use of this measure as its primary measure to evaluate segment performance began with the quarter ended March 31, 2014. Accordingly, for comparison purposes, we also present the applicable measures from the corresponding periods of 2013 and 2012 on a basis consistent with the current year presentation. | |||||||||||||
Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (1) not viewed as part of the operating performance of our primary activities; or (2) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments, along with the reasons for their treatment, are described below. | |||||||||||||
-1 | Change in fair value of derivative instruments. Gains and losses related to changes in the fair value of insured credit derivatives are subject to significant fluctuation based on changes in interest rates, credit spreads, credit ratings and other market, asset-class and transaction-specific conditions and factors that may be unrelated or only indirectly related to our obligation to pay future claims. With the exception of the estimated present value of net credit (losses) recoveries incurred discussed in item 2 below, we believe these gains and losses will reverse over time and consequently these changes are not expected to result in economic gains or losses. Therefore, these gains and losses are excluded from our calculation of adjusted pretax operating income (loss). | ||||||||||||
-2 | Estimated present value of net credit (losses) recoveries incurred. The change in present value of insurance claims we expect to pay or recover on insured credit derivatives represents the amount of the change in credit derivatives from item 1 above, that we expect to result in an economic loss or recovery based on our ongoing loss monitoring analytics. Therefore, this item is expected to have an economic impact and is included in our calculation of adjusted pretax operating income (loss). Also included in this item is the change in expected economic loss or recovery associated with our consolidated VIEs. | ||||||||||||
-3 | Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized investment gains and losses arise primarily from changes in the market value of our investments that are classified as trading. These valuation adjustments may not necessarily result in economic gains or losses. We do not view them to be indicative of our fundamental operating activities. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). | ||||||||||||
-4 | Acquisition-related expenses. Acquisition-related expenses represent the costs incurred to effect an acquisition of a business (i.e., a business combination). Because we pursue acquisitions on a limited and selective basis and not in the ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business activity. Therefore, we do not consider these expenses to be part of our operating performance and they are excluded from our calculation of adjusted pretax operating income (loss). | ||||||||||||
-5 | Amortization and impairment of intangible assets. Amortization of intangible assets represents the periodic expense required to amortize the cost of intangible assets over their estimated useful lives. Intangible assets with an indefinite useful life are also periodically reviewed for potential impairment and impairment adjustments are made whenever appropriate. These charges are not viewed as part of the operating performance of our primary activities and therefore are excluded from our calculation of adjusted pretax operating income (loss). | ||||||||||||
-6 | Net impairment losses recognized in earnings. The recognition of net impairment losses on investments can vary significantly in both size and timing, depending on market credit cycles. We do not view these impairment losses to be indicative of our fundamental operating activities. Therefore, whenever these losses occur, we exclude them from our calculation of adjusted pretax operating income (loss). | ||||||||||||
Summarized financial information concerning our operating segments, as of and for the periods indicated, is as follows: | |||||||||||||
December 31, 2014 | |||||||||||||
(In thousands) | Mortgage Insurance | MRES (1) | Total | ||||||||||
Net premiums written—insurance | $ | 925,181 | $ | — | $ | 925,181 | |||||||
Increase in unearned premiums | (80,653 | ) | — | (80,653 | ) | ||||||||
Net premiums earned—insurance | 844,528 | — | 844,528 | ||||||||||
Services revenue (2) | — | 76,709 | 76,709 | ||||||||||
Net investment income (3) | 65,655 | — | 65,655 | ||||||||||
Other income (3) | 5,321 | 1,265 | 6,586 | ||||||||||
Total | 915,504 | 77,974 | 993,478 | -4 | |||||||||
Provision for losses (5) | 246,865 | — | 246,865 | ||||||||||
Estimated present value of net credit recoveries incurred | 113 | — | 113 | ||||||||||
Policy acquisition costs | 24,446 | — | 24,446 | ||||||||||
Direct cost of services | — | 43,605 | 43,605 | ||||||||||
Other operating expenses (3) (6) | 225,544 | 20,059 | 245,603 | ||||||||||
Interest expense (3) | 81,600 | 8,864 | 90,464 | ||||||||||
Total | 578,568 | 72,528 | 651,096 | ||||||||||
Adjusted pretax operating income | $ | 336,936 | $ | 5,446 | $ | 342,382 | |||||||
Cash and investments | $ | 3,649,582 | $ | 10,182 | $ | 3,659,764 | |||||||
Restricted cash | 11,508 | 2,523 | 14,031 | ||||||||||
Deferred policy acquisition costs | 12,003 | — | 12,003 | ||||||||||
Goodwill | — | 191,932 | 191,932 | ||||||||||
Other intangible assets, net | 137 | 96,171 | 96,308 | ||||||||||
Assets held for sale (7) | — | — | 1,736,444 | ||||||||||
Total assets | 4,786,641 | 336,878 | 6,859,963 | ||||||||||
Unearned premiums | 644,504 | — | 644,504 | ||||||||||
Reserve for losses and LAE | 1,560,032 | — | 1,560,032 | ||||||||||
NIW (in millions) | $ | 37,349 | |||||||||||
________________ | |||||||||||||
-1 | Includes the acquisition of Clayton, effective June 30, 2014. | ||||||||||||
-2 | Includes a de minimis amount of inter-segment revenues in the MRES segment. | ||||||||||||
-3 | Includes corporate income and expenses that have been reallocated to the mortgage insurance segment that were previously allocated to the financial guaranty segment, but were not reclassified to discontinued operations. These items include net investment income of $4.8 million, other income of $0.3 million, interest expense of $53.3 million and corporate overhead expenses of $13.5 million for the year ended December 31, 2014. | ||||||||||||
-4 | Excludes the following revenue items not included in adjusted pretax operating income: (a) net gains on investments of $83.9 million; and (b) net losses on other financial instruments of $3.9 million. Includes inter-segment revenues of $0.8 million in the MRES segment. | ||||||||||||
-5 | Includes inter-segment expenses of $0.8 million in the mortgage insurance segment. | ||||||||||||
-6 | Excludes $6.7 million of acquisition-related expenses not included in segment other operating expenses. | ||||||||||||
-7 | Assets held for sale are not part of the mortgage insurance or MRES segments. | ||||||||||||
Mortgage Insurance | |||||||||||||
December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Net premiums written—insurance | $ | 950,998 | $ | 806,305 | |||||||||
Increase in unearned premiums | (169,578 | ) | (103,920 | ) | |||||||||
Net premiums earned—insurance | 781,420 | 702,385 | |||||||||||
Net investment income (1) | 68,121 | 72,679 | |||||||||||
Other income (2) (3) | 6,255 | 5,787 | |||||||||||
Total (4) | 855,796 | 780,851 | |||||||||||
Provision for losses | 562,747 | 921,548 | |||||||||||
Estimated present value of net credit (recoveries) losses incurred | (21 | ) | 933 | ||||||||||
Policy acquisition costs | 28,485 | 34,131 | |||||||||||
Other operating expenses (5) | 257,402 | 167,660 | |||||||||||
Interest expense (6) | 74,618 | 51,832 | |||||||||||
Total | 923,231 | 1,176,104 | |||||||||||
Adjusted pretax operating loss | $ | (67,435 | ) | $ | (395,253 | ) | |||||||
Cash and investments | $ | 3,384,558 | $ | 3,447,201 | |||||||||
Restricted cash | 22,527 | 24,225 | |||||||||||
Deferred policy acquisition costs | 29,741 | 38,478 | |||||||||||
Total assets (7) | 3,853,630 | 3,937,588 | |||||||||||
Unearned premiums | 567,072 | 382,413 | |||||||||||
Reserve for losses and LAE | 2,164,353 | 3,083,608 | |||||||||||
NIW (in millions) | $ | 47,255 | $ | 37,061 | |||||||||
________________ | |||||||||||||
-1 | Net investment income of $6.5 million and $9.5 million has been reallocated to the mortgage insurance segment for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
-2 | Other income of $0.2 million has been reallocated to the mortgage insurance segment for each of the years ended December 31, 2013 and 2012. | ||||||||||||
-3 | Does not include change in fair value of derivative instruments of $0.6 million and ($0.2) million for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
-4 | For the year ended December 31, 2013, excludes the following revenue items not included in adjusted pretax operating loss: (a) net losses on investments of $98.9 million; (b) net losses on other financial instruments of $7.6 million; and (c) change in fair value of derivative instruments of $0.6 million. For the year ended December 31, 2012, excludes the following revenue items not included in adjusted pretax operating loss: (a) net gains on investments of $114.3 million;(b) net losses on other financial instruments of $7.8 million; and (c) change in fair value of derivative instruments of ($0.2) million. | ||||||||||||
-5 | Corporate overhead expenses of $20.5 million and $15.2 million have been reallocated to the mortgage insurance segment for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
-6 | Interest expense of $56.6 million and $44.4 million has been reallocated to the mortgage insurance segment for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
-7 | Does not include assets held for sale of $1.8 billion and $2.0 billion for the years ended December 31, 2013 and 2012, respectively, which are not a part of the mortgage insurance segment. | ||||||||||||
Certain corporate income and expenses have been reallocated to the mortgage insurance segment as listed above in notes (1) through (4) to the table. These amounts represent items that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations. | |||||||||||||
The reconciliation of adjusted pretax operating income (loss) to consolidated pretax income (loss) from continuing operations is as follows: | |||||||||||||
December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Adjusted pretax operating income (loss): | |||||||||||||
Mortgage insurance (2) | $ | 336,936 | -1 | $ | (67,435 | ) | $ | (395,253 | ) | ||||
MRES | 5,446 | -3 | — | — | |||||||||
Total adjusted pretax operating income (loss) | $ | 342,382 | $ | (67,435 | ) | $ | (395,253 | ) | |||||
Change in fair value of derivative instruments | — | 635 | (192 | ) | |||||||||
Less: Estimated present value of net credit (losses) recoveries incurred | (113 | ) | 21 | (933 | ) | ||||||||
Change in fair value of derivative instruments expected to reverse over time | 113 | 614 | 741 | ||||||||||
Net gains (losses) on investments | 83,869 | (98,945 | ) | 114,282 | |||||||||
Net (losses) gains on other financial instruments | (3,880 | ) | (7,580 | ) | 7,802 | ||||||||
Acquisition-related expenses | (6,680 | ) | — | — | |||||||||
Amortization and impairment of intangible assets | (8,648 | ) | — | — | |||||||||
Consolidated pretax income (loss) from continuing operations | $ | 407,156 | $ | (173,346 | ) | $ | (272,428 | ) | |||||
________________ | |||||||||||||
-1 | Includes inter-segment expenses of $0.8 million for the year ended December 31, 2014. | ||||||||||||
-2 | Includes certain corporate income and expenses that have been reallocated to the mortgage insurance segment for all periods presented, as listed in the preceding detailed tables. These amounts represent items that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations. | ||||||||||||
-3 | Includes inter-segment revenues of $0.8 million for the year ended December 31, 2014. | ||||||||||||
On a consolidated basis, “adjusted pretax operating income (loss)” is a measure not determined in accordance with GAAP. Total adjusted pretax operating income (loss) is not a measure of total profitability, and therefore should not be viewed as a substitute for GAAP pretax income (loss) from continuing operations. Our definition of adjusted pretax operating income (loss) may not be comparable to similarly-named measures reported by other companies. | |||||||||||||
Concentration of Risk | |||||||||||||
Net premiums earned attributable to foreign countries and long-lived assets located in foreign countries were immaterial for the periods presented. | |||||||||||||
As of December 31, 2014, California is the only state that accounted for more than 10% of our mortgage insurance business measured by primary RIF. California accounted for 13.7% of our mortgage insurance segment’s primary RIF at December 31, 2014 and at December 31, 2013. California also accounted for 9.8% of our mortgage insurance segment’s pool RIF at December 31, 2014, compared to 10.0% at December 31, 2013. California accounted for 17.2% of our mortgage insurance segment’s direct primary NIW for the year ended December 31, 2014, compared to 18.4% and 17.1% for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||
The largest single mortgage insurance customer (including branches and affiliates), measured by primary NIW, accounted for 4.0% of NIW during 2014, compared to 5.8% and 6.2% from the largest single customer in 2013 and 2012, respectively. Earned premiums from one mortgage insurance customer represented 19%, 21% and 19% of our consolidated revenues in 2014, 2013 and 2012, respectively. Earned premiums from an additional customer represented 17% of our consolidated revenues in 2012. |
Note_5_Fair_Value_of_Financial
Note 5 - Fair Value of Financial Instruments Level 1 (Notes) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | Fair Value of Financial Instruments | ||||||||||||||||
The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2014: | |||||||||||||||||
(In millions) | Level I | Level II | Total | ||||||||||||||
Assets and Liabilities at Fair Value | |||||||||||||||||
Investment Portfolio: | |||||||||||||||||
U.S. government and agency securities | $ | 836.9 | $ | 3 | $ | 839.9 | |||||||||||
State and municipal obligations | — | 362.8 | 362.8 | ||||||||||||||
Money market instruments | 600.3 | — | 600.3 | ||||||||||||||
Corporate bonds and notes | — | 992.8 | 992.8 | ||||||||||||||
RMBS | — | 132.3 | 132.3 | ||||||||||||||
CMBS | — | 246.8 | 246.8 | ||||||||||||||
Other ABS | — | 185.5 | 185.5 | ||||||||||||||
Foreign government and agency securities | — | 37.7 | 37.7 | ||||||||||||||
Equity securities (1) | 164 | 51.6 | 215.6 | ||||||||||||||
Other investments (2) | — | 1 | 1 | ||||||||||||||
Total Investments at Fair Value (3) | 1,601.20 | 2,013.50 | 3,614.70 | ||||||||||||||
Total Assets at Fair Value | $ | 1,601.20 | $ | 2,013.50 | $ | 3,614.70 | |||||||||||
______________________ | |||||||||||||||||
-1 | Comprising broadly diversified domestic equity mutual funds and certain common stocks included within Level I and various preferred stocks invested across numerous companies and industries included within Level II. | ||||||||||||||||
-2 | Comprising short-term CDs ($1.0 million) included within Level II. | ||||||||||||||||
-3 | Does not include certain other invested assets ($14.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Also excludes investments classified as assets held for sale of $495.1 million, $839.2 million and $102.6 million, with fair values categorized in Level I, Level II and Level III, respectively. | ||||||||||||||||
At December 31, 2014, there were no Level III assets, and total Level III liabilities of $3.8 million accounted for 100% of total liabilities measured at fair value. | |||||||||||||||||
For the year ended December 31, 2014, $137.3 million of U.S. government and agency securities and $21.0 million of equity securities were transferred from Level II to Level I at the end of the period as a result of our ongoing review of the inputs to the valuations of our assets and liabilities, and the availability of unadjusted quoted prices in active markets for those identical securities as of that date. There were no investment transfers from Level I to Level II for the year ended December 31, 2014. | |||||||||||||||||
The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2013: | |||||||||||||||||
(In millions) | Level I | Level II | Level III | Total | |||||||||||||
Assets and Liabilities at Fair Value | |||||||||||||||||
Investment Portfolio: | |||||||||||||||||
U.S. government and agency securities | $ | 450 | $ | 246.6 | $ | — | $ | 696.6 | |||||||||
State and municipal obligations | — | 374.1 | — | 374.1 | |||||||||||||
Money market instruments | 484.8 | — | — | 484.8 | |||||||||||||
Corporate bonds and notes | — | 880.4 | — | 880.4 | |||||||||||||
RMBS | — | 338.8 | — | 338.8 | |||||||||||||
CMBS | — | 209.2 | — | 209.2 | |||||||||||||
Other ABS | — | 120.5 | 0.9 | 121.4 | |||||||||||||
Foreign government and agency securities | — | 28.3 | — | 28.3 | |||||||||||||
Equity securities (1) | 128.3 | 75.6 | 0.4 | 204.3 | |||||||||||||
Other investments (2) | — | 1 | — | 1 | |||||||||||||
Total Investments at Fair Value (3) | 1,063.10 | 2,274.50 | 1.3 | 3,338.90 | |||||||||||||
Total Assets at Fair Value | $ | 1,063.10 | $ | 2,274.50 | $ | 1.3 | $ | 3,338.90 | |||||||||
______________________ | |||||||||||||||||
-1 | Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common stocks invested across numerous companies and industries included within Levels II and III. | ||||||||||||||||
-2 | Comprising short-term CDs ($1.0 million) included within Level II. | ||||||||||||||||
-3 | Does not include fixed-maturities held to maturity ($0.4 million) and certain other invested assets ($22.4 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. | ||||||||||||||||
At December 31, 2013, our total Level III assets approximated less than 1% of total assets measured at fair value and our total Level III liabilities of $2.8 million accounted for 100% of total liabilities measured at fair value. | |||||||||||||||||
There were no investment transfers between Level I and Level II for the year ended December 31, 2013. | |||||||||||||||||
Rollforward activity of Level III assets and liabilities (including realized and unrealized gains and losses, purchases, sales, issuances, settlements and transfers) was not material during the years ended December 31, 2014 and 2013. | |||||||||||||||||
The following are descriptions of our valuation methodologies for financial assets and liabilities measured at fair value. | |||||||||||||||||
Investments | |||||||||||||||||
We are responsible for the determination of the value of all investments carried at fair value and the supporting methodologies and assumptions. To assist us in this responsibility, we utilize independent third-party valuation service providers to gather, analyze and interpret market information and estimate fair values based upon relevant methodologies and assumptions for various asset classes and individual securities. We perform monthly quantitative and qualitative analyses on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. Our analysis includes: (i) a review of the methodology used by third-party pricing services; (ii) a comparison of pricing services’ valuations to other independent sources; (iii) a review of month-to-month price fluctuations; and (iv) a comparison of actual purchase and sale transactions with valuations received from third parties. These processes are designed to ensure that our investment values are accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied and that the assumptions are reasonable and consistent with the objective of determining fair value. | |||||||||||||||||
U.S. government and agency securities—The fair value of U.S. government and agency securities is estimated using observed market transactions, including broker-dealer quotes and actual trade activity as a basis for valuation. U.S. government and agency securities are categorized in either Level I or Level II of the fair value hierarchy. | |||||||||||||||||
State and municipal obligations—The fair value of state and municipal obligations is estimated using recent transaction activity, including market observations. Evaluation models are used, which incorporate bond structure, yield curve, credit spreads and other factors. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. | |||||||||||||||||
Money market instruments—The fair value of money market instruments is based on daily prices, which are published and available to all potential investors and market participants. As such, these securities are categorized in Level I of the fair value hierarchy. | |||||||||||||||||
Corporate bonds and notes—The fair value of corporate bonds and notes is estimated using recent transaction activity, including market observations. Spread models are used that incorporate issuer and structure characteristics, such as credit risk and early redemption features, where applicable. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. | |||||||||||||||||
RMBS, CMBS, and Other ABS—The fair value of these instruments is estimated based on prices of comparable securities and spreads and observable prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. The fair value of any Level III securities is generally estimated by discounting estimated future cash flows. | |||||||||||||||||
Foreign government and agency securities—The fair value of foreign government and agency securities is estimated using observed market yields used to create a maturity curve and observed credit spreads from market makers and broker-dealers. These securities are categorized in Level II of the fair value hierarchy. | |||||||||||||||||
Equity securities—The fair value of these securities is generally estimated using observable market data in active markets or bid prices from market makers and broker-dealers. Generally, these securities are categorized in Level I or II of the fair value hierarchy, as observable market data are readily available. A small number of our equity securities, however, are categorized in Level III of the fair value hierarchy due to a lack of market-based transaction data or the use of model-based evaluations. | |||||||||||||||||
Other investments—These securities primarily consist of short-term CDs, which are categorized in Level II of the fair value hierarchy. | |||||||||||||||||
Other Fair Value Disclosure | |||||||||||||||||
The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our consolidated balance sheets were as follows as of the dates indicated: | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
(In millions) | Carrying | Estimated | Carrying | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
Assets: | |||||||||||||||||
Fixed-maturities held to maturity | $ | — | $ | — | $ | 0.4 | $ | 0.4 | -1 | ||||||||
Other invested assets | 14.6 | 20.5 | -1 | 22.4 | 27.8 | -1 | |||||||||||
Liabilities: | |||||||||||||||||
Long-term debt | 1,209.90 | 1,859.30 | -1 | 930.1 | 1,502.70 | -1 | |||||||||||
______________________ | |||||||||||||||||
-1 | These estimated fair values would be classified in Level II of the fair value hierarchy. | ||||||||||||||||
Fixed-Maturities Held to Maturity—The fair values of fixed-maturity securities are obtained from independent pricing services that use observed market transactions, including broker-dealer quotes and actual trade activity as a basis for valuation. | |||||||||||||||||
Other Invested Assets—The fair value of these assets, primarily invested in limited partnerships, is estimated based on information within the financial statements provided by the limited partnerships. These interests are accounted for and carried as cost-method investments. | |||||||||||||||||
Long-Term Debt—The carrying amount of long-term debt is net of the equity component of our convertible notes, which is accounted for under the accounting standard for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement). The fair value is estimated based on the quoted market prices for the same or similar issues. See Note 11 for further information. |
Note_6_Investments_Level_1_Not
Note 6 - Investments Level 1 (Notes) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investments | ||||||||||||||||||||||||||||||||
Our held to maturity and available for sale securities within our investment portfolio consisted of the following as of the dates indicated: | |||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
(In thousands) | Amortized | Fair Value | Gross | Gross | |||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||
Fixed-maturities available for sale: | |||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 5,709 | $ | 5,751 | $ | 48 | $ | 6 | |||||||||||||||||||||||||
State and municipal obligations | 17,727 | 18,910 | 1,183 | — | |||||||||||||||||||||||||||||
Corporate bonds and notes | 277,678 | 284,408 | 7,288 | 558 | |||||||||||||||||||||||||||||
RMBS | 41,467 | 42,520 | 1,053 | — | |||||||||||||||||||||||||||||
CMBS | 57,358 | 58,234 | 876 | — | |||||||||||||||||||||||||||||
Other ABS | 109,420 | 107,701 | 8 | 1,727 | |||||||||||||||||||||||||||||
Foreign government and agency securities | 19,301 | 19,366 | 307 | 242 | |||||||||||||||||||||||||||||
$ | 528,660 | $ | 536,890 | $ | 10,763 | $ | 2,533 | ||||||||||||||||||||||||||
Equity securities available for sale (1) | $ | 76,900 | $ | 143,368 | $ | 66,468 | $ | — | |||||||||||||||||||||||||
Total debt and equity securities | $ | 605,560 | $ | 680,258 | $ | 77,231 | $ | 2,533 | |||||||||||||||||||||||||
______________________ | |||||||||||||||||||||||||||||||||
-1 | Comprising broadly diversified domestic equity mutual funds ($143.0 million fair value) and a preferred stock investment in Freddie Mac ($0.4 million fair value). | ||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
(In thousands) | Amortized | Fair Value | Gross | Gross | |||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||
Fixed-maturities held to maturity: | |||||||||||||||||||||||||||||||||
State and municipal obligations | $ | 358 | $ | 351 | $ | — | $ | 7 | |||||||||||||||||||||||||
$ | 358 | $ | 351 | $ | — | $ | 7 | ||||||||||||||||||||||||||
Fixed-maturities available for sale: | |||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 5,636 | $ | 5,697 | $ | 97 | $ | 36 | |||||||||||||||||||||||||
State and municipal obligations | 17,924 | 17,403 | 24 | 545 | |||||||||||||||||||||||||||||
Corporate bonds and notes | 11,951 | 12,045 | 578 | 484 | |||||||||||||||||||||||||||||
$ | 35,511 | $ | 35,145 | $ | 699 | $ | 1,065 | ||||||||||||||||||||||||||
Equity securities available for sale (1) | $ | 76,900 | $ | 129,161 | $ | 52,261 | $ | — | |||||||||||||||||||||||||
Total debt and equity securities | $ | 112,769 | $ | 164,657 | $ | 52,960 | $ | 1,072 | |||||||||||||||||||||||||
______________________ | |||||||||||||||||||||||||||||||||
-1 | Comprising broadly diversified domestic equity mutual funds ($128.3 million fair value) and various preferred and common stocks invested across numerous companies and industries ($0.9 million fair value). | ||||||||||||||||||||||||||||||||
The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 134,530 | $ | 240,860 | |||||||||||||||||||||||||||||
State and municipal obligations | 343,926 | 356,715 | |||||||||||||||||||||||||||||||
Corporate bonds and notes | 708,361 | 868,403 | |||||||||||||||||||||||||||||||
RMBS | 89,810 | 338,776 | |||||||||||||||||||||||||||||||
CMBS | 188,615 | 209,191 | |||||||||||||||||||||||||||||||
Other ABS | 77,755 | 121,399 | |||||||||||||||||||||||||||||||
Foreign government and agency securities | 18,331 | 28,303 | |||||||||||||||||||||||||||||||
Equity securities | 72,256 | 75,094 | |||||||||||||||||||||||||||||||
Total | $ | 1,633,584 | $ | 2,238,741 | |||||||||||||||||||||||||||||
For trading securities that were held at December 31, 2014 and 2013, we had net unrealized gains during 2014 and net unrealized losses during 2013 associated with those securities in the amount of $65.7 million and $88.4 million, respectively. | |||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, our investment portfolio included no Sovereign securities of the Stressed European Countries (Greece, Spain, Italy, Hungary, Portugal and Ireland, collectively) which have Sovereign obligations that have been under particular stress due to economic uncertainty, potential restructuring and ratings downgrades, and included no securities of any other countries under similar stress. | |||||||||||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, we did not sell or transfer any fixed-maturity investments classified as held to maturity. For the years ended December 31, 2014, 2013 and 2012, we did not transfer any securities from the available for sale or trading categories. | |||||||||||||||||||||||||||||||||
Net investment income consisted of: | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Investment income: | |||||||||||||||||||||||||||||||||
Fixed-maturities | $ | 62,352 | $ | 66,131 | $ | 66,518 | |||||||||||||||||||||||||||
Equity securities | 6,287 | 6,592 | 7,738 | ||||||||||||||||||||||||||||||
Short-term investments | 246 | 255 | 304 | ||||||||||||||||||||||||||||||
Other | 1,848 | 1,970 | 3,913 | ||||||||||||||||||||||||||||||
Gross investment income | 70,733 | 74,948 | 78,473 | ||||||||||||||||||||||||||||||
Investment expenses | (5,078 | ) | (6,827 | ) | (5,794 | ) | |||||||||||||||||||||||||||
Net investment income | $ | 65,655 | $ | 68,121 | $ | 72,679 | |||||||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments consisted of: | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net realized (losses) gains on investments: | |||||||||||||||||||||||||||||||||
Fixed-maturities held to maturity | $ | (9 | ) | $ | 2 | $ | 37 | ||||||||||||||||||||||||||
Fixed-maturities available for sale | (1,599 | ) | 937 | 2,726 | |||||||||||||||||||||||||||||
Equities available for sale | — | 349 | 5,070 | ||||||||||||||||||||||||||||||
Trading securities | (6,996 | ) | 7,997 | 142,502 | |||||||||||||||||||||||||||||
Short-term investments | 1 | 1 | 7 | ||||||||||||||||||||||||||||||
Other invested assets | — | 8,841 | 375 | ||||||||||||||||||||||||||||||
Other gains | 246 | 126 | — | ||||||||||||||||||||||||||||||
Net realized (losses) gains on investments | (8,357 | ) | 18,253 | 150,717 | |||||||||||||||||||||||||||||
Unrealized gains (losses) on trading securities | 92,226 | (117,198 | ) | (36,435 | ) | ||||||||||||||||||||||||||||
Total gains (losses) on investments | $ | 83,869 | $ | (98,945 | ) | $ | 114,282 | ||||||||||||||||||||||||||
The sources of our proceeds and related investment gains (losses) on our available for sale securities are as follows: | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Fixed-maturities available for sale: | |||||||||||||||||||||||||||||||||
Proceeds received from redemptions | $ | 4,985 | $ | 538 | $ | 5,815 | |||||||||||||||||||||||||||
Proceeds received from sales | 19,672 | 17,185 | 30,966 | ||||||||||||||||||||||||||||||
Gross investment gains from sales and redemptions | 99 | 1,078 | 3,018 | ||||||||||||||||||||||||||||||
Gross investment losses from sales and redemptions | (1,698 | ) | (141 | ) | (292 | ) | |||||||||||||||||||||||||||
Equities available for sale: | |||||||||||||||||||||||||||||||||
Proceeds received from sales and redemptions | — | 10,503 | 31,235 | ||||||||||||||||||||||||||||||
Gross investment gains from sales and redemptions | — | 348 | 5,070 | ||||||||||||||||||||||||||||||
The change in unrealized gains (losses) recorded in accumulated other comprehensive income (loss) consisted of the following: | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Fixed-maturities: | |||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during the period, net of tax | $ | 4,531 | $ | (240 | ) | $ | 2,694 | ||||||||||||||||||||||||||
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | (1,039 | ) | 929 | 3,395 | |||||||||||||||||||||||||||||
Net unrealized gains (losses) on investments, net of tax | $ | 5,570 | $ | (1,169 | ) | $ | (701 | ) | |||||||||||||||||||||||||
Equities: | |||||||||||||||||||||||||||||||||
Unrealized holding gains arising during the period, net of tax | $ | 9,119 | $ | 19,389 | $ | 9,572 | |||||||||||||||||||||||||||
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | — | (273 | ) | 3,523 | |||||||||||||||||||||||||||||
Net unrealized gains on investments, net of tax | $ | 9,119 | $ | 19,662 | $ | 6,049 | |||||||||||||||||||||||||||
The following tables show the gross unrealized losses and fair value of our securities deemed “available for sale” and “held to maturity,” aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated: | |||||||||||||||||||||||||||||||||
December 31, 2014: ($ in thousands) Description of Securities | Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||
# of | Fair Value | Unrealized | # of | Fair Value | Unrealized | # of | Fair Value | Unrealized | |||||||||||||||||||||||||
securities | Losses | securities | Losses | securities | Losses | ||||||||||||||||||||||||||||
U.S. government and agency securities | — | $ | — | $ | — | 1 | $ | 3,455 | $ | 6 | 1 | $ | 3,455 | $ | 6 | ||||||||||||||||||
Corporate bonds and notes | 24 | 40,917 | 410 | 1 | 1,027 | 148 | 25 | 41,944 | 558 | ||||||||||||||||||||||||
Other ABS | 34 | 97,356 | 1,727 | — | — | — | 34 | 97,356 | 1,727 | ||||||||||||||||||||||||
Foreign government and agency securities | 4 | 6,353 | 242 | — | — | — | 4 | 6,353 | 242 | ||||||||||||||||||||||||
Total | 62 | $ | 144,626 | $ | 2,379 | 2 | $ | 4,482 | $ | 154 | 64 | $ | 149,108 | $ | 2,533 | ||||||||||||||||||
December 31, 2013: ($ in thousands) Description of Securities | Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||
# of | Fair Value | Unrealized | # of | Fair Value | Unrealized | # of | Fair Value | Unrealized | |||||||||||||||||||||||||
securities | Losses | securities | Losses | securities | Losses | ||||||||||||||||||||||||||||
U.S. government and agency securities | 1 | $ | 3,413 | $ | 36 | — | $ | — | $ | — | 1 | $ | 3,413 | $ | 36 | ||||||||||||||||||
State and municipal obligations | 2 | 5,961 | 18 | 2 | 5,514 | 534 | 4 | 11,475 | 552 | ||||||||||||||||||||||||
Corporate bonds and notes | — | — | — | 2 | 2,966 | 484 | 2 | 2,966 | 484 | ||||||||||||||||||||||||
Total | 3 | $ | 9,374 | $ | 54 | 4 | $ | 8,480 | $ | 1,018 | 7 | $ | 17,854 | $ | 1,072 | ||||||||||||||||||
There were no credit losses recognized in earnings in 2014, 2013 or 2012. | |||||||||||||||||||||||||||||||||
Impairments due to credit deterioration that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security are considered other-than-temporary. Other declines in fair value (for example, due to interest rate changes, sector credit rating changes or company-specific rating changes) that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security also may serve as a basis to conclude that an other-than-temporary impairment has occurred. To the extent we determine that a security is deemed to have had an other-than-temporary impairment, an impairment loss is recognized. | |||||||||||||||||||||||||||||||||
We had securities in an unrealized loss position that we did not consider to be other-than-temporarily impaired as of December 31, 2014. For all investment categories, the unrealized losses of 12 months or greater duration as of December 31, 2014, were generally caused by interest rate or credit spread movements since the purchase date, and as such, we expect the present value of cash flows to be collected from these securities to be sufficient to recover the amortized cost basis of these securities. As of December 31, 2014, we did not have the intent to sell any debt securities in an unrealized loss position and we determined that it is more likely than not that we will not be required to sell the securities before recovery of their cost basis, which may be at maturity; therefore, we did not consider these investments to be other-than-temporarily impaired at December 31, 2014. | |||||||||||||||||||||||||||||||||
The contractual maturities of fixed-maturity investments are as follows: | |||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||||||||||
(In thousands) | Amortized | Fair | |||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||
Due in one year or less (1) | $ | 2,247 | $ | 2,295 | |||||||||||||||||||||||||||||
Due after one year through five years (1) | 39,483 | 39,420 | |||||||||||||||||||||||||||||||
Due after five years through ten years (1) | 154,234 | 155,790 | |||||||||||||||||||||||||||||||
Due after ten years (1) | 124,451 | 130,930 | |||||||||||||||||||||||||||||||
RMBS (2) | 41,467 | 42,520 | |||||||||||||||||||||||||||||||
CMBS (2) | 57,358 | 58,234 | |||||||||||||||||||||||||||||||
Other ABS (2) | 109,420 | 107,701 | |||||||||||||||||||||||||||||||
Total | $ | 528,660 | $ | 536,890 | |||||||||||||||||||||||||||||
______________________ | |||||||||||||||||||||||||||||||||
-1 | Actual maturities may differ as a result of calls before scheduled maturity. | ||||||||||||||||||||||||||||||||
-2 | RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date. | ||||||||||||||||||||||||||||||||
As of December 31, 2014, we did not have any investment in any person and its affiliates that exceeded 10% of our total stockholders’ equity. | |||||||||||||||||||||||||||||||||
Securities on deposit with various state insurance commissioners amounted to $12.1 million at both December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
As part of the Freddie Mac Agreement, Radian Guaranty had $209.3 million and $206.8 million at December 31, 2014 and 2013, respectively, in a collateral account currently invested primarily in trading securities, which is pledged to cover Loss Mitigation Activity on the loans subject to the agreement. Subject to certain conditions in the Freddie Mac Agreement, amounts in the collateral account may be released to Radian Guaranty over time to the extent that Loss Mitigation Activity becomes final in accordance with the terms of the Freddie Mac Agreement. However, if the amount of Loss Mitigation Activity that becomes final in accordance with the Freddie Mac Agreement after the collateral account was established is less than $205 million prior to the termination of the Freddie Mac Agreement, then any shortfall will be paid to Freddie Mac from the funds in the collateral account. |
Note_7_Goodwill_and_Other_Inta
Note 7 - Goodwill and Other Intangible Assets, Net (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets, Net | |||||||||||
The following table shows the changes in the carrying amount of goodwill by segment for the year ended December 31, 2014: | ||||||||||||
Year Ended December 31, 2014 | ||||||||||||
(In thousands) | MRES | |||||||||||
Balance at beginning of period: | ||||||||||||
Goodwill | $ | 2,095 | ||||||||||
Accumulated impairment losses | — | |||||||||||
Goodwill, net | 2,095 | |||||||||||
Goodwill acquired during the period | 191,932 | |||||||||||
Impairment losses | (2,095 | ) | ||||||||||
Balance at end of period: | ||||||||||||
Goodwill | 194,027 | |||||||||||
Accumulated impairment losses | (2,095 | ) | ||||||||||
Goodwill, net | $ | 191,932 | ||||||||||
We conducted our annual goodwill impairment analysis in the fourth quarter of 2014. As a result, we recorded a goodwill impairment of $2.1 million related to a small subsidiary within our MRES segment that we had acquired in 2013. As part of the annual goodwill impairment assessment, we estimated the fair value of this subsidiary using an income approach. The key assumption in our fair value analysis was forecasted future cash flows, which were less than originally expected. There is no goodwill remaining for this subsidiary at December 31, 2014. Our remaining goodwill balance relates entirely to our Clayton acquisition. | ||||||||||||
The following is a summary of the gross and net carrying amounts and accumulated amortization of our other intangible assets as of and for the year to date periods indicated: | ||||||||||||
December 31, 2014 | ||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Client relationships | $ | 79,203 | $ | (2,917 | ) | $ | 76,286 | |||||
Technology | 8,970 | (797 | ) | 8,173 | ||||||||
Trademark | 7,860 | (393 | ) | 7,467 | ||||||||
Client backlog | 6,680 | (2,406 | ) | 4,274 | ||||||||
Non-competition agreements | 145 | (37 | ) | 108 | ||||||||
Total | $ | 102,858 | $ | (6,550 | ) | $ | 96,308 | |||||
December 31, 2013 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Technology | $ | 200 | $ | — | $ | 200 | ||||||
Non-competition agreements | 5 | — | 5 | |||||||||
Total | $ | 205 | $ | — | $ | 205 | ||||||
For tax purposes, substantially all of the goodwill and other intangible assets are expected to be deductible and amortized over a period of 15 years. For financial reporting purposes, other intangible assets with finite lives will be amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset, as follows: | ||||||||||||
Estimated Useful Life | ||||||||||||
Client relationships | 3 years | - | 15 years | |||||||||
Technology | 3 years | - | 6 years | |||||||||
Trademark | 10 years | |||||||||||
Client backlog | 3 years | - | 5 years | |||||||||
Non-competition agreements | 2 years | - | 3 years | |||||||||
The estimated aggregate amortization expense for 2015 and thereafter is as follows (in thousands): | ||||||||||||
2015 | $ | 12,009 | ||||||||||
2016 | 10,886 | |||||||||||
2017 | 10,579 | |||||||||||
2018 | 10,389 | |||||||||||
2019 | 9,372 | |||||||||||
Thereafter | 43,074 | |||||||||||
Note_8_Reinsurance
Note 8 - Reinsurance | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | ||||||||||||||||||||||||
Reinsurance [Text Block] | Reinsurance | |||||||||||||||||||||||
In our mortgage insurance business, we have used reinsurance as a risk management tool to manage Radian Guaranty’s regulatory Risk-to-capital and to comply with certain state requirements that limit the amount of risk a mortgage insurer may retain on a single loan to 25% of the total loan amount. Premiums are ceded under captive arrangements and the QSR Reinsurance Transactions (and previously were ceded under Smart Home). Included in other assets are prepaid reinsurance premiums of $57.3 million and $60.5 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
The effect of reinsurance on net premiums written and earned is as follows: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net premiums written-insurance: | ||||||||||||||||||||||||
Direct | $ | 982,976 | $ | 1,033,323 | $ | 892,650 | ||||||||||||||||||
Assumed | (882 | ) | (904 | ) | (903 | ) | ||||||||||||||||||
Ceded | (56,913 | ) | (81,421 | ) | (85,442 | ) | ||||||||||||||||||
Net premiums written-insurance | $ | 925,181 | $ | 950,998 | $ | 806,305 | ||||||||||||||||||
Net premiums earned-insurance: | ||||||||||||||||||||||||
Direct | $ | 905,502 | $ | 848,655 | $ | 743,736 | ||||||||||||||||||
Assumed | 43 | 56 | (953 | ) | ||||||||||||||||||||
Ceded | (61,017 | ) | (67,291 | ) | (40,398 | ) | ||||||||||||||||||
Net premiums earned-insurance | $ | 844,528 | $ | 781,420 | $ | 702,385 | ||||||||||||||||||
The following table shows the amounts related to the QSR Reinsurance Transactions for the periods indicated: | ||||||||||||||||||||||||
Initial QSR Transaction | Second QSR Transaction | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Ceded premiums written | $ | 10,217 | $ | 23,047 | $ | 52,151 | $ | 33,751 | $ | 40,225 | $ | 9,648 | ||||||||||||
Ceded premiums earned | 17,319 | 29,746 | 16,088 | 29,820 | 18,356 | 504 | ||||||||||||||||||
Ceding commissions written | 4,862 | 5,762 | 13,038 | 11,813 | 14,079 | 3,377 | ||||||||||||||||||
Ceded losses to date under the QSR Reinsurance Transactions have been immaterial. | ||||||||||||||||||||||||
Under the Initial QSR Transaction, Radian Guaranty agreed to cede to the third-party reinsurance provider 20% of its NIW beginning with the business written in the fourth quarter of 2011 up to $1.6 billion of ceded RIF. We have ceded the maximum amount permitted under the Initial QSR Transaction, and therefore, are no longer ceding NIW under this transaction. As of December 31, 2014, RIF ceded under the Initial QSR Transaction declined to $1.1 billion. Radian Guaranty had the ability, at its option, to recapture two-thirds of the reinsurance ceded as part of this transaction on December 31, 2014. However, we chose not to recapture that risk and negotiated an amendment to the transaction pursuant to which we received a $9.2 million profit commission based on experience to date, which increased net premiums earned, and a $15.0 million upfront supplemental ceding commission, which has been deferred and is expected to be amortized as a reduction to our policy acquisition costs over approximately the next five years. Effective January 1, 2015, the ceding commission was reduced from 25% to 20% for two-thirds of the reinsurance ceded under the Initial QSR Transaction. | ||||||||||||||||||||||||
In the fourth quarter of 2012, Radian Guaranty and the same third-party reinsurance provider entered into the Second QSR Transaction, pursuant to which Radian Guaranty agreed to cede to the third-party reinsurance provider 20% of its NIW beginning with the business written the fourth quarter of 2012. Effective April 1, 2013, Radian Guaranty amended the original terms of the Second QSR Transaction to reduce the percentage of all premiums and losses incurred on new business ceded to the reinsurer under this reinsurance agreement on a prospective basis from 20% to 5% with respect to NIW on conventional GSE loans. | ||||||||||||||||||||||||
As of December 31, 2014, we had ceded the maximum of $1.6 billion of RIF as mutually agreed upon under the Second QSR Transaction. | ||||||||||||||||||||||||
Similar to the Initial QSR Transaction, the Second QSR Transaction also provides that, effective as of December 31, 2015, Radian Guaranty will have the ability, at its option (the “Commutation Option”), to recapture one-half of the reinsurance ceded with respect to conventional GSE loans, which would result in Radian Guaranty reassuming the related RIF potentially in exchange for a payment of a profit commission amount from the reinsurer. Pursuant to the original terms of the Second QSR Transaction: | ||||||||||||||||||||||||
(i) | Radian Guaranty agreed to cede to the reinsurer 20% of all premiums and losses incurred with respect to conventional GSE loans and will initially receive a 35% ceding commission; provided, that if we do not exercise our Commutation Option, the ceding commission will be reduced to 30% for the portion of the ceded RIF that was subject to the Commutation Option; and | |||||||||||||||||||||||
(ii) | Radian Guaranty had the ability to cede 100% of all premiums and losses incurred with respect to non-conventional portfolio loans and will receive a 25% ceding commission. We have not ceded any risk on non-conventional portfolio loans. | |||||||||||||||||||||||
We and other companies in the mortgage insurance industry have participated in reinsurance arrangements with mortgage lenders commonly referred to as “captive reinsurance arrangements.” Under captive reinsurance arrangements, a mortgage lender typically established a reinsurance company that assumed part of the risk associated with the portfolio of that lender’s mortgages insured by us on a flow basis (as compared to mortgages insured in Structured Transactions, which typically are not eligible for captive reinsurance arrangements). In return for the reinsurance company’s assumption of a portion of the risk, we ceded a portion of the mortgage insurance premiums paid to us to the reinsurance company. The captive reinsurers are typically required to maintain minimum capitalization equal to 10% of the risk assumed. We have also participated, on a limited basis, in “quota share” captive reinsurance agreements under which the captive reinsurance company assumed a pro rata share of all losses in return for a pro rata share of the premiums collected. | ||||||||||||||||||||||||
During the financial crisis and downturn in the housing and related credit markets in which losses have increased significantly, most all captive reinsurance arrangements have attached, requiring our captive reinsurers to make payments to us. In all cases, the captive reinsurer established a trust to secure our potential cash recoveries. We generally are the sole beneficiary under these trusts, and therefore, have the ability to initiate disbursements under the trusts in accordance with the terms of our captive reinsurance agreements. All of our existing captive reinsurance arrangements are operating on a run-off basis, meaning that no new business is being placed in these captives. | ||||||||||||||||||||||||
In some instances, we anticipate that the ultimate losses ceded to the captive reinsurers will be greater than the assets currently held by the segregated trusts established for each captive reinsurer. Recorded recoverables, however, are limited to the current trust balances. We expect that most of the actual cash recoveries from those captives that have not yet been terminated on a cut-off basis will be received over the next few years. | ||||||||||||||||||||||||
Trust assets related to our captive arrangements are required to be invested in investment grade securities. As of December 31, 2014, the trust assets for these trust accounts consisted primarily of cash equivalents, money market investments and investment grade securities. | ||||||||||||||||||||||||
The following tables present information related to our captive transactions for the periods indicated: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||||||
RIF ceded under captive reinsurance arrangements | $ | 129.8 | $ | 199.8 | ||||||||||||||||||||
Ceded losses recoverable related to captives | 24.7 | 45 | ||||||||||||||||||||||
Approximately 43% of our total ceded losses recoverable at December 31, 2014 were related to two captive reinsurers. | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Ceded premiums written related to captives | $ | 12.9 | $ | 17.8 | $ | 23.3 | ||||||||||||||||||
Ceded premiums earned related to captives | 13 | 17.9 | 23.4 | |||||||||||||||||||||
Ceded recoveries, excluding amounts received upon terminations of captive reinsurance transactions | 21.2 | 47.2 | 34.7 | |||||||||||||||||||||
In 2004, we developed a program, referred to as Smart Home, for reinsuring risk associated with non-prime mortgages. From 2004 through 2007, we entered into four Smart Home transactions. As of May 2013, all of the Smart Home transactions had been terminated. |
Note_9_Other_Assets_Notes
Note 9 - Other Assets (Notes) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Other Assets Disclosure [Text Block] | Other Assets | ||||||||
The following table shows the components of other assets for the periods indicated: | |||||||||
December 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Deposit with the IRS (Note 14) | $ | 88,557 | $ | 88,557 | |||||
COLI | 80,755 | 78,354 | |||||||
Prepaid reinsurance premiums | 57,291 | 60,512 | |||||||
Reinsurance recoverables | 28,119 | 46,846 | |||||||
Property and equipment (1) | 27,248 | 10,496 | |||||||
Accrued investment income | 20,022 | 21,306 | |||||||
Deferred policy acquisition costs | 12,003 | 29,741 | |||||||
Other | 61,496 | 44,091 | |||||||
Total other assets | $ | 375,491 | $ | 379,903 | |||||
______________________ | |||||||||
-1 | Property and equipment, at cost less accumulated depreciation of $100,207 and $96,058 at December 31, 2014 and 2013, respectively. |
Note_10_Losses_and_Loss_Adjust
Note 10 - Losses and Loss Adjustment Expenses Level 1 (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance Loss Reserves [Abstract] | ||||||||||||
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | Losses and Loss Adjustment Expenses | |||||||||||
The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Reserves for losses by category: | ||||||||||||
Prime | $ | 700,174 | $ | 937,307 | ||||||||
Alt-A | 292,293 | 384,841 | ||||||||||
A minus and below | 179,103 | 215,545 | ||||||||||
IBNR and other | 223,114 | 347,698 | ||||||||||
LAE | 56,164 | 51,245 | ||||||||||
Reinsurance recoverable (1) | 26,665 | 38,363 | ||||||||||
Total primary reserves | 1,477,513 | 1,974,999 | ||||||||||
Pool | 75,785 | 169,682 | ||||||||||
IBNR and other | 1,775 | 8,938 | ||||||||||
LAE | 3,542 | 5,439 | ||||||||||
Total pool reserves | 81,102 | 184,059 | ||||||||||
Total First-lien reserves | 1,558,615 | 2,159,058 | ||||||||||
Second-lien and other (2) | 1,417 | 5,295 | ||||||||||
Total reserve for losses | $ | 1,560,032 | $ | 2,164,353 | ||||||||
______________________ | ||||||||||||
-1 | Represents ceded losses on captive transactions and the QSR Reinsurance Transactions. | |||||||||||
-2 | Does not include our Second-lien PDR that is included in other liabilities. | |||||||||||
The following table presents information relating to our mortgage insurance reserves for losses, including IBNR, and LAE but excluding Second-lien PDR, for the periods indicated: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Mortgage Insurance | ||||||||||||
Balance at January 1 | $ | 2,164,353 | $ | 3,083,608 | $ | 3,247,900 | ||||||
Less reinsurance recoverables (1) | 38,363 | 83,238 | 151,569 | |||||||||
Balance at January 1, net of reinsurance recoverables | 2,125,990 | 3,000,370 | 3,096,331 | |||||||||
Add losses and LAE incurred in respect of default notices reported and unreported in: | ||||||||||||
Current year (2) | 422,999 | 584,174 | 899,511 | |||||||||
Prior years | (177,360 | ) | (19,526 | ) | 21,996 | |||||||
Total incurred | 245,639 | 564,648 | 921,507 | |||||||||
Deduct paid claims and LAE related to: | ||||||||||||
Current year (2) | 9,006 | 31,399 | 12,503 | |||||||||
Prior years | 829,256 | 1,407,629 | 1,004,965 | |||||||||
Total paid | 838,262 | 1,439,028 | 1,017,468 | |||||||||
Balance at end of period, net of reinsurance recoverables | 1,533,367 | 2,125,990 | 3,000,370 | |||||||||
Add reinsurance recoverables (1) | 26,665 | 38,363 | 83,238 | |||||||||
Balance at December 31 | $ | 1,560,032 | $ | 2,164,353 | $ | 3,083,608 | ||||||
_________________________ | ||||||||||||
-1 | Related to ceded losses on captive transactions, Smart Home (for 2012) and QSR Reinsurance Transactions. See Note 8 for additional information. | |||||||||||
-2 | Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. | |||||||||||
Our mortgage insurance loss reserves declined in 2014, primarily as a result of the volume of paid claims, cures and insurance rescissions and claim denials continuing to outpace new default notices received. Total incurred losses during 2014 primarily were the result of new default notices during 2014. The impact to incurred losses from default notices reported in 2014 was partially mitigated by favorable reserve development on prior year defaults, which was driven primarily by higher cures and lower Claim Severity rates than were previously estimated. Our results of 2014 also include the impact of the BofA Settlement Agreement, as described below. | ||||||||||||
Total paid claims decreased for 2014 as compared to 2013. Our 2013 paid claims included the $255 million payment made upon the closing of the Freddie Mac Agreement, as described below. The additional decrease in paid claims in 2014 compared to prior year periods is consistent with the overall decline in defaulted loans. | ||||||||||||
Our mortgage insurance loss reserves also declined in 2013, primarily as a result of a decrease in our total inventory of defaults (due in large part to the Freddie Mac Agreement), and also because the volume of paid claims, cures and insurance rescissions and claim denials outpaced new default notices received. Total paid claims increased for 2013 from 2012, driven primarily by the $255 million payment made upon the closing of the Freddie Mac Agreement, and by greater efficiencies in our claims review process that allowed us to pay valid claims more quickly than in previous periods. In addition to reserves established for new default notices, which were the primary basis for our total incurred losses in 2013, losses incurred in 2013 were also favorably impacted by reserve development on prior year defaults, as the initial loss of $22 million related to prior year defaults included in the Freddie Mac Agreement was more than offset by a benefit from claim curtailments and cures that was higher than previously estimated. | ||||||||||||
The losses incurred in 2012 were impacted by adverse reserve development on prior year defaults, primarily relating to the impact from the aging of underlying defaulted loans, partially offset by higher actual insurance rescissions and claim denials than previously assumed in our loss reserve estimates. Our results for 2012 were also negatively impacted by a $46.8 million decrease in our estimated reinsurance recoverable from our Smart Home transactions resulting from lower claims paid and higher insurance rescissions and claim denials than were previously estimated. | ||||||||||||
Our aggregate weighted average Default to Claim Rate assumption (net of denials and rescissions) used in estimating our primary reserve for losses was 52% (47% excluding pending claims) at December 31, 2014 compared to 50% at December 31, 2013. Our Default to Claim Rate estimates on defaulted loans are mainly developed based on the Stage of Default and Time in Default of the underlying defaulted loans, as measured by the progress toward foreclosure sale and the number of months in default. Our gross Default to Claim Rates on our primary portfolio ranged from 16% for new defaults, to 65% for defaults not in Foreclosure Stage, and 81% for Foreclosure Stage Defaults. Our estimate of expected insurance rescissions and claim denials (net of expected reinstatements) embedded in our Default to Claim Rate is generally based on our experience over the past year, with consideration given for differences in characteristics between those rescinded policies and denied claims and the loans remaining in our defaulted inventory, and also incorporates the estimated impact of the BofA Settlement Agreement. | ||||||||||||
The following table illustrates the amount of First-lien claims submitted to us for payment that were rescinded or denied, for the periods indicated, net of any reinstatements of previously rescinded policies or denied claims within each period: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Rescissions | $ | 56.8 | $ | 81.2 | $ | 279.3 | ||||||
Denials | 87.9 | 171.7 | 539.4 | |||||||||
Total First-lien claims submitted for payment that were rescinded or denied (1) | $ | 144.7 | $ | 252.9 | $ | 818.7 | ||||||
______________________ | ||||||||||||
-1 | Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured. | |||||||||||
The elevated levels of our insurance rescissions and claim denials have reduced our paid losses and have resulted in a significant reduction in our loss reserves. Our estimate of net future rescissions and denials reduced our loss reserves as of December 31, 2014 and 2013 by approximately $125 million and $247 million, respectively. The amount of estimated rescissions and denials incorporated into our reserve analysis at any point in time is affected by a number of factors, including not only our estimated rate of rescissions and denials on future claims, but also the volume and attributes of our defaulted insured loans, our estimated Default to Claim Rate and our estimated Claim Severity, among other assumptions. As of December 31, 2014, these assumptions also reflect the estimated impact of the BofA Settlement Agreement, as further discussed below. | ||||||||||||
We expect the amount of estimated rescissions and denials embedded within our reserve analysis to remain elevated as compared to pre-financial crisis levels; however, as our Legacy Portfolio has become a smaller percentage of our overall insured portfolio, we have experienced a reduced amount of Loss Mitigation Activity with respect to the claims we receive, and we expect this trend to continue. As a result, our future Loss Mitigation Activity is not expected to mitigate our paid losses to the same extent as in prior years. In the event that we experience a more rapid than expected decrease in the level of future insurance rescissions and claim denials from the current levels, it could have an adverse effect on our paid losses and loss reserves. | ||||||||||||
Our reported rescission, denial and claim curtailment activity in any given period is subject to challenge by our lender and servicer customers. We expect that a large number of previously denied claims will be resubmitted with the required documentation and ultimately paid; therefore, we have considered this expectation in developing our IBNR reserve estimate. This IBNR estimate was $163.6 million and $281.9 million at December 31, 2014 and 2013, respectively. The significant decrease in our IBNR reserve estimate in 2014 reflects the terms of the BofA Settlement Agreement. For 2014, our IBNR estimate of $163.6 million included approximately $133.0 million for loans subject to the BofA Settlement Agreement. The remaining IBNR reserve included an estimate of future reinstatements of previously denied claims, rescinded policies and curtailments of $18.3 million, $1.4 million and $3.4 million, respectively. These IBNR reserves relate to $113.3 million of claims that were denied within the preceding 12 months, $90.5 million of policies rescinded within the preceding 24 months, and $34.8 million of claim curtailments within the preceding 24 months. The decrease in our IBNR reserve estimate as a result of the BofA Settlement Agreement was partially offset by an increase in our mortgage insurance case reserves to incorporate the fact that we have agreed not to take further action to effect rescissions and claims denials on a population of loans referred to in the settlement agreement as Future Legacy Loans. | ||||||||||||
We also accrue for the premiums that we expect to refund to our lender customers in connection with our estimated insurance rescission activity. Our accrued liability for such refunds, which is included within other liabilities on our consolidated balance sheets, was $9.0 million and $17.0 million as of December 31, 2014 and 2013, respectively. | ||||||||||||
We considered the sensitivity of First-lien loss reserve estimates at December 31, 2014 by assessing the potential changes resulting from a parallel shift in Claim Severity and Default to Claim Rate for primary loans. For example, assuming all other factors remain constant, for every one percentage point change in primary Claim Severity (which we estimate to be 103.7% of unpaid principal balance at December 31, 2014), we estimated that our loss reserves would change by approximately $12 million at December 31, 2014. For every one percentage point change in our overall primary net Default to Claim Rate (which we estimate to be 52% at December 31, 2014, including our assumptions related to rescissions and denials), we estimated a $23 million change in our loss reserves at December 31, 2014. | ||||||||||||
Settlement Agreements | ||||||||||||
On September 16, 2014, Radian Guaranty entered into the BofA Settlement Agreement, as referenced above, with Countrywide Home Loans, Inc. and Bank of America, N.A. (together, the “Insureds”), as a successor to BofA Home Loan Servicing f/k/a Countrywide Home Loans Servicing LP, in order to resolve various actual and potential claims or disputes related to the parties’ respective rights and duties as to mortgage insurance coverage on Subject Loans. | ||||||||||||
The BofA Settlement Agreement provides that all claims decisions by Radian Guaranty on Legacy Loans (including claims paid, coverage rescissions, claim denials and curtailments) that were communicated on or before February 13, 2013 will become final and will not be subject to future challenge or adjustment. With respect to a group of Legacy Loans referred to as Future Legacy Loans, the BofA Settlement Agreement provides that, subject to certain limited exceptions and conditions, Radian Guaranty will not effect any coverage rescissions, claim denials or curtailments on these loans. To the extent any such Loss Mitigation Activities previously have been taken on Future Legacy Loans, Radian Guaranty will reinstate coverage and pay a reimbursement amount equal to the difference between the amount actually paid by Radian Guaranty and the eligible claim amount. Radian Guaranty has further agreed that with respect to Future Legacy Loans it will not assert any origination error or servicing defect as a basis for a decision not to pay a claim, nor will it effect a curtailment of such claims; provided however, that Radian Guaranty retains the right to curtail Legacy Loans that are less than 90 days delinquent as of July 31, 2014 (“Potential Curtailment Loans”) and any Future Legacy Loans serviced by a servicer other than the Insureds (a “Protected Curtailment”). | ||||||||||||
The BofA Settlement Agreement further provides that for Servicing Only Loans: (i) if Radian Guaranty effected a claim payment on or before May 30, 2014, any curtailments on such loans will become final and will not be subject to future challenge, appeal or adjustment; and (ii) for claim payments for Servicing Only Loans paid after May 30, 2014, Radian Guaranty will not make any curtailments (excluding Protected Curtailments, which may continue in the ordinary course) and, to the extent any curtailments previously have been effected on such loans, Radian Guaranty will pay a reimbursement amount equal to the curtailment amount. The BofA Settlement Agreement does not affect Radian Guaranty’s right to effect rescissions or denials on any Servicing Only Loans and any such rescissions or denials will continue to be governed by the applicable Master Policies, subject to certain requirements in the BofA Settlement Agreement regarding the documents required to perfect such claims. Radian Guaranty has further agreed not to assert any right to cancel coverage on any Subject Loan for failure to initiate certain proceedings (most commonly foreclosure proceedings) within the timelines set forth in the applicable Master Policies. | ||||||||||||
Implementation of the BofA Settlement Agreement commenced on February 1, 2015 for Subject Loans held in portfolio by the Insureds or purchased by the GSEs on that date. Approximately 12% of the Subject Loans were neither held in portfolio by the Insureds nor owned by the GSEs, and will require the consent of certain other investors for these loans to be included in the BofA Settlement Agreement except with respect to certain limited rights of cancellation (described above). While we can provide no assurance whether one or more of the other investors will consent to have their Subject Loans included in the settlement, for purposes of the reserve established for the BofA Settlement agreement, we have assumed that these investors will provide consent. Therefore, to the extent that one or more of the other investors do not consent to the settlement, the associated Loss Mitigation Activities would not be reinstated under the terms of the BofA Settlement Agreement and the portion of the reserve related to those other investors would be reversed. | ||||||||||||
In August 2013, Radian Guaranty entered into the Freddie Mac Agreement, related to a group of First-lien mortgage loans guaranteed by Freddie Mac that were insured by Radian Guaranty and were in default as of December 31, 2011. This transaction significantly impacted our financial position in 2013 by reducing our primary delinquent loan inventory and capping Radian Guaranty’s total exposure on the entire population of loans subject to the agreement. At closing we paid Freddie Mac for claims related to these loans, and also deposited funds into a collateral account to cover future Loss Mitigation Activity on these loans. Subject to certain conditions, amounts in the collateral account may be released to Radian Guaranty over time to the extent that Loss Mitigation Activity becomes final in accordance with the terms of the Freddie Mac Agreement. However, if the amount of Loss Mitigation Activity that becomes final in accordance with the Freddie Mac Agreement after the collateral account was established is less than $205 million prior to the scheduled termination of the Freddie Mac Agreement, then any shortfall will be paid to Freddie Mac from the funds in the collateral account. Prior to consideration of the BofA Settlement Agreement, from the time the collateral account was established through December 31, 2014, approximately $48 million of additional Loss Mitigation Activity had become final in accordance with the Freddie Mac Agreement and $113 million of submitted claims had been rescinded, denied, curtailed or cancelled, but were not considered final in accordance with the Freddie Mac Agreement. Giving effect to the BofA Settlement Agreement as of December 31, 2014, these amounts would have been approximately $116 million and $23 million, respectively. |
Note_11_LongTerm_Debt_Level_1_
Note 11 - Long-Term Debt Level 1 (Notes) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Long-term Debt, Unclassified [Abstract] | |||||||||||||||||
Long-term Debt [Text Block] | Long-Term Debt | ||||||||||||||||
The carrying value of our long-term debt at December 31, 2014 and 2013 was as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
($ in thousands) | 2014 | 2013 | |||||||||||||||
5.38% | Senior Notes due 2015 | $ | — | $ | 54,481 | ||||||||||||
9.00% | Senior Notes due 2017 | 192,605 | 191,611 | ||||||||||||||
3.00% | Convertible Senior Notes due 2017 (1) | 375,310 | 353,798 | ||||||||||||||
2.25% | Convertible Senior Notes due 2019 (2) | 342,011 | 330,182 | ||||||||||||||
5.50% | Senior Notes due 2019 | 300,000 | — | ||||||||||||||
Total long-term debt | $ | 1,209,926 | $ | 930,072 | |||||||||||||
_______________________ | |||||||||||||||||
-1 | The principal amount of these notes is $450 million. | ||||||||||||||||
-2 | The principal amount of these notes is $400 million. | ||||||||||||||||
Senior Notes | |||||||||||||||||
Senior Notes due 2015 and 2017. In June 2005, we issued $250 million of Senior Notes due 2015. During 2013, we exchanged $195.5 million of the Senior Notes due 2015 for a new series of 9.000% Senior Notes due June 2017 for the purpose of improving our debt maturity profile. These transactions, which are accounted for as extinguishments of debt, resulted in a loss of $4.0 million, primarily as a result of the requirement to record the Senior Notes due 2017 at fair value. During 2014, in accordance with the optional redemption provisions of the notes, we redeemed all of the remaining outstanding principal amount of our Senior Notes due 2015 at a price established in accordance with the indenture governing these senior notes. We paid $57.2 million to holders of the notes at redemption and recorded a loss of $2.8 million. | |||||||||||||||||
Senior Notes due 2019. In May 2014, in anticipation of the Clayton acquisition, we issued $300 million principal amount of Senior Notes due 2019 and received net proceeds of approximately $293.8 million. The notes bear interest at a rate of 5.500% per annum, payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2014. These notes mature on June 1, 2019. We have the option to redeem these notes, in whole or in part, at any time or from time to time prior to maturity at a redemption price equal to the greater of: (i) 100% of the aggregate principal amount of the notes to be redeemed; and (ii) the make-whole amount, which is the present value of the notes discounted at the applicable treasury rate plus 50 basis points, plus, in each case, accrued interest thereon to the redemption date. | |||||||||||||||||
Covenants in Senior Notes. The Senior Notes due 2017 and the Senior Notes due 2019 have covenants customary for securities of this nature, including covenants related to the payments of the notes, reports, compliance certificates and modification of the covenants. Additionally, the indentures governing the Senior Notes due 2017 and the Senior Notes due 2019 include covenants restricting us from encumbering the capital stock of a designated subsidiary (as defined in the respective indentures for the notes) or disposing of any capital stock of any designated subsidiary unless either all of the stock is disposed of or we retain more than 80% of the stock. | |||||||||||||||||
Convertible Senior Notes | |||||||||||||||||
Convertible Senior Notes due 2017. In November 2010, we issued $450 million principal amount of 3.000% Convertible Senior Notes due 2017 and received proceeds of $391.3 million, which was net of underwriting expenses and the cost of capped call transactions as discussed further below. Interest on these notes is payable semi-annually on May 15 and November 15 of each year. The effective interest rate for the liability component of this debt is 9.75%. | |||||||||||||||||
Holders of these notes may convert their notes from August 15, 2017 up to the close of business on the second scheduled trading day immediately preceding the maturity date (the “Conversion Period”), subject to certain conditions. Upon a conversion, we will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, in respect of the remainder, if any, of our conversion obligation that is in excess of the aggregate principal amount of the notes being converted. The conversion rate initially is 85.5688 shares of our common stock per $1,000 principal amount of notes (corresponding to an initial conversion price of approximately $11.69 per share of common stock prior to the consideration of the capped call transactions discussed below). The conversion rate is subject to adjustment in certain events, but is not adjusted for any accrued and unpaid interest. In addition, following certain corporate events, we will, under certain circumstances increase the conversion rate for a holder who elects to convert their notes in connection with that corporate event. At December 31, 2014, we had approximately 51 million shares reserved to cover the potential issuance of shares under the Convertible Senior Notes due 2017. | |||||||||||||||||
Holders of the notes will be able to exercise their conversion rights prior to the Conversion Period, subject to certain conditions, only under the following circumstances: | |||||||||||||||||
1 | During any calendar quarter after December 31, 2010 (and only during such calendar quarter), if the last reported sale price of our common stock for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter, is greater than or equal to 130% of the applicable conversion price on each applicable trading day; | ||||||||||||||||
2 | During the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the notes (for each trading day during that measurement period) was less than 98% of the product of the last reported sale price of the common stock and the applicable conversion rate on such trading day; or | ||||||||||||||||
3 | Upon the occurrence of specified corporate events as described in the indenture for the notes. | ||||||||||||||||
During the three-month period ended December 31, 2014, our closing stock price exceeded the thresholds required for the holders of our Convertible Senior Notes due 2017 to be able to exercise their conversion rights during the three-month period ending March 31, 2015. See “—Convertible Senior Notes due 2017 and 2019” below for information on accounting considerations related to convertible debt instruments that may be settled in cash upon conversion, including the balance sheet classification of the equity component of certain convertible debt instruments, such as the Convertible Senior Notes due 2017, that require the issuer to settle the aggregate principal amount of the notes in cash. | |||||||||||||||||
In connection with the November 2010 offering of the convertible notes, we also entered into capped call transactions with an affiliate of Morgan Stanley, whose obligations have been guaranteed by Morgan Stanley. The capped call transactions are intended to offset the potential dilution to our common stock and/or any potential cash payments that may be required to be made by us upon conversion of the notes in excess of the principal amount of the notes, up to a stock price of approximately $14.11 per share, which is the initial cap on the counterparty’s share delivery obligation under the call options. If the market value per share of our common stock, as measured under the terms of the capped call transactions, exceeds the applicable cap price of the capped call transactions, the number of shares of our common stock and/or the amount of cash we expect to receive upon the exercise of the capped call transactions will be capped and the anti-dilutive and/or offsetting effect of the capped call transactions will be limited. We paid approximately $46.1 million from the net proceeds from the issuance and sale of the convertible notes to purchase the capped call transactions. | |||||||||||||||||
The premium paid for the capped call transactions is recorded in additional paid-in capital in accordance with the accounting standard for derivative financial instruments indexed to, and potentially settled in, an entity’s own common stock and the accounting standard for determining whether an instrument (or embedded feature) is indexed to an entity’s own stock. | |||||||||||||||||
Convertible Senior Notes due 2019. In March 2013, we issued $400 million principal amount of 2.25% Convertible Senior Notes due 2019 and received proceeds of approximately $389.8 million, net of underwriting expenses. Interest is payable semi-annually on March 1 and September 1 of each year. The effective interest rate for the liability component of this debt is 6.25%. | |||||||||||||||||
At any time on or after March 8, 2016, we may redeem all or part of the notes, but only if the last reported sale price of our common stock for 20 or more trading days in a period of 30 consecutive trading days ending on, and including, the trading day prior to the date we provide notice of redemption exceeds 130% of the conversion price in effect on each such trading day. The redemption price will be equal to 100% of the unpaid principal amount of the notes to be redeemed, plus accrued and unpaid interest. At December 31, 2014, we had approximately 50 million shares reserved to cover the potential issuance of shares under the Convertible Senior Notes due 2019. | |||||||||||||||||
Holders of the notes will be able to convert the notes, at their option, before the close of business on the business day immediately preceding December 1, 2018, only under the following circumstances: | |||||||||||||||||
1 | During any calendar quarter commencing after March 31, 2013 (and only during such calendar quarter), if the last reported sale price of our common stock for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter, is greater than or equal to 130% of the applicable conversion price on each applicable trading day. During the calendar quarter ended December 31, 2014, the sale price of our common stock met this criteria and therefore, the holders of the notes currently are able to convert the notes, at their option, during the first calendar quarter of 2015; | ||||||||||||||||
2 | During the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the notes (for each trading day during that five day measurement period) was less than 98% of the product of the last reported sale price of the common stock and the applicable conversion rate on such trading day; | ||||||||||||||||
3 | Any time prior to the close of business on the business day prior to the redemption date if we call the notes for redemption; or | ||||||||||||||||
4 | Upon the occurrence of specified corporate events as described in the indenture for the notes. | ||||||||||||||||
During the three-month period ended December 31, 2014, our closing stock prices exceeded the thresholds required for the holders of our Convertible Senior Notes due 2019 to be able to exercise their conversion rights during the three-month period ending March 31, 2015. Upon a conversion, we will satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. The conversion rate initially is 94.3396 shares of our common stock per $1,000 principal amount of notes (corresponding to an initial conversion price of approximately $10.60 per share of common stock). The conversion rate is subject to adjustment in certain events, but will not be adjusted for accrued and unpaid interest. In addition, following certain corporate events, we will, under certain circumstances, increase the conversion rate for a holder who elects to convert its notes in connection with that corporate event. | |||||||||||||||||
Convertible Senior Notes due 2017 and 2019. The Convertible Senior Notes due 2017 and 2019 are both accounted for under the accounting standard for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement), which states that issuers of such instruments should separately account for the liability and equity components in a manner that reflects the entity’s nonconvertible debt borrowing rate when the interest cost is recognized in subsequent periods. Our convertible notes fall within the scope of this standard due to our ability to elect to repay the conversion premium in cash. We have determined that the embedded conversion options in the convertible notes are not required to be separately accounted for as derivatives under the accounting standard for derivatives and hedging. | |||||||||||||||||
The carrying amount of each liability component was calculated by measuring the fair value of a similar liability that does not have an associated equity component. The carrying amount of each equity component, representing the embedded conversion option, was determined by deducting the fair value of the liability component from the initial proceeds ascribed to each convertible note issuance as a whole. The excess of the principal amount of each liability component over its carrying amount is amortized as a component of interest expense over the expected life of a similar liability that does not have an associated equity component using the effective interest method. The equity components are not remeasured as long as they continue to meet the conditions for equity classification as prescribed in the accounting standard for derivative financial instruments indexed to, and potentially settled in, an entity’s own common stock and the accounting standard for determining whether an instrument (or an embedded feature) is indexed to an entity’s own stock. | |||||||||||||||||
In any period when holders of the Convertible Senior Notes due 2017 are eligible to exercise their conversion option, the related equity component is reflected as mezzanine (temporary) equity rather than permanent equity, because we are required to settle the aggregate principal amount of the notes in cash. This equity component is the difference between (1) the amount of cash deliverable upon conversion (i.e., par value of debt) and (2) the carrying value of the debt. | |||||||||||||||||
During the three-month period ended December 31, 2014, our closing stock prices exceeded the thresholds required for the holders of our Convertible Senior Notes due 2017 to be able to exercise their conversion rights during the three-month period ending March 31, 2015. As a result, at December 31, 2014, the equity component related to our Convertible Senior Notes due 2017 was reclassified from permanent equity to mezzanine (temporary) equity as “equity component of currently redeemable convertible senior notes.” We will evaluate whether the conversion threshold requirements have been met on a quarterly basis, and will report the equity component related to our Convertible Senior Notes due 2017 as temporary equity for any period in which the debt remains currently convertible. | |||||||||||||||||
Issuance and transaction costs incurred at the time of the issuance of the convertible notes are allocated to the liability and equity components in proportion to the allocation of proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. The convertible notes are reflected on our consolidated balance sheets as follows: | |||||||||||||||||
Convertible Senior Notes due 2017 | Convertible Senior Notes due 2019 | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Liability component: | |||||||||||||||||
Principal | $ | 450,000 | $ | 450,000 | $ | 400,000 | $ | 400,000 | |||||||||
Debt discount, net (1) | (74,690 | ) | (96,202 | ) | (57,989 | ) | (69,818 | ) | |||||||||
Net carrying amount | $ | 375,310 | $ | 353,798 | $ | 342,011 | $ | 330,182 | |||||||||
Equity component of currently redeemable convertible senior notes | $ | 74,690 | $ | — | $ | — | $ | — | |||||||||
Equity component (net of tax impact) (2) | $ | (9,011 | ) | -3 | $ | 65,679 | $ | 77,026 | -4 | $ | 77,026 | -4 | |||||
__________________ | |||||||||||||||||
-1 | Included within long-term debt and is being amortized over the life of the convertible notes. | ||||||||||||||||
-2 | Amount included within additional paid-in capital, net of the capped call transactions (Convertible Senior Notes due 2017) and related issuance costs (Convertible Senior Notes due 2017 and 2019). | ||||||||||||||||
-3 | Primarily represents the deferred tax amount related to this transaction due to the reclassification of the debt discount to temporary equity. | ||||||||||||||||
-4 | There was no net tax impact recorded in equity related to the Convertible Senior Notes due 2019, as a result of our full valuation allowance at the time the debt was issued. | ||||||||||||||||
The following table sets forth total interest expense recognized related to the convertible notes for the periods indicated: | |||||||||||||||||
Convertible Senior Notes due 2017 | Convertible Senior Notes due 2019 | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Contractual interest expense | $ | 13,500 | $ | 13,500 | $ | 9,000 | $ | 7,425 | |||||||||
Amortization of debt issuance costs | 1,226 | 1,157 | 1,282 | 1,025 | |||||||||||||
Amortization of debt discount | 21,512 | 19,544 | 11,829 | 9,223 | |||||||||||||
Total interest expense | $ | 36,238 | $ | 34,201 | $ | 22,111 | $ | 17,673 | |||||||||
The Convertible Senior Notes due 2017 and 2019 have covenants generally customary for securities of this nature, including covenants related to payments of the notes, reports, compliance certificates, the modification of covenants and maintaining Radian Group’s corporate existence. | |||||||||||||||||
Furthermore, the indentures for the Convertible Senior Notes due 2017 and 2019 include, among other terms, provisions under which the bankruptcy of Radian Group or the appointment of a receiver for Radian Group or for certain of its subsidiaries or other material assets would constitute an event of default under the indentures. Upon such a default, the note holders of the Convertible Senior Notes due 2017 or 2019 could declare the applicable notes due and payable (which may, under certain circumstances, be automatically accelerated), which would constitute an event of default under the indentures for the Senior Notes due 2017 and 2019. Certain events could cause our applicable insurance regulator to appoint a receiver for our insurance subsidiaries. If this occurred, it would, unless waived by a majority of the applicable note holders, constitute an event of default under the indentures for the Convertible Senior Notes due 2017 and 2019, and therefore, also cause an event of default under the indentures for the Senior Notes due 2017 and the Senior Notes due 2019. |
Note_12_Accumulated_Other_Comp
Note 12 - Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Schedule of Accumulated Other Comprehensive Income [Abstract] | ||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | Accumulated Other Comprehensive Income | |||||||||||
The following table shows the rollforward of AOCI as of the periods indicated: | ||||||||||||
Year Ended December 31, 2014 | ||||||||||||
(In thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||
Balance at beginning of period | $ | 57,345 | $ | 19,962 | $ | 37,383 | ||||||
OCI: | ||||||||||||
Net foreign currency translation adjustments | (326 | ) | (100 | ) | (226 | ) | ||||||
Unrealized gains on investments: | ||||||||||||
Unrealized holding gains arising during the period | 21,204 | 7,554 | 13,650 | |||||||||
Less: Reclassification adjustment for net losses included in net income (1) | (1,599 | ) | (560 | ) | (1,039 | ) | ||||||
Net unrealized gains on investments | 22,803 | 8,114 | 14,689 | |||||||||
Net unrealized losses from investments recorded as assets held for sale | (329 | ) | (27 | ) | (302 | ) | ||||||
OCI | 22,148 | 7,987 | 14,161 | |||||||||
Net actuarial loss | (285 | ) | (226 | ) | (59 | ) | ||||||
Balance at end of period | $ | 79,208 | $ | 27,723 | $ | 51,485 | ||||||
Year Ended December 31, 2013 | ||||||||||||
(In thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||
Balance at beginning of period | $ | 24,904 | $ | 8,809 | $ | 16,095 | ||||||
OCI: | ||||||||||||
Unrealized gains on investments: | ||||||||||||
Unrealized holding gains arising during the period | 29,460 | 10,311 | 19,149 | |||||||||
Less: Reclassification adjustment for net gains included in net loss (1) | 1,285 | 629 | 656 | |||||||||
Net unrealized gains on investments | 28,175 | 9,682 | 18,493 | |||||||||
Net unrealized gains from investments recorded as assets held for sale | 3,961 | 1,364 | 2,597 | |||||||||
OCI | 32,136 | 11,046 | 21,090 | |||||||||
Net actuarial gain | 305 | 107 | 198 | |||||||||
Balance at end of period | $ | 57,345 | $ | 19,962 | $ | 37,383 | ||||||
Year Ended December 31, 2012 | ||||||||||||
(In thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||
Balance at beginning of period | $ | 12,039 | $ | 639 | $ | 11,400 | ||||||
OCI: | ||||||||||||
Net foreign currency translation adjustments | (11 | ) | (4 | ) | (7 | ) | ||||||
Unrealized gains on investments: | ||||||||||||
Unrealized holding gains arising during the period | 18,870 | 6,604 | 12,266 | |||||||||
Less: Reclassification adjustment for net gains included in net loss (1) | 7,796 | 878 | 6,918 | |||||||||
Net unrealized gains on investments | 11,074 | 5,726 | 5,348 | |||||||||
Net unrealized gains from investments recorded as assets held for sale | 2,045 | 2,533 | (488 | ) | ||||||||
OCI | 13,108 | 8,255 | 4,853 | |||||||||
Net actuarial loss | (243 | ) | (85 | ) | (158 | ) | ||||||
Balance at end of period | $ | 24,904 | $ | 8,809 | $ | 16,095 | ||||||
_________________________ | ||||||||||||
-1 | Included in net gains (losses) on investments on our consolidated statements of operations. |
Note_13_Income_Taxes_Level_1_N
Note 13 - Income Taxes Level 1 (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Tax Disclosure [Text Block] | Income Taxes | |||||||||||
The components of our consolidated income tax benefit from continuing operations are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current (benefit) provision | $ | (26,575 | ) | $ | 352 | $ | (56,140 | ) | ||||
Deferred (benefit) provision | (825,843 | ) | (31,847 | ) | 7,817 | |||||||
Total income tax benefit | $ | (852,418 | ) | $ | (31,495 | ) | $ | (48,323 | ) | |||
The reconciliation of taxes computed at the statutory tax rate of 35% to the benefit for income taxes on continuing operations is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Provision (benefit) for income taxes computed at the statutory tax rate | $ | 142,504 | $ | (60,671 | ) | $ | (95,350 | ) | ||||
Change in tax resulting from: | ||||||||||||
Tax-exempt municipal bond interest and dividends received deduction (net of proration) | (1,286 | ) | (1,494 | ) | (1,818 | ) | ||||||
Foreign tax expense (benefit) | 270 | (1 | ) | 54 | ||||||||
State tax (benefit) expense | (693 | ) | 1,460 | 4,002 | ||||||||
Unrecognized tax expense (benefit) | 407 | 1,696 | (2,906 | ) | ||||||||
Deferred inventory adjustment related to fair value of derivatives and other financial instruments | — | — | (23,217 | ) | ||||||||
Valuation allowance | (995,008 | ) | 24,546 | 71,072 | ||||||||
Other, net | 1,388 | 2,969 | (160 | ) | ||||||||
Benefit for income taxes | $ | (852,418 | ) | $ | (31,495 | ) | $ | (48,323 | ) | |||
The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
DTAs: | ||||||||||||
Accrued expenses | $ | 60,858 | $ | 74,968 | ||||||||
Unearned premiums | 82,800 | 50,779 | ||||||||||
PDR | 780 | 625 | ||||||||||
NOL | 475,095 | 628,573 | ||||||||||
Differences in fair value of derivative and other financial instruments | — | 31,812 | ||||||||||
Rescission premium | 3,151 | 5,964 | ||||||||||
State and Local NOL Carryforwards | 34,851 | 33,095 | ||||||||||
Foreign tax credit carryforward | 6,015 | 6,015 | ||||||||||
Depreciation | 70 | 6,783 | ||||||||||
Partnership investments | 74,179 | 74,569 | ||||||||||
Loss reserves | 6,362 | 13,586 | ||||||||||
Outside basis difference of investment in subsidiary | 14,084 | — | ||||||||||
Foreign currency | 97 | — | ||||||||||
Alternative minimum tax credit carryforward | 2,286 | — | ||||||||||
Other | 37,878 | 31,547 | ||||||||||
Total DTAs | 798,506 | 958,316 | ||||||||||
DTLs: | ||||||||||||
Deferred policy acquisition costs | 4,203 | 10,410 | ||||||||||
Convertible and other long-term debt | 38,750 | 47,579 | ||||||||||
Differences in fair value of derivative and other financial instruments | 352 | — | ||||||||||
Net unrealized gain on investments | 26,145 | 18,163 | ||||||||||
Foreign currency | — | 18 | ||||||||||
Other | 10,981 | 5,609 | ||||||||||
Total DTLs | 80,431 | 81,779 | ||||||||||
Less: Valuation allowance | 17,874 | 858,635 | ||||||||||
Net DTA | $ | 700,201 | $ | 17,902 | ||||||||
As of December 31, 2014, we recorded a net current income tax payable of approximately $132.8 million, which primarily consists of liabilities related to applying the standards of accounting for uncertainty in income taxes and a current federal income tax recoverable of approximately $3.5 million. Before consideration of uncertain tax positions, we have approximately $1.5 billion of U.S. NOL Carryforwards, $6.0 million of foreign tax credit carryforwards and approximately $2.3 million of alternative minimum tax credit carryforwards as of December 31, 2014. To the extent not utilized, the U.S. NOL Carryforwards will expire during tax years 2028 through 2032 and the foreign tax credit carryforwards will expire during tax years 2018 through 2020. The alternative minimum tax credit carryforwards have no expiration date. Certain entities within our consolidated group have also generated DTAs of approximately $34.9 million relating to state and local NOL Carryforwards, which if unutilized, will expire during various future tax periods. | ||||||||||||
Since December 31, 2010, when we initially concluded that a valuation allowance was required against substantially all of our existing net DTA, as required under the accounting standard regarding accounting for income taxes, we have continued to weigh the potential effect of positive and negative evidence at each balance sheet date, giving consideration as to whether that evidence is objectively verifiable and thus how much weight shall be given to that evidence. The primary negative evidence that has been considered has been our cumulative losses in recent years and potential stress scenarios with respect to our forecasts of future taxable income. We also consider positive evidence when assessing the need for a valuation allowance, such as future reversals of existing taxable temporary differences, future projections of taxable income, taxable income within the applicable carryback and carryforward periods, and potential tax planning strategies. The recognition of our DTA ultimately depends on the existence of sufficient taxable income of the appropriate character (ordinary income or capital gains) within the applicable carryback and carryforward periods provided under the tax law. Factors impacting the reversal of our valuation allowance include the continued improvement in operating results and increased certainty regarding our projected incurred losses, as discussed in more detail below, and our ability to sustain profitability over a significant time period in amounts that are sufficient to support a conclusion that it is more likely than not that all or a portion of our DTAs will be realized. | ||||||||||||
During 2013 and 2014, we experienced significant positive trends in our mortgage insurance portfolio and in our core operating results. These positive trends are objectively verifiable as evidenced by GAAP operating profitability, reductions in mortgage insurance defaults and claims submitted, and improvement in the composition of our insured portfolio. In December 2014, we executed an agreement of sale for our wholly-owned financial guaranty subsidiary, Radian Asset Assurance. Based on expected net proceeds of approximately $790 million, while the pending Radian Asset Assurance sale generated a discrete GAAP pre-tax loss of approximately $468 million during the fourth quarter of 2014, it also reduces uncertainty of future results related to potential future defaults on these exposures. | ||||||||||||
Although the accounting standard regarding accounting for income taxes indicates that cumulative losses are a strong indicator of negative evidence, it does not define this term or the length of time to consider when calculating a cumulative loss position. While not a bright line, three years (i.e., current year plus two preceding years) is typically considered a reasonable starting point. We calculate our cumulative loss position as the cumulative pre-tax earnings (loss) for the most recent three years, adjusted for permanent differences and changes in OCI. As of December 31, 2014, our cumulative loss position was approximately $16 million, which represents a significant decrease from the cumulative loss as of December 31, 2010, when the valuation allowance was first established, of approximately $2.8 billion. | ||||||||||||
In evaluating negative evidence, consideration was also given to the U.S. NOL Carryforward period which extends through the end of 2028. Based on management’s projections, including adverse scenarios considered in our sensitivity analysis, we expect to utilize the NOL Carryforward of approximately $1.5 billion within several years. Additionally, we currently have no Internal Revenue Code Section 382 (“Section 382”) or other limitations on our ability to utilize our existing NOL. | ||||||||||||
After analyzing all positive and negative evidence available as noted above, we believe there is significant positive, objectively verifiable evidence that outweighs all negative evidence and supports a conclusion that it is more-likely-than-not that substantially all of the Company’s DTAs will be realized. In evaluating the weight of evidence, we considered the concept of “core earnings” and the potential profitability of such earnings. Absent the uncertainty and conditions existing in previous years and given the ability to generate profits based on our improved book of business, forecasts related to our core business are significantly more positive, and more certain, than in prior years. In reaching our conclusions, we determined that certain non-insurance entities within the Group may continue to generate taxable losses on a separate company basis in the near term and may not be able to utilize certain state and local NOLs on their state and local tax returns. Therefore, we continue to believe that a valuation allowance of approximately $17.9 million with respect to DTAs relating to these state and local NOLs is appropriate. | ||||||||||||
In July 2013, the FASB issued an update to the accounting standard regarding income taxes. This update provides guidance concerning the balance sheet presentation of an unrecognized tax benefit when a Carryforward is available. This accounting standard requires an entity to present its DTAs for the Carryforwards net of its liability related to unrecognized tax benefits. A gross presentation will be required when the Carryforwards are not available under the tax law of the applicable jurisdiction or when the Carryforwards would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax position. This update is effective for fiscal years and interim periods within such years beginning after December 15, 2013. We adopted this update in the first quarter of 2014. The adoption of this update did not affect the recognition or measurement of uncertain tax positions and did not have a significant impact on our consolidated financial statements or disclosures. | ||||||||||||
Our ability to fully use our tax assets such as NOLs and tax credit Carryforwards would be substantially limited if we experience an “ownership change” within the meaning of Section 382. Section 382 rules governing when a change in ownership occurs are complex and subject to interpretation; however, in general, an ownership change would occur if any five percent shareholders, as defined under Section 382, collectively increase their ownership by more than 50 percentage points over a rolling three-year period. As of December 31, 2014, we have not experienced an ownership change under Section 382. However, if we were to experience a change in ownership under Section 382 in a future period, then we may be limited in our ability to fully utilize our NOL and tax credit Carryforwards in future periods. | ||||||||||||
On October 8, 2009, we adopted the Plan, which, as amended, was approved by our stockholders at our 2010 and 2013 annual meetings. We also adopted the Bylaw Amendment and at our 2010 annual meeting, our stockholders approved the Charter Amendment, which our stockholders reapproved at our 2013 annual meeting. The Plan, the Bylaw Amendment and the Charter Amendment were implemented in order to protect our ability to utilize our NOLs and other tax assets and prevent an “ownership change” under U.S. federal income tax rules by restricting or discouraging certain transfers of our common stock that would: (i) create or result in a person becoming a five-percent shareholder under Section 382; or (ii) increase the stock ownership of any existing five-percent shareholder under Section 382. | ||||||||||||
We are contesting adjustments resulting from the examination by the IRS of our 2000 through 2007 consolidated federal income tax returns. The IRS opposes the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of non-economic REMIC residual interests and proposed adjustments denying the associated tax benefits of these items. We appealed the proposed adjustments to Appeals and made “qualified deposits” with the U.S. Treasury of approximately $85 million in June 2008 relating to the 2000 through 2004 tax years and approximately $4 million in May 2010 relating to the 2005 through 2007 tax years in order to avoid the accrual of above-market-rate interest with respect to the proposed adjustments. | ||||||||||||
We made several attempts to reach a compromised settlement with Appeals, but in January 2013, we were notified that Appeals had rejected our latest settlement offer and planned to issue formal Notices of Deficiency (known as “90-day letters”). On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties related to the REMIC matters of approximately $157 million and exclude any potential benefit related to our NOL carryback ability. As of December 31, 2014, there also would be interest of approximately $115 million related to these matters. Depending on the outcome, additional state income taxes, penalties and interest (estimated in the aggregate to be approximately $30 million as of December 31, 2014) also may become due when a final resolution is reached. The Notices of Deficiency also reflected additional amounts due of approximately $105 million, which are primarily associated with the disallowance of the previously filed carryback of our 2008 NOL to the 2006 and 2007 tax years. We currently believe that the disallowance of our 2008 NOL carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL carryback claim. On December 3, 2014, we petitioned the U.S. Tax Court to litigate the Deficiency Amount. The litigation could take several years to resolve and may result in substantial legal expenses. We can provide no assurance regarding the outcome of any such litigation or whether a compromised settlement with the IRS will ultimately be reached. We believe that an adequate provision for income taxes has been made for the potential liabilities that may result from this matter. However, if the ultimate resolution of this matter produces a result that differs materially from our current expectations, there could be a material impact on our effective tax rate, results of operations and cash flows. | ||||||||||||
As of December 31, 2014, we have approximately $61.1 million of unrecognized tax benefits, including approximately $60.9 million of interest and penalties, that would affect the effective tax rate, if recognized. Our policy for the recognition of interest and penalties associated with uncertain tax positions is to record such items as a component of our income tax provision (benefit), of which approximately $2.5 million, $5.4 million and ($0.8) million were recorded as of December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
A reconciliation of the beginning and ending unrecognized tax benefits is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Balance at beginning of period | $ | 119,236 | $ | 114,013 | ||||||||
Tax positions related to the current year: | ||||||||||||
Increases | 2,352 | 2,363 | ||||||||||
Tax positions related to prior years: | ||||||||||||
Increases | 24,361 | 29,962 | ||||||||||
Decreases | (1,546 | ) | (3,615 | ) | ||||||||
Lapses of applicable statute of limitation | (24,180 | ) | (23,487 | ) | ||||||||
Balance at end of period | $ | 120,223 | $ | 119,236 | ||||||||
In previous years, we took a return position in various jurisdictions that we are not required to remit taxes with regard to the income generated from our investment in certain partnership interests. Although we believe that these tax positions are more likely than not to succeed if adjudicated, measurement of the potential amount of liability for state and local taxes and the potential for penalty and interest thereon is performed on a quarterly basis. Our net unrecognized tax benefits related to prior years increased by approximately $22.8 million during 2014. This net increase primarily reflects the impact of unrecognized tax benefits associated with our recognition of certain premium income. Although unrecognized tax benefits for this item decreased by approximately $24.2 million due to the expiration of the applicable statute of limitations for the taxable period ended December 31, 2010, the related amounts continued to impact subsequent years resulting in a corresponding increase to the unrecognized tax benefits related primarily to the 2011 taxable year. | ||||||||||||
As discussed above, in December 2014, we petitioned the U.S. Tax Court to litigate the IRS Notices of Deficiency received on September 4, 2014. Over the next 12 months, if we determine that a compromised settlement cannot be reached with the IRS, then it is estimated that approximately $73.6 million of unrecognized tax benefits in the above tabular reconciliation may be reversed pursuant to the accounting standard for uncertain tax positions. | ||||||||||||
In the event we are not successful in defense of our tax positions taken for U.S. federal income tax purposes, and for which we have recorded unrecognized tax benefits, then such adjustments originating in NOL or NOL carryback years may serve as a reduction to our existing NOL. | ||||||||||||
The following calendar tax years, listed by major jurisdiction, remain subject to examination: | ||||||||||||
U.S. Federal Corporation Income Tax | 2000 - 2007(1), 2011 - 2013 | |||||||||||
Significant State and Local Jurisdictions (2) | 1999 - 2013 | |||||||||||
_________________________ | ||||||||||||
-1 | We petitioned the U.S. Tax Court to litigate the IRS Notices of Deficiency resulting from the examination of our 2000 through 2007 consolidated federal income tax returns. This litigation relates to the recognition of certain tax benefits associated with our investment in a portfolio of non-economic REMIC residual interests. | |||||||||||
-2 | Arizona, California, Florida, Georgia, New York, Ohio, Pennsylvania and New York City. |
Note_14_Statutory_Information_
Note 14 - Statutory Information Level 1 (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Statutory Information [Abstract] | ||||||||||||
Statutory Information [Text Block] | Statutory Information | |||||||||||
We prepare our statutory financial statements in accordance with the accounting practices required or permitted, if applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries. Required statutory accounting practices include a variety of publications of the NAIC as well as state laws, regulations and general administrative rules. In addition, insurance departments have the right to permit other specific practices that may deviate from prescribed practices. As of December 31, 2014, our use of any prescribed or permitted statutory accounting practices did not result in reported statutory surplus or risk-based capital being significantly different from what would have been reported had NAIC statutory accounting practices been followed. | ||||||||||||
State insurance regulators impose various capital requirements on our insurance subsidiaries. These include Risk-to-capital, risk-based capital measures and surplus requirements that limit the amount of insurance that each of our insurance subsidiaries may write. Our failure to maintain adequate levels of capital could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition. | ||||||||||||
Radian Group serves as the holding company for our insurance subsidiaries, through which we conduct our mortgage insurance business. These insurance subsidiaries are subject to comprehensive, detailed regulation by the insurance departments in the various states where our insurance subsidiaries are domiciled or licensed to transact business. Insurance laws vary from state to state, but generally grant broad supervisory powers to state agencies or officials to examine insurance companies and enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. The state insurance regulations include various capital requirements and dividend restrictions based on our insurance subsidiaries’ statutory financial position and results of operations, as described in Note 1 and below. Our failure to maintain adequate levels of capital could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition. As of December 31, 2014, the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $2.2 billion of our consolidated net assets. | ||||||||||||
The ability of Radian Guaranty, RMAI, Radian Insurance, Radian Mortgage Insurance and RGRI to pay dividends on their common stock is restricted by certain provisions of the insurance laws of Pennsylvania, their state of domicile. Under Pennsylvania’s insurance laws, dividends and other distributions may only be paid out of an insurer’s positive unassigned surplus, measured as of the end of the prior fiscal year, unless the Pennsylvania Insurance Commissioner approves the payment of dividends or other distributions from another source. Radian Guaranty, RMAI, Radian Insurance, Radian Mortgage Insurance and RGRI had negative unassigned surplus at December 31, 2014 of $715.7 million, $161.5 million, $279.5 million, $46.0 million and $341.2 million, respectively, compared to negative unassigned surplus of $623.1 million, $161.0 million, $305.0 million, $69.1 million and $360.7 million, respectively, at December 31, 2013. If any of these insurers had positive unassigned surplus as of the end of the prior fiscal year, unless the prior approval of the Pennsylvania Insurance Commissioner is obtained, such insurer only may pay dividends or other distributions during any 12-month period in an aggregate amount less than or equal to the greater of: (i) 10% of the preceding year-end statutory policyholders’ surplus; or (ii) the preceding year’s statutory net income. Due to the negative unassigned surplus at the end of 2014, no dividends or other distributions can be paid from Radian Guaranty, RMAI, Radian Insurance, Radian Mortgage Insurance or RGRI in 2015, without approval from the Pennsylvania Insurance Commissioner. None of Radian Guaranty, RMAI, Radian Insurance, Radian Mortgage Insurance or RGRI paid any dividends in 2014 or 2013. | ||||||||||||
Radian Guaranty | ||||||||||||
Radian Guaranty is domiciled and licensed in Pennsylvania as a stock casualty insurance company authorized to carry on the business of credit insurance, which includes the authority to write mortgage guaranty insurance. It is a monoline insurer, restricted to writing only residential mortgage guaranty insurance. | ||||||||||||
Radian Guaranty’s statutory net income (loss), statutory policyholders’ surplus and contingency reserve as of or for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income (loss) | $ | 273.7 | $ | (23.8 | ) | $ | (175.9 | ) | ||||
Statutory policyholders’ surplus | 1,325.20 | 1,317.80 | 926 | |||||||||
Contingency reserve | 389.4 | 23 | — | |||||||||
Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus (i.e., statutory capital and surplus) plus statutory contingency reserves. | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
($ in millions) | ||||||||||||
RIF, net (1) | $ | 30,615.70 | $ | 26,128.20 | ||||||||
Statutory policyholders’ surplus | $ | 1,325.20 | $ | 1,317.80 | ||||||||
Contingency reserve | 389.4 | 23 | ||||||||||
Statutory capital | $ | 1,714.60 | $ | 1,340.80 | ||||||||
Risk-to-capital | 17.9:1 | 19.5:1 | ||||||||||
_______________________ | ||||||||||||
-1 | Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans. | |||||||||||
We actively manage Radian Guaranty’s capital position in various ways, including: (1) through internal and external reinsurance arrangements; (2) by seeking opportunities to reduce our risk exposure through commutations and other negotiated transactions; and (3) by contributing additional capital from Radian Group. Given our financial projections for Radian Guaranty, which are subject to risks and uncertainties, we expect Radian Guaranty’s Risk-to-capital to decrease over time without the need for any additional capital contributions from Radian Group to satisfy current applicable state insurance regulatory requirements. | ||||||||||||
Radian Guaranty was in compliance with the Statutory RBC Requirements or MPP Requirements, as applicable, in each of the RBC States as of December 31, 2014. See Note 1 for information regarding the Statutory RBC Requirements and MPP Requirements as well as the new, proposed GSE eligibility requirements that were issued in the form of the proposed PMIERs for public comment on July 10, 2014. | ||||||||||||
The reduction in Radian Guaranty’s Risk-to-capital in 2014 was primarily due to increases in statutory net income and contingency reserves, as well as a $100 million capital contribution from Radian Group, partially offset by an increase in net RIF at Radian Guaranty and a reduction in Radian Guaranty’s carrying value of Radian Asset Assurance to its estimated fair value less costs to sell. | ||||||||||||
RGRI | ||||||||||||
RGRI is a monoline insurer restricted to writing only mortgage guaranty insurance or reinsurance. RGRI is not licensed or authorized to write direct mortgage guaranty insurance in any states other than Pennsylvania and Texas. RGRI is required to maintain a minimum statutory surplus of $20 million to remain an authorized reinsurer in all states. | ||||||||||||
RGRI’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income | $ | 62.5 | $ | 55.5 | $ | 16 | ||||||
Statutory policyholders’ surplus | 78.8 | 59.3 | 42.3 | |||||||||
Contingency reserve | 81.4 | 38.5 | — | |||||||||
Radian Group’s U.S. consolidated federal income tax returns, which include RGRI’s federal income tax returns, have been under examination by the IRS for tax years 2000 through 2007. We are currently contesting proposed adjustments resulting from the IRS examination of these tax years. Effective December 31, 2011, Radian Group and RGRI entered into an Assumption and Indemnification Agreement with regard to RGRI’s portion of the Deficiency Amounts. As of December 31, 2014, approximately $163 million would be indemnified under this agreement if the Deficiency Amounts are ultimately sustained. This indemnification agreement was made in lieu of an immediate capital contribution to RGRI that otherwise would have been required for RGRI to maintain its minimum statutory policyholders’ surplus requirements in light of the remeasurement as of December 31, 2011 of uncertain tax positions related to the portfolio of REMIC residual interests. There remains significant uncertainty with regard to the amount and timing of any resolution with the IRS. See Note 13 for further information regarding the examination by the IRS for the 2000 through 2007 tax years. | ||||||||||||
Radian Insurance | ||||||||||||
Radian Insurance is domiciled and licensed in Pennsylvania as a stock casualty insurance company authorized to carry on the business of credit insurance, which includes the authority to write mortgage guaranty and financial guaranty insurance and the authority to reinsure policies of mortgage guaranty insurance. Radian Insurance is not licensed or authorized to write direct credit insurance in any locality other than Pennsylvania and Hong Kong. | ||||||||||||
Radian Insurance is required to maintain a minimum statutory surplus of $20 million to remain an authorized reinsurer in all states. Radian Insurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income | $ | 32 | $ | 26.5 | $ | 58 | ||||||
Statutory policyholders’ surplus | 256.3 | 230.8 | 218.6 | |||||||||
Contingency reserve | 46.7 | 35.5 | 20.6 | |||||||||
Radian Mortgage Insurance | ||||||||||||
Radian Mortgage Insurance is domiciled and licensed in Pennsylvania as a stock casualty insurance company authorized to carry on the business of credit insurance, which includes the authority to reinsure policies of mortgage guaranty insurance, and is only licensed or authorized to write direct mortgage guaranty insurance in Pennsylvania and Arizona. | ||||||||||||
Radian Mortgage Insurance is required to maintain a minimum statutory surplus of $20 million to remain an authorized reinsurer in all states. Radian Mortgage Insurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income | $ | 18.9 | $ | 18.1 | $ | 1.7 | ||||||
Statutory policyholders’ surplus | 121.1 | 98 | 81.8 | |||||||||
Contingency reserve | 12.6 | 6.9 | — | |||||||||
RMAI | ||||||||||||
RMAI is domiciled and licensed in Pennsylvania as a stock casualty insurance company authorized to carry on the business of credit insurance, which includes the authority to write mortgage guaranty insurance. It is a monoline insurer restricted to writing only residential mortgage guaranty insurance. RMAI is not currently writing mortgage guaranty insurance and had no RIF as of December 31, 2014. | ||||||||||||
As a Pennsylvania domiciled insurer, RMAI is required to maintain statutory-basis capital and surplus of $1.125 million. Radian Group and RMAI are parties to a guaranty agreement, which provides that Radian Group will make sufficient funds available to RMAI to ensure that RMAI has a minimum of $5 million of statutory policyholders’ surplus evaluated quarterly. RMAI’s statutory net (loss) income and statutory policyholders’ surplus as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net (loss) income | $ | (0.5 | ) | $ | (0.5 | ) | $ | 2 | ||||
Statutory policyholders’ surplus | 17.5 | 18 | 18.5 | |||||||||
Radian Investor Surety Inc. | ||||||||||||
In July 2014, we invested $20 million to capitalize a newly formed, Pennsylvania domiciled wholly-owned insurance subsidiary of Radian Group. The strategic objective of this investment is to offer various mortgage credit-related products, which are currently in a developmental stage. Their statutory policyholders’ surplus as of December 31, 2014 was approximately $20 million and there is no RIF as of December 31, 2014. | ||||||||||||
Radian Asset Assurance | ||||||||||||
Radian Asset Assurance is domiciled and licensed in New York as a monoline financial guaranty insurer. It is also licensed under the New York insurance laws to write some types of surety insurance and credit insurance. On December 22, 2014, Radian Guaranty entered into the Radian Asset Assurance Stock Purchase Agreement to sell Radian Asset Assurance. See Note 3 for additional information related to discontinued operations. | ||||||||||||
Radian Asset Assurance’s ability to pay dividends to its parent, Radian Guaranty, is restricted by certain provisions of the insurance laws of New York. Under the New York insurance laws, Radian Asset Assurance may only pay dividends from statutory earned surplus. Without the prior approval from the NYSDFS, Radian Asset Assurance can only pay a dividend, which when totaled with all other dividends declared or distributed by it during the preceding 12 months, is the lesser of 10% of its statutory policyholders’ surplus, as shown by its last statement on file with the NYSDFS, or 100% of statutory adjusted net investment income during such period. In addition, the NYSDFS, in its discretion, may approve an Extraordinary Dividend. In July 2014, July 2013 and July 2012, Radian Asset Assurance paid dividends of $150.0 million, $36.0 million and $54.0 million, respectively, to Radian Guaranty. As of December 31, 2014, Radian Asset Assurance maintained claims paying resources of $1.4 billion, which consists of statutory policyholders’ surplus of $1.1 billion, plus contingency reserves, Unearned Premium Reserves, the present value of installment premiums and loss and LAE reserves. As a result of the pending sale of Radian Asset Assurance to Assured, which is expected to occur in the first half of 2015, we do not expect Radian Asset Assurance to distribute any additional ordinary dividends to Radian Guaranty or to request any further NYSDFS approval for an Extraordinary Dividend prior to the completion of the sale. | ||||||||||||
New York insurance law also establishes aggregate risk limits on the basis of aggregate net liability as compared with statutory capital. “Aggregate net liability” is a risk-based calculation based on outstanding principal and interest of guaranteed obligations insured, net of qualifying reinsurance and collateral. Under these limits, statutory policyholders’ surplus and contingency reserves must not be less than a percentage of aggregate net liability equal to the sum of various percentages of aggregate net liability for various categories of specified obligations. The percentage varies from 0.33% for certain municipal obligations to 4% for certain non-investment grade obligations. As of December 31, 2014, the aggregate net liability of Radian Asset Assurance was significantly below the applicable limit. | ||||||||||||
New York insurance law requires financial guaranty insurers to maintain minimum statutory policyholders’ surplus of $65 million. When added to the minimum statutory policyholders’ surplus of $1.4 million separately required for the other lines of insurance that Radian Asset Assurance is licensed to write, Radian Asset Assurance is required to maintain an aggregate minimum statutory policyholders’ surplus of $66.4 million. | ||||||||||||
In accordance with New York insurance law, financial guaranty insurance companies are required to establish a contingency reserve equal to the greater of 50% of premiums written or a stated percentage of the principal guaranteed, ratably over 15 to 20 years dependent upon the category of obligation insured. Contingency reserves may be discontinued if the total reserve established for all categories of obligations exceeds the sum of the stated percentages for such categories multiplied by the unpaid principal guaranteed. The contingency reserve may be released with regulatory approval to the extent that losses in any calendar year exceed a pre-determined percentage of earned premiums for such year, with the percentage threshold dependent upon the category of obligation insured. Such reserves may also be released, subject to regulatory approval in certain instances, upon demonstration that the reserve amount is excessive in relation to the outstanding obligations. Reinsurers are required to establish a contingency reserve equal to their proportionate share of the reserve established by the ceding company. Also under SAP, case reserves are required to be established in the year in which a default occurs based on the guarantor’s best estimate of ultimate loss payment, rather than when the probability weighted expected net cash out flows exceed unearned premium reserves. | ||||||||||||
Radian Asset Assurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income | $ | 12.6 | $ | 24.9 | $ | 103.3 | ||||||
Statutory policyholders’ surplus | 1,138.90 | 1,198.00 | 1,144.10 | |||||||||
Contingency reserve | 189.1 | 264 | 300.1 | |||||||||
The differences between the statutory financial statements and financial statements presented on a GAAP basis represent differences between GAAP and SAP for the following reasons: | ||||||||||||
(a) | Under SAP, mortgage guaranty insurance companies are required each year to establish a contingency reserve equal to 50% of premiums earned in such year. Such amount must be maintained in the contingency reserve for 10 years, after which time it is released to unassigned surplus. Prior to 10 years, the contingency reserve may be reduced with regulatory approval to the extent that losses in any calendar year exceed 35% of earned premiums for such year. | |||||||||||
(b) | Under SAP, insurance policy acquisition costs are charged against operations in the year incurred. Under GAAP, such costs, other than those incurred in connection with the origination of derivative contracts, are deferred and amortized. | |||||||||||
(c) | Under SAP, income tax expense is calculated on the basis of amounts currently payable. Generally, DTAs are recorded under both SAP and GAAP when it is more likely than not that the DTA will be realized. However, SAP standards impose additional admissibility requirements whereby DTAs are only recorded to the extent they are expected to be recovered within a one- to three-year period subject to a capital and surplus limitation. Changes in DTAs and DTLs are recognized as a direct benefit or charge to unassigned surplus, whereas under GAAP changes in DTAs and DTLs, except for changes in unrealized gains and losses on available-for-sale securities, are recorded as a component of income tax expense. | |||||||||||
(d) | Under SAP, investment grade fixed-maturity investments are valued at amortized cost and below-investment grade securities are carried at the lower of amortized cost or market value. Under GAAP, those investments that the statutory insurance entities do not have the ability or intent to hold to maturity are considered to be either available for sale or trading securities and are recorded at fair value, with the unrealized gain or loss recognized, net of tax, as an increase or decrease to stockholders’ equity or current operations, as applicable. | |||||||||||
(e) | Under SAP, certain assets, designated as non-admitted assets, are charged directly against statutory surplus. Such assets are reflected on our GAAP financial statements. | |||||||||||
(f) | Prior to January 1, 2013, under SAP, the accounting standard regarding share-based payments was not applicable, with regard to the recognition and measurement of stock option issuances. However, effective January 1, 2013, the NAIC adopted SSAP No. 104, Share-Based Payments (“SSAP 104”), on a prospective basis. Therefore, expenses related to stock options granted subsequent to the date of adoption of SSAP 104 are recognized under SAP but expenses related to stock options granted prior to the date of adoption continue to not be recognized under SAP. Expenses related to stock options, regardless of the date of grant, are reflected on our GAAP financial statements in accordance with this standard. | |||||||||||
(g) | Under SAP, certain financial guaranty contracts are not considered derivative instruments and any fair value adjustments are not recognized in the financial statements, except for changes associated with known credit losses. Under GAAP, derivative instruments that are considered credit default swaps are considered derivative instruments, measured at fair value and recognized as either assets or liabilities in the financial statements with changes in the fair value recorded in current earnings. | |||||||||||
(h) | Under SAP, derivatives are measured at fair value, with changes in the fair value recorded directly to surplus. Under GAAP, derivatives are measured at fair value and recognized as either assets or liabilities in the financial statements with changes in the fair value recorded in current earnings. | |||||||||||
(i) | Under SAP, the accounting standard regarding accounting for transfers and servicing of financial assets and extinguishment of liabilities and the accounting standard regarding consolidation of VIEs are not applicable. | |||||||||||
(j) | Under SAP, premiums written on a multi-year basis are initially deferred as unearned premiums. A portion of the premium written, which corresponds to the insurance policy acquisition costs, is earned immediately and the remaining premiums written are earned over the policy term. Under GAAP, these premiums written on a multi-year basis are initially deferred as unearned premiums and are earned over the policy term. | |||||||||||
(k) | Under SAP, capital contributions satisfied by receipt of cash or readily marketable securities subsequent to the balance sheet date but prior to the filing of the statutory financial statement are treated as a recognized subsequent event and, as such, are considered an admitted asset based on the evidence of collection and approval of the domiciliary commissioner. Under GAAP, such capital contributions are treated as a nonrecognized subsequent event. |
Note_15_ShareBased_and_Other_C
Note 15 - Share-Based and Other Compensation Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Share-Based and Other Compensation Plans | Share–Based and Other Compensation Programs | ||||||||||||||||||||||||
On May 14, 2014, our stockholders approved a new equity compensation plan, the 2014 Equity Plan, pursuant to which we grant equity awards. The 2014 Equity Plan replaced our prior equity plan, the 2008 Equity Compensation Plan. We also have awards outstanding under the 1995 Equity Plan, which preceded the 2008 Equity Plan. In adopting the 2014 Equity Plan, we agreed not to grant any new awards under the 2008 Equity Plan. The last awards granted pursuant to the 2008 and 1995 Equity Plans were granted in 2014 and 2008, respectively. All awards granted under the Equity Plans have been in the form of non-qualified stock options, restricted stock, RSUs, SARs, phantom stock and performance share awards. The maximum contractual term for all awards under the Equity Plans is 10 years. | |||||||||||||||||||||||||
The 2014 Equity Plan authorizes the issuance of up to 6,416,180 shares of our common stock, plus such number of shares of common stock subject to outstanding awards that are payable in shares under the 2008 Equity Plan and which awards subsequently terminate, expire or are cancelled (“Prior Plan Shares”). There were 4,240,002 shares remaining available for grant under the 2014 Equity Plan as of December 31, 2014 (the “share reserve”). Each grant of restricted stock, RSUs, or performance share awards under the 2014 Equity Plan (other than those settled in cash) reduces the reserve available for grant under the 2014 Equity Plan by 1.31 shares for every share subject to such grant. Awards under the 2014 Equity Plan that provide for settlement solely in cash (and not common shares) do not count against the share reserve. Absent this reserve adjustment for restricted stock, RSUs, phantom stock or performance share awards, our shares remaining available for grant under the 2014 Equity Plan would have been 4,728,559 shares as of December 31, 2014. | |||||||||||||||||||||||||
Unless otherwise described below, awards under the Equity Plans include the following terms: | |||||||||||||||||||||||||
• | Generally, stock options and SARs vest 50% on each of the third and fourth anniversaries of the grant date, while restricted stock, RSUs and performance share awards vest 100% on the third anniversary of the grant date. All awards require the grantee to remain in service with us through the vesting period, except in the event of the grantee’s death, disability, retirement or upon a change of control. | ||||||||||||||||||||||||
• | Generally, the awards vest upon a grantee’s death, disability or retirement. | ||||||||||||||||||||||||
• | Awards granted prior to May 13, 2009 generally vest upon a change of control, defined as: (i) the acquisition by any third party of the beneficial ownership of 40% or more of our outstanding common stock (20% or more of our outstanding common stock for awards under the 1995 Equity Plan); (ii) the purchase by any third party of substantially all of our assets; or (iii) during any 24-month period, a change in 75% of the members of the Board with 75% of the prior members of the Board not approving such change. | ||||||||||||||||||||||||
• | Awards granted under the Equity Plans provide for “double trigger” vesting in the event of a change of control, meaning that awards will vest in connection with a change of control only in the event the grantee’s employment is terminated by us without cause or the grantee terminates employment for “good reason,” in each case within 90 days before or one year after the change of control. | ||||||||||||||||||||||||
In the event of a hypothetical change of control as of December 31, 2014, we estimate that the vesting of awards would have resulted in a pretax accounting charge to us of approximately $17.5 million, representing the acceleration of compensation expense assuming all “double trigger” vesting occurred. | |||||||||||||||||||||||||
We use the Monte Carlo valuation model to determine the fair value of all cash-settled awards where stock price is a factor in determining the vesting, as well as for cash- or equity-settled performance awards where there exists a similar stock price-based market condition (we refer to these awards as “Market Condition Awards”). The Monte Carlo valuation model incorporates multiple input variables, including expected life, volatility, risk-free rate of return and dividend yield for each award to estimate the probability that a vesting condition will be achieved. In determining these assumptions for the Monte Carlo valuations, we consider historic and observable market data. | |||||||||||||||||||||||||
Depending on certain characteristics of the awards granted under the various Equity Plans noted above, they are accounted for as either liabilities or equity instruments. The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the years ended: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Share-Based Compensation Programs | Liability | Compensation | Liability | Compensation | Liability | Compensation | |||||||||||||||||||
Recorded/ | Cost | Recorded/ | Cost | Recorded/ | Cost | ||||||||||||||||||||
Equity | Recognized (1) | Equity | Recognized (1) | Equity | Recognized (1) | ||||||||||||||||||||
Instruments | Instruments | Instruments | |||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
RSUs—Cash-Settled | $ | 65,157 | $ | 31,834 | $ | 104,114 | $ | 79,322 | $ | 26,164 | $ | 21,301 | |||||||||||||
SARs—Cash-Settled | 595 | 915 | 8,195 | 8,544 | 4,602 | 3,498 | |||||||||||||||||||
Liabilities | $ | 65,752 | 32,749 | $ | 112,309 | 87,866 | $ | 30,766 | 24,799 | ||||||||||||||||
Equity: | |||||||||||||||||||||||||
Stock Options | 3,029,348 | 2,531 | 3,989,641 | 2,488 | 4,402,344 | 1,787 | |||||||||||||||||||
Phantom Stock | 284,645 | 3 | 284,645 | 3 | 343,094 | 4 | |||||||||||||||||||
RSUs—Equity Settled | 2,056,596 | 7,461 | 1,273,556 | 4,336 | 990,881 | 1,466 | |||||||||||||||||||
Restricted Stock | — | — | — | 21 | 131,374 | 57 | |||||||||||||||||||
ESPP | 267 | 267 | 253 | ||||||||||||||||||||||
Equity | 10,262 | 7,115 | 3,567 | ||||||||||||||||||||||
Total all share-based plans | $ | 43,011 | $ | 94,981 | $ | 28,366 | |||||||||||||||||||
______________ | |||||||||||||||||||||||||
-1 | For purposes of calculating compensation cost recognized, we generally consider time-vested awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. However, under the terms of our stock option awards granted in 2014, 2013, and 2012, legal vesting for retirement occurs when the grantee actually separates from service, with the exception of certain senior executives for whom vesting remains dependent on the stock price hurdle being met regardless of when the executive separates from service. Performance-based RSU awards granted in 2014, 2013, and 2012 provide that vesting remains dependent on the Company’s performance for the full term of the awards notwithstanding the grantee’s earlier retirement. | ||||||||||||||||||||||||
The following table reflects additional information regarding all share-based awards for the years indicated: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
($ in thousands except per-share amounts) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Total compensation cost recognized | $ | 43,011 | $ | 94,981 | $ | 28,366 | |||||||||||||||||||
Less: Costs deferred as acquisition costs | 1,047 | 1,769 | 465 | ||||||||||||||||||||||
Stock-based compensation expense | $ | 41,964 | $ | 93,212 | $ | 27,901 | |||||||||||||||||||
RSUs (Cash-Settled) | |||||||||||||||||||||||||
Performance-Based RSUs— In 2012, the Compensation Committee granted a total of 2,211,640 performance-based RSUs (to be settled in cash) to eligible officers under the 2008 Equity Plan. These performance-based RSUs entitle grantees to a cash amount equal to the fair market value of RSUs that have vested at the end of a three-year performance period. There were no cash-settled performance-based RSUs granted in 2014 or 2013. | |||||||||||||||||||||||||
Vesting of awards granted to executive officers in 2012 is dependent upon (1) Radian Group’s absolute TSR compared to the relative TSR of the companies listed on the NASDAQ 100 Financial Index and our most directly comparable mortgage insurance peer, and (2) Radian Group’s relative TSR (“2012 Relative TSR Measure”), in each case measured over a three-year performance period. The maximum payout at the end of the three-year performance period is 200% of a grantee’s target number of RSUs. If Radian Group’s absolute TSR during the performance period is negative, none of the performance-based RSUs granted to executive officers will vest. If Radian Group’s absolute TSR is positive, the payout will be determined based on an analysis of Radian Group’s relative TSR and absolute TSR. | |||||||||||||||||||||||||
Vesting of awards granted to non-executive officers in 2012 is subject to the same terms as the executive officer awards, except that the non-executive officer awards are not subject to the 2012 Absolute TSR Measure. | |||||||||||||||||||||||||
In general, pursuant to the terms of the 2012 award agreement, in the event of a grantee’s retirement, the award will continue to vest and be paid in accordance with the achievement of the Company’s TSR performance goals as of the stated vesting date. Each RSU was granted at full value with no exercise price. The RSUs do not entitle the grantees to voting or dividend rights. | |||||||||||||||||||||||||
Vesting of awards granted to both non-executives and executives in 2011 was dependent upon the performance of Radian Group’s TSR compared to TSRs of the Peer Groups, and resulted in a maximum payout at the end of the three-year performance period of 200% of a grantee’s target number of RSUs. | |||||||||||||||||||||||||
Timed-Vested RSUs—In 2014, 2013 and 2012, the Compensation Committee awarded to certain non-executives 1,470, 7,670 and 151,154, respectively, of cash-settled time-vested RSUs under the 2008 Equity Plan. The estimated fair value of the time-vested RSUs is based on the closing price of our common stock on the measurement date. These RSU awards entitle award recipients to a cash amount equal to the closing price of our common stock on the NYSE on the vesting date for employees or the conversion date for non-employee directors (generally defined as a director’s termination of service with us). These RSU awards vest in their entirety three years from the date of grant, or earlier, upon retirement, death or disability. | |||||||||||||||||||||||||
SARs (Cash-Settled) | |||||||||||||||||||||||||
In 2010 and 2009, the Compensation Committee awarded 192,100 and 1,623,500, respectively, of cash-settled SARs under the 2008 Equity Plan. The award of SARs entitles grantees to receive a cash amount equal to the excess of the closing share price of our common stock on the date of exercise over the grant price (the closing share price of our common stock on the date of grant). The exercise prices of the SARs awarded in 2010 and 2009 were $10.42 and $2.68 per share, respectively. As of December 31, 2014, the estimated fair value of the SARs awarded in 2010 was $6.30 per share. The SARs have a five-year term and vest 50% on the third and fourth anniversaries of the date of grant. Any SARs remaining at the end of the five-year period will be automatically exercised and paid to the grantee. At December 31, 2014, 102,450 of cash-settled SARs awarded in 2010 remained outstanding. | |||||||||||||||||||||||||
Non-Qualified Stock Options | |||||||||||||||||||||||||
Information with regard to stock options for the periods indicated is as follows: | |||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||
Exercise Price | |||||||||||||||||||||||||
Per Share | |||||||||||||||||||||||||
Outstanding, December 31, 2013 | 3,989,641 | $ | 10.63 | ||||||||||||||||||||||
Granted | 289,500 | 15.44 | |||||||||||||||||||||||
Exercised | (29,765 | ) | 8.69 | ||||||||||||||||||||||
Forfeited | (47,170 | ) | 9.18 | ||||||||||||||||||||||
Expired | (1,172,858 | ) | 25.28 | ||||||||||||||||||||||
Outstanding, December 31, 2014 | 3,029,348 | 5.46 | |||||||||||||||||||||||
Exercisable, December 31, 2014 | 938,740 | 4.64 | |||||||||||||||||||||||
Available for grant, December 31, 2014 | 4,258,907 | ||||||||||||||||||||||||
In 2014, 2013, and 2012, the Compensation Committee awarded 289,500, 279,650 and 1,312,590, respectively, of non-qualified stock options to executive and certain non-executive officers. The weighted average grant date fair value per share of the stock options granted during 2014, 2013 and 2012 was $12.18, $10.95 and $1.92, respectively. The amount of cash received from the exercise of stock options for the years ended December 31, 2014 and 2013 was approximately $0.26 million and $0.06 million, respectively. The total intrinsic value of options exercised (measured as of the date of exercise) during the years ended December 31, 2014 and 2013 was $0.19 million and $0.17 million, respectively, and the related tax benefits were approximately $0.07 million and $0.06 million, respectively. There were no stock options exercised in 2012. The total intrinsic value of the stock options outstanding at December 31, 2014, 2013 and 2012 was $34.1 million, $27.0 million and $7.8 million, respectively, based on the closing price of our common stock as of such dates relative to the exercise prices for such stock options. | |||||||||||||||||||||||||
Upon the exercise of stock options, we generally issue shares from the authorized, unissued share reserves when the exercise price is less than the treasury stock repurchase price and from treasury stock when the exercise price is greater than the treasury stock repurchase price. | |||||||||||||||||||||||||
The table below summarizes information regarding fully vested stock options as of December 31, 2014: | |||||||||||||||||||||||||
($ in millions, except per share amounts) | Outstanding and | ||||||||||||||||||||||||
Exercisable | |||||||||||||||||||||||||
Number of options vested | 938,740 | ||||||||||||||||||||||||
Fair value of options vested during the year | $ | 1.8 | |||||||||||||||||||||||
Weighted-average exercise price per share | $ | 4.64 | |||||||||||||||||||||||
Aggregate intrinsic value (excess market price over exercise price) | $ | 11.3 | |||||||||||||||||||||||
Weighted-average remaining contractual term of options (in years) | 2.1 years | ||||||||||||||||||||||||
The following table summarizes information concerning outstanding and exercisable options at December 31, 2014: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted Average | Weighted Average | Number | Weighted Average | ||||||||||||||||||||
Outstanding | Remaining | Exercise Price | Exercisable | Exercise Price | |||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||||
(Years) | |||||||||||||||||||||||||
$2.45 - $3.58 | 2,228,150 | 5.18 | $ | 2.73 | 712,610 | $ | 2.89 | ||||||||||||||||||
$5.76 - $7.06 | 60,778 | 3.18 | 6.89 | 23,200 | 6.92 | ||||||||||||||||||||
$10.42 - $15.44 | 740,420 | 7.16 | 13.56 | 202,930 | 10.49 | ||||||||||||||||||||
3,029,348 | 4.32 | 938,740 | |||||||||||||||||||||||
We use the Monte Carlo valuation model in determining the grant date fair value of performance-based stock options issued to executives and non-executives using the assumptions noted in the following table: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Derived service period (years) | 2.99 - 3.96 | 3.02 - 4.00 | 3.14 - 4.00 | ||||||||||||||||||||||
Risk-free interest rate (1) | 2.57 | % | 1.96 | % | 1.66 | % | |||||||||||||||||||
Volatility (2) | 94.26 | % | 94.63 | % | 96.97 | % | |||||||||||||||||||
Dividend yield | 0.07 | % | 0.07 | % | 0.41 | % | |||||||||||||||||||
______________ | |||||||||||||||||||||||||
-1 | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. | ||||||||||||||||||||||||
-2 | Volatility is determined at the date of grant using historical share price volatility and expected life of each award. | ||||||||||||||||||||||||
For stock option awards granted in 2014, 2013 and 2012, in addition to the time-based vesting requirements, the options contain a performance hurdle whereby the options will only vest if the closing price of our common stock on the NYSE exceeds $19.30 (125% of the option exercise price), $17.49 (125% of the option exercise price) and $4.90 (200% of the option exercise price), respectively, for ten consecutive trading days ending on or after the third anniversary of the date of grant. | |||||||||||||||||||||||||
We elected to apply the short-cut method in accounting for the windfall tax benefits under the accounting standard regarding share-based payment. Should future offsets to the windfall resulting from cancellations, expirations or exercise shortfalls exceed the balance of $17.3 million at December 31, 2014, the excess would be reflected in the consolidated statements of operations. | |||||||||||||||||||||||||
Phantom Stock | |||||||||||||||||||||||||
In the past, the Compensation Committee has granted phantom stock awards to non-employee directors under the Equity Plans, which entitle grantees to receive shares of our common stock on the conversion date (generally defined as a grantee’s termination of service with us). The estimated fair value of phantom stock is based on the closing share price of our common stock as reported by the NYSE on the date of grant. All outstanding shares of phantom stock are fully vested. Each share of phantom stock was granted at full value with no exercise price and accrues dividend equivalents until the conversion (as defined above). Upon conversion, all phantom stock will be paid in whole shares of our common stock, with fractional shares paid in cash. At December 31, 2014, there were approximately 4,452 dividend-equivalent phantom shares accrued that were not included in the total number of our outstanding shares. The cost recognized for these awards was recognized on a straight-line basis over the vesting period. | |||||||||||||||||||||||||
RSUs (Equity Settled) | |||||||||||||||||||||||||
Performance-Based RSUs—In 2014 and 2013, the Compensation Committee granted to executive and non-executive officers a total of 702,180 and 435,970, respectively, performance-based RSUs to be settled in common stock. No equity-settled performance-based RSUs were awarded in 2012. | |||||||||||||||||||||||||
Vesting of awards granted to executive officers in 2014 and 2013 is dependent upon (1) Radian Group’s TSR compared to the relative TSR of the companies listed on the NASDAQ Financial Index and our most directly comparable mortgage insurance peers as of the date of grant (the “Relative TSR Measure”), and (2) Radian Group’s absolute TSR (“Absolute TSR Measure”), in each case measured over a three-year performance period. The maximum payout at the end of the three-year performance period is 200% of a grantee’s target number of RSUs, subject to a maximum cap of six times the value of the grantee’s award on the grant date. If Radian Group’s absolute TSR during the performance period is negative, the maximum payout percentage will be 50% of target. If Radian Group’s absolute TSR is positive, the payout will be determined based on an analysis of Radian Group’s Relative TSR Measure and Absolute TSR Measure, with executives only entitled to a 100% vesting if Radian Group’s Absolute TSR is equal to at least 25%. Vesting of awards granted to non-executive officers in 2014 and 2013 is subject to the same terms as the executive officer awards, except that the non-executive officer awards are not subject to the Absolute TSR Measure. | |||||||||||||||||||||||||
The grant date fair value of performance-based RSUs is determined using the Monte Carlo valuation model. The following are assumptions used in our calculation of the grant date fair value of performance-based RSUs to be settled in common stock: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Expected life | 3 years | 3 years | |||||||||||||||||||||||
Risk-free interest rate | 1 | % | 0.4 | % | |||||||||||||||||||||
Volatility | 71.9 | % | 81.8 | % | |||||||||||||||||||||
Dividend yield | 0.06 | % | 0.07 | % | |||||||||||||||||||||
Time-Vested RSUs—In 2014, the Compensation Committee granted a total of 170,176 shares of time-vested RSUs to be settled in common stock, including 85,133 shares awarded to non-executive officers and 85,043 shares awarded to non-employee directors. In 2013, the Compensation Committee granted a total of 102,618 shares of time-vested RSUs to be settled in common stock, including 13,260 shares awarded to non-executive officers and 89,358 shares awarded to non-employee directors. In 2012, the Compensation Committee granted a total of 558,216 shares of time-vested RSUs to be settled in common stock, including 7,812 shares awarded to non-executive officers and 550,404 shares awarded to non-employee directors. The grant date fair value of the time-vested RSUs was calculated based on the closing price of our common stock on the NYSE on the date of grant and is recognized as compensation expense over the vesting period. All of these awards are subject to three-year cliff vesting. | |||||||||||||||||||||||||
Information with regard to RSUs to be settled in stock for the periods indicated is as follows: | |||||||||||||||||||||||||
Number of | Weighted Average | ||||||||||||||||||||||||
Shares | Grant Date | ||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Unvested, December 31, 2013 | 1,273,556 | $ | 7.75 | ||||||||||||||||||||||
Granted | 872,356 | 14.97 | |||||||||||||||||||||||
Vested | (31,599 | ) | 6.88 | ||||||||||||||||||||||
Forfeited | (57,717 | ) | 14.22 | ||||||||||||||||||||||
Unvested, December 31, 2014 | 2,056,596 | 10.65 | |||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||
In 2009, the Compensation Committee granted 375,500 shares of restricted stock. No shares of restricted stock were granted during 2014, 2013 or 2012 and all restricted stock issued has vested. | |||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||
We have an ESPP, the 2008 ESPP, under which 2,000,000 shares of our authorized but unissued common stock have been reserved for issuance. Under the 2008 ESPP, we sold 67,743, 95,287 and 204,834 shares to employees during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The 2008 ESPP is designed to allow eligible employees to purchase shares of our common stock at a discount of 15% off the lower of the fair market value of our common stock at the beginning-of-period or end-of-period (each period being the first and second six calendar months in a calendar year). | |||||||||||||||||||||||||
The following are assumptions used in our calculation of ESPP compensation expense during 2014: | |||||||||||||||||||||||||
January 1, 2014 | July 1, 2014 | ||||||||||||||||||||||||
Expected life | 6 months | 6 months | |||||||||||||||||||||||
Risk-free interest rate | 0.34 | % | 0.32 | % | |||||||||||||||||||||
Volatility | 46.99 | % | 36.69 | % | |||||||||||||||||||||
Dividend yield | 0.04 | % | 0.03 | % | |||||||||||||||||||||
Unrecognized Compensation Expense | |||||||||||||||||||||||||
As of December 31, 2014, 2013 and 2012, unrecognized compensation expense related to the unvested portion of all of our share-based awards was approximately $17.5 million, $31.9 million and $22.4 million, respectively. Absent a change of control under the Equity Plans, this expense is expected to be recognized over a weighted average period of approximately two years. |
Note_16_Benefit_Plans
Note 16 - Benefit Plans | 12 Months Ended | |
Dec. 31, 2014 | ||
Benefit Plans [Abstract] | ||
Compensation and Employee Benefit Plans [Text Block] | Benefit Plans | |
We have a non-qualified restoration plan (the “Benefit Restoration Plan” or “BRP”). The BRP is intended to provide additional retirement benefits to each of our employees who is eligible to participate in the Radian Group Inc. Savings Incentive Plan (“Savings Plan”) and whose benefits under the Savings Plan are limited by applicable IRS limits on eligible compensation. The plan: (1) mandates a lump sum form of payment (rather than offering an annuity election) for participants who separate from service after 2007; (2) delinks discretionary contributions from Radian Group under the BRP from discretionary contributions from Radian Group under the Savings Plan; (3) provides us with flexibility to waive the eligibility requirements for participation in discretionary contributions from Radian Group under the BRP to allow otherwise ineligible employees, such as those involuntarily terminated during the year, to participate in such contributions; and (4) conforms the BRP to the final regulations under Section 409A of the Internal Revenue Code. | ||
We surrendered certain of the split-dollar life insurance policies issued under our prior supplemental retirement plan to fund the BRP. Each participant in the prior plan received an initial balance in the BRP equal to the present value of the participant’s benefit under the split-dollar life insurance policy as of January 1, 2007. As of December 31, 2014, we had $11.2 million of split-dollar life insurance policies outstanding. The expense for our BRP for the years ended December 31, 2014, 2013 and 2012 was immaterial to our financial statements. | ||
The assumed discount rate for our BRP is based on assumptions intended to estimate the actual termination liability of the plan. The discount rate is a composite rate used to approximate the actual termination liability comprised of lump sum payments and an annuity purchase. | ||
The Savings Plan covers substantially all of our full-time and our part-time employees. Participants can contribute up to 100% of their base earnings as pretax and/or after-tax (Roth IRA) contributions up to a maximum amount of $17,500 for 2014. The Plan also includes a catch-up contribution provision whereby participants who are or will be age 50 and above during the Plan year, may contribute an additional contribution. The maximum catch-up contribution for Plan Year 2014 was $5,500. We will match up to 100% of the first 6% of base earnings contributed in any given year. Our expense for matching funds for the years ended December 31, 2014, 2013 and 2012 was $3.1 million, $2.7 million and $2.5 million, respectively. | ||
Certain of the benefits of this plan are as follows: | ||
• | allows for the immediate eligibility of new hire participation and provides for the automatic enrollment of eligible employees; | |
• | provides for the immediate vesting of matching contributions (including existing unvested matching contributions attributable to prior periods) and the elimination of all restrictions (other than Radian Group’s Policy Regarding Securities Trading) on a participant’s ability to diversify his/her position in matching contributions; | |
• | permits Radian Group to make discretionary, pro rata (based on eligible pay) cash allocations to each eligible participant’s account, with vesting upon completion of three years of service with us; and | |
• | provided certain participants who were active in our pension plan with yearly cash “transition credits” (initially for up to five years, if employed by us during this time) under the Savings Plan equal to a fixed percentage of their eligible pay, calculated based on a formula that takes into account their age and years of completed vesting service as of January 1, 2007. The last transition payment was made in January 2012. | |
We have a voluntary deferred compensation plan for senior officers and a voluntary deferred compensation plan for our directors. The voluntary deferred compensation plans allow: (1) senior officers to defer receipt of all or a portion of their annual cash incentive award and/or the payment date of their equity compensation; and (2) directors to defer receipt of all or a portion of their cash compensation and/or the payment date of their equity compensation. Under the plans, a participant must make a binding written election before the year in which compensation is to be earned to defer compensation payouts for at least two full calendar years beyond the year in which such compensation would have been paid. | ||
Participants’ accounts are distributed at the dates specified in their deferral election forms or, in certain cases, upon an earlier termination of employment or service. | ||
The deferred compensation plan amounts are not funded and are not segregated from our general assets. Accordingly, participants in each plan are general unsecured creditors of Radian Group with respect to the amounts due under the plans. The amount recorded as deferred compensation expense for the years ended December 31, 2014, 2013 and 2012 was immaterial to our financial statements. | ||
Other Contributions | ||
We contributed nominal amounts to other postretirement benefit plans in 2014. |
Note_17_Commitments_and_Contin
Note 17 - Commitments and Contingencies Level 1 (Notes) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies | |||
Legal Proceedings | ||||
We are routinely involved in a number of legal actions and proceedings, the outcome of which are uncertain. The legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. In accordance with applicable accounting standards and guidance, we establish accruals for a legal proceeding only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range. | ||||
In the course of our regular review of pending legal matters, we determine whether it is reasonably possible that a potential loss relating to a legal proceeding may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to any such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly and annual basis, we review relevant information with respect to legal loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any. | ||||
Loss estimates are inherently subjective, based on currently available information, and are subject to management’s judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and unpredictability surrounding the outcome of legal proceedings, actual results may differ materially from any amounts that have been accrued. | ||||
We have been named as a defendant in a number of putative class action lawsuits alleging, among other things, that our captive reinsurance agreements violate RESPA. On December 9, 2011, an action titled Samp v. JPMorgan (the “JPMorgan Case”) was filed in the U.S. District Court for the Central District of California. The defendants were JPMorgan and several mortgage insurers, including Radian Guaranty. The plaintiffs purported to represent a class of borrowers whose loans allegedly were referred to mortgage insurers by JPMorgan in exchange for reinsurance agreements between the mortgage insurers and JPMorgan’s captive reinsurer. Plaintiffs asserted violations of RESPA. On October 4, 2012, Radian Guaranty filed a motion to dismiss on a number of grounds, and on May 7, 2013, the court granted the motion and dismissed the plaintiffs’ claims with prejudice. The court ruled that the plaintiffs could not state a claim against Radian Guaranty because it did not insure their loans, and, in addition, ruled that their claims were barred by the statute of limitations. On June 5, 2013, plaintiffs appealed these rulings to the U.S. Court of Appeals for the Ninth Circuit. On November 9, 2013, plaintiffs voluntarily dismissed their appeal. | ||||
Each of the cases described below are putative class actions (with alleged facts substantially similar to the facts alleged in the JPMorgan Case discussed above) in which Radian Guaranty has been named as a defendant and has insured at least one loan of one of the plaintiffs: | ||||
• | On December 30, 2011, a putative class action under RESPA titled White v. PNC Financial Services Group (the “White Case”) was filed in the U.S. District Court for the Eastern District of Pennsylvania. On September 29, 2012, plaintiffs filed an amended complaint. On November 26, 2012, Radian Guaranty filed a motion to dismiss the plaintiffs’ claims as barred by the statute of limitations. On June 20, 2013, the court granted Radian Guaranty’s motion and dismissed plaintiffs’ claims, but granted plaintiffs leave to file a second amended complaint. Plaintiffs filed their second amended complaint on July 5, 2013, reasserting a putative claim under RESPA on substantially the same allegations. Radian Guaranty filed a motion to dismiss plaintiffs’ second amended complaint on July 22, 2013. The court denied Radian Guaranty’s motion on August 18, 2014, without prejudice to Radian Guaranty’s ability to raise the statute of limitations bar on a motion for summary judgment. On January 20, 2015, plaintiffs in the White Case filed a motion to strike certain of the affirmative defenses, but not the statute of limitations defense, that had been asserted by Radian Guaranty in its answer to plaintiffs’ second amended complaint. The parties are continuing to file procedural motions in this litigation. However, the White Case is currently stayed pending a decision by the Third Circuit Court of Appeals in the case Cunningham v. M&T Bank Corp., which is another putative class action under RESPA in which Radian Guaranty is not a party. | |||
• | On January 13, 2012, a putative class action under RESPA titled Menichino, et al. v. Citibank, N.A., et al. (the “Menichino Case”), was filed in the U.S. District Court for the Western District of Pennsylvania. Radian Guaranty was not named as a defendant in the original complaint. On December 4, 2012, plaintiffs amended their complaint to add Radian Guaranty as an additional defendant. On February 4, 2013, Radian Guaranty filed a motion to dismiss the claims against it as barred by the statute of limitations. On July 19, 2013, the court granted Radian Guaranty’s motion and dismissed plaintiffs’ claims, but granted plaintiffs leave to file a second amended complaint. Plaintiffs filed their second amended complaint on August 16, 2013, reasserting a putative claim under RESPA on substantially the same allegations. Radian Guaranty filed a motion to dismiss plaintiffs’ second amended complaint on September 17, 2013. The court denied Radian Guaranty’s motion on February 4, 2014, without prejudice to Radian Guaranty’s ability to raise the statute of limitations bar on a motion for summary judgment. The Menichino Case is currently stayed pending a decision by the Third Circuit Court of Appeals in the case Cunningham v. M&T Bank Corp., which is another putative class action under RESPA in which Radian Guaranty is not a party. | |||
• | On April 5, 2012, a putative class action under RESPA titled Manners, et al. v. Fifth Third Bank, et al (the “Manners Case”) was filed in the U.S. District Court for the Western District of Pennsylvania. On November 28, 2012, Radian Guaranty moved to dismiss plaintiffs’ claims as barred by the statute of limitations. On July 19, 2013, the court granted Radian Guaranty’s motion and dismissed plaintiffs’ claims, but granted plaintiffs leave to file a second amended complaint. Plaintiffs filed their second amended complaint on August 16, 2013, reasserting a putative claim under RESPA on substantially the same allegations. Radian Guaranty filed a motion to dismiss plaintiffs’ second amended complaint on September 17, 2013. The court denied Radian Guaranty’s motion on February 5, 2014, without prejudice to Radian Guaranty’s ability to raise the statute of limitations bar on a motion for summary judgment. The Manners Case is currently stayed pending a decision by the Third Circuit Court of Appeals in the case Cunningham v. M&T Bank Corp., which is another putative class action under RESPA in which Radian Guaranty is not a party. | |||
With respect to the putative class action cases discussed above, Radian Guaranty believes that the claims are without merit and intends to vigorously defend itself against these claims. We are not able to estimate the reasonably possible loss or range of loss, if any, for these matters because the proceedings are still in a preliminary stage and there is uncertainty as to the likelihood of a class being certified or the ultimate size of a class. | ||||
In addition to the litigation discussed above, we are involved in litigation that has arisen in the normal course of our business. We are contesting the allegations in each such pending action and management believes, based on current knowledge and after consultation with counsel, that the outcome of such litigation will not have a material adverse effect on our consolidated financial condition. However, the outcome of litigation and other legal and regulatory matters is inherently uncertain, and it is possible that one or more of the matters currently pending or threatened could have an unanticipated adverse effect on our liquidity, financial condition or results of operations for any particular period. | ||||
In addition to the private lawsuits discussed above, we and other mortgage insurers have been subject to inquiries from the Minnesota Department of Commerce requesting information relating to captive reinsurance. We have cooperated with these requests for information. In August 2013, Radian Guaranty and other mortgage insurers first received a draft Consent Order from the Minnesota Department of Commerce, containing proposed conditions and unspecified penalties, to resolve its outstanding inquiries related to captive reinsurance arrangements involving mortgage insurance in Minnesota. We continue to cooperate with the Minnesota Department of Commerce and are engaged in active discussions with them with respect to their inquiries, including the penalties they are seeking and various alternatives for resolving this matter. We cannot predict the outcome of this matter or whether additional actions or proceedings may be brought against us. We have not entered into any new captive reinsurance arrangements since 2007. | ||||
On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties related to the REMIC matters of approximately $157 million and exclude any potential benefit related to our NOL carryback ability. As of December 31, 2014, there also would be interest of approximately $115 million related to these matters. Depending on the outcome, additional state income taxes, penalties and interest (estimated in the aggregate to be approximately $30 million as of December 31, 2014) also may become due when a final resolution is reached. The Notices of Deficiency also reflected additional amounts due of approximately $105 million, which are primarily associated with the disallowance of the previously filed carryback of our 2008 NOL to the 2006 and 2007 tax years. We currently believe that the disallowance of our 2008 NOL carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL carryback claim. | ||||
On December 3, 2014, we petitioned the U.S. Tax Court to litigate the Deficiency Amount. The litigation could take several years to resolve and may result in substantial legal expenses. We can provide no assurance regarding the outcome of any such litigation or whether a compromised settlement with the IRS will ultimately be reached. We believe that an adequate provision for income taxes has been made for the potential liabilities that may result from this matter. However, if the ultimate resolution of this matter produces a result that differs materially from our current expectations, there could be a material impact on our effective tax rate, results of operations and cash flows. | ||||
Under our Master Policies, any suit or action arising from any right of an insured under the policy generally must be commenced within two years after such right first arose for primary insurance and within three years for certain other policies, including certain pool insurance policies. We continue to face a number of challenges from certain lender and servicer customers regarding our Loss Mitigation Activities, which have resulted in some reversals of our decisions regarding rescissions, denials or claim curtailments. We are currently in discussions with customers regarding these Loss Mitigation Activities and our claim payment practices, which if not resolved, could result in arbitration or additional judicial proceedings. See Note 10 for further information. | ||||
Further, we have identified a significant number of loans in our total defaulted portfolio (in particular, our older defaulted portfolio) for which actions or proceedings such as foreclosure that provide the insured with title to the property) may not have been commenced within the outermost deadline in our Prior Master Policy. We currently are in discussions with the servicers for these loans regarding this potential violation and our corresponding rights under the Prior Master Policy. While we can provide no assurance regarding the outcome of these discussions or the ultimate resolution of these issues, it is possible that these discussions could result in arbitration or legal proceedings. | ||||
The elevated levels of our Loss Mitigation Activities (related to servicer negligence) have led to an increased risk of litigation by lenders, policyholders and servicers challenging our right to rescind coverage, deny claims or curtail claim amounts. We believe that our Loss Mitigation Activities are justified under our policies. However, in the event we are not successful in defending our Loss Mitigation Activities, we may need to reassume the risk on and increase loss reserves for previously rescinded policies or pay additional claims on curtailed amounts. See Note 10 for further information. | ||||
Other | ||||
Securities regulations became effective in 2005 that impose enhanced disclosure requirements on issuers of ABS (including mortgage-backed securities). To allow our customers to comply with these regulations at that time, we typically were required, depending on the amount of credit enhancement we were providing, to provide: (1) audited financial statements for the insurance subsidiary participating in the transaction; or (2) a full and unconditional holding company-level guarantee for our insurance subsidiaries’ obligations in such transactions. Radian Group has guaranteed two Structured Transactions for Radian Guaranty involving approximately $128.8 million of remaining credit exposure as of December 31, 2014. | ||||
As part of the non-investment-grade allocation component of our investment program, we had unfunded commitments of $7.4 million at December 31, 2014, related to alternative investments that are primarily private equity structures. These commitments have capital calls expected through 2015, with the possibility of additional calls through 2017, and certain fixed expiration dates or other termination clauses. | ||||
Our mortgage insurance business provides contract underwriting, an outsourced service to its customers. In the past we had agreements with certain of our customers that if we made a material error in underwriting a loan, we would provide a remedy to the customer, by purchasing the loan or placing additional mortgage insurance coverage on the loan, or by indemnifying the customer against loss up to a maximum specified amount. By providing these remedies, we assumed some credit risk and interest-rate risk if an error is found during the limited remedy period in the agreements governing our provision of contract underwriting services. Beginning in 2008, we limited the recourse available to our contract underwriting customers to apply only to those loans that are simultaneously underwritten for secondary market compliance and for potential mortgage insurance. Under our current contract underwriting program the remedy we offer is limited indemnification to our contract underwriting customers only with respect to those loans that we simultaneously underwrite for both secondary market compliance and for potential mortgage insurance eligibility. In 2014, we paid losses related to contract underwriting remedies of approximately $14.4 million, including $11.2 million related to settlement of remedies for services provided on legacy business. Rising mortgage interest rates or further economic uncertainty may expose our mortgage insurance business to an increase in such costs. In 2014, our provision for contract underwriting expenses was approximately $11.7 million and our reserve for contract underwriting obligations at December 31, 2014 was approximately $0.9 million. We monitor this risk and negotiate our underwriting fee structure and recourse agreements on a client-by-client basis. We also routinely audit the performance of our contract underwriters. | ||||
We lease office space for use in our operations. The lease agreements, which expire periodically through March 2024, contain provisions for scheduled periodic rent increases. Net rental expense in connection with these leases totaled $5.6 million in 2014, $4.3 million in 2013 and $5.6 million in 2012. The 2014, 2013 and 2012 net rental expense includes $1.7 million, $1.7 million and $2.3 million, respectively related to Radian Asset Assurance, classified as a discontinued operations at December 31, 2014. The commitment for non-cancelable operating leases in future years is as follows: | ||||
(In thousands) | ||||
2015 | $ | 10,849 | ||
2016 | 5,257 | |||
2017 | 3,860 | |||
2018 | 692 | |||
2019 | 620 | |||
Thereafter | 3,274 | |||
$ | 24,552 | |||
The commitment for non-cancelable operating leases in future years has not been reduced for future minimum receipts expected from sublease rental payments aggregating approximately $3.8 million at December 31, 2014. |
Note_18_Net_Income_Loss_Per_Sh
Note 18 - Net Income (Loss) Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Net Income (Loss) Per Share [Abstract] | ||||||||||||
Earnings Per Share [Text Block] | Net Income (Loss) Per Share | |||||||||||
Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding, while diluted net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Dilutive potential common shares relate to our stock-based compensation arrangements and our outstanding convertible senior notes. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income (loss) from continuing operations. | ||||||||||||
The calculation of the basic and diluted net income (loss) per share was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands, except share and per-share amounts) | ||||||||||||
Net income (loss) from continuing operations: | ||||||||||||
Net income (loss) from continuing operations - basic | $ | 1,259,574 | $ | (141,851 | ) | $ | (224,105 | ) | ||||
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) | 14,372 | — | — | |||||||||
Net income (loss) from continuing operations - diluted | $ | 1,273,946 | $ | (141,851 | ) | $ | (224,105 | ) | ||||
Net income (loss): | ||||||||||||
Net income (loss) from continuing operations - basic | $ | 1,259,574 | $ | (141,851 | ) | $ | (224,105 | ) | ||||
Loss from discontinued operations, net of tax | (300,057 | ) | (55,134 | ) | (227,363 | ) | ||||||
Net income (loss) - basic | 959,517 | (196,985 | ) | (451,468 | ) | |||||||
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) | 14,372 | — | — | |||||||||
Net income (loss) - diluted | $ | 973,889 | $ | (196,985 | ) | $ | (451,468 | ) | ||||
Average common shares outstanding-basic | 184,551 | 166,366 | 132,533 | |||||||||
Dilutive effect of Convertible Senior Notes due 2017 | 8,465 | — | — | |||||||||
Dilutive effect of Convertible Senior Notes due 2019 | 37,736 | — | — | |||||||||
Dilutive effect of stock-based compensation arrangements (2) | 3,150 | — | — | |||||||||
Adjusted average common shares outstanding—diluted | 233,902 | 166,366 | 132,533 | |||||||||
Net income (loss) per share: | ||||||||||||
Basic: | ||||||||||||
Net income (loss) from continuing operations | $ | 6.83 | $ | (0.85 | ) | $ | (1.69 | ) | ||||
Loss from discontinued operations | (1.63 | ) | (0.33 | ) | (1.72 | ) | ||||||
Net income (loss) | $ | 5.2 | $ | (1.18 | ) | $ | (3.41 | ) | ||||
Diluted: | ||||||||||||
Net income (loss) from continuing operations | $ | 5.44 | $ | (0.85 | ) | $ | (1.69 | ) | ||||
Loss from discontinued operations | (1.28 | ) | (0.33 | ) | (1.72 | ) | ||||||
Net income (loss) | $ | 4.16 | $ | (1.18 | ) | $ | (3.41 | ) | ||||
________________ | ||||||||||||
-1 | As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. | |||||||||||
-2 | For the year ended December 31, 2014, 541,720 shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of diluted net income per share as of such date because they were anti-dilutive. As a result of our net loss from continuing operations for the years ended December 31, 2013 and 2012, 43,287,966 and 5,872,600 shares, respectively, of our common stock equivalents issued under our stock-based compensation arrangements and convertible debt were not included in the calculation of diluted net loss per share as of such dates because they were anti-dilutive. |
Note_19_Quarterly_Financial_Da
Note 19 - Quarterly Financial Data | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | ||||||||||||||||||||
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) | |||||||||||||||||||
As a result of the Radian Asset Assurance Stock Purchase Agreement to sell Radian Asset Assurance, we have reclassified the operating results related to the pending disposition as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. | ||||||||||||||||||||
(In thousands, except per share information) | 2014 Quarters | |||||||||||||||||||
First | Second | Third | Fourth | Year | ||||||||||||||||
Net premiums earned—insurance | $ | 198,762 | $ | 203,646 | $ | 217,827 | $ | 224,293 | $ | 844,528 | ||||||||||
Services revenue | — | — | 42,243 | 34,450 | 76,693 | |||||||||||||||
Net investment income | 15,318 | 16,663 | 17,143 | 16,531 | 65,655 | |||||||||||||||
Net gains (losses) on investments (1) | 43,286 | 28,233 | (6,308 | ) | 18,658 | 83,869 | ||||||||||||||
Net (losses) gains on other financial instruments | (318 | ) | (2,901 | ) | 14 | (675 | ) | (3,880 | ) | |||||||||||
Provision for losses | 49,626 | 64,648 | 48,942 | 82,867 | 246,083 | |||||||||||||||
Policy acquisition and other operating expenses | 61,524 | 67,497 | 55,465 | 92,243 | 276,729 | |||||||||||||||
Direct cost of services | — | — | 23,896 | 19,709 | 43,605 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 3,294 | 5,354 | 8,648 | |||||||||||||||
Net income from continuing operations (2) | 145,980 | 103,537 | 132,031 | 878,026 | 1,259,574 | |||||||||||||||
Income (loss) from discontinued operations, net of tax (3) | 56,779 | 71,296 | 21,559 | (449,691 | ) | (300,057 | ) | |||||||||||||
Net income | 202,759 | 174,833 | 153,590 | 428,335 | 959,517 | |||||||||||||||
Diluted net income per share (4)(5) | $ | 0.94 | $ | 0.78 | $ | 0.67 | $ | 1.78 | $ | 4.16 | ||||||||||
Weighted average shares outstanding-diluted (4) | 222,668 | 230,779 | 238,067 | 242,801 | 233,902 | |||||||||||||||
2013 Quarters | ||||||||||||||||||||
First | Second | Third | Fourth | Year | ||||||||||||||||
Net premiums earned—insurance | $ | 182,992 | $ | 197,952 | $ | 200,120 | $ | 200,356 | $ | 781,420 | ||||||||||
Net investment income | 16,961 | 17,087 | 16,351 | 17,722 | 68,121 | |||||||||||||||
Net losses on investments (1) | (3,140 | ) | (86,808 | ) | (6,366 | ) | (2,631 | ) | (98,945 | ) | ||||||||||
Net (losses) gains on other financial instruments | (5,239 | ) | 60 | (193 | ) | (2,208 | ) | (7,580 | ) | |||||||||||
Provision for losses | 131,327 | 137,661 | 149,687 | 144,072 | 562,747 | |||||||||||||||
Policy acquisition and other operating expenses | 84,603 | 62,487 | 70,324 | 68,473 | 285,887 | |||||||||||||||
Net loss from continuing operations | (20,214 | ) | (77,579 | ) | (28,011 | ) | (16,047 | ) | (141,851 | ) | ||||||||||
(Loss) income from discontinued operations, net of tax | (167,286 | ) | 44,407 | 15,329 | 52,416 | (55,134 | ) | |||||||||||||
Net (loss) income | (187,500 | ) | (33,172 | ) | (12,682 | ) | 36,369 | (196,985 | ) | |||||||||||
Diluted net (loss) income per share (4)(5) | $ | (1.30 | ) | $ | (0.19 | ) | $ | (0.07 | ) | $ | 0.21 | $ | (1.18 | ) | ||||||
Weighted average shares outstanding-diluted (4) | 144,355 | 171,783 | 171,830 | 173,099 | 166,366 | |||||||||||||||
______________ | ||||||||||||||||||||
-1 | The 2014 and 2013 amounts reflect unrealized gains (losses), respectively, on our trading securities. | |||||||||||||||||||
-2 | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter. | |||||||||||||||||||
-3 | This amount reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter. | |||||||||||||||||||
-4 | Diluted net income (loss) per share and average shares outstanding per the accounting standard regarding earnings per share. | |||||||||||||||||||
-5 | Diluted net income (loss) per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income (loss) per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income (loss) from continuing operations. |
Schedule_I_Summary_Of_Investme
Schedule I Summary Of Investments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Schedule I Summary of Investments [Abstract] | ||||||||||||
Summary of Investments, Other than Investments in Related Parties [Text Block] | Radian Group Inc. | |||||||||||
Schedule I | ||||||||||||
Summary of Investments—Other Than Investments in Related Parties | ||||||||||||
December 31, 2014 | ||||||||||||
Type of Investment | Amortized | Fair Value | Amount Reflected on the Balance Sheet | |||||||||
Cost | ||||||||||||
(In thousands) | ||||||||||||
Fixed-Maturities: | ||||||||||||
Bonds: | ||||||||||||
U.S. government and agency securities | $ | 5,709 | $ | 5,751 | $ | 5,751 | ||||||
State and municipal obligations (1) | 17,727 | 18,910 | 18,910 | |||||||||
Corporate bonds and notes | 277,678 | 284,408 | 284,408 | |||||||||
RMBS | 41,467 | 42,520 | 42,520 | |||||||||
CMBS | 57,358 | 58,234 | 58,234 | |||||||||
Other ABS | 109,420 | 107,701 | 107,701 | |||||||||
Foreign government and agency securities | 19,301 | 19,366 | 19,366 | |||||||||
Total fixed-maturities | 528,660 | 536,890 | 536,890 | |||||||||
Trading securities (2) | 1,628,769 | 1,633,584 | 1,633,584 | |||||||||
Equity securities available for sale: | ||||||||||||
Common stocks | 76,827 | 142,981 | 142,981 | |||||||||
Nonredeemable preferred stocks | 73 | 387 | 387 | |||||||||
Total equity securities available for sale | 76,900 | 143,368 | 143,368 | |||||||||
Short-term investments | 1,300,866 | 1,300,872 | 1,300,872 | |||||||||
Other invested assets | 14,585 | 20,513 | 14,585 | |||||||||
Total investments other than investments in related parties | $ | 3,549,780 | $ | 3,635,227 | $ | 3,629,299 | ||||||
__________________ | ||||||||||||
-1 | Available for sale. | |||||||||||
-2 | Includes foreign government and agency securities. |
Schedule_II_Financial_Informat
Schedule II Financial Information of Registrant | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Statements Parent Only [Abstract] | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Radian Group Inc. | |||||||||||
Schedule II—Financial Information of Registrant | ||||||||||||
Balance Sheets | ||||||||||||
Parent Company Only | ||||||||||||
December 31, | ||||||||||||
(In thousands, except share and per-share amounts) | 2014 | 2013 | ||||||||||
Assets | ||||||||||||
Investments | ||||||||||||
Trading securities—at fair value | $ | 5,447 | $ | 5,240 | ||||||||
Short-term investments—at fair value | 631,934 | 633,178 | ||||||||||
Cash | 1,951 | 4,304 | ||||||||||
Restricted cash | 124 | 123 | ||||||||||
Investment in subsidiaries, at equity in net assets | 2,746,915 | 1,419,360 | ||||||||||
Debt issuance costs | 17,627 | 15,741 | ||||||||||
Due from affiliates, net | 13,110 | 12,283 | ||||||||||
Accounts and notes receivable | 305,856 | 8,105 | ||||||||||
Property and equipment, at cost (less accumulated depreciation of $50,648 and $49,632) | 1,624 | 1,281 | ||||||||||
Other assets | 16,660 | 12,880 | ||||||||||
Assets held for sale | 18,027 | — | ||||||||||
Total assets | $ | 3,759,275 | $ | 2,112,495 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Accrued interest payable | $ | 6,796 | $ | 5,551 | ||||||||
Accrued compensation expense | 86,258 | 132,848 | ||||||||||
Long-term debt | 1,209,926 | 930,072 | ||||||||||
Federal income taxes—current and deferred | 262,583 | 98,476 | ||||||||||
Other liabilities | 3,935 | 5,903 | ||||||||||
Liabilities held for sale | 18,027 | — | ||||||||||
Total liabilities | 1,587,525 | 1,172,850 | ||||||||||
Equity component of currently redeemable convertible senior notes | 74,690 | — | ||||||||||
Common stockholders’ equity | ||||||||||||
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2014 and 2013; 208,601,020 and 190,636,972 shares issued at December 31, 2014 and 2013, respectively; 191,053,530 and 173,099,515 shares outstanding at December 31, 2014 and 2013, respectively | 209 | 191 | ||||||||||
Treasury stock, at cost: 17,547,490 and 17,537,457 shares at December 31, 2014 and 2013, respectively | (892,961 | ) | (892,807 | ) | ||||||||
Additional paid-in capital | 2,531,513 | 2,347,104 | ||||||||||
Retained earnings (deficit) | 406,814 | (552,226 | ) | |||||||||
Accumulated other comprehensive income | 51,485 | 37,383 | ||||||||||
Total common stockholders’ equity | 2,097,060 | 939,645 | ||||||||||
Total liabilities and stockholders’ equity | $ | 3,759,275 | $ | 2,112,495 | ||||||||
See Supplemental Notes. | ||||||||||||
Radian Group Inc. | ||||||||||||
Schedule II—Financial Information of Registrant | ||||||||||||
Statements of Operations | ||||||||||||
Parent Company Only | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Revenues: | ||||||||||||
Net investment income | $ | 9,515 | $ | 4,300 | $ | 9,093 | ||||||
Net gains (losses) on investments | 133 | (930 | ) | 8,816 | ||||||||
Net (losses) gains on other financial instruments | (2,865 | ) | (6,026 | ) | 9,180 | |||||||
Other income | 7 | — | 3 | |||||||||
Total revenues | 6,790 | (2,656 | ) | 27,092 | ||||||||
Expenses: | ||||||||||||
Other operating expenses | — | — | 2,690 | |||||||||
Interest expense | 57,366 | 37,087 | 17,756 | |||||||||
Total expenses | 57,366 | 37,087 | 20,446 | |||||||||
(Loss) income from continuing operations before income taxes | (50,576 | ) | (39,743 | ) | 6,646 | |||||||
Provision (benefit) for income taxes | 143,912 | 9,234 | (40,187 | ) | ||||||||
Equity in net income (loss) of affiliates | 1,172,032 | (148,008 | ) | (498,301 | ) | |||||||
Net income (loss) from continuing operations | 977,544 | (196,985 | ) | (451,468 | ) | |||||||
Loss from discontinued operations, net of taxes | (18,027 | ) | — | — | ||||||||
Net income (loss) | $ | 959,517 | $ | (196,985 | ) | $ | (451,468 | ) | ||||
See Supplemental Notes. | ||||||||||||
Radian Group Inc. | ||||||||||||
Schedule II—Financial Information of Registrant | ||||||||||||
Statements of Cash Flows | ||||||||||||
Parent Company Only | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 959,517 | $ | (196,985 | ) | $ | (451,468 | ) | ||||
Loss from discontinued operations, net of tax | 18,027 | — | — | |||||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||||||||
Net (gains) losses on investments and other financial instruments | (53 | ) | 3,004 | (1,821 | ) | |||||||
Losses (gains) on the repurchase of long-term debt | 2,785 | 3,952 | (16,175 | ) | ||||||||
Equity in undistributed net (income) loss of subsidiaries and affiliates | (1,172,005 | ) | 150,090 | 505,267 | ||||||||
(Decrease) increase in federal income taxes | (6,626 | ) | 6,583 | (7,145 | ) | |||||||
Deferred income tax provision | 170,757 | — | — | |||||||||
Depreciation and other amortization, net | 34,213 | 30,286 | 18,603 | |||||||||
Change in other assets | 13,768 | 23,301 | (17,708 | ) | ||||||||
Change in other liabilities | (47,536 | ) | 85,450 | 25,336 | ||||||||
Net cash (used in) provided by operating activities, continuing operations | (27,153 | ) | 105,681 | 54,889 | ||||||||
Net cash used in operating activities, discontinued operations | (18,027 | ) | — | — | ||||||||
Net cash (used in) provided by operating activities | (45,180 | ) | 105,681 | 54,889 | ||||||||
Cash flows from investing activities: | ||||||||||||
Sales/redemptions of trading securities | — | 9,000 | 153,992 | |||||||||
Purchases of trading securities | — | — | (3 | ) | ||||||||
Sales (purchases) of short-term investments, net | 1,372 | (496,979 | ) | 41,042 | ||||||||
Sales of other assets, net | — | 21,473 | 8,709 | |||||||||
Purchases of property and equipment, net | (1,351 | ) | (647 | ) | (1,124 | ) | ||||||
Capital contributions to subsidiaries and affiliates | (139,103 | ) | (233,391 | ) | (100,384 | ) | ||||||
Issuance of note receivable from affiliate | (300,000 | ) | — | — | ||||||||
Net cash (used in) provided by investing activities | (439,082 | ) | (700,544 | ) | 102,232 | |||||||
Cash flows from financing activities: | ||||||||||||
Dividends paid | (1,865 | ) | (1,632 | ) | (1,335 | ) | ||||||
Proceeds/payments related to issuance or exchange of debt, net | 293,809 | 377,783 | — | |||||||||
Redemption of long-term debt | (57,223 | ) | (79,372 | ) | (153,261 | ) | ||||||
Issuance of common stock | 247,188 | 299,410 | — | |||||||||
Net cash provided by (used in) financing activities | 481,909 | 596,189 | (154,596 | ) | ||||||||
(Decrease) increase in cash | (2,353 | ) | 1,326 | 2,525 | ||||||||
Cash, beginning of year | 4,304 | 2,978 | 453 | |||||||||
Cash, end of year | $ | 1,951 | $ | 4,304 | $ | 2,978 | ||||||
See Supplemental Notes. | ||||||||||||
Radian Group Inc. | ||||||||||||
Schedule II—Financial Information of Registrant | ||||||||||||
Parent Company Only | ||||||||||||
Supplemental Notes | ||||||||||||
Note A | ||||||||||||
The Radian Group Inc. (the “Parent Company”, “we” or “our”) financial statements represent the stand-alone financial statements of the Parent Company. These financial statements have been prepared on the same basis and using the same accounting policies as described in the consolidated financial statements included herein, except that the Parent Company uses the equity-method of accounting for its majority-owned subsidiaries. Refer to the Parent Company’s consolidated financial statements for additional information. | ||||||||||||
On December 22, 2014, Radian Guaranty entered into the Radian Asset Assurance Stock Purchase Agreement to sell 100% of the issued and outstanding shares of Radian Asset Assurance, our financial guaranty insurance subsidiary, and as a result we have reclassified the operating results related to the pending disposition as discontinued operations for all periods presented in our consolidated statements of operations and no longer present a financial guaranty segment. See Note 3 of Notes to Consolidated Financial Statements for additional information related to discontinued operations. | ||||||||||||
Under our current tax-sharing agreement between the Parent Company and its subsidiaries, we are required to refund to each subsidiary any amount that the subsidiary could utilize through existing carryback provisions of the Internal Revenue Code had such subsidiary filed its federal tax return on a separate company basis. Pursuant to this, we have paid Radian Asset Assurance for losses and foreign tax credits it has generated and Radian Asset Assurance has recorded the DTA for the related consolidated carryforward on its balance sheet. However, the Internal Revenue Code consolidation provisions do not allocate consolidated carryovers based on tax-sharing agreements, but based on an allocation to all subsidiaries that generated the carryforward. Upon a stock sale of a subsidiary, any consolidated attributes allocated to a subsidiary under these regulations transfer to the subsidiary and are no longer part of the consolidated carryforward. As such, the Parent Company has classified the DTAs pertaining to Radian Asset Assurance’s foreign tax credit and allocated NOL as assets held for sale and recorded a related loss from discontinued operations. | ||||||||||||
Note B | ||||||||||||
Included in short-term investments at December 31, 2014 and 2013 is $45.1 million and $41.6 million, respectively, of restricted funds required to support potential tax payments to Radian Asset Assurance under the terms of our current tax-sharing agreement. We also had $0.1 million at both December 31, 2014 and 2013, of restricted cash held as collateral for our insurance trust agreement for our health insurance policy. | ||||||||||||
Note C | ||||||||||||
The Parent Company provides certain services to its subsidiaries. The Parent Company allocates to its subsidiaries corporate expense it incurs in the capacity of supporting those subsidiaries, based on either an allocated percentage of time spent or internally allocated capital. Substantially all operating expenses and interest expense, except for discount amortization on our long-term debt, as well as coupon interest attributable to the Convertible Senior Notes due 2019, have been allocated to the subsidiaries for 2014, 2013 and 2012. Total operating expenses and interest expense allocated to subsidiaries for 2014, 2013 and 2012 were $92.5 million, $140.0 million and $93.2 million, respectively, and are presented net of reimbursements in the Statements of Operations. Amounts charged to the subsidiaries for operating expenses are based on actual cost, without any mark-up, except for the amounts charged to subsidiaries outside the U.S. for which a reasonable mark-up is charged. The Parent Company considers these charges fair and reasonable. The subsidiaries reimburse the Parent Company for these costs in a timely manner, which has the impact of temporarily improving the cash flows of the Parent Company, if accrued expenses are reimbursed prior to actual payment. | ||||||||||||
Note D | ||||||||||||
During 2014, the Parent Company made total capital contributions of $139.1 million to its subsidiaries. This amount included contributions of $100 million to Radian Guaranty, $20 million to Radian MI Services Inc., $19 million to Radian Clayton Holdings Inc. and $0.1 million to Radian Mortgage Reinsurance Company. An additional $100 million capital contribution was made by the Parent Company to Radian Guaranty in February 2015. The Parent Company also received tax payments of $8.8 million from its subsidiaries in 2014 under our tax-sharing agreement. | ||||||||||||
During 2013, the Parent Company received dividends from its subsidiaries of $7.6 million. The Parent Company did not receive any dividends from its subsidiaries in 2014 or 2012. | ||||||||||||
During 2013, the Parent Company made total capital contributions of $313.9 million to its subsidiaries. This amount included cash contributions totaling $230 million to Radian Guaranty, a contribution of investments and accrued interest of $80.5 million to RDN Investments, Inc., a cash contribution of $2.9 million to Radian MI Services Inc. and a cash contribution of $0.1 million to Radian Mortgage Reinsurance Company. The amount of total capital contributions also includes a cash reimbursement to Radian Guaranty of $0.4 million in interest expense payments made to the Parent Company by RMAI pursuant to the interest expense-sharing arrangement. The Parent Company also received tax payments of $0.5 million from its subsidiaries in 2013 under our tax-sharing agreement. | ||||||||||||
During 2012, the Parent Company made total capital contributions of $100.4 million to its subsidiaries. This included a cash contribution of $100 million to Radian Guaranty and a $0.1 million cash contribution to Radian Mortgage Reinsurance Company. The amount of total capital contributions also includes the cash reimbursement to Radian Guaranty of $0.3 million in interest expense payments made to the Parent Company by RMAI pursuant to the interest expense sharing arrangement. The Parent Company also received tax payments of $36.8 million from its subsidiaries in 2012 under our tax-sharing agreement. | ||||||||||||
Note E | ||||||||||||
In June 2005, the Parent Company issued $250 million of the Senior Notes due 2015. During 2013, the Parent Company exchanged $195.5 million of the Senior Notes due 2015 for a new series of Senior Notes due June 2017 for the purpose of improving its debt maturity profile. These transactions, which are accounted for as extinguishments of debt, resulted in a loss of $4.0 million in 2013, primarily as a result of the requirement to record the Senior Notes due 2017 at fair value. During 2014, in accordance with the optional redemption provisions of the notes, the Parent Company redeemed all of the remaining outstanding principal amount of the Senior Notes due 2015 at a price established in accordance with the indenture governing these senior notes. The Parent Company paid $57.2 million to holders of the notes at redemption and recorded a loss of $2.8 million in 2014. | ||||||||||||
In May 2014, in anticipation of the Clayton acquisition, the Parent Company issued $300 million principal amount of the Senior Notes due 2019 and received net proceeds of approximately $293.8 million. The notes bear interest at a rate of 5.500% per annum, payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2014. These notes mature on June 1, 2019. The Parent Company has the option to redeem these notes, in whole or in part, at any time or from time to time prior to maturity at a redemption price equal to the greater of: (i) 100% of the aggregate principal amount of the notes to be redeemed; and (ii) the make-whole amount, which is the present value of the notes discounted at the applicable treasury rate plus 50 basis points, plus, in each case, accrued interest thereon to the redemption date. | ||||||||||||
In May 2014, the Parent Company sold 17.825 million shares of common stock at a public offering price of $14.50 per share and received aggregate net proceeds of approximately $247.2 million. | ||||||||||||
In March 2013, the Parent Company issued $400 million principal amount of the Convertible Senior Notes due 2019 and received proceeds of approximately $389.8 million, net of underwriting expenses. The effective interest rate for the liability component of this debt is 6.25%. | ||||||||||||
In March 2013, the Parent Company sold 39.1 million shares of common stock at a public offering price of $8.00 per share and received net proceeds of approximately $299.4 million. | ||||||||||||
At December 31, 2014, the maturities of the principal amount of our long-term debt in future years are as follows: | ||||||||||||
(In thousands) | ||||||||||||
2017 | $ | 645,501 | ||||||||||
2019 | 700,000 | |||||||||||
$ | 1,345,501 | |||||||||||
Note F | ||||||||||||
Net investment income increased in 2014 compared to 2013 primarily due to $8.9 million of interest earned on the note receivable from Radian Clayton Holdings Inc. (See Note G for additional information), offset by lower market yields for our investments during 2014. Net investment income decreased in 2013 compared to 2012, primarily due to the continuation of the lower interest rate environment, which resulted in lower market yields for our investments, as well as a reduction in total investment balances. | ||||||||||||
The net losses on other financial instruments for 2014 primarily reflects losses from the redemption of the Senior Notes due 2015. The net losses on other financial instruments for 2013 primarily reflects losses on the exchange of the Senior Notes due 2017. The net gains on other financial instruments for 2012 primarily reflects gains on the repurchase of the Senior Notes due 2013. | ||||||||||||
Interest expense reflects the discount amortization on our long-term debt, as well as coupon interest attributable to the Convertible Senior Notes due 2019 and the Senior Notes due 2019, which are not allocated to our subsidiaries. The issuance of the Senior Notes due 2019 and a full year of interest expense and discount amortization attributable to the Convertible Senior Notes due 2019 were the primary reasons for the increase in interest expense in 2014. The debt exchange and the issuance of the Convertible Senior Notes due 2019 were the primary reasons for the increase in interest expense in 2013. | ||||||||||||
Note G | ||||||||||||
Accounts and notes receivable includes a $300 million note receivable from Radian Clayton Holdings Inc. This represents the principal amount related to the Senior Notes due 2019, which funded the acquisition of Clayton. Interest on the note is payable semi-annually on June 1 and December 1, beginning December 1, 2014. The interest payment represents coupon interest plus issuance costs (amortized on a straight line basis over the term of the note). The principal is due on June 1, 2019. |
Schedule_IV_Reinsurance
Schedule IV Reinsurance | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Reinsurance Insuarnce Premiums Earned [Abstract] | |||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Text Block] | Radian Group Inc. | ||||||||||||||||||
Schedule IV—Reinsurance | |||||||||||||||||||
Insurance Premiums Earned | |||||||||||||||||||
Year Ended December 31, 2014, 2013 and 2012 | |||||||||||||||||||
($ in thousands) | Gross | Ceded to | Assumed | Net Amount | Assumed | ||||||||||||||
Amount | Other | from | Premiums as a | ||||||||||||||||
Companies | Other | Percentage | |||||||||||||||||
Companies | of Net | ||||||||||||||||||
Premiums | |||||||||||||||||||
2014 | $ | 905,502 | $ | 61,017 | $ | 43 | $ | 844,528 | 0.01 | % | |||||||||
2013 | $ | 848,655 | $ | 67,291 | $ | 56 | $ | 781,420 | 0.01 | % | |||||||||
2012 | $ | 743,736 | $ | 40,398 | $ | (953 | ) | $ | 702,385 | (0.14 | )% | ||||||||
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies Level 2 (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Significant Accounting Policies Line Items [Line Items] | ||
Basis of Presentation | Basis of Presentation | |
Our consolidated financial statements are prepared in accordance with GAAP and include the accounts of all wholly-owned subsidiaries. Companies in which we, or one of our subsidiaries, exercise significant influence (generally ownership interests ranging from 20% to 50%), are accounted for in accordance with the equity method of accounting. Any VIEs for which we are the primary beneficiary are consolidated. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our consolidated financial statements include our best estimates and assumptions, actual results may vary materially. | ||
Discontinued Operations, Policy [Policy Text Block] | Held-For-Sale Classification | |
We report a business as held for sale when management is committed to a formal plan to sell the assets, the business is available for immediate sale and is being actively marketed at a price that is reasonable in relation to its fair value, an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated, the sale is probable and expected to be completed within one year, and it is deemed unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A business classified as held for sale is reflected at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the Consolidated Balance Sheets in the period in which the business is classified as held for sale. After a business is classified as held for sale, depreciation and amortization expense is not recognized on its assets. | ||
Discontinued Operations | ||
We report the results of operations of a business as discontinued operations if the business is classified as held for sale, the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a result of a disposal transaction and we will not have any significant continuing involvement in the operations of the business after the disposal transaction. In the period in which the business meets the criteria of a discontinued operation, its results are reported in income or loss from discontinued operations in the Consolidated Statements of Operations for current and prior periods, and include any required adjustment of the carrying amount to its fair value less cost to sell. In addition, tax is allocated to continuing operations and discontinued operations. The amount of tax allocated to discontinued operations is the difference between the tax originally allocated to continuing operations and the tax allocated to the restated amount of income from continuing operations in each period. | ||
Liability Reserve Estimate, Policy [Policy Text Block] | Reserve for Losses and LAE | |
We establish reserves to provide for losses and LAE and the estimated costs of settling claims in our mortgage insurance segment in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, we establish reserves for mortgage insurance as described below, using the guidance contained in this standard supplemented with other accounting guidance, due to the lack of specific guidance for mortgage insurance. | ||
Estimating our mortgage insurance loss reserves involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss, including an estimate of the number of defaulted loans that will be successfully rescinded or denied. The models, assumptions and estimates we use to establish loss reserves may prove to be inaccurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty. As such, we cannot be certain that our reserve estimate will be adequate to cover ultimate losses on incurred defaults. | ||
Commutations and other negotiated terminations of our insured risks in our mortgage insurance segment provide us with an opportunity to exit exposures for an agreed upon payment, or payments, sometimes at an amount less than the previously estimated ultimate liability. Once all exposures relating to such policies are extinguished, all reserves for losses and LAE and other balances relating to the insured policies are generally reversed, with any remaining net gain or loss typically recorded through provision for losses. We take into consideration the specific contractual and economic terms for each individual agreement when accounting for our commutations or other negotiated terminations, which may result in differences in the accounting for these transactions. | ||
Mortgage Insurance | ||
In the mortgage insurance segment, the default and claim cycle begins with the receipt of a default notice from the servicer. Reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We maintain an extensive database of claim payment history and use models based on a variety of loan characteristics to determine the likelihood that a default will reach claim status. During 2014, we continued to refine our loss reserving techniques and developed additional segmentations, primarily based on a loan’s Time in Default and its current Stage of Default, in assessing the likelihood that a default will result in a claim. Previously, we gave greater weight to other loan characteristics, including the status of the loan as reported by its servicer, as defined by the number of missed payments, and the type of loan product. Our process includes forecasting the impact of our loss mitigation efforts in protecting us against fraud, underwriting negligence, breach of representation and warranties, inadequate documentation of submitted claims and other items that may give rise to insurance rescissions or cancellations and claim denials, to help determine the Default to Claim Rate. Lastly, we project the Claim Severity, which is also impacted by Loss Mitigation Activity associated with claim curtailments due to servicer noncompliance with our insurance policies and servicing guidelines. When there is a claim under primary mortgage insurance, the coverage percentage is applied to the claim amount, which consists of the unpaid loan principal, plus past due interest (for which our liability is contractually capped in accordance with the terms of our Master Policies) and certain expenses associated with the default, to determine our maximum liability. Based on these estimates, we arrive at our estimate of loss reserves as of that time. | ||
With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. Loss reserves are generally increased as defaulted loans age, because historically, as defaulted loans age, they have been more likely to result in foreclosure, and therefore, have been more likely to result in a claim payment. In the past, as the number of missed payments increased, there was generally more certainty regarding these estimates. However, following the financial crisis we experienced significant delays in foreclosures. As a result, significant uncertainty remains with respect to the ultimate resolution of aged defaults. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. Once a default is considered to have reached Foreclosure Stage, the likelihood that the default will reach claim status increases. Once a claim is submitted, reserves are further increased to reflect the fact that the default has moved closer to resulting in a claim payment. If a default cures, the reserve for that loan is removed from the reserve for losses and LAE. | ||
We also establish reserves for defaults that we estimate have been incurred but have not been reported (“IBNR”) to us on a timely basis by the servicer, as well as for previously rescinded policies and denied claims that we estimate will be reinstated and subsequently paid. We generally give the policyholder up to 90 days to challenge our decision to rescind coverage before we consider a policy to be rescinded and remove it from our defaulted inventory; therefore, we currently expect only a limited percentage of policies that were rescinded to be reinstated. We currently expect a significant percentage of claims that were denied to be resubmitted as a perfected claim and ultimately paid. Most often, a claim denial is the result of a servicer’s inability to provide the loan origination file or other servicing documents for review. Under the terms of our Master Policies with our lending customers, our policyholders have up to one year after the acquisition of borrower’s title to provide to us the necessary documents to perfect a claim. All estimates are periodically reviewed and adjustments are made as they become necessary. | ||
We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default. For example, for those defaults in which we are in a “second loss position” (i.e., we are not required to make a payment until a certain aggregate amount of losses have already been recognized on a given group of loans), we initially calculate the reserve for defaulted loans in the transaction as if there were no deductible. If the existing deductible for a given Structured Transaction is greater than the aggregate reserve amount for the defaults contained within the transaction, we do not establish a reserve for the defaults, or if appropriate, we record a partial reserve. We do not establish loss reserves for expected future claims on insured mortgages that are not in default. See “—Reserve for PDR” below for an exception to this general principle. | ||
For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. The attributes currently used to define the groups for purposes of developing various assumptions include, but are not limited to, the Stage of Default, the Time in Default, product type (i.e., Prime, Alt-A or Subprime), type of insurance (i.e., primary or pool), loss position (i.e., with or without a deductible) and the state where the property is located (segregated into three state groups in order to adjust for differences in foreclosure timing). We use an actuarial projection methodology referred to as a “roll rate” analysis that uses historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default and Time in Default. The Default to Claim Rate also includes our estimates with respect to expected insurance rescissions and claim denials, which have the effect of reducing our Default to Claim Rates. | ||
Since 2009, we have experienced an elevated level of insurance rescissions and claim denials for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties and inadequate documentation, primarily related to our Legacy Portfolio. Although we expect the amount of estimated rescissions and denials embedded within our reserve analysis to remain elevated as compared to levels before 2009, we expect them to continue to decrease over time, as the defaults related to our Legacy Portfolio decline as a proportion of our total default portfolio and as we realize the results through actual rescissions and denials, or the commutations of insured loans. In addition, with respect to claims decisions on the population of Future Legacy Loans covered under the BofA Settlement Agreement, Radian Guaranty has agreed, subject to certain limited exceptions and conditions, that it will not effect any coverage rescissions, claim denials or curtailments. See Note 10 of Notes to Consolidated Financial Statements for additional information about the BofA Settlement Agreement. | ||
After estimating the Default to Claim Rate, we estimate the severity of each product type, type of insurance and state grouping based on the average of recently observed severity rates. These average severity estimates are then applied to individual loan coverage amounts to determine reserves. Senior management regularly reviews the modeled frequency, rescission, denial and severity estimates, which are based on historical trends as described above. If recent emerging or projected trends differ significantly from the historical trends used to develop the modeled estimates, management evaluates these trends in determining how they should be considered in its reserve estimates. | ||
In addition, as part of our claims review process, we assess whether defaulted loans were serviced appropriately in accordance with our insurance policies and servicing guidelines. To the extent a servicer has failed to satisfy its servicing obligations, our insurance policies provide that we may curtail the claim payment for such default, and in some circumstances, cancel coverage or deny the claim. Since 2011, claim curtailments have increased both in frequency and in size, which has contributed to a reduction in the severity of our claim payments during this period. While we cannot give assurance regarding the extent or level at which such claim curtailments will continue, we expect the level of claim curtailments to remain elevated compared to historical levels (excluding claims processed in accordance with the BofA Settlement Agreement), in light of well publicized issues in the servicing industry and our existing Legacy Portfolio of aged defaults. | ||
The elevated levels of our Loss Mitigation Activities have led to an increased risk of litigation. Our Master Policies specify the time period during which a suit or action arising from any right of the insured under the policy must be commenced. We continue to face a significant number of challenges from certain lender customers regarding our Loss Mitigation Activities, which have resulted in some reversals of our decisions regarding rescissions, denials and curtailments. Although we believe that our Loss Mitigation Activities are justified under our policies, if we are not successful in defending these actions in any potential legal or other proceedings, including negotiated settlements, we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. The assumptions embedded in our estimated Default to Claim Rate on our in-force default inventory include an adjustment to our estimated rescission and denial rate, to account for the fact that we expect a certain number of policies to be reinstated and ultimately to be paid, as a result of valid challenges by such policy holders. As discussed above, we also establish reserves for IBNR defaults related to previously rescinded policies and denied or curtailed claims, which we believe are likely to be reinstated (in the case of previously rescinded policies) or resubmitted and paid (in the case of previously denied claims). | ||
Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we consider our claim payments and our rescissions, denials and curtailments to be resolved for financial reporting purposes. Under the accounting standard regarding contingencies, an estimated loss is accrued only if we determine that the loss is probable and can be reasonably estimated. For populations of disputed rescissions, denials and curtailments where we determine that a settlement is probable and that a loss can be reasonably estimated, we reflect our best estimate of the expected loss related to the populations under discussion in our financial statements, primarily as a component of our IBNR reserve. While our reserves include our best estimate of such losses, the outcome of the discussions or potential legal proceedings that could ensue is uncertain, and it is reasonably possible that a loss exists in excess of the amount accrued. | ||
Included in our loss reserves is an estimate related to a potential additional payment to Freddie Mac under the Freddie Mac Agreement, which is dependent upon the Loss Mitigation Activity on the population of loans subject to that agreement. Our reserve related to this potential additional payment is based on the estimated rescissions, denials, curtailments, and cancellations for this population of loans, determined using assumptions that are consistent with those utilized to determine our overall loss reserves. | ||
Reserve For Premium Deficiency | Reserve for PDR | |
Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product line. We reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and update our premium deficiency analyses accordingly. Expected future expenses include consideration of maintenance costs associated with maintaining records relating to insurance contracts and with the processing of premium collections. We also consider investment income in the premium deficiency calculation through the use of our pre-tax investment yield to discount certain cash flows for this analysis. | ||
For our mortgage insurance business, we group our mortgage insurance products into two categories: First-lien and Second-lien. To assess the need for a PDR on our First-lien insurance portfolio, we develop loss projections based on modeled loan defaults related to our current RIF. This projection is based on recent trends in default experience, severity and rates of defaulted loans moving to claim (such Default to Claim Rates are net of our estimates of rescissions and denials), as well as recent trends in the rate at which loans are prepaid. | ||
For our Second-lien insurance business, we project future premiums and losses for this business using historical results to help determine future performance for both prepayments and claims. An estimated expense factor is then applied, and the result is discounted using a rate of return that approximates our pre-tax investment yield. This net present value, less any existing reserves, is recorded as a premium deficiency and the reserve is updated at least quarterly based on actual results for that quarter, along with updated transaction level projections. | ||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments | |
Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and changes in the value of underlying collateral or of any third-party guaranty or insurance, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||
In accordance with GAAP, we established a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below: | ||
Level I | — Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |
Level II | — Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and | |
Level III | — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available. | |
For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment necessary, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy. | ||
Available for sale securities, trading securities, and certain other assets are recorded at fair value as described in Note 5. All changes in fair value of trading securities and certain other assets are included in our consolidated statements of operations. All changes in the fair value of available for sale securities are recorded in AOCI. | ||
Insurance Premiums-Revenue Recognition | Insurance Premiums-Revenue Recognition | |
Mortgage insurance premiums written on an annual and multi-year basis are initially recorded as unearned premiums and earned over time. Annual premiums are amortized on a monthly, straight-line basis. Multi-year premiums are amortized over the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Premiums written on a monthly basis are earned over the period that coverage is provided. When we rescind insurance coverage on a loan, we refund all premiums received in connection with such coverage. Premium revenue is recognized net of our accrual for estimated rescission refunds. With respect to our reinsurance transactions, ceded premiums written are initially set up as prepaid reinsurance and are amortized in a manner consistent with the recognition of income on direct premiums. Premiums on certain Structured Transactions in our mortgage insurance business are recognized over the period that coverage is provided. | ||
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs | |
Incremental, direct costs associated with the acquisition of mortgage insurance business, consisting of compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Amortization of these costs for each underwriting year book of business is charged against revenue in proportion to estimated gross profits over the estimated life of the policies. This includes accruing interest on the unamortized balance of deferred policy acquisition costs. Ceding commissions received under our reinsurance agreements related to these costs are also deferred and accounted for using similar assumptions. Estimates of expected gross profit, including persistency and loss development assumptions for each underwriting year used as a basis for amortization, are evaluated quarterly and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that previous estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions may have a significant effect on the amortization of deferred policy acquisition costs. | ||
Effective January 1, 2012, we adopted the FASB update to the accounting standard regarding accounting for costs associated with acquiring or renewing insurance contracts on a prospective basis. This update redefines acquisition costs as incremental costs that are related directly to the successful acquisition of new or renewal insurance contracts. Previously, acquisition costs were defined as costs that vary with and are primarily related to the acquisition of insurance contracts. The effect of this revised definition of acquisition costs has resulted in the recognition of additional expenses in our mortgage insurance business when incurred, rather than being deferred to subsequent periods. There was no change to the amortization requirements due to this update. The implementation of this new guidance significantly reduced the amount of our deferral of policy acquisition costs associated with acquiring mortgage insurance contracts. However, the lower amount of acquisition costs deferred will be offset by reduced amortization expense in subsequent periods. While the timing of the recognition of certain costs in our results of operations has changed as a result of the adoption of this update, there is no effect on the total acquisition costs recognized over time or on our cash flows. Amounts deferred as acquisition costs for 2014 and 2013 reflect a reduction for ceding commissions written on risk ceded under the QSR Reinsurance Transactions (as defined in Note 8). We amortized $24.4 million, $28.5 million and $34.1 million of deferred policy acquisition costs in our mortgage insurance business in 2014, 2013 and 2012, respectively. | ||
Revenue Recognition, Sales of Services [Policy Text Block] | Revenue Recognition-Services Revenue | |
Services revenue is recognized when pervasive evidence of an arrangement exists, the service has been performed, the fee is fixed and determinable and collection of the resulting receivable is reasonably assured. | ||
The MRES segment derives most of its revenue from professional service activities. A portion of these activities are provided under “time-and-materials” billing arrangements. Services revenue consisting of billed fees and pass-through expenses is recorded as work is performed and expenses are incurred. Services revenue also includes expenses billed to clients, which includes travel and other out-of-pocket expenses, and other reimbursable expenses. | ||
The MRES segment also derives revenue from REO management activities, and is generally paid a fixed fee or a percentage of the sale proceeds upon the sale of a property. Services revenue is recognized when the sale of a property closes and the client has confirmed receipt of the sale proceeds from a buyer. In certain instances, fees are received at the time that an asset is assigned to Radian for REO management. These fees are recorded as deferred revenue and are recognized on a straight-line basis over the average period of time required to sell an asset and complete the earnings process. | ||
The MRES segment also provides certain services under multiple element arrangements, including valuations, title reviews and tax lien reviews. Contracts for these services include provisions requiring the client to pay a per unit price for services that have been performed if the client cancels the contract. Each service qualifies as a separate unit of accounting on a per unit basis, and we recognize revenue as each individual service is performed. | ||
We do not recognize revenue or expense related to amounts advanced by us and subsequently reimbursed by clients for maintenance or repairs of REO properties because we are not the primary obligor and we have minimal credit risk. We record an expense if an advance is made that is not in accordance with a client contract and the client is not obligated to reimburse us. | ||
Direct Cost of Services | ||
Direct cost of services consists primarily of employee compensation and related payroll benefits, the cost of billable labor assigned to revenue-generating activities, as well as corresponding travel and related expenses incurred in providing such services to clients. Direct cost of services also includes costs paid to outside vendors, including real estate agents that provide valuation and related services. Direct cost of services does not include an allocation of overhead costs. | ||
Income Taxes | Income Taxes | |
We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our DTAs and DTLs are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. DTAs and DTLs are measured using the enacted tax rates expected to apply to taxable income in the periods in which the DTA or DTL is expected to be realized or settled. | ||
We are required to establish a valuation allowance against our DTA when it is more likely than not that all or some portion of our DTA will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our DTA will be realized in future periods. The primary negative evidence that we have considered has been our cumulative losses in recent years. We also consider positive evidence when assessing the need for a valuation allowance, such as future reversals of existing taxable temporary differences, future projections of taxable income, taxable income within the applicable carryback and carryforward periods, and potential tax planning strategies. The recognition of our DTA ultimately depends on the existence of sufficient taxable income of the appropriate character (ordinary income or capital gains) within the applicable carryback and carryforward periods provided under the tax law. In assessing our need for a valuation allowance, the weight assigned to the effect of both negative and positive evidence is commensurate with the extent to which such evidence can be objectively verified. As of December 31, 2014, after analyzing all positive and negative evidence available, we believe there is significant positive, objectively verifiable evidence that outweighs all negative evidence and supports a conclusion that it is more-likely-than-not that substantially all of the Company’s DTAs will be realized. | ||
Our provision for income taxes for interim financial periods is based on an estimate of our annual effective tax rate for the full year of 2014. When estimating our full year 2014 effective tax rate, we adjust our forecasted pre-tax income for gains and losses on our derivative transactions and investments, changes in the accounting for uncertainty in income taxes, changes in our beginning of year valuation allowance, and other adjustments. The impact of these items is accounted for discretely at the federal applicable tax rate. During 2012 and 2013, given the impact on our pre-tax results of net gains or losses resulting from our derivative transactions and our investment portfolio, and the continued uncertainty regarding our ability to rely on certain short-term financial projections, which directly affected our ability to estimate an effective tax rate for the full year, we recorded our interim period income tax provision (benefit) based on actual results of operations. | ||
Foreign Currency Revaluation/Translation | Foreign Currency Revaluation/Translation | |
Assets and liabilities denominated in foreign currencies are revalued or translated at year-end exchange rates. Operating results are translated at average rates of exchange prevailing during the year. Unrealized gains and losses, net of deferred taxes, resulting from translation are included in AOCI in stockholders’ equity. Realized gains and losses resulting from transactions in foreign currency are recorded in our statements of operations. | ||
Cash and Restricted Cash | Cash and Restricted Cash | |
Included in our restricted cash balances as of December 31, 2014 were: (1) funds for a mortgage insurance reserve policy held in escrow for any future duties, rights and liabilities; (2) funds held as collateral under our insurance trust agreements related to health care benefits; and (3) funds held in trust for the benefit of certain policyholders. | ||
Within our consolidated statements of cash flows, we classify cash receipts and cash payments related to items measured at fair value according to their nature and purpose. Because our trading activity relates to overall strategic initiatives and is not trading related, it is recorded as cash flows from investing activities. While our securities trading activity was significant in 2012, this activity was primarily a result of strategic repositioning of the portfolio in order to: (1) shorten duration for liquidity purposes; and (2) increase our allocation to taxable bonds to maximize our after-tax yields. | ||
Investments | Investments | |
We group assets in our investment portfolio into one of three main categories: held to maturity, available for sale or trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity are classified as held to maturity and are reported at amortized cost. Investments in securities not classified as held to maturity or trading securities are classified as available for sale and are reported at fair value, with unrealized gains and losses (net of tax) reported as a separate component of stockholders’ equity as AOCI. Investments classified as trading securities are reported at fair value, with unrealized gains and losses reported as a separate component of income. Short-term investments consist of money market instruments, certificates of deposit and highly liquid, interest-bearing instruments with an original maturity of three months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Notes 5 and 6 for further discussion on the fair value of investments. | ||
We record an other-than-temporary impairment adjustment on a security if we intend to sell the impaired security, if it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the present value of cash flows we expect to collect is less than the amortized cost basis of the security. If a sale is likely, the security is classified as other-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, losses on securities that are other-than-temporarily impaired are separated into: (i) the portion of loss that represents the credit loss; and (ii) the portion that is due to other factors. The credit loss portion is recognized as a loss in the statement of operations, while the loss due to other factors is recognized in AOCI, net of taxes. A credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less than the cost basis of the security. The present value of discounted cash flows is determined using the original yield of the security. In evaluating whether a decline in value is other-than-temporary, we consider several factors in addition to the above, including, but not limited to, the following: | ||
• | the extent and the duration of the decline in value; | |
• | the reasons for the decline in value (e.g., credit event, interest related or market fluctuations); and | |
• | the financial position, access to capital and near term prospects of the issuer, including the current and future impact of any specific events. | |
Accounts and Notes Receivable | Accounts and Notes Receivable | |
Accounts and notes receivable primarily consist of accrued premiums receivable due from our mortgage insurance customers, amounts due from our MRES customers for services our MRES segment has performed, and the profit commission receivable related to the Initial QSR Transaction. See Note 8 for details. Accounts and notes receivable are carried at their estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability based on past payment history and current economic conditions. | ||
Company-Owned Life Insurance | Company-Owned Life Insurance (“COLI”) | |
We are the beneficiary of insurance policies on the lives of certain of our current and past officers and employees. We have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our consolidated balance sheets. At December 31, 2014 and 2013, the cash surrender value of company-owned life insurance totaled $80.8 million and $78.4 million, respectively. | ||
Property and Equipment | Property and Equipment | |
Property and equipment is carried at cost, net of depreciation. For financial statement reporting purposes, computer hardware and software is depreciated over three years and furniture, fixtures and office equipment is depreciated over seven years. Leasehold improvements are depreciated over the lesser of the life of the asset improved or the remaining term of the lease. For income tax purposes, we use accelerated depreciation methods. | ||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets, Net | |
Goodwill and other intangible assets were established primarily in connection with our acquisition of Clayton. Goodwill represents the estimated future economic benefits arising from the assets we have acquired that did not qualify to be identified and recognized individually, and includes the value of discounted expected future cash flows of Clayton, Clayton’s workforce, expected synergies with our other affiliates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, whenever circumstances indicate potential impairment. The value of goodwill is supported by revenue, which is driven primarily by transaction volume. Lower earnings over sustained periods can lead to impairment of goodwill, which could result in a charge to earnings. | ||
Intangible assets, other than goodwill, primarily consist of Clayton’s client relationships, technology, trade name and trademarks, client backlog and non-competition agreements. Client relationships represent the value of the specifically acquired customer relationships and are valued using the excess earnings approach using estimated client revenues, attrition rates, implied royalty rates and discount rates. The excess earnings approach estimates the present value of expected earnings in excess of a traditional return on business assets. Technology represents proprietary software used for loan review and due diligence, managing the REO disposition process and performing surveillance of mortgage loan servicers. Trade name and trademarks reflect the value inherent in the recognition of the “Clayton” name and its reputation. For purposes of our intangible assets, we use the term client backlog to refer to the estimated present value of fees to be earned for services performed on loans currently under surveillance or REO assets under management. The value of a non-competition agreement is an appraisal of potential lost revenues that would arise from an individual leaving to work for a competitor or initiating a competing enterprise. For financial reporting purposes, intangible assets with finite lives are amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset. | ||
The calculation of the estimated fair value of goodwill and other intangibles requires the use of significant estimates and assumptions that are highly subjective in nature, such as attrition rates, discount rates, future expected cash flows and market conditions. The most significant assumptions relate to the valuation of goodwill and client relationships. Our estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. | ||
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation | |
The stock-based compensation cost related to share-based liability awards is based on the fair value as of the measurement date. The compensation cost for equity instruments is measured based on the grant-date fair value at the date of issuance. Compensation cost is recognized over the periods that an employee provides service in exchange for the award. See Note 15 for further information. | ||
Accounting Standards Update 2012-02 [Member] | ||
Significant Accounting Policies Line Items [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In July 2012, the FASB issued a new accounting standard update that simplifies the impairment test for indefinite-lived intangible assets other than goodwill. The update gives the option to first assess qualitative factors to determine if it is more likely than not that the carrying amount of an indefinite-lived intangible asset exceeds its fair value, in order to determine whether it is necessary to perform a quantitative valuation test. This update was effective for interim and annual reporting periods beginning on or after September 15, 2012. The adoption of this update did not have a significant impact on our financial position, results of operations or cash flows. | |
Accounting Standards Update 2013-02 [Member] | ||
Significant Accounting Policies Line Items [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In February 2013, the FASB issued an update to the accounting standard regarding comprehensive income, requiring additional information to be presented on the face of the financial statements or as separate disclosures. This update requires an entity to present the changes in each component of accumulated other comprehensive income. An entity is required to present certain amounts reclassified out of accumulated other comprehensive income to their respective line items in net income, by component. Other reclassifications out of accumulated other comprehensive income are required to be cross-referenced to existing disclosures. We adopted this update effective January 1, 2013. In Note 12 we have presented the changes in the balances for each component of accumulated other comprehensive income as well as current period reclassifications out of accumulated other comprehensive income. This update impacted disclosures only and did not affect our consolidated financial position, earnings or cash flows. | |
Accounting Standards Update 2014-08 [Member] | ||
Significant Accounting Policies Line Items [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In April 2014, the FASB issued an update to the accounting standard for reporting discontinued operations and disclosures of disposals of components of an entity. This update changes the requirements for reporting discontinued operations. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents (or would represent) a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (a) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (b) the component of an entity or group of components of an entity is disposed of by sale; or, (c) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spin-off). The amendments in this update require expanded disclosures about discontinued operations. The provisions of this update are effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. We did not elect early adoption of this update for the pending disposition of Radian Asset Assurance. The significance of this guidance for the Company is dependent on any future dispositions or disposals. | |
Accounting Standards Update 2014-09 [Member] | ||
Significant Accounting Policies Line Items [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2014, the FASB issued an update to the accounting standard regarding revenue recognition. This update is intended to provide a consistent approach in recognizing revenue. In accordance with the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. While this update is not expected to change revenue recognition principles related to our insurance products, this update may be applicable to revenues from our new MRES segment, which has been included in our consolidated statements of operations beginning with the third quarter of 2014. The provisions of this update are effective for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact of this update, if any. | |
Accounting Standards Update 2013-11 [Member] | ||
Significant Accounting Policies Line Items [Line Items] | ||
New Accounting Pronouncements, Policy [Policy Text Block] | In July 2013, the FASB issued an update to the accounting standard regarding income taxes. This update provides guidance concerning the balance sheet presentation of an unrecognized tax benefit when a Carryforward is available. This accounting standard requires an entity to present its DTAs for the Carryforwards net of its liability related to unrecognized tax benefits. A gross presentation will be required when the Carryforwards are not available under the tax law of the applicable jurisdiction or when the Carryforwards would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax position. This update is effective for fiscal years and interim periods within such years beginning after December 15, 2013. We adopted this update in the first quarter of 2014. The adoption of this update did not affect the recognition or measurement of uncertain tax positions and did not have a significant impact on our consolidated financial statements or disclosures. |
Note_1_Description_of_Business1
Note 1 - Description of Business and Recent Developments Acquisition Information (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The allocation of the purchase price, based on the fair values of assets and liabilities as of the acquisition date, was as follows: | |||
(in thousands) | June 30, | |||
2014 | ||||
Cash | $ | 16,521 | ||
Restricted cash | 1,591 | |||
Accounts receivable, net | 11,236 | |||
Property and equipment, net | 2,419 | |||
Goodwill | 191,932 | |||
Other intangible assets, net | 102,750 | |||
Other assets | 17,852 | |||
Less: | ||||
Other liabilities | 31,803 | |||
Total purchase price | $ | 312,498 | ||
Note_3_Discontinued_Operations1
Note 3 - Discontinued Operations (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The loss from discontinued operations consisted of the following components for the periods indicated: | |||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Net premiums earned | $ | 37,194 | $ | 49,474 | $ | 36,598 | ||||||||||||
Net investment income | 35,633 | 39,966 | 41,657 | |||||||||||||||
Net gains (losses) on investments | 51,409 | (50,775 | ) | 70,606 | ||||||||||||||
Impairment losses on investments | — | (3 | ) | (3 | ) | |||||||||||||
Change in fair value of derivative instruments | 130,617 | (32,406 | ) | (143,834 | ) | |||||||||||||
Net gains (losses) on other financial instruments | 3,903 | 2,845 | (90,071 | ) | ||||||||||||||
Gain on sale of affiliate | — | — | 7,708 | |||||||||||||||
Other income | 88 | (20 | ) | 2 | ||||||||||||||
Total revenues | 258,844 | 9,081 | (77,337 | ) | ||||||||||||||
Provision for losses | 2,853 | 2,486 | 37,664 | |||||||||||||||
Policy acquisition costs | 6,340 | 13,178 | 27,745 | |||||||||||||||
Other operating expense | 23,726 | 27,127 | 29,010 | |||||||||||||||
Total expenses | 32,919 | 42,791 | 94,419 | |||||||||||||||
Equity in net (loss) income of affiliates | (13 | ) | 1 | (13 | ) | |||||||||||||
Income (loss) from operations of businesses held for sale | 225,912 | (33,709 | ) | (171,769 | ) | |||||||||||||
Loss on classification as held for sale | (467,527 | ) | — | — | ||||||||||||||
Income tax provision | 58,442 | 21,425 | 55,594 | |||||||||||||||
Loss from discontinued operations, net of tax | $ | (300,057 | ) | $ | (55,134 | ) | $ | (227,363 | ) | |||||||||
The assets and liabilities associated with the discontinued operations have been segregated in the consolidated balance sheets. The following table summarizes the major components of Radian Asset Assurance’s assets and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2014 and 2013: | ||||||||||||||||||
December 31, | ||||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||
Fixed-maturity investments | $ | 224,552 | $ | 85,408 | ||||||||||||||
Equity securities | 3,749 | — | ||||||||||||||||
Trading securities | 689,887 | 884,696 | ||||||||||||||||
Short-term investments | 435,413 | 493,376 | ||||||||||||||||
Other invested assets | 108,206 | 106,000 | ||||||||||||||||
Other assets | 274,637 | 198,581 | ||||||||||||||||
Total assets held for sale | $ | 1,736,444 | $ | 1,768,061 | ||||||||||||||
Unearned premiums | $ | 158,921 | $ | 201,798 | ||||||||||||||
Reserve for losses and LAE | 31,558 | 21,069 | ||||||||||||||||
VIE debt | 85,016 | 91,800 | ||||||||||||||||
Derivative liabilities | 183,370 | 307,185 | ||||||||||||||||
Other liabilities | 488,143 | 20,767 | ||||||||||||||||
Total liabilities held for sale | $ | 947,008 | $ | 642,619 | ||||||||||||||
The following table provides highlights of financial guaranty derivative contracts as of the dates indicated: | ||||||||||||||||||
December 31, | ||||||||||||||||||
($ in thousands) | 2014 | 2013 | ||||||||||||||||
Number of contracts | 74 | 93 | ||||||||||||||||
Par/notional amount | $ | 8,755,457 | $ | 12,269,421 | ||||||||||||||
Total net liability | $ | 159,335 | $ | 290,543 | ||||||||||||||
The following table provides financial guaranty gross and net claim liability details by internal surveillance category as of December 31, 2014: | ||||||||||||||||||
($ in thousands) | Number of Policies | Remaining weighted-average contract period (years) | Gross Claim Liability | Gross Potential Recoveries | Net Claim Liability (Asset) (1) | |||||||||||||
Performing | 5 | 21 | $ | 1 | $ | — | $ | — | ||||||||||
Special Mention | 166 | 15 | 14,803 | 1,733 | 4,540 | |||||||||||||
Intensified Surveillance | 85 | 18 | 219,594 | 269,442 | 37,328 | |||||||||||||
Case Reserves | 91 | 19 | 35,467 | 47,000 | (12,302 | ) | ||||||||||||
Total | 347 | 17 | $ | 269,865 | $ | 318,175 | $ | 29,566 | ||||||||||
________________ | ||||||||||||||||||
(1) Net of discount and unearned premium reserves. |
Note_4_Segment_Reporting_Level1
Note 4 - Segment Reporting Level 3 (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Summarized financial information concerning our operating segments, as of and for the periods indicated, is as follows: | ||||||||||||
December 31, 2014 | |||||||||||||
(In thousands) | Mortgage Insurance | MRES (1) | Total | ||||||||||
Net premiums written—insurance | $ | 925,181 | $ | — | $ | 925,181 | |||||||
Increase in unearned premiums | (80,653 | ) | — | (80,653 | ) | ||||||||
Net premiums earned—insurance | 844,528 | — | 844,528 | ||||||||||
Services revenue (2) | — | 76,709 | 76,709 | ||||||||||
Net investment income (3) | 65,655 | — | 65,655 | ||||||||||
Other income (3) | 5,321 | 1,265 | 6,586 | ||||||||||
Total | 915,504 | 77,974 | 993,478 | -4 | |||||||||
Provision for losses (5) | 246,865 | — | 246,865 | ||||||||||
Estimated present value of net credit recoveries incurred | 113 | — | 113 | ||||||||||
Policy acquisition costs | 24,446 | — | 24,446 | ||||||||||
Direct cost of services | — | 43,605 | 43,605 | ||||||||||
Other operating expenses (3) (6) | 225,544 | 20,059 | 245,603 | ||||||||||
Interest expense (3) | 81,600 | 8,864 | 90,464 | ||||||||||
Total | 578,568 | 72,528 | 651,096 | ||||||||||
Adjusted pretax operating income | $ | 336,936 | $ | 5,446 | $ | 342,382 | |||||||
Cash and investments | $ | 3,649,582 | $ | 10,182 | $ | 3,659,764 | |||||||
Restricted cash | 11,508 | 2,523 | 14,031 | ||||||||||
Deferred policy acquisition costs | 12,003 | — | 12,003 | ||||||||||
Goodwill | — | 191,932 | 191,932 | ||||||||||
Other intangible assets, net | 137 | 96,171 | 96,308 | ||||||||||
Assets held for sale (7) | — | — | 1,736,444 | ||||||||||
Total assets | 4,786,641 | 336,878 | 6,859,963 | ||||||||||
Unearned premiums | 644,504 | — | 644,504 | ||||||||||
Reserve for losses and LAE | 1,560,032 | — | 1,560,032 | ||||||||||
NIW (in millions) | $ | 37,349 | |||||||||||
________________ | |||||||||||||
-1 | Includes the acquisition of Clayton, effective June 30, 2014. | ||||||||||||
-2 | Includes a de minimis amount of inter-segment revenues in the MRES segment. | ||||||||||||
-3 | Includes corporate income and expenses that have been reallocated to the mortgage insurance segment that were previously allocated to the financial guaranty segment, but were not reclassified to discontinued operations. These items include net investment income of $4.8 million, other income of $0.3 million, interest expense of $53.3 million and corporate overhead expenses of $13.5 million for the year ended December 31, 2014. | ||||||||||||
-4 | Excludes the following revenue items not included in adjusted pretax operating income: (a) net gains on investments of $83.9 million; and (b) net losses on other financial instruments of $3.9 million. Includes inter-segment revenues of $0.8 million in the MRES segment. | ||||||||||||
-5 | Includes inter-segment expenses of $0.8 million in the mortgage insurance segment. | ||||||||||||
-6 | Excludes $6.7 million of acquisition-related expenses not included in segment other operating expenses. | ||||||||||||
-7 | Assets held for sale are not part of the mortgage insurance or MRES segments. | ||||||||||||
Mortgage Insurance | |||||||||||||
December 31, | |||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Net premiums written—insurance | $ | 950,998 | $ | 806,305 | |||||||||
Increase in unearned premiums | (169,578 | ) | (103,920 | ) | |||||||||
Net premiums earned—insurance | 781,420 | 702,385 | |||||||||||
Net investment income (1) | 68,121 | 72,679 | |||||||||||
Other income (2) (3) | 6,255 | 5,787 | |||||||||||
Total (4) | 855,796 | 780,851 | |||||||||||
Provision for losses | 562,747 | 921,548 | |||||||||||
Estimated present value of net credit (recoveries) losses incurred | (21 | ) | 933 | ||||||||||
Policy acquisition costs | 28,485 | 34,131 | |||||||||||
Other operating expenses (5) | 257,402 | 167,660 | |||||||||||
Interest expense (6) | 74,618 | 51,832 | |||||||||||
Total | 923,231 | 1,176,104 | |||||||||||
Adjusted pretax operating loss | $ | (67,435 | ) | $ | (395,253 | ) | |||||||
Cash and investments | $ | 3,384,558 | $ | 3,447,201 | |||||||||
Restricted cash | 22,527 | 24,225 | |||||||||||
Deferred policy acquisition costs | 29,741 | 38,478 | |||||||||||
Total assets (7) | 3,853,630 | 3,937,588 | |||||||||||
Unearned premiums | 567,072 | 382,413 | |||||||||||
Reserve for losses and LAE | 2,164,353 | 3,083,608 | |||||||||||
NIW (in millions) | $ | 47,255 | $ | 37,061 | |||||||||
________________ | |||||||||||||
-1 | Net investment income of $6.5 million and $9.5 million has been reallocated to the mortgage insurance segment for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
-2 | Other income of $0.2 million has been reallocated to the mortgage insurance segment for each of the years ended December 31, 2013 and 2012. | ||||||||||||
-3 | Does not include change in fair value of derivative instruments of $0.6 million and ($0.2) million for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
-4 | For the year ended December 31, 2013, excludes the following revenue items not included in adjusted pretax operating loss: (a) net losses on investments of $98.9 million; (b) net losses on other financial instruments of $7.6 million; and (c) change in fair value of derivative instruments of $0.6 million. For the year ended December 31, 2012, excludes the following revenue items not included in adjusted pretax operating loss: (a) net gains on investments of $114.3 million;(b) net losses on other financial instruments of $7.8 million; and (c) change in fair value of derivative instruments of ($0.2) million. | ||||||||||||
-5 | Corporate overhead expenses of $20.5 million and $15.2 million have been reallocated to the mortgage insurance segment for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
-6 | Interest expense of $56.6 million and $44.4 million has been reallocated to the mortgage insurance segment for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
-7 | Does not include assets held for sale of $1.8 billion and $2.0 billion for the years ended December 31, 2013 and 2012, respectively, which are not a part of the mortgage insurance segment. | ||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The reconciliation of adjusted pretax operating income (loss) to consolidated pretax income (loss) from continuing operations is as follows: | ||||||||||||
December 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Adjusted pretax operating income (loss): | |||||||||||||
Mortgage insurance (2) | $ | 336,936 | -1 | $ | (67,435 | ) | $ | (395,253 | ) | ||||
MRES | 5,446 | -3 | — | — | |||||||||
Total adjusted pretax operating income (loss) | $ | 342,382 | $ | (67,435 | ) | $ | (395,253 | ) | |||||
Change in fair value of derivative instruments | — | 635 | (192 | ) | |||||||||
Less: Estimated present value of net credit (losses) recoveries incurred | (113 | ) | 21 | (933 | ) | ||||||||
Change in fair value of derivative instruments expected to reverse over time | 113 | 614 | 741 | ||||||||||
Net gains (losses) on investments | 83,869 | (98,945 | ) | 114,282 | |||||||||
Net (losses) gains on other financial instruments | (3,880 | ) | (7,580 | ) | 7,802 | ||||||||
Acquisition-related expenses | (6,680 | ) | — | — | |||||||||
Amortization and impairment of intangible assets | (8,648 | ) | — | — | |||||||||
Consolidated pretax income (loss) from continuing operations | $ | 407,156 | $ | (173,346 | ) | $ | (272,428 | ) | |||||
________________ | |||||||||||||
-1 | Includes inter-segment expenses of $0.8 million for the year ended December 31, 2014. | ||||||||||||
-2 | Includes certain corporate income and expenses that have been reallocated to the mortgage insurance segment for all periods presented, as listed in the preceding detailed tables. These amounts represent items that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations. | ||||||||||||
-3 | Includes inter-segment revenues of $0.8 million for the year ended December 31, 2014. |
Note_5_Fair_Value_of_Financial1
Note 5 - Fair Value of Financial Instruments Level 3 (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2014: | ||||||||||||||||
(In millions) | Level I | Level II | Total | ||||||||||||||
Assets and Liabilities at Fair Value | |||||||||||||||||
Investment Portfolio: | |||||||||||||||||
U.S. government and agency securities | $ | 836.9 | $ | 3 | $ | 839.9 | |||||||||||
State and municipal obligations | — | 362.8 | 362.8 | ||||||||||||||
Money market instruments | 600.3 | — | 600.3 | ||||||||||||||
Corporate bonds and notes | — | 992.8 | 992.8 | ||||||||||||||
RMBS | — | 132.3 | 132.3 | ||||||||||||||
CMBS | — | 246.8 | 246.8 | ||||||||||||||
Other ABS | — | 185.5 | 185.5 | ||||||||||||||
Foreign government and agency securities | — | 37.7 | 37.7 | ||||||||||||||
Equity securities (1) | 164 | 51.6 | 215.6 | ||||||||||||||
Other investments (2) | — | 1 | 1 | ||||||||||||||
Total Investments at Fair Value (3) | 1,601.20 | 2,013.50 | 3,614.70 | ||||||||||||||
Total Assets at Fair Value | $ | 1,601.20 | $ | 2,013.50 | $ | 3,614.70 | |||||||||||
______________________ | |||||||||||||||||
-1 | Comprising broadly diversified domestic equity mutual funds and certain common stocks included within Level I and various preferred stocks invested across numerous companies and industries included within Level II. | ||||||||||||||||
-2 | Comprising short-term CDs ($1.0 million) included within Level II. | ||||||||||||||||
-3 | Does not include certain other invested assets ($14.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Also excludes investments classified as assets held for sale of $495.1 million, $839.2 million and $102.6 million, with fair values categorized in Level I, Level II and Level III, respectively. | ||||||||||||||||
At December 31, 2014, there were no Level III assets, and total Level III liabilities of $3.8 million accounted for 100% of total liabilities measured at fair value. | |||||||||||||||||
For the year ended December 31, 2014, $137.3 million of U.S. government and agency securities and $21.0 million of equity securities were transferred from Level II to Level I at the end of the period as a result of our ongoing review of the inputs to the valuations of our assets and liabilities, and the availability of unadjusted quoted prices in active markets for those identical securities as of that date. There were no investment transfers from Level I to Level II for the year ended December 31, 2014. | |||||||||||||||||
The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2013: | |||||||||||||||||
(In millions) | Level I | Level II | Level III | Total | |||||||||||||
Assets and Liabilities at Fair Value | |||||||||||||||||
Investment Portfolio: | |||||||||||||||||
U.S. government and agency securities | $ | 450 | $ | 246.6 | $ | — | $ | 696.6 | |||||||||
State and municipal obligations | — | 374.1 | — | 374.1 | |||||||||||||
Money market instruments | 484.8 | — | — | 484.8 | |||||||||||||
Corporate bonds and notes | — | 880.4 | — | 880.4 | |||||||||||||
RMBS | — | 338.8 | — | 338.8 | |||||||||||||
CMBS | — | 209.2 | — | 209.2 | |||||||||||||
Other ABS | — | 120.5 | 0.9 | 121.4 | |||||||||||||
Foreign government and agency securities | — | 28.3 | — | 28.3 | |||||||||||||
Equity securities (1) | 128.3 | 75.6 | 0.4 | 204.3 | |||||||||||||
Other investments (2) | — | 1 | — | 1 | |||||||||||||
Total Investments at Fair Value (3) | 1,063.10 | 2,274.50 | 1.3 | 3,338.90 | |||||||||||||
Total Assets at Fair Value | $ | 1,063.10 | $ | 2,274.50 | $ | 1.3 | $ | 3,338.90 | |||||||||
______________________ | |||||||||||||||||
-1 | Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common stocks invested across numerous companies and industries included within Levels II and III. | ||||||||||||||||
-2 | Comprising short-term CDs ($1.0 million) included within Level II. | ||||||||||||||||
-3 | Does not include fixed-maturities held to maturity ($0.4 million) and certain other invested assets ($22.4 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. | ||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our consolidated balance sheets were as follows as of the dates indicated: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
(In millions) | Carrying | Estimated | Carrying | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
Assets: | |||||||||||||||||
Fixed-maturities held to maturity | $ | — | $ | — | $ | 0.4 | $ | 0.4 | -1 | ||||||||
Other invested assets | 14.6 | 20.5 | -1 | 22.4 | 27.8 | -1 | |||||||||||
Liabilities: | |||||||||||||||||
Long-term debt | 1,209.90 | 1,859.30 | -1 | 930.1 | 1,502.70 | -1 | |||||||||||
______________________ | |||||||||||||||||
-1 | These estimated fair values would be classified in Level II of the fair value hierarchy. |
Note_6_Investments_Level_3_Tab
Note 6 - Investments Level 3 (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||
Total Debt And Equity Securities [Table Text Block] | Our held to maturity and available for sale securities within our investment portfolio consisted of the following as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
(In thousands) | Amortized | Fair Value | Gross | Gross | |||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||
Fixed-maturities available for sale: | |||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 5,709 | $ | 5,751 | $ | 48 | $ | 6 | |||||||||||||||||||||||||
State and municipal obligations | 17,727 | 18,910 | 1,183 | — | |||||||||||||||||||||||||||||
Corporate bonds and notes | 277,678 | 284,408 | 7,288 | 558 | |||||||||||||||||||||||||||||
RMBS | 41,467 | 42,520 | 1,053 | — | |||||||||||||||||||||||||||||
CMBS | 57,358 | 58,234 | 876 | — | |||||||||||||||||||||||||||||
Other ABS | 109,420 | 107,701 | 8 | 1,727 | |||||||||||||||||||||||||||||
Foreign government and agency securities | 19,301 | 19,366 | 307 | 242 | |||||||||||||||||||||||||||||
$ | 528,660 | $ | 536,890 | $ | 10,763 | $ | 2,533 | ||||||||||||||||||||||||||
Equity securities available for sale (1) | $ | 76,900 | $ | 143,368 | $ | 66,468 | $ | — | |||||||||||||||||||||||||
Total debt and equity securities | $ | 605,560 | $ | 680,258 | $ | 77,231 | $ | 2,533 | |||||||||||||||||||||||||
______________________ | |||||||||||||||||||||||||||||||||
-1 | Comprising broadly diversified domestic equity mutual funds ($143.0 million fair value) and a preferred stock investment in Freddie Mac ($0.4 million fair value). | ||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
(In thousands) | Amortized | Fair Value | Gross | Gross | |||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||
Fixed-maturities held to maturity: | |||||||||||||||||||||||||||||||||
State and municipal obligations | $ | 358 | $ | 351 | $ | — | $ | 7 | |||||||||||||||||||||||||
$ | 358 | $ | 351 | $ | — | $ | 7 | ||||||||||||||||||||||||||
Fixed-maturities available for sale: | |||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 5,636 | $ | 5,697 | $ | 97 | $ | 36 | |||||||||||||||||||||||||
State and municipal obligations | 17,924 | 17,403 | 24 | 545 | |||||||||||||||||||||||||||||
Corporate bonds and notes | 11,951 | 12,045 | 578 | 484 | |||||||||||||||||||||||||||||
$ | 35,511 | $ | 35,145 | $ | 699 | $ | 1,065 | ||||||||||||||||||||||||||
Equity securities available for sale (1) | $ | 76,900 | $ | 129,161 | $ | 52,261 | $ | — | |||||||||||||||||||||||||
Total debt and equity securities | $ | 112,769 | $ | 164,657 | $ | 52,960 | $ | 1,072 | |||||||||||||||||||||||||
______________________ | |||||||||||||||||||||||||||||||||
-1 | Comprising broadly diversified domestic equity mutual funds ($128.3 million fair value) and various preferred and common stocks invested across numerous companies and industries ($0.9 million fair value). | ||||||||||||||||||||||||||||||||
Trading Securities (and Certain Trading Assets) [Table Text Block] | The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 134,530 | $ | 240,860 | |||||||||||||||||||||||||||||
State and municipal obligations | 343,926 | 356,715 | |||||||||||||||||||||||||||||||
Corporate bonds and notes | 708,361 | 868,403 | |||||||||||||||||||||||||||||||
RMBS | 89,810 | 338,776 | |||||||||||||||||||||||||||||||
CMBS | 188,615 | 209,191 | |||||||||||||||||||||||||||||||
Other ABS | 77,755 | 121,399 | |||||||||||||||||||||||||||||||
Foreign government and agency securities | 18,331 | 28,303 | |||||||||||||||||||||||||||||||
Equity securities | 72,256 | 75,094 | |||||||||||||||||||||||||||||||
Total | $ | 1,633,584 | $ | 2,238,741 | |||||||||||||||||||||||||||||
Investment Income [Table Text Block] | Net investment income consisted of: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Investment income: | |||||||||||||||||||||||||||||||||
Fixed-maturities | $ | 62,352 | $ | 66,131 | $ | 66,518 | |||||||||||||||||||||||||||
Equity securities | 6,287 | 6,592 | 7,738 | ||||||||||||||||||||||||||||||
Short-term investments | 246 | 255 | 304 | ||||||||||||||||||||||||||||||
Other | 1,848 | 1,970 | 3,913 | ||||||||||||||||||||||||||||||
Gross investment income | 70,733 | 74,948 | 78,473 | ||||||||||||||||||||||||||||||
Investment expenses | (5,078 | ) | (6,827 | ) | (5,794 | ) | |||||||||||||||||||||||||||
Net investment income | $ | 65,655 | $ | 68,121 | $ | 72,679 | |||||||||||||||||||||||||||
Gain (Loss) on Investments [Table Text Block] | Net realized and unrealized gains (losses) on investments consisted of: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net realized (losses) gains on investments: | |||||||||||||||||||||||||||||||||
Fixed-maturities held to maturity | $ | (9 | ) | $ | 2 | $ | 37 | ||||||||||||||||||||||||||
Fixed-maturities available for sale | (1,599 | ) | 937 | 2,726 | |||||||||||||||||||||||||||||
Equities available for sale | — | 349 | 5,070 | ||||||||||||||||||||||||||||||
Trading securities | (6,996 | ) | 7,997 | 142,502 | |||||||||||||||||||||||||||||
Short-term investments | 1 | 1 | 7 | ||||||||||||||||||||||||||||||
Other invested assets | — | 8,841 | 375 | ||||||||||||||||||||||||||||||
Other gains | 246 | 126 | — | ||||||||||||||||||||||||||||||
Net realized (losses) gains on investments | (8,357 | ) | 18,253 | 150,717 | |||||||||||||||||||||||||||||
Unrealized gains (losses) on trading securities | 92,226 | (117,198 | ) | (36,435 | ) | ||||||||||||||||||||||||||||
Total gains (losses) on investments | $ | 83,869 | $ | (98,945 | ) | $ | 114,282 | ||||||||||||||||||||||||||
Available-for-sale Securities, Proceeds and Gains (Losses) [Table Text Block] | The sources of our proceeds and related investment gains (losses) on our available for sale securities are as follows: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Fixed-maturities available for sale: | |||||||||||||||||||||||||||||||||
Proceeds received from redemptions | $ | 4,985 | $ | 538 | $ | 5,815 | |||||||||||||||||||||||||||
Proceeds received from sales | 19,672 | 17,185 | 30,966 | ||||||||||||||||||||||||||||||
Gross investment gains from sales and redemptions | 99 | 1,078 | 3,018 | ||||||||||||||||||||||||||||||
Gross investment losses from sales and redemptions | (1,698 | ) | (141 | ) | (292 | ) | |||||||||||||||||||||||||||
Equities available for sale: | |||||||||||||||||||||||||||||||||
Proceeds received from sales and redemptions | — | 10,503 | 31,235 | ||||||||||||||||||||||||||||||
Gross investment gains from sales and redemptions | — | 348 | 5,070 | ||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments [Table Text Block] | The change in unrealized gains (losses) recorded in accumulated other comprehensive income (loss) consisted of the following: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Fixed-maturities: | |||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during the period, net of tax | $ | 4,531 | $ | (240 | ) | $ | 2,694 | ||||||||||||||||||||||||||
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | (1,039 | ) | 929 | 3,395 | |||||||||||||||||||||||||||||
Net unrealized gains (losses) on investments, net of tax | $ | 5,570 | $ | (1,169 | ) | $ | (701 | ) | |||||||||||||||||||||||||
Equities: | |||||||||||||||||||||||||||||||||
Unrealized holding gains arising during the period, net of tax | $ | 9,119 | $ | 19,389 | $ | 9,572 | |||||||||||||||||||||||||||
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | — | (273 | ) | 3,523 | |||||||||||||||||||||||||||||
Net unrealized gains on investments, net of tax | $ | 9,119 | $ | 19,662 | $ | 6,049 | |||||||||||||||||||||||||||
Schedule Of Unrealized Losses [Table Text Block] | The following tables show the gross unrealized losses and fair value of our securities deemed “available for sale” and “held to maturity,” aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated: | ||||||||||||||||||||||||||||||||
December 31, 2014: ($ in thousands) Description of Securities | Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||
# of | Fair Value | Unrealized | # of | Fair Value | Unrealized | # of | Fair Value | Unrealized | |||||||||||||||||||||||||
securities | Losses | securities | Losses | securities | Losses | ||||||||||||||||||||||||||||
U.S. government and agency securities | — | $ | — | $ | — | 1 | $ | 3,455 | $ | 6 | 1 | $ | 3,455 | $ | 6 | ||||||||||||||||||
Corporate bonds and notes | 24 | 40,917 | 410 | 1 | 1,027 | 148 | 25 | 41,944 | 558 | ||||||||||||||||||||||||
Other ABS | 34 | 97,356 | 1,727 | — | — | — | 34 | 97,356 | 1,727 | ||||||||||||||||||||||||
Foreign government and agency securities | 4 | 6,353 | 242 | — | — | — | 4 | 6,353 | 242 | ||||||||||||||||||||||||
Total | 62 | $ | 144,626 | $ | 2,379 | 2 | $ | 4,482 | $ | 154 | 64 | $ | 149,108 | $ | 2,533 | ||||||||||||||||||
December 31, 2013: ($ in thousands) Description of Securities | Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||
# of | Fair Value | Unrealized | # of | Fair Value | Unrealized | # of | Fair Value | Unrealized | |||||||||||||||||||||||||
securities | Losses | securities | Losses | securities | Losses | ||||||||||||||||||||||||||||
U.S. government and agency securities | 1 | $ | 3,413 | $ | 36 | — | $ | — | $ | — | 1 | $ | 3,413 | $ | 36 | ||||||||||||||||||
State and municipal obligations | 2 | 5,961 | 18 | 2 | 5,514 | 534 | 4 | 11,475 | 552 | ||||||||||||||||||||||||
Corporate bonds and notes | — | — | — | 2 | 2,966 | 484 | 2 | 2,966 | 484 | ||||||||||||||||||||||||
Total | 3 | $ | 9,374 | $ | 54 | 4 | $ | 8,480 | $ | 1,018 | 7 | $ | 17,854 | $ | 1,072 | ||||||||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturities of fixed-maturity investments are as follows: | ||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||||||||||
(In thousands) | Amortized | Fair | |||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||
Due in one year or less (1) | $ | 2,247 | $ | 2,295 | |||||||||||||||||||||||||||||
Due after one year through five years (1) | 39,483 | 39,420 | |||||||||||||||||||||||||||||||
Due after five years through ten years (1) | 154,234 | 155,790 | |||||||||||||||||||||||||||||||
Due after ten years (1) | 124,451 | 130,930 | |||||||||||||||||||||||||||||||
RMBS (2) | 41,467 | 42,520 | |||||||||||||||||||||||||||||||
CMBS (2) | 57,358 | 58,234 | |||||||||||||||||||||||||||||||
Other ABS (2) | 109,420 | 107,701 | |||||||||||||||||||||||||||||||
Total | $ | 528,660 | $ | 536,890 | |||||||||||||||||||||||||||||
______________________ | |||||||||||||||||||||||||||||||||
-1 | Actual maturities may differ as a result of calls before scheduled maturity. | ||||||||||||||||||||||||||||||||
-2 | RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date. |
Note_7_Goodwill_and_Other_Inta1
Note 7 - Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of Goodwill [Table Text Block] | The following table shows the changes in the carrying amount of goodwill by segment for the year ended December 31, 2014: | |||||||||||
Year Ended December 31, 2014 | ||||||||||||
(In thousands) | MRES | |||||||||||
Balance at beginning of period: | ||||||||||||
Goodwill | $ | 2,095 | ||||||||||
Accumulated impairment losses | — | |||||||||||
Goodwill, net | 2,095 | |||||||||||
Goodwill acquired during the period | 191,932 | |||||||||||
Impairment losses | (2,095 | ) | ||||||||||
Balance at end of period: | ||||||||||||
Goodwill | 194,027 | |||||||||||
Accumulated impairment losses | (2,095 | ) | ||||||||||
Goodwill, net | $ | 191,932 | ||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | The following is a summary of the gross and net carrying amounts and accumulated amortization of our other intangible assets as of and for the year to date periods indicated: | |||||||||||
December 31, 2014 | ||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Client relationships | $ | 79,203 | $ | (2,917 | ) | $ | 76,286 | |||||
Technology | 8,970 | (797 | ) | 8,173 | ||||||||
Trademark | 7,860 | (393 | ) | 7,467 | ||||||||
Client backlog | 6,680 | (2,406 | ) | 4,274 | ||||||||
Non-competition agreements | 145 | (37 | ) | 108 | ||||||||
Total | $ | 102,858 | $ | (6,550 | ) | $ | 96,308 | |||||
December 31, 2013 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Technology | $ | 200 | $ | — | $ | 200 | ||||||
Non-competition agreements | 5 | — | 5 | |||||||||
Total | $ | 205 | $ | — | $ | 205 | ||||||
For tax purposes, substantially all of the goodwill and other intangible assets are expected to be deductible and amortized over a period of 15 years. For financial reporting purposes, other intangible assets with finite lives will be amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset, as follows: | ||||||||||||
Estimated Useful Life | ||||||||||||
Client relationships | 3 years | - | 15 years | |||||||||
Technology | 3 years | - | 6 years | |||||||||
Trademark | 10 years | |||||||||||
Client backlog | 3 years | - | 5 years | |||||||||
Non-competition agreements | 2 years | - | 3 years | |||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated aggregate amortization expense for 2015 and thereafter is as follows (in thousands): | |||||||||||
2015 | $ | 12,009 | ||||||||||
2016 | 10,886 | |||||||||||
2017 | 10,579 | |||||||||||
2018 | 10,389 | |||||||||||
2019 | 9,372 | |||||||||||
Thereafter | 43,074 | |||||||||||
Note_8_Reinsurance_Tables
Note 8 - Reinsurance (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | ||||||||||||||||||||||||
Reinsurance, Premiums Written And Earned [Table Text Block] | The effect of reinsurance on net premiums written and earned is as follows: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net premiums written-insurance: | ||||||||||||||||||||||||
Direct | $ | 982,976 | $ | 1,033,323 | $ | 892,650 | ||||||||||||||||||
Assumed | (882 | ) | (904 | ) | (903 | ) | ||||||||||||||||||
Ceded | (56,913 | ) | (81,421 | ) | (85,442 | ) | ||||||||||||||||||
Net premiums written-insurance | $ | 925,181 | $ | 950,998 | $ | 806,305 | ||||||||||||||||||
Net premiums earned-insurance: | ||||||||||||||||||||||||
Direct | $ | 905,502 | $ | 848,655 | $ | 743,736 | ||||||||||||||||||
Assumed | 43 | 56 | (953 | ) | ||||||||||||||||||||
Ceded | (61,017 | ) | (67,291 | ) | (40,398 | ) | ||||||||||||||||||
Net premiums earned-insurance | $ | 844,528 | $ | 781,420 | $ | 702,385 | ||||||||||||||||||
Reinsurance Transaction Details [Table Text Block] | The following table shows the amounts related to the QSR Reinsurance Transactions for the periods indicated: | |||||||||||||||||||||||
Initial QSR Transaction | Second QSR Transaction | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Ceded premiums written | $ | 10,217 | $ | 23,047 | $ | 52,151 | $ | 33,751 | $ | 40,225 | $ | 9,648 | ||||||||||||
Ceded premiums earned | 17,319 | 29,746 | 16,088 | 29,820 | 18,356 | 504 | ||||||||||||||||||
Ceding commissions written | 4,862 | 5,762 | 13,038 | 11,813 | 14,079 | 3,377 | ||||||||||||||||||
Captive And Smart Home Transactions [Table Text Block] | The following tables present information related to our captive transactions for the periods indicated: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||||||||||
RIF ceded under captive reinsurance arrangements | $ | 129.8 | $ | 199.8 | ||||||||||||||||||||
Ceded losses recoverable related to captives | 24.7 | 45 | ||||||||||||||||||||||
Approximately 43% of our total ceded losses recoverable at December 31, 2014 were related to two captive reinsurers. | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Ceded premiums written related to captives | $ | 12.9 | $ | 17.8 | $ | 23.3 | ||||||||||||||||||
Ceded premiums earned related to captives | 13 | 17.9 | 23.4 | |||||||||||||||||||||
Ceded recoveries, excluding amounts received upon terminations of captive reinsurance transactions | 21.2 | 47.2 | 34.7 | |||||||||||||||||||||
Note_9_Other_Assets_Tables
Note 9 - Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Schedule of Other Assets [Table Text Block] | The following table shows the components of other assets for the periods indicated: | ||||||||
December 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Deposit with the IRS (Note 14) | $ | 88,557 | $ | 88,557 | |||||
COLI | 80,755 | 78,354 | |||||||
Prepaid reinsurance premiums | 57,291 | 60,512 | |||||||
Reinsurance recoverables | 28,119 | 46,846 | |||||||
Property and equipment (1) | 27,248 | 10,496 | |||||||
Accrued investment income | 20,022 | 21,306 | |||||||
Deferred policy acquisition costs | 12,003 | 29,741 | |||||||
Other | 61,496 | 44,091 | |||||||
Total other assets | $ | 375,491 | $ | 379,903 | |||||
______________________ | |||||||||
-1 | Property and equipment, at cost less accumulated depreciation of $100,207 and $96,058 at December 31, 2014 and 2013, respectively. |
Note_10_Losses_and_Loss_Adjust1
Note 10 - Losses and Loss Adjustment Expenses Level 3 (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance Loss Reserves [Abstract] | ||||||||||||
Schedule of Liability for Future Policy Benefits, by Product Segment [Table Text Block] | The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Reserves for losses by category: | ||||||||||||
Prime | $ | 700,174 | $ | 937,307 | ||||||||
Alt-A | 292,293 | 384,841 | ||||||||||
A minus and below | 179,103 | 215,545 | ||||||||||
IBNR and other | 223,114 | 347,698 | ||||||||||
LAE | 56,164 | 51,245 | ||||||||||
Reinsurance recoverable (1) | 26,665 | 38,363 | ||||||||||
Total primary reserves | 1,477,513 | 1,974,999 | ||||||||||
Pool | 75,785 | 169,682 | ||||||||||
IBNR and other | 1,775 | 8,938 | ||||||||||
LAE | 3,542 | 5,439 | ||||||||||
Total pool reserves | 81,102 | 184,059 | ||||||||||
Total First-lien reserves | 1,558,615 | 2,159,058 | ||||||||||
Second-lien and other (2) | 1,417 | 5,295 | ||||||||||
Total reserve for losses | $ | 1,560,032 | $ | 2,164,353 | ||||||||
______________________ | ||||||||||||
-1 | Represents ceded losses on captive transactions and the QSR Reinsurance Transactions. | |||||||||||
-2 | Does not include our Second-lien PDR that is included in other liabilities. | |||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | The following table presents information relating to our mortgage insurance reserves for losses, including IBNR, and LAE but excluding Second-lien PDR, for the periods indicated: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Mortgage Insurance | ||||||||||||
Balance at January 1 | $ | 2,164,353 | $ | 3,083,608 | $ | 3,247,900 | ||||||
Less reinsurance recoverables (1) | 38,363 | 83,238 | 151,569 | |||||||||
Balance at January 1, net of reinsurance recoverables | 2,125,990 | 3,000,370 | 3,096,331 | |||||||||
Add losses and LAE incurred in respect of default notices reported and unreported in: | ||||||||||||
Current year (2) | 422,999 | 584,174 | 899,511 | |||||||||
Prior years | (177,360 | ) | (19,526 | ) | 21,996 | |||||||
Total incurred | 245,639 | 564,648 | 921,507 | |||||||||
Deduct paid claims and LAE related to: | ||||||||||||
Current year (2) | 9,006 | 31,399 | 12,503 | |||||||||
Prior years | 829,256 | 1,407,629 | 1,004,965 | |||||||||
Total paid | 838,262 | 1,439,028 | 1,017,468 | |||||||||
Balance at end of period, net of reinsurance recoverables | 1,533,367 | 2,125,990 | 3,000,370 | |||||||||
Add reinsurance recoverables (1) | 26,665 | 38,363 | 83,238 | |||||||||
Balance at December 31 | $ | 1,560,032 | $ | 2,164,353 | $ | 3,083,608 | ||||||
_________________________ | ||||||||||||
-1 | Related to ceded losses on captive transactions, Smart Home (for 2012) and QSR Reinsurance Transactions. See Note 8 for additional information. | |||||||||||
-2 | Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. | |||||||||||
Rescissions And Denials [Table Text Block] | The following table illustrates the amount of First-lien claims submitted to us for payment that were rescinded or denied, for the periods indicated, net of any reinstatements of previously rescinded policies or denied claims within each period: | |||||||||||
Year Ended December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Rescissions | $ | 56.8 | $ | 81.2 | $ | 279.3 | ||||||
Denials | 87.9 | 171.7 | 539.4 | |||||||||
Total First-lien claims submitted for payment that were rescinded or denied (1) | $ | 144.7 | $ | 252.9 | $ | 818.7 | ||||||
______________________ | ||||||||||||
-1 | Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured. |
Note_11_LongTerm_Debt_Level_3_
Note 11 - Long-Term Debt Level 3 (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Long-term Debt, Unclassified [Abstract] | |||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | The carrying value of our long-term debt at December 31, 2014 and 2013 was as follows: | ||||||||||||||||
December 31, | |||||||||||||||||
($ in thousands) | 2014 | 2013 | |||||||||||||||
5.38% | Senior Notes due 2015 | $ | — | $ | 54,481 | ||||||||||||
9.00% | Senior Notes due 2017 | 192,605 | 191,611 | ||||||||||||||
3.00% | Convertible Senior Notes due 2017 (1) | 375,310 | 353,798 | ||||||||||||||
2.25% | Convertible Senior Notes due 2019 (2) | 342,011 | 330,182 | ||||||||||||||
5.50% | Senior Notes due 2019 | 300,000 | — | ||||||||||||||
Total long-term debt | $ | 1,209,926 | $ | 930,072 | |||||||||||||
_______________________ | |||||||||||||||||
-1 | The principal amount of these notes is $450 million. | ||||||||||||||||
-2 | The principal amount of these notes is $400 million. | ||||||||||||||||
Schedule of Liability and Equity Components of Convertible Debt [Table Text Block] | The convertible notes are reflected on our consolidated balance sheets as follows: | ||||||||||||||||
Convertible Senior Notes due 2017 | Convertible Senior Notes due 2019 | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Liability component: | |||||||||||||||||
Principal | $ | 450,000 | $ | 450,000 | $ | 400,000 | $ | 400,000 | |||||||||
Debt discount, net (1) | (74,690 | ) | (96,202 | ) | (57,989 | ) | (69,818 | ) | |||||||||
Net carrying amount | $ | 375,310 | $ | 353,798 | $ | 342,011 | $ | 330,182 | |||||||||
Equity component of currently redeemable convertible senior notes | $ | 74,690 | $ | — | $ | — | $ | — | |||||||||
Equity component (net of tax impact) (2) | $ | (9,011 | ) | -3 | $ | 65,679 | $ | 77,026 | -4 | $ | 77,026 | -4 | |||||
__________________ | |||||||||||||||||
-1 | Included within long-term debt and is being amortized over the life of the convertible notes. | ||||||||||||||||
-2 | Amount included within additional paid-in capital, net of the capped call transactions (Convertible Senior Notes due 2017) and related issuance costs (Convertible Senior Notes due 2017 and 2019). | ||||||||||||||||
-3 | Primarily represents the deferred tax amount related to this transaction due to the reclassification of the debt discount to temporary equity. | ||||||||||||||||
-4 | There was no net tax impact recorded in equity related to the Convertible Senior Notes due 2019, as a result of our full valuation allowance at the time the debt was issued. | ||||||||||||||||
Schedule of Interest Expense Recognized Related to Convertible Debt [Table Text Block] | The following table sets forth total interest expense recognized related to the convertible notes for the periods indicated: | ||||||||||||||||
Convertible Senior Notes due 2017 | Convertible Senior Notes due 2019 | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Contractual interest expense | $ | 13,500 | $ | 13,500 | $ | 9,000 | $ | 7,425 | |||||||||
Amortization of debt issuance costs | 1,226 | 1,157 | 1,282 | 1,025 | |||||||||||||
Amortization of debt discount | 21,512 | 19,544 | 11,829 | 9,223 | |||||||||||||
Total interest expense | $ | 36,238 | $ | 34,201 | $ | 22,111 | $ | 17,673 | |||||||||
Note_12_Accumulated_Other_Comp1
Note 12 - Accumulated Other Comprehensive Income Level 3 (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table shows the rollforward of AOCI as of the periods indicated: | |||||||||||
Year Ended December 31, 2014 | ||||||||||||
(In thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||
Balance at beginning of period | $ | 57,345 | $ | 19,962 | $ | 37,383 | ||||||
OCI: | ||||||||||||
Net foreign currency translation adjustments | (326 | ) | (100 | ) | (226 | ) | ||||||
Unrealized gains on investments: | ||||||||||||
Unrealized holding gains arising during the period | 21,204 | 7,554 | 13,650 | |||||||||
Less: Reclassification adjustment for net losses included in net income (1) | (1,599 | ) | (560 | ) | (1,039 | ) | ||||||
Net unrealized gains on investments | 22,803 | 8,114 | 14,689 | |||||||||
Net unrealized losses from investments recorded as assets held for sale | (329 | ) | (27 | ) | (302 | ) | ||||||
OCI | 22,148 | 7,987 | 14,161 | |||||||||
Net actuarial loss | (285 | ) | (226 | ) | (59 | ) | ||||||
Balance at end of period | $ | 79,208 | $ | 27,723 | $ | 51,485 | ||||||
Year Ended December 31, 2013 | ||||||||||||
(In thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||
Balance at beginning of period | $ | 24,904 | $ | 8,809 | $ | 16,095 | ||||||
OCI: | ||||||||||||
Unrealized gains on investments: | ||||||||||||
Unrealized holding gains arising during the period | 29,460 | 10,311 | 19,149 | |||||||||
Less: Reclassification adjustment for net gains included in net loss (1) | 1,285 | 629 | 656 | |||||||||
Net unrealized gains on investments | 28,175 | 9,682 | 18,493 | |||||||||
Net unrealized gains from investments recorded as assets held for sale | 3,961 | 1,364 | 2,597 | |||||||||
OCI | 32,136 | 11,046 | 21,090 | |||||||||
Net actuarial gain | 305 | 107 | 198 | |||||||||
Balance at end of period | $ | 57,345 | $ | 19,962 | $ | 37,383 | ||||||
Year Ended December 31, 2012 | ||||||||||||
(In thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||
Balance at beginning of period | $ | 12,039 | $ | 639 | $ | 11,400 | ||||||
OCI: | ||||||||||||
Net foreign currency translation adjustments | (11 | ) | (4 | ) | (7 | ) | ||||||
Unrealized gains on investments: | ||||||||||||
Unrealized holding gains arising during the period | 18,870 | 6,604 | 12,266 | |||||||||
Less: Reclassification adjustment for net gains included in net loss (1) | 7,796 | 878 | 6,918 | |||||||||
Net unrealized gains on investments | 11,074 | 5,726 | 5,348 | |||||||||
Net unrealized gains from investments recorded as assets held for sale | 2,045 | 2,533 | (488 | ) | ||||||||
OCI | 13,108 | 8,255 | 4,853 | |||||||||
Net actuarial loss | (243 | ) | (85 | ) | (158 | ) | ||||||
Balance at end of period | $ | 24,904 | $ | 8,809 | $ | 16,095 | ||||||
_________________________ | ||||||||||||
-1 | Included in net gains (losses) on investments on our consolidated statements of operations. |
Note_13_Income_Taxes_Level_3_T
Note 13 - Income Taxes Level 3 (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense [Table Text Block] | The components of our consolidated income tax benefit from continuing operations are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current (benefit) provision | $ | (26,575 | ) | $ | 352 | $ | (56,140 | ) | ||||
Deferred (benefit) provision | (825,843 | ) | (31,847 | ) | 7,817 | |||||||
Total income tax benefit | $ | (852,418 | ) | $ | (31,495 | ) | $ | (48,323 | ) | |||
Reconciliation of Taxes at Statutory Rate to Provision (Benefit) for Income Taxes [Table Text Block] | The reconciliation of taxes computed at the statutory tax rate of 35% to the benefit for income taxes on continuing operations is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Provision (benefit) for income taxes computed at the statutory tax rate | $ | 142,504 | $ | (60,671 | ) | $ | (95,350 | ) | ||||
Change in tax resulting from: | ||||||||||||
Tax-exempt municipal bond interest and dividends received deduction (net of proration) | (1,286 | ) | (1,494 | ) | (1,818 | ) | ||||||
Foreign tax expense (benefit) | 270 | (1 | ) | 54 | ||||||||
State tax (benefit) expense | (693 | ) | 1,460 | 4,002 | ||||||||
Unrecognized tax expense (benefit) | 407 | 1,696 | (2,906 | ) | ||||||||
Deferred inventory adjustment related to fair value of derivatives and other financial instruments | — | — | (23,217 | ) | ||||||||
Valuation allowance | (995,008 | ) | 24,546 | 71,072 | ||||||||
Other, net | 1,388 | 2,969 | (160 | ) | ||||||||
Benefit for income taxes | $ | (852,418 | ) | $ | (31,495 | ) | $ | (48,323 | ) | |||
Schedule of Components of Deferred Tax Assets and Liabilities [Table Text Block] | The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows: | |||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
DTAs: | ||||||||||||
Accrued expenses | $ | 60,858 | $ | 74,968 | ||||||||
Unearned premiums | 82,800 | 50,779 | ||||||||||
PDR | 780 | 625 | ||||||||||
NOL | 475,095 | 628,573 | ||||||||||
Differences in fair value of derivative and other financial instruments | — | 31,812 | ||||||||||
Rescission premium | 3,151 | 5,964 | ||||||||||
State and Local NOL Carryforwards | 34,851 | 33,095 | ||||||||||
Foreign tax credit carryforward | 6,015 | 6,015 | ||||||||||
Depreciation | 70 | 6,783 | ||||||||||
Partnership investments | 74,179 | 74,569 | ||||||||||
Loss reserves | 6,362 | 13,586 | ||||||||||
Outside basis difference of investment in subsidiary | 14,084 | — | ||||||||||
Foreign currency | 97 | — | ||||||||||
Alternative minimum tax credit carryforward | 2,286 | — | ||||||||||
Other | 37,878 | 31,547 | ||||||||||
Total DTAs | 798,506 | 958,316 | ||||||||||
DTLs: | ||||||||||||
Deferred policy acquisition costs | 4,203 | 10,410 | ||||||||||
Convertible and other long-term debt | 38,750 | 47,579 | ||||||||||
Differences in fair value of derivative and other financial instruments | 352 | — | ||||||||||
Net unrealized gain on investments | 26,145 | 18,163 | ||||||||||
Foreign currency | — | 18 | ||||||||||
Other | 10,981 | 5,609 | ||||||||||
Total DTLs | 80,431 | 81,779 | ||||||||||
Less: Valuation allowance | 17,874 | 858,635 | ||||||||||
Net DTA | $ | 700,201 | $ | 17,902 | ||||||||
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending unrecognized tax benefits is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Balance at beginning of period | $ | 119,236 | $ | 114,013 | ||||||||
Tax positions related to the current year: | ||||||||||||
Increases | 2,352 | 2,363 | ||||||||||
Tax positions related to prior years: | ||||||||||||
Increases | 24,361 | 29,962 | ||||||||||
Decreases | (1,546 | ) | (3,615 | ) | ||||||||
Lapses of applicable statute of limitation | (24,180 | ) | (23,487 | ) | ||||||||
Balance at end of period | $ | 120,223 | $ | 119,236 | ||||||||
Summary of Income Tax Examinations [Table Text Block] | The following calendar tax years, listed by major jurisdiction, remain subject to examination: | |||||||||||
U.S. Federal Corporation Income Tax | 2000 - 2007(1), 2011 - 2013 | |||||||||||
Significant State and Local Jurisdictions (2) | 1999 - 2013 | |||||||||||
_________________________ | ||||||||||||
-1 | We petitioned the U.S. Tax Court to litigate the IRS Notices of Deficiency resulting from the examination of our 2000 through 2007 consolidated federal income tax returns. This litigation relates to the recognition of certain tax benefits associated with our investment in a portfolio of non-economic REMIC residual interests. | |||||||||||
-2 | Arizona, California, Florida, Georgia, New York, Ohio, Pennsylvania and New York City. |
Note_14_Statutory_Information_1
Note 14 - Statutory Information Level 3 (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||
Risk To Capital Calculation [Table Text Block] | Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus (i.e., statutory capital and surplus) plus statutory contingency reserves. | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
($ in millions) | ||||||||||||
RIF, net (1) | $ | 30,615.70 | $ | 26,128.20 | ||||||||
Statutory policyholders’ surplus | $ | 1,325.20 | $ | 1,317.80 | ||||||||
Contingency reserve | 389.4 | 23 | ||||||||||
Statutory capital | $ | 1,714.60 | $ | 1,340.80 | ||||||||
Risk-to-capital | 17.9:1 | 19.5:1 | ||||||||||
_______________________ | ||||||||||||
-1 | Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans. | |||||||||||
Radian Guaranty [Member] | ||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||
Statutory Accounting Practices Disclosure [Table Text Block] | Radian Guaranty’s statutory net income (loss), statutory policyholders’ surplus and contingency reserve as of or for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income (loss) | $ | 273.7 | $ | (23.8 | ) | $ | (175.9 | ) | ||||
Statutory policyholders’ surplus | 1,325.20 | 1,317.80 | 926 | |||||||||
Contingency reserve | 389.4 | 23 | — | |||||||||
Radian Guaranty Reinsurance Inc [Member] | ||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||
Statutory Accounting Practices Disclosure [Table Text Block] | RGRI’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income | $ | 62.5 | $ | 55.5 | $ | 16 | ||||||
Statutory policyholders’ surplus | 78.8 | 59.3 | 42.3 | |||||||||
Contingency reserve | 81.4 | 38.5 | — | |||||||||
Radian Insurance [Member] | ||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||
Statutory Accounting Practices Disclosure [Table Text Block] | Radian Insurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income | $ | 32 | $ | 26.5 | $ | 58 | ||||||
Statutory policyholders’ surplus | 256.3 | 230.8 | 218.6 | |||||||||
Contingency reserve | 46.7 | 35.5 | 20.6 | |||||||||
Radian Mortgage Insurance Inc [Member] | ||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||
Statutory Accounting Practices Disclosure [Table Text Block] | Radian Mortgage Insurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income | $ | 18.9 | $ | 18.1 | $ | 1.7 | ||||||
Statutory policyholders’ surplus | 121.1 | 98 | 81.8 | |||||||||
Contingency reserve | 12.6 | 6.9 | — | |||||||||
Radian Mortgage Assurance [Member] | ||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||
Statutory Accounting Practices Disclosure [Table Text Block] | RMAI’s statutory net (loss) income and statutory policyholders’ surplus as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net (loss) income | $ | (0.5 | ) | $ | (0.5 | ) | $ | 2 | ||||
Statutory policyholders’ surplus | 17.5 | 18 | 18.5 | |||||||||
Radian Asset Assurance [Member] | ||||||||||||
Statutory Accounting Practices [Line Items] | ||||||||||||
Statutory Accounting Practices Disclosure [Table Text Block] | Radian Asset Assurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||
December 31, | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | |||||||||
Statutory net income | $ | 12.6 | $ | 24.9 | $ | 103.3 | ||||||
Statutory policyholders’ surplus | 1,138.90 | 1,198.00 | 1,144.10 | |||||||||
Contingency reserve | 189.1 | 264 | 300.1 | |||||||||
Note_15_ShareBased_and_Other_C1
Note 15 - Share-Based and Other Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||
Schedule of outstanding awards and compensation expense recognized for each type of share-based award | The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the years ended: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
($ in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Share-Based Compensation Programs | Liability | Compensation | Liability | Compensation | Liability | Compensation | |||||||||||||||||||
Recorded/ | Cost | Recorded/ | Cost | Recorded/ | Cost | ||||||||||||||||||||
Equity | Recognized (1) | Equity | Recognized (1) | Equity | Recognized (1) | ||||||||||||||||||||
Instruments | Instruments | Instruments | |||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
RSUs—Cash-Settled | $ | 65,157 | $ | 31,834 | $ | 104,114 | $ | 79,322 | $ | 26,164 | $ | 21,301 | |||||||||||||
SARs—Cash-Settled | 595 | 915 | 8,195 | 8,544 | 4,602 | 3,498 | |||||||||||||||||||
Liabilities | $ | 65,752 | 32,749 | $ | 112,309 | 87,866 | $ | 30,766 | 24,799 | ||||||||||||||||
Equity: | |||||||||||||||||||||||||
Stock Options | 3,029,348 | 2,531 | 3,989,641 | 2,488 | 4,402,344 | 1,787 | |||||||||||||||||||
Phantom Stock | 284,645 | 3 | 284,645 | 3 | 343,094 | 4 | |||||||||||||||||||
RSUs—Equity Settled | 2,056,596 | 7,461 | 1,273,556 | 4,336 | 990,881 | 1,466 | |||||||||||||||||||
Restricted Stock | — | — | — | 21 | 131,374 | 57 | |||||||||||||||||||
ESPP | 267 | 267 | 253 | ||||||||||||||||||||||
Equity | 10,262 | 7,115 | 3,567 | ||||||||||||||||||||||
Total all share-based plans | $ | 43,011 | $ | 94,981 | $ | 28,366 | |||||||||||||||||||
______________ | |||||||||||||||||||||||||
-1 | For purposes of calculating compensation cost recognized, we generally consider time-vested awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. However, under the terms of our stock option awards granted in 2014, 2013, and 2012, legal vesting for retirement occurs when the grantee actually separates from service, with the exception of certain senior executives for whom vesting remains dependent on the stock price hurdle being met regardless of when the executive separates from service. Performance-based RSU awards granted in 2014, 2013, and 2012 provide that vesting remains dependent on the Company’s performance for the full term of the awards notwithstanding the grantee’s earlier retirement. | ||||||||||||||||||||||||
Schedule of additional information regarding all share-based awards | The following table reflects additional information regarding all share-based awards for the years indicated: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
($ in thousands except per-share amounts) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Total compensation cost recognized | $ | 43,011 | $ | 94,981 | $ | 28,366 | |||||||||||||||||||
Less: Costs deferred as acquisition costs | 1,047 | 1,769 | 465 | ||||||||||||||||||||||
Stock-based compensation expense | $ | 41,964 | $ | 93,212 | $ | 27,901 | |||||||||||||||||||
Schedule of information with regard to stock options | Information with regard to stock options for the periods indicated is as follows: | ||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||
Exercise Price | |||||||||||||||||||||||||
Per Share | |||||||||||||||||||||||||
Outstanding, December 31, 2013 | 3,989,641 | $ | 10.63 | ||||||||||||||||||||||
Granted | 289,500 | 15.44 | |||||||||||||||||||||||
Exercised | (29,765 | ) | 8.69 | ||||||||||||||||||||||
Forfeited | (47,170 | ) | 9.18 | ||||||||||||||||||||||
Expired | (1,172,858 | ) | 25.28 | ||||||||||||||||||||||
Outstanding, December 31, 2014 | 3,029,348 | 5.46 | |||||||||||||||||||||||
Exercisable, December 31, 2014 | 938,740 | 4.64 | |||||||||||||||||||||||
Available for grant, December 31, 2014 | 4,258,907 | ||||||||||||||||||||||||
Schedule of fully vested share options | The table below summarizes information regarding fully vested stock options as of December 31, 2014: | ||||||||||||||||||||||||
($ in millions, except per share amounts) | Outstanding and | ||||||||||||||||||||||||
Exercisable | |||||||||||||||||||||||||
Number of options vested | 938,740 | ||||||||||||||||||||||||
Fair value of options vested during the year | $ | 1.8 | |||||||||||||||||||||||
Weighted-average exercise price per share | $ | 4.64 | |||||||||||||||||||||||
Aggregate intrinsic value (excess market price over exercise price) | $ | 11.3 | |||||||||||||||||||||||
Weighted-average remaining contractual term of options (in years) | 2.1 years | ||||||||||||||||||||||||
Schedule of outstanding and exercisable options | The following table summarizes information concerning outstanding and exercisable options at December 31, 2014: | ||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted Average | Weighted Average | Number | Weighted Average | ||||||||||||||||||||
Outstanding | Remaining | Exercise Price | Exercisable | Exercise Price | |||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||||
(Years) | |||||||||||||||||||||||||
$2.45 - $3.58 | 2,228,150 | 5.18 | $ | 2.73 | 712,610 | $ | 2.89 | ||||||||||||||||||
$5.76 - $7.06 | 60,778 | 3.18 | 6.89 | 23,200 | 6.92 | ||||||||||||||||||||
$10.42 - $15.44 | 740,420 | 7.16 | 13.56 | 202,930 | 10.49 | ||||||||||||||||||||
3,029,348 | 4.32 | 938,740 | |||||||||||||||||||||||
Schedule of valuation assumptions of stock options granted | We use the Monte Carlo valuation model in determining the grant date fair value of performance-based stock options issued to executives and non-executives using the assumptions noted in the following table: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Derived service period (years) | 2.99 - 3.96 | 3.02 - 4.00 | 3.14 - 4.00 | ||||||||||||||||||||||
Risk-free interest rate (1) | 2.57 | % | 1.96 | % | 1.66 | % | |||||||||||||||||||
Volatility (2) | 94.26 | % | 94.63 | % | 96.97 | % | |||||||||||||||||||
Dividend yield | 0.07 | % | 0.07 | % | 0.41 | % | |||||||||||||||||||
______________ | |||||||||||||||||||||||||
-1 | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. | ||||||||||||||||||||||||
-2 | Volatility is determined at the date of grant using historical share price volatility and expected life of each award. | ||||||||||||||||||||||||
Schedule of valuation assumptions of performance based RSU | The following are assumptions used in our calculation of the grant date fair value of performance-based RSUs to be settled in common stock: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Expected life | 3 years | 3 years | |||||||||||||||||||||||
Risk-free interest rate | 1 | % | 0.4 | % | |||||||||||||||||||||
Volatility | 71.9 | % | 81.8 | % | |||||||||||||||||||||
Dividend yield | 0.06 | % | 0.07 | % | |||||||||||||||||||||
Schedule of changes in RSU to be settled under 2008 Equity Plan | Information with regard to RSUs to be settled in stock for the periods indicated is as follows: | ||||||||||||||||||||||||
Number of | Weighted Average | ||||||||||||||||||||||||
Shares | Grant Date | ||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Unvested, December 31, 2013 | 1,273,556 | $ | 7.75 | ||||||||||||||||||||||
Granted | 872,356 | 14.97 | |||||||||||||||||||||||
Vested | (31,599 | ) | 6.88 | ||||||||||||||||||||||
Forfeited | (57,717 | ) | 14.22 | ||||||||||||||||||||||
Unvested, December 31, 2014 | 2,056,596 | 10.65 | |||||||||||||||||||||||
Schedule of valuation assumptions of ESPP | The following are assumptions used in our calculation of ESPP compensation expense during 2014: | ||||||||||||||||||||||||
January 1, 2014 | July 1, 2014 | ||||||||||||||||||||||||
Expected life | 6 months | 6 months | |||||||||||||||||||||||
Risk-free interest rate | 0.34 | % | 0.32 | % | |||||||||||||||||||||
Volatility | 46.99 | % | 36.69 | % | |||||||||||||||||||||
Dividend yield | 0.04 | % | 0.03 | % |
Note_17_Commitments_and_Contin1
Note 17 - Commitments and Contingencies Schedule of Commitment for Non-Cancellable Operating Leases in Future Years (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Schedule of Commitment for Non-Cancellable Operating Leases Future Years [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The commitment for non-cancelable operating leases in future years is as follows: | |||
(In thousands) | ||||
2015 | $ | 10,849 | ||
2016 | 5,257 | |||
2017 | 3,860 | |||
2018 | 692 | |||
2019 | 620 | |||
Thereafter | 3,274 | |||
$ | 24,552 | |||
Note_18_Net_Income_Loss_Per_Sh1
Note 18 - Net Income (Loss) Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Net Income (Loss) Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation of the basic and diluted net income (loss) per share was as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands, except share and per-share amounts) | ||||||||||||
Net income (loss) from continuing operations: | ||||||||||||
Net income (loss) from continuing operations - basic | $ | 1,259,574 | $ | (141,851 | ) | $ | (224,105 | ) | ||||
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) | 14,372 | — | — | |||||||||
Net income (loss) from continuing operations - diluted | $ | 1,273,946 | $ | (141,851 | ) | $ | (224,105 | ) | ||||
Net income (loss): | ||||||||||||
Net income (loss) from continuing operations - basic | $ | 1,259,574 | $ | (141,851 | ) | $ | (224,105 | ) | ||||
Loss from discontinued operations, net of tax | (300,057 | ) | (55,134 | ) | (227,363 | ) | ||||||
Net income (loss) - basic | 959,517 | (196,985 | ) | (451,468 | ) | |||||||
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) | 14,372 | — | — | |||||||||
Net income (loss) - diluted | $ | 973,889 | $ | (196,985 | ) | $ | (451,468 | ) | ||||
Average common shares outstanding-basic | 184,551 | 166,366 | 132,533 | |||||||||
Dilutive effect of Convertible Senior Notes due 2017 | 8,465 | — | — | |||||||||
Dilutive effect of Convertible Senior Notes due 2019 | 37,736 | — | — | |||||||||
Dilutive effect of stock-based compensation arrangements (2) | 3,150 | — | — | |||||||||
Adjusted average common shares outstanding—diluted | 233,902 | 166,366 | 132,533 | |||||||||
Net income (loss) per share: | ||||||||||||
Basic: | ||||||||||||
Net income (loss) from continuing operations | $ | 6.83 | $ | (0.85 | ) | $ | (1.69 | ) | ||||
Loss from discontinued operations | (1.63 | ) | (0.33 | ) | (1.72 | ) | ||||||
Net income (loss) | $ | 5.2 | $ | (1.18 | ) | $ | (3.41 | ) | ||||
Diluted: | ||||||||||||
Net income (loss) from continuing operations | $ | 5.44 | $ | (0.85 | ) | $ | (1.69 | ) | ||||
Loss from discontinued operations | (1.28 | ) | (0.33 | ) | (1.72 | ) | ||||||
Net income (loss) | $ | 4.16 | $ | (1.18 | ) | $ | (3.41 | ) | ||||
________________ | ||||||||||||
-1 | As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. | |||||||||||
-2 | For the year ended December 31, 2014, 541,720 shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of diluted net income per share as of such date because they were anti-dilutive. As a result of our net loss from continuing operations for the years ended December 31, 2013 and 2012, 43,287,966 and 5,872,600 shares, respectively, of our common stock equivalents issued under our stock-based compensation arrangements and convertible debt were not included in the calculation of diluted net loss per share as of such dates because they were anti-dilutive. |
Note_19_Quarterly_Financial_Da1
Note 19 - Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | ||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | Quarterly Financial Data (Unaudited) | |||||||||||||||||||
As a result of the Radian Asset Assurance Stock Purchase Agreement to sell Radian Asset Assurance, we have reclassified the operating results related to the pending disposition as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. | ||||||||||||||||||||
(In thousands, except per share information) | 2014 Quarters | |||||||||||||||||||
First | Second | Third | Fourth | Year | ||||||||||||||||
Net premiums earned—insurance | $ | 198,762 | $ | 203,646 | $ | 217,827 | $ | 224,293 | $ | 844,528 | ||||||||||
Services revenue | — | — | 42,243 | 34,450 | 76,693 | |||||||||||||||
Net investment income | 15,318 | 16,663 | 17,143 | 16,531 | 65,655 | |||||||||||||||
Net gains (losses) on investments (1) | 43,286 | 28,233 | (6,308 | ) | 18,658 | 83,869 | ||||||||||||||
Net (losses) gains on other financial instruments | (318 | ) | (2,901 | ) | 14 | (675 | ) | (3,880 | ) | |||||||||||
Provision for losses | 49,626 | 64,648 | 48,942 | 82,867 | 246,083 | |||||||||||||||
Policy acquisition and other operating expenses | 61,524 | 67,497 | 55,465 | 92,243 | 276,729 | |||||||||||||||
Direct cost of services | — | — | 23,896 | 19,709 | 43,605 | |||||||||||||||
Amortization and impairment of intangible assets | — | — | 3,294 | 5,354 | 8,648 | |||||||||||||||
Net income from continuing operations (2) | 145,980 | 103,537 | 132,031 | 878,026 | 1,259,574 | |||||||||||||||
Income (loss) from discontinued operations, net of tax (3) | 56,779 | 71,296 | 21,559 | (449,691 | ) | (300,057 | ) | |||||||||||||
Net income | 202,759 | 174,833 | 153,590 | 428,335 | 959,517 | |||||||||||||||
Diluted net income per share (4)(5) | $ | 0.94 | $ | 0.78 | $ | 0.67 | $ | 1.78 | $ | 4.16 | ||||||||||
Weighted average shares outstanding-diluted (4) | 222,668 | 230,779 | 238,067 | 242,801 | 233,902 | |||||||||||||||
2013 Quarters | ||||||||||||||||||||
First | Second | Third | Fourth | Year | ||||||||||||||||
Net premiums earned—insurance | $ | 182,992 | $ | 197,952 | $ | 200,120 | $ | 200,356 | $ | 781,420 | ||||||||||
Net investment income | 16,961 | 17,087 | 16,351 | 17,722 | 68,121 | |||||||||||||||
Net losses on investments (1) | (3,140 | ) | (86,808 | ) | (6,366 | ) | (2,631 | ) | (98,945 | ) | ||||||||||
Net (losses) gains on other financial instruments | (5,239 | ) | 60 | (193 | ) | (2,208 | ) | (7,580 | ) | |||||||||||
Provision for losses | 131,327 | 137,661 | 149,687 | 144,072 | 562,747 | |||||||||||||||
Policy acquisition and other operating expenses | 84,603 | 62,487 | 70,324 | 68,473 | 285,887 | |||||||||||||||
Net loss from continuing operations | (20,214 | ) | (77,579 | ) | (28,011 | ) | (16,047 | ) | (141,851 | ) | ||||||||||
(Loss) income from discontinued operations, net of tax | (167,286 | ) | 44,407 | 15,329 | 52,416 | (55,134 | ) | |||||||||||||
Net (loss) income | (187,500 | ) | (33,172 | ) | (12,682 | ) | 36,369 | (196,985 | ) | |||||||||||
Diluted net (loss) income per share (4)(5) | $ | (1.30 | ) | $ | (0.19 | ) | $ | (0.07 | ) | $ | 0.21 | $ | (1.18 | ) | ||||||
Weighted average shares outstanding-diluted (4) | 144,355 | 171,783 | 171,830 | 173,099 | 166,366 | |||||||||||||||
______________ | ||||||||||||||||||||
-1 | The 2014 and 2013 amounts reflect unrealized gains (losses), respectively, on our trading securities. | |||||||||||||||||||
-2 | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter. | |||||||||||||||||||
-3 | This amount reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter. | |||||||||||||||||||
-4 | Diluted net income (loss) per share and average shares outstanding per the accounting standard regarding earnings per share. | |||||||||||||||||||
-5 | Diluted net income (loss) per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income (loss) per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income (loss) from continuing operations. |
Schedule_I_Summary_Of_Investme1
Schedule I Summary Of Investments Summary of Investments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Schedule of Investments [Abstract] | ||||||||||||
Summary Investment Holdings [Table Text Block] | Radian Group Inc. | |||||||||||
Schedule I | ||||||||||||
Summary of Investments—Other Than Investments in Related Parties | ||||||||||||
December 31, 2014 | ||||||||||||
Type of Investment | Amortized | Fair Value | Amount Reflected on the Balance Sheet | |||||||||
Cost | ||||||||||||
(In thousands) | ||||||||||||
Fixed-Maturities: | ||||||||||||
Bonds: | ||||||||||||
U.S. government and agency securities | $ | 5,709 | $ | 5,751 | $ | 5,751 | ||||||
State and municipal obligations (1) | 17,727 | 18,910 | 18,910 | |||||||||
Corporate bonds and notes | 277,678 | 284,408 | 284,408 | |||||||||
RMBS | 41,467 | 42,520 | 42,520 | |||||||||
CMBS | 57,358 | 58,234 | 58,234 | |||||||||
Other ABS | 109,420 | 107,701 | 107,701 | |||||||||
Foreign government and agency securities | 19,301 | 19,366 | 19,366 | |||||||||
Total fixed-maturities | 528,660 | 536,890 | 536,890 | |||||||||
Trading securities (2) | 1,628,769 | 1,633,584 | 1,633,584 | |||||||||
Equity securities available for sale: | ||||||||||||
Common stocks | 76,827 | 142,981 | 142,981 | |||||||||
Nonredeemable preferred stocks | 73 | 387 | 387 | |||||||||
Total equity securities available for sale | 76,900 | 143,368 | 143,368 | |||||||||
Short-term investments | 1,300,866 | 1,300,872 | 1,300,872 | |||||||||
Other invested assets | 14,585 | 20,513 | 14,585 | |||||||||
Total investments other than investments in related parties | $ | 3,549,780 | $ | 3,635,227 | $ | 3,629,299 | ||||||
__________________ | ||||||||||||
-1 | Available for sale. | |||||||||||
-2 | Includes foreign government and agency securities. |
Schedule_II_Financial_Informat1
Schedule II Financial Information of Registrant Parent Company Financial Statements (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Financial Information Statement Of Condition Of Parent Company [Table Text Block] | Radian Group Inc. | |||||||||||
Schedule II—Financial Information of Registrant | ||||||||||||
Balance Sheets | ||||||||||||
Parent Company Only | ||||||||||||
December 31, | ||||||||||||
(In thousands, except share and per-share amounts) | 2014 | 2013 | ||||||||||
Assets | ||||||||||||
Investments | ||||||||||||
Trading securities—at fair value | $ | 5,447 | $ | 5,240 | ||||||||
Short-term investments—at fair value | 631,934 | 633,178 | ||||||||||
Cash | 1,951 | 4,304 | ||||||||||
Restricted cash | 124 | 123 | ||||||||||
Investment in subsidiaries, at equity in net assets | 2,746,915 | 1,419,360 | ||||||||||
Debt issuance costs | 17,627 | 15,741 | ||||||||||
Due from affiliates, net | 13,110 | 12,283 | ||||||||||
Accounts and notes receivable | 305,856 | 8,105 | ||||||||||
Property and equipment, at cost (less accumulated depreciation of $50,648 and $49,632) | 1,624 | 1,281 | ||||||||||
Other assets | 16,660 | 12,880 | ||||||||||
Assets held for sale | 18,027 | — | ||||||||||
Total assets | $ | 3,759,275 | $ | 2,112,495 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Accrued interest payable | $ | 6,796 | $ | 5,551 | ||||||||
Accrued compensation expense | 86,258 | 132,848 | ||||||||||
Long-term debt | 1,209,926 | 930,072 | ||||||||||
Federal income taxes—current and deferred | 262,583 | 98,476 | ||||||||||
Other liabilities | 3,935 | 5,903 | ||||||||||
Liabilities held for sale | 18,027 | — | ||||||||||
Total liabilities | 1,587,525 | 1,172,850 | ||||||||||
Equity component of currently redeemable convertible senior notes | 74,690 | — | ||||||||||
Common stockholders’ equity | ||||||||||||
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2014 and 2013; 208,601,020 and 190,636,972 shares issued at December 31, 2014 and 2013, respectively; 191,053,530 and 173,099,515 shares outstanding at December 31, 2014 and 2013, respectively | 209 | 191 | ||||||||||
Treasury stock, at cost: 17,547,490 and 17,537,457 shares at December 31, 2014 and 2013, respectively | (892,961 | ) | (892,807 | ) | ||||||||
Additional paid-in capital | 2,531,513 | 2,347,104 | ||||||||||
Retained earnings (deficit) | 406,814 | (552,226 | ) | |||||||||
Accumulated other comprehensive income | 51,485 | 37,383 | ||||||||||
Total common stockholders’ equity | 2,097,060 | 939,645 | ||||||||||
Total liabilities and stockholders’ equity | $ | 3,759,275 | $ | 2,112,495 | ||||||||
Condensed Financial Information Statement Of Income Of Parent Company [Table Text Block] | Radian Group Inc. | |||||||||||
Schedule II—Financial Information of Registrant | ||||||||||||
Statements of Operations | ||||||||||||
Parent Company Only | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Revenues: | ||||||||||||
Net investment income | $ | 9,515 | $ | 4,300 | $ | 9,093 | ||||||
Net gains (losses) on investments | 133 | (930 | ) | 8,816 | ||||||||
Net (losses) gains on other financial instruments | (2,865 | ) | (6,026 | ) | 9,180 | |||||||
Other income | 7 | — | 3 | |||||||||
Total revenues | 6,790 | (2,656 | ) | 27,092 | ||||||||
Expenses: | ||||||||||||
Other operating expenses | — | — | 2,690 | |||||||||
Interest expense | 57,366 | 37,087 | 17,756 | |||||||||
Total expenses | 57,366 | 37,087 | 20,446 | |||||||||
(Loss) income from continuing operations before income taxes | (50,576 | ) | (39,743 | ) | 6,646 | |||||||
Provision (benefit) for income taxes | 143,912 | 9,234 | (40,187 | ) | ||||||||
Equity in net income (loss) of affiliates | 1,172,032 | (148,008 | ) | (498,301 | ) | |||||||
Net income (loss) from continuing operations | 977,544 | (196,985 | ) | (451,468 | ) | |||||||
Loss from discontinued operations, net of taxes | (18,027 | ) | — | — | ||||||||
Net income (loss) | $ | 959,517 | $ | (196,985 | ) | $ | (451,468 | ) | ||||
Condensed Financial Information Statement of Cash Flows of Parent Company [Table Text Block] | Radian Group Inc. | |||||||||||
Schedule II—Financial Information of Registrant | ||||||||||||
Statements of Cash Flows | ||||||||||||
Parent Company Only | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 959,517 | $ | (196,985 | ) | $ | (451,468 | ) | ||||
Loss from discontinued operations, net of tax | 18,027 | — | — | |||||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||||||||
Net (gains) losses on investments and other financial instruments | (53 | ) | 3,004 | (1,821 | ) | |||||||
Losses (gains) on the repurchase of long-term debt | 2,785 | 3,952 | (16,175 | ) | ||||||||
Equity in undistributed net (income) loss of subsidiaries and affiliates | (1,172,005 | ) | 150,090 | 505,267 | ||||||||
(Decrease) increase in federal income taxes | (6,626 | ) | 6,583 | (7,145 | ) | |||||||
Deferred income tax provision | 170,757 | — | — | |||||||||
Depreciation and other amortization, net | 34,213 | 30,286 | 18,603 | |||||||||
Change in other assets | 13,768 | 23,301 | (17,708 | ) | ||||||||
Change in other liabilities | (47,536 | ) | 85,450 | 25,336 | ||||||||
Net cash (used in) provided by operating activities, continuing operations | (27,153 | ) | 105,681 | 54,889 | ||||||||
Net cash used in operating activities, discontinued operations | (18,027 | ) | — | — | ||||||||
Net cash (used in) provided by operating activities | (45,180 | ) | 105,681 | 54,889 | ||||||||
Cash flows from investing activities: | ||||||||||||
Sales/redemptions of trading securities | — | 9,000 | 153,992 | |||||||||
Purchases of trading securities | — | — | (3 | ) | ||||||||
Sales (purchases) of short-term investments, net | 1,372 | (496,979 | ) | 41,042 | ||||||||
Sales of other assets, net | — | 21,473 | 8,709 | |||||||||
Purchases of property and equipment, net | (1,351 | ) | (647 | ) | (1,124 | ) | ||||||
Capital contributions to subsidiaries and affiliates | (139,103 | ) | (233,391 | ) | (100,384 | ) | ||||||
Issuance of note receivable from affiliate | (300,000 | ) | — | — | ||||||||
Net cash (used in) provided by investing activities | (439,082 | ) | (700,544 | ) | 102,232 | |||||||
Cash flows from financing activities: | ||||||||||||
Dividends paid | (1,865 | ) | (1,632 | ) | (1,335 | ) | ||||||
Proceeds/payments related to issuance or exchange of debt, net | 293,809 | 377,783 | — | |||||||||
Redemption of long-term debt | (57,223 | ) | (79,372 | ) | (153,261 | ) | ||||||
Issuance of common stock | 247,188 | 299,410 | — | |||||||||
Net cash provided by (used in) financing activities | 481,909 | 596,189 | (154,596 | ) | ||||||||
(Decrease) increase in cash | (2,353 | ) | 1,326 | 2,525 | ||||||||
Cash, beginning of year | 4,304 | 2,978 | 453 | |||||||||
Cash, end of year | $ | 1,951 | $ | 4,304 | $ | 2,978 | ||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 31, 2014, the maturities of the principal amount of our long-term debt in future years are as follows: | |||||||||||
(In thousands) | ||||||||||||
2017 | $ | 645,501 | ||||||||||
2019 | 700,000 | |||||||||||
$ | 1,345,501 | |||||||||||
Note_1_Description_of_Business2
Note 1 - Description of Business and Recent Developments Capital and Liquidity (Details) (USD $) | 12 Months Ended | 1 Months Ended | 8 Months Ended | 10 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Feb. 28, 2015 | 31-May-14 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 22, 2014 | |
segment | |||||||||||
Business Overview [Abstract] | |||||||||||
Number of Reportable Segments | 2 | ||||||||||
Business Combination, Description [Abstract] | |||||||||||
Goodwill | $191,932,000 | $191,932,000 | |||||||||
Business Combination, Acquisition Related Costs | 6,680,000 | 0 | 0 | ||||||||
Insurance Regulatory Capital Requirements [Abstract] | |||||||||||
Risk To Capital Ratio, Regulatory Maximum | 25 | 25 | |||||||||
Number of Days Until Eligibility Requirements Become Effective After Final Publication | 180 days | ||||||||||
Transition Period for Compliance to New Eligibility Requirements | 2 years | ||||||||||
Capital Stock [Abstract] | |||||||||||
Issuance of common stock | 247,188,000 | 299,410,000 | 0 | ||||||||
Parent Company | |||||||||||
Capital Stock [Abstract] | |||||||||||
Issuance of common stock | 247,188,000 | 299,410,000 | 0 | ||||||||
Radian Guaranty [Member] | |||||||||||
Insurance Regulatory Capital Requirements [Abstract] | |||||||||||
Percentage of New Insurance Written Attributable To States With Statutory Or Regulatory Risk Based Capital Requirements | 56.30% | 55.70% | |||||||||
Proceeds from Contributions from Parent | 230,000,000 | 100,000,000 | 100,000,000 | ||||||||
Risk-to-capital | 17.9 | 19.5 | 17.9 | 19.5 | |||||||
Subsequent Event [Member] | Radian Guaranty [Member] | |||||||||||
Insurance Regulatory Capital Requirements [Abstract] | |||||||||||
Proceeds from Contributions from Parent | 100,000,000 | ||||||||||
Common Stock | |||||||||||
Capital Stock [Abstract] | |||||||||||
Stock Issued During Period, Shares, New Issues | 17,825,000 | 39,100,000 | |||||||||
Shares Issued, Price Per Share | $14.50 | ||||||||||
Issuance of common stock | 247,200,000 | 299,400,000 | |||||||||
State Insurance Regulations [Member] | |||||||||||
Insurance Regulatory Capital Requirements [Abstract] | |||||||||||
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement | 16 | 16 | |||||||||
Non RBC States [Member] | Maximum [Member] | |||||||||||
Insurance Regulatory Capital Requirements [Abstract] | |||||||||||
Capital Required for Capital Adequacy | 5,000,000 | 5,000,000 | |||||||||
Non RBC States [Member] | Minimum [Member] | |||||||||||
Insurance Regulatory Capital Requirements [Abstract] | |||||||||||
Capital Required for Capital Adequacy | 1,000,000 | 1,000,000 | |||||||||
Bank of America Settlement Agreement [Member] | Radian Guaranty [Member] | |||||||||||
BAC Settlement Agreement [Abstract] | |||||||||||
Loss Contingency, Settlement Agreement, Percentage of Subject Loans Not Held by Insureds or Are Non-GSE Investors | 12.00% | 12.00% | |||||||||
Clayton Holdings, LLC [Member] | |||||||||||
Business Combination, Description [Abstract] | |||||||||||
Payments to Acquire Businesses, Gross | 312,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 152,400,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 31,803,000 | ||||||||||
Goodwill | 191,932,000 | ||||||||||
Business Acquisition, Goodwill, Expected Number of Years For Tax Deduction | 15 years | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 16,521,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restricted Cash | 1,591,000 | ||||||||||
Business Combination, Acquired Receivables, Fair Value | 11,236,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 2,419,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 102,750,000 | ||||||||||
Business Combination, Other Assets, Fair Value | 17,852,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 312,498,000 | ||||||||||
Business Combination, Acquisition Related Costs | 6,500,000 | ||||||||||
Clayton Holdings, LLC [Member] | Pro Forma [Member] | |||||||||||
Business Combination, Description [Abstract] | |||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 189,000,000 | 189,000,000 | |||||||||
Sale of Radian Asset Assurance [Member] | |||||||||||
Business Overview [Abstract] | |||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | ||||||||||
Sale of Radian Asset Assurance [Member] | Parent Company | |||||||||||
Business Overview [Abstract] | |||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | ||||||||||
Financial Guaranty and Discontinued Operations [Abstract] | |||||||||||
Disposal Group, Including Discontinued Operation, Consideration | 810,000,000 | ||||||||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | 790,000,000 | ||||||||||
Mortgage Insurance Segment | |||||||||||
Mortgage Insurance [Abstract] | |||||||||||
Private Mortgage Insurance Protects Lenders For Loans Made With This Maximum Downpayment Percentage | 20.00% | 20.00% | |||||||||
Percentage Of Primary Insurance On Domestic First-Lien Mortgages To Total Risk In Force | 96.60% | 96.60% | |||||||||
Risk In Force | 44,800,000,000 | 44,800,000,000 | |||||||||
Percentage Of Pool Insurance On Domestic First-Lien Mortgages To Total Risk In Force | 3.20% | 3.20% | |||||||||
Nontraditional Risk In Force | 73,000,000 | 73,000,000 | |||||||||
Business Combination, Description [Abstract] | |||||||||||
Goodwill | $0 | $0 | |||||||||
Mortgage Insurance Segment | Maximum [Member] | |||||||||||
Mortgage Insurance [Abstract] | |||||||||||
Percentage Of Non-Traditional RIF To Total RIF | 1.00% | 1.00% | |||||||||
Mortgage Insurance Segment | Bank of America Settlement Agreement [Member] | |||||||||||
BAC Settlement Agreement [Abstract] | |||||||||||
Loss Contingency, Settlement Agreement, Percentage of Subject Loans Not Held by Insureds or Are Non-GSE Investors | 12.00% | 12.00% |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies Accounting Policy (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
group | |||
Discontinued Operations and Disposal Groups [Abstract] | |||
Number of Years Used in Consideration for Disposal Groups | 1 year | ||
Deferred Policy Acquisition Costs Disclosures [Abstract] | |||
Deferred Policy Acquisition Cost, Amortization Expense | $24,446,000 | $28,485,000 | $34,131,000 |
Investments [Abstract] | |||
Number of Investment Categories | 3 | ||
Maximum Maturity Duration for Short Term Investment Grouping | 3 months | ||
Criteria For Establishing Reserve For Losses [Member] | |||
Losses and LAE Mortgage Insurance [Abstract] | |||
Number of Groups of States Used in Reserve Modeling | 3 | ||
Minimum [Member] | |||
Basis of Presentation [Abstract] | |||
Equity Method Investment, Ownership Percentage | 20.00% | ||
Minimum [Member] | Criteria For Establishing Reserve For Losses [Member] | |||
Losses and LAE Mortgage Insurance [Abstract] | |||
Number Of Payments Missed For Insured Loans | 2 | ||
Maximum [Member] | |||
Basis of Presentation [Abstract] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Maximum [Member] | Criteria For Establishing Reserve For Losses [Member] | |||
Losses and LAE Mortgage Insurance [Abstract] | |||
Period of Time That Insured Has to Rebut Decision to Rescind Coverage | 90 days | ||
Period of Time Insureds Have After Foreclosure to Provide Documents to Perfect a Claim | 1 year | ||
Computer Equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Useful Life, Maximum | 3 years | ||
Furniture, Fixtures and Office Equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Useful Life, Maximum | 7 years | ||
Mortgage Insurance Segment | |||
Reserve for Premium Deficiency [Abstract] | |||
Number of Mortgage Insurance Product Categories | 2 | ||
Deferred Policy Acquisition Costs Disclosures [Abstract] | |||
Deferred Policy Acquisition Cost, Amortization Expense | 24,446,000 | 28,485,000 | 34,131,000 |
Company Owned Life Insurance [Member] | |||
Company-Owned Life Insurance | |||
Cash Surrender Value of Life Insurance | $80,800,000 | $78,400,000 | |
Pool Insurance Mortgage Insurance Product [Member] | Insurance Claims [Member] | Maximum [Member] | |||
Losses and LAE Mortgage Insurance [Abstract] | |||
Loss Contingency, Legal Actions Commencement, Period | 3 years | ||
Total Primary Insurance Mortgage Insurance Products [Member] | Insurance Claims [Member] | Maximum [Member] | |||
Losses and LAE Mortgage Insurance [Abstract] | |||
Loss Contingency, Legal Actions Commencement, Period | 2 years |
Note_3_Discontinued_Operations2
Note 3 - Discontinued Operations Disposal Group, Income Statement, Balance Sheet and Additional Disclosures (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 22, 2014 | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||
Net investment income | $16,531,000 | $17,143,000 | $16,663,000 | $15,318,000 | $17,722,000 | $16,351,000 | $17,087,000 | $16,961,000 | $65,655,000 | $68,121,000 | $72,679,000 | |||||||||||
Net gains (losses) on investments | 18,658,000 | [1] | -6,308,000 | [1] | 28,233,000 | [1] | 43,286,000 | [1] | -2,631,000 | [1] | -6,366,000 | [1] | -86,808,000 | [1] | -3,140,000 | [1] | 83,869,000 | [1] | -98,945,000 | [1] | 114,282,000 | |
Derivative, Gain on Derivative | 0 | 635,000 | ||||||||||||||||||||
Derivative, Loss on Derivative | -192,000 | |||||||||||||||||||||
Net gains (losses) on other financial instruments | -675,000 | 14,000 | -2,901,000 | -318,000 | -2,208,000 | -193,000 | 60,000 | -5,239,000 | -3,880,000 | -7,580,000 | 7,802,000 | |||||||||||
Other Income | 5,820,000 | 6,890,000 | 5,595,000 | |||||||||||||||||||
Total revenues | 1,072,685,000 | 749,906,000 | 902,743,000 | |||||||||||||||||||
Policy acquisition costs | 24,446,000 | 28,485,000 | 34,131,000 | |||||||||||||||||||
Total expenses | 665,529,000 | 923,252,000 | 1,175,171,000 | |||||||||||||||||||
Loss from discontinued operations, net of tax | -449,691,000 | [2] | 21,559,000 | [2] | 71,296,000 | [2] | 56,779,000 | [2] | 52,416,000 | 15,329,000 | 44,407,000 | -167,286,000 | -300,057,000 | [2] | -55,134,000 | -227,363,000 | ||||||
Fixed-maturities available for sale—at fair value | 536,890,000 | 35,145,000 | 536,890,000 | 35,145,000 | ||||||||||||||||||
Equity securities available for sale—at fair value | 143,368,000 | 129,161,000 | 143,368,000 | 129,161,000 | ||||||||||||||||||
Trading securities—at fair value | 1,633,584,000 | 2,238,741,000 | 1,633,584,000 | 2,238,741,000 | ||||||||||||||||||
Short-term investments—at fair value | 1,300,872,000 | 935,852,000 | 1,300,872,000 | 935,852,000 | ||||||||||||||||||
Other invested assets | 14,585,000 | 22,421,000 | 14,585,000 | 22,421,000 | ||||||||||||||||||
Other assets | 375,491,000 | 379,903,000 | 375,491,000 | 379,903,000 | ||||||||||||||||||
Assets held for sale | 1,736,444,000 | [3] | 1,768,061,000 | 1,736,444,000 | [3] | 1,768,061,000 | 2,000,000,000 | |||||||||||||||
Unearned premiums | 644,504,000 | 567,072,000 | 644,504,000 | 567,072,000 | ||||||||||||||||||
Reserve for losses and loss adjustment expenses (“LAEâ€) | 1,560,032,000 | 2,164,353,000 | 1,560,032,000 | 2,164,353,000 | ||||||||||||||||||
Other liabilities | 326,743,000 | 377,930,000 | 326,743,000 | 377,930,000 | ||||||||||||||||||
Liabilities held for sale | 947,008,000 | 642,619,000 | 947,008,000 | 642,619,000 | ||||||||||||||||||
Radian Asset Assurance [Member] | ||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | -467,527,000 | 0 | 0 | |||||||||||||||||||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | 37,194,000 | 49,474,000 | 36,598,000 | |||||||||||||||||||
Net investment income | 35,633,000 | 39,966,000 | 41,657,000 | |||||||||||||||||||
Net gains (losses) on investments | 51,409,000 | -50,775,000 | 70,606,000 | |||||||||||||||||||
Impairment losses on investments | 0 | -3,000 | -3,000 | |||||||||||||||||||
Derivative, Gain on Derivative | 130,617,000 | |||||||||||||||||||||
Derivative, Loss on Derivative | -32,406,000 | -143,834,000 | ||||||||||||||||||||
Net gains (losses) on other financial instruments | 3,903,000 | 2,845,000 | -90,071,000 | |||||||||||||||||||
Proceeds from the sale of investment in affiliate | 0 | 0 | 7,708,000 | |||||||||||||||||||
Other Income | 88,000 | -20,000 | 2,000 | |||||||||||||||||||
Total revenues | 258,844,000 | 9,081,000 | -77,337,000 | |||||||||||||||||||
Provision for losses | 2,853,000 | 2,486,000 | 37,664,000 | |||||||||||||||||||
Policy acquisition costs | 6,340,000 | 13,178,000 | 27,745,000 | |||||||||||||||||||
Other operating expenses | 23,726,000 | 27,127,000 | 29,010,000 | |||||||||||||||||||
Total expenses | 32,919,000 | 42,791,000 | 94,419,000 | |||||||||||||||||||
Equity in net (loss) income of affiliates | -13,000 | 1,000 | -13,000 | |||||||||||||||||||
Income (loss) from operations of businesses held for sale | 225,912,000 | -33,709,000 | -171,769,000 | |||||||||||||||||||
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation | 58,442,000 | 21,425,000 | 55,594,000 | |||||||||||||||||||
Loss from discontinued operations, net of tax | -300,057,000 | -55,134,000 | -227,363,000 | |||||||||||||||||||
Fixed-maturities available for sale—at fair value | 224,552,000 | 85,408,000 | 224,552,000 | 85,408,000 | ||||||||||||||||||
Equity securities available for sale—at fair value | 3,749,000 | 0 | 3,749,000 | 0 | ||||||||||||||||||
Trading securities—at fair value | 689,887,000 | 884,696,000 | 689,887,000 | 884,696,000 | ||||||||||||||||||
Short-term investments—at fair value | 435,413,000 | 493,376,000 | 435,413,000 | 493,376,000 | ||||||||||||||||||
Other invested assets | 108,206,000 | 106,000,000 | 108,206,000 | 106,000,000 | ||||||||||||||||||
Other assets | 274,637,000 | 198,581,000 | 274,637,000 | 198,581,000 | ||||||||||||||||||
Assets held for sale | 1,736,444,000 | 1,768,061,000 | 1,736,444,000 | 1,768,061,000 | ||||||||||||||||||
Unearned premiums | 158,921,000 | 201,798,000 | 158,921,000 | 201,798,000 | ||||||||||||||||||
Reserve for losses and loss adjustment expenses (“LAEâ€) | 31,558,000 | 21,069,000 | 31,558,000 | 21,069,000 | ||||||||||||||||||
VIE debt—at fair value | 85,016,000 | 91,800,000 | 85,016,000 | 91,800,000 | ||||||||||||||||||
Derivative Liabilities | 183,370,000 | 307,185,000 | 183,370,000 | 307,185,000 | ||||||||||||||||||
Other liabilities | 488,143,000 | 20,767,000 | 488,143,000 | 20,767,000 | ||||||||||||||||||
Liabilities held for sale | 947,008,000 | 642,619,000 | 947,008,000 | 642,619,000 | ||||||||||||||||||
Number of Credit Risk Derivatives Held | 74 | 93 | 74 | 93 | ||||||||||||||||||
Derivative, Notional Amount | 8,755,457,000 | 12,269,421,000 | 8,755,457,000 | 12,269,421,000 | ||||||||||||||||||
Derivative Assets (Liabilities), at Fair Value, Net | 159,335,000 | 290,543,000 | 159,335,000 | 290,543,000 | ||||||||||||||||||
Number of policies | 347 | 347 | ||||||||||||||||||||
Remaining weighted-average contract period (in years) | 17 years | |||||||||||||||||||||
Gross claim liability | 269,865,000 | 269,865,000 | ||||||||||||||||||||
Gross potential recoveries | 318,175,000 | 318,175,000 | ||||||||||||||||||||
Net claim liability | 29,566,000 | [4] | 29,566,000 | [4] | ||||||||||||||||||
Sale of Radian Asset Assurance [Member] | ||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | |||||||||||||||||||||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | 468,000,000 | |||||||||||||||||||||
Performing | Radian Asset Assurance [Member] | ||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||
Number of policies | 5 | 5 | ||||||||||||||||||||
Remaining weighted-average contract period (in years) | 21 years | |||||||||||||||||||||
Gross claim liability | 1,000 | 1,000 | ||||||||||||||||||||
Gross potential recoveries | 0 | 0 | ||||||||||||||||||||
Net claim liability | 0 | [4] | 0 | [4] | ||||||||||||||||||
Special Mention | Radian Asset Assurance [Member] | ||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||
Number of policies | 166 | 166 | ||||||||||||||||||||
Remaining weighted-average contract period (in years) | 15 years | |||||||||||||||||||||
Gross claim liability | 14,803,000 | 14,803,000 | ||||||||||||||||||||
Gross potential recoveries | 1,733,000 | 1,733,000 | ||||||||||||||||||||
Net claim liability | 4,540,000 | [4] | 4,540,000 | [4] | ||||||||||||||||||
Intensified Surveillance | Radian Asset Assurance [Member] | ||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||
Number of policies | 85 | 85 | ||||||||||||||||||||
Remaining weighted-average contract period (in years) | 18 years | |||||||||||||||||||||
Gross claim liability | 219,594,000 | 219,594,000 | ||||||||||||||||||||
Gross potential recoveries | 269,442,000 | 269,442,000 | ||||||||||||||||||||
Net claim liability | 37,328,000 | [4] | 37,328,000 | [4] | ||||||||||||||||||
Case Reserve | Radian Asset Assurance [Member] | ||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||
Number of policies | 91 | 91 | ||||||||||||||||||||
Remaining weighted-average contract period (in years) | 19 years | |||||||||||||||||||||
Gross claim liability | 35,467,000 | 35,467,000 | ||||||||||||||||||||
Gross potential recoveries | 47,000,000 | 47,000,000 | ||||||||||||||||||||
Net claim liability | -12,302,000 | [4] | -12,302,000 | [4] | ||||||||||||||||||
Parent Company | ||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||
Net investment income | 9,515,000 | 4,300,000 | 9,093,000 | |||||||||||||||||||
Net gains (losses) on other financial instruments | -2,865,000 | -6,026,000 | 9,180,000 | |||||||||||||||||||
Other Income | 7,000 | 0 | 3,000 | |||||||||||||||||||
Total revenues | 6,790,000 | -2,656,000 | 27,092,000 | |||||||||||||||||||
Total expenses | 57,366,000 | 37,087,000 | 20,446,000 | |||||||||||||||||||
Loss from discontinued operations, net of tax | -18,027,000 | 0 | 0 | |||||||||||||||||||
Trading securities—at fair value | 5,447,000 | 5,240,000 | 5,447,000 | 5,240,000 | ||||||||||||||||||
Short-term investments—at fair value | 631,934,000 | 633,178,000 | 631,934,000 | 633,178,000 | ||||||||||||||||||
Other assets | 16,660,000 | 12,880,000 | 16,660,000 | 12,880,000 | ||||||||||||||||||
Assets held for sale | 18,027,000 | 0 | 18,027,000 | 0 | ||||||||||||||||||
Other liabilities | 3,935,000 | 5,903,000 | 3,935,000 | 5,903,000 | ||||||||||||||||||
Liabilities held for sale | 18,027,000 | 0 | 18,027,000 | 0 | ||||||||||||||||||
Parent Company | Sale of Radian Asset Assurance [Member] | ||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | |||||||||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | 810,000,000 | |||||||||||||||||||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | 790,000,000 | |||||||||||||||||||||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | $468,000,000 | |||||||||||||||||||||
[1] | The 2014 and 2013 amounts reflect unrealized gains (losses), respectively, on our trading securities. | |||||||||||||||||||||
[2] | This amount reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter. | |||||||||||||||||||||
[3] | Assets held for sale are not part of the mortgage insurance or MRES segments. | |||||||||||||||||||||
[4] | Net of discount and unearned premium reserves. |
Note_4_Segment_Reporting_Sched
Note 4 - Segment Reporting Schedule of Segment Reporting Information by Segment (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 22, 2014 | Dec. 31, 2011 | ||||||||||||
segment | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Number of Reportable Segments | 2 | |||||||||||||||||||||||
Net premiums written—insurance | $925,181,000 | $950,998,000 | $806,305,000 | |||||||||||||||||||||
(Increase) decrease in unearned premiums | -80,653,000 | -169,578,000 | -103,920,000 | |||||||||||||||||||||
Net premiums earned—insurance | 224,293,000 | 217,827,000 | 203,646,000 | 198,762,000 | 200,356,000 | 200,120,000 | 197,952,000 | 182,992,000 | 844,528,000 | 781,420,000 | 702,385,000 | |||||||||||||
Services revenue | 34,450,000 | 42,243,000 | 0 | 0 | 76,693,000 | 0 | 0 | |||||||||||||||||
Net investment income | 16,531,000 | 17,143,000 | 16,663,000 | 15,318,000 | 17,722,000 | 16,351,000 | 17,087,000 | 16,961,000 | 65,655,000 | 68,121,000 | 72,679,000 | |||||||||||||
Other Income | 5,820,000 | 6,890,000 | 5,595,000 | |||||||||||||||||||||
Provision for losses | 82,867,000 | 48,942,000 | 64,648,000 | 49,626,000 | 144,072,000 | 149,687,000 | 137,661,000 | 131,327,000 | 246,083,000 | 562,747,000 | 921,548,000 | |||||||||||||
Change In Present Value of Estimated Credit Loss Payments | -113,000 | 21,000 | -933,000 | |||||||||||||||||||||
Policy acquisition costs | 24,446,000 | 28,485,000 | 34,131,000 | |||||||||||||||||||||
Direct cost of services | 19,709,000 | 23,896,000 | 0 | 0 | 43,605,000 | 0 | 0 | |||||||||||||||||
Interest expense | 90,464,000 | 74,618,000 | 51,832,000 | |||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 342,382,000 | -67,435,000 | -395,253,000 | |||||||||||||||||||||
Investments and Cash | 3,659,764,000 | 3,659,764,000 | ||||||||||||||||||||||
Restricted cash | 14,031,000 | 22,527,000 | 14,031,000 | 22,527,000 | ||||||||||||||||||||
Deferred policy acquisition costs | 12,003,000 | 29,741,000 | 12,003,000 | 29,741,000 | ||||||||||||||||||||
Goodwill | 191,932,000 | 191,932,000 | ||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 96,308,000 | 96,308,000 | ||||||||||||||||||||||
Assets held for sale | 1,736,444,000 | [1] | 1,768,061,000 | 1,736,444,000 | [1] | 1,768,061,000 | 2,000,000,000 | |||||||||||||||||
Total assets | 6,859,963,000 | 5,621,691,000 | 6,859,963,000 | 5,621,691,000 | ||||||||||||||||||||
Unearned premiums | 644,504,000 | 567,072,000 | 644,504,000 | 567,072,000 | ||||||||||||||||||||
Reserve for losses and LAE | 1,560,032,000 | 2,164,353,000 | 1,560,032,000 | 2,164,353,000 | ||||||||||||||||||||
Business Combination, Acquisition Related Costs | 6,680,000 | 0 | 0 | |||||||||||||||||||||
Net gains (losses) on investments | -18,658,000 | [2] | 6,308,000 | [2] | -28,233,000 | [2] | -43,286,000 | [2] | 2,631,000 | [2] | 6,366,000 | [2] | 86,808,000 | [2] | 3,140,000 | [2] | -83,869,000 | [2] | 98,945,000 | [2] | -114,282,000 | |||
Net (losses) gains on other financial instruments | 675,000 | -14,000 | 2,901,000 | 318,000 | 2,208,000 | 193,000 | -60,000 | 5,239,000 | 3,880,000 | 7,580,000 | -7,802,000 | |||||||||||||
Derivative, Loss on Derivative | -192,000 | |||||||||||||||||||||||
Derivative, Gain on Derivative | 0 | 635,000 | ||||||||||||||||||||||
Mortgage Insurance Segment | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Net premiums written—insurance | 925,181,000 | 950,998,000 | 806,305,000 | |||||||||||||||||||||
(Increase) decrease in unearned premiums | -80,653,000 | -169,578,000 | -103,920,000 | |||||||||||||||||||||
Net premiums earned—insurance | 844,528,000 | 781,420,000 | 702,385,000 | |||||||||||||||||||||
Services revenue | 0 | |||||||||||||||||||||||
Net investment income | 65,655,000 | [3] | 68,121,000 | [4] | 72,679,000 | [4] | ||||||||||||||||||
Other Income | 5,321,000 | [3] | 6,255,000 | [5],[6] | 5,787,000 | [5],[6] | ||||||||||||||||||
Revenue Non GAAP Basis | 915,504,000 | 855,796,000 | [7] | 780,851,000 | [7] | |||||||||||||||||||
Provision for losses | 246,865,000 | [8] | 562,747,000 | 921,548,000 | ||||||||||||||||||||
Change In Present Value of Estimated Credit Loss Payments | 113,000 | -21,000 | 933,000 | |||||||||||||||||||||
Policy acquisition costs | 24,446,000 | 28,485,000 | 34,131,000 | |||||||||||||||||||||
Direct cost of services | 0 | |||||||||||||||||||||||
Other operating expenses | 225,544,000 | [3],[9] | 257,402,000 | [10] | 167,660,000 | [10] | ||||||||||||||||||
Interest expense | 81,600,000 | [3] | 74,618,000 | [11] | 51,832,000 | [11] | ||||||||||||||||||
Total Expenses Non-GAAP | 578,568,000 | 923,231,000 | 1,176,104,000 | |||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 336,936,000 | [12],[13] | -67,435,000 | [12] | -395,253,000 | [12] | ||||||||||||||||||
Investments and Cash | 3,649,582,000 | 3,384,558,000 | 3,649,582,000 | 3,384,558,000 | 3,447,201,000 | |||||||||||||||||||
Restricted cash | 11,508,000 | 22,527,000 | 11,508,000 | 22,527,000 | 24,225,000 | |||||||||||||||||||
Deferred policy acquisition costs | 12,003,000 | 29,741,000 | 12,003,000 | 29,741,000 | 38,478,000 | |||||||||||||||||||
Goodwill | 0 | 0 | ||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 137,000 | 137,000 | ||||||||||||||||||||||
Total assets | 4,786,641,000 | 3,853,630,000 | [14] | 4,786,641,000 | 3,853,630,000 | [14] | 3,937,588,000 | [14] | ||||||||||||||||
Unearned premiums | 644,504,000 | 567,072,000 | 644,504,000 | 567,072,000 | 382,413,000 | |||||||||||||||||||
Reserve for losses and LAE | 1,560,032,000 | 2,164,353,000 | 1,560,032,000 | 2,164,353,000 | 3,083,608,000 | 3,247,900,000 | ||||||||||||||||||
New Insurance Written | 37,349,000,000 | 47,255,000,000 | 37,061,000,000 | |||||||||||||||||||||
Costs and Expenses, Related Party | 800,000 | |||||||||||||||||||||||
Entity Wide Revenue, Major Customer, Number of Customers | 1 | 1 | 1 | |||||||||||||||||||||
Mortgage Insurance Segment | Earned Premium Benchmark, Amount [Member] | Customer B [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Entity Wide Revenue, Major Customer, Number of Customers | 1 | 1 | ||||||||||||||||||||||
Mortgage and Real Estate Services Segment [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Net premiums written—insurance | 0 | [15] | ||||||||||||||||||||||
(Increase) decrease in unearned premiums | 0 | [15] | ||||||||||||||||||||||
Net premiums earned—insurance | 0 | [15] | ||||||||||||||||||||||
Services revenue | 76,709,000 | [15],[16] | ||||||||||||||||||||||
Net investment income | 0 | [15],[3] | ||||||||||||||||||||||
Other Income | 1,265,000 | [15],[3] | ||||||||||||||||||||||
Revenue Non GAAP Basis | 77,974,000 | [15] | ||||||||||||||||||||||
Provision for losses | 0 | [15],[8] | ||||||||||||||||||||||
Change In Present Value of Estimated Credit Loss Payments | 0 | [15] | ||||||||||||||||||||||
Policy acquisition costs | 0 | [15] | ||||||||||||||||||||||
Direct cost of services | 43,605,000 | [15] | ||||||||||||||||||||||
Other operating expenses | 20,059,000 | [15],[3],[9] | ||||||||||||||||||||||
Interest expense | 8,864,000 | [15],[3] | ||||||||||||||||||||||
Total Expenses Non-GAAP | 72,528,000 | [15] | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 5,446,000 | [15],[17] | 0 | 0 | ||||||||||||||||||||
Investments and Cash | 10,182,000 | [15] | 10,182,000 | [15] | ||||||||||||||||||||
Restricted cash | 2,523,000 | [15] | 2,523,000 | [15] | ||||||||||||||||||||
Deferred policy acquisition costs | 0 | [15] | 0 | [15] | ||||||||||||||||||||
Goodwill | 191,932,000 | [15] | 2,095,000 | 191,932,000 | [15] | 2,095,000 | ||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) | 96,171,000 | [15] | 96,171,000 | [15] | ||||||||||||||||||||
Total assets | 336,878,000 | [15] | 336,878,000 | [15] | ||||||||||||||||||||
Unearned premiums | 0 | 0 | ||||||||||||||||||||||
Reserve for losses and LAE | 0 | 0 | ||||||||||||||||||||||
Revenue from Related Parties | 800,000 | |||||||||||||||||||||||
Mortgage Insurance and Mortgage and Real Estate Services Segments [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Net premiums written—insurance | 925,181,000 | |||||||||||||||||||||||
(Increase) decrease in unearned premiums | -80,653,000 | |||||||||||||||||||||||
Net premiums earned—insurance | 844,528,000 | |||||||||||||||||||||||
Services revenue | 76,709,000 | [16] | ||||||||||||||||||||||
Net investment income | 65,655,000 | [3] | ||||||||||||||||||||||
Other Income | 6,586,000 | [3] | ||||||||||||||||||||||
Revenue Non GAAP Basis | 993,478,000 | [18] | ||||||||||||||||||||||
Provision for losses | 246,865,000 | [8] | ||||||||||||||||||||||
Change In Present Value of Estimated Credit Loss Payments | 113,000 | |||||||||||||||||||||||
Policy acquisition costs | 24,446,000 | |||||||||||||||||||||||
Direct cost of services | 43,605,000 | |||||||||||||||||||||||
Other operating expenses | 245,603,000 | [3],[9] | ||||||||||||||||||||||
Interest expense | 90,464,000 | [3] | ||||||||||||||||||||||
Total Expenses Non-GAAP | 651,096,000 | |||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 342,382,000 | |||||||||||||||||||||||
Continuing Operations [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Derivative, Loss on Derivative | -200,000 | |||||||||||||||||||||||
Derivative, Gain on Derivative | 600,000 | |||||||||||||||||||||||
Sale of Radian Asset Assurance [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | |||||||||||||||||||||||
Investment Income [Member] | Continuing Operations [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Segment Reporting, Previously Allocated Income (Expense) to Discontinued Operations | 4,800,000 | 6,500,000 | 9,500,000 | |||||||||||||||||||||
Other Income [Member] | Continuing Operations [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Segment Reporting, Previously Allocated Income (Expense) to Discontinued Operations | 300,000 | 200,000 | 200,000 | |||||||||||||||||||||
Interest Expense [Member] | Continuing Operations [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Segment Reporting, Previously Allocated Income (Expense) to Discontinued Operations | -53,300,000 | -56,600,000 | -44,400,000 | |||||||||||||||||||||
Operating Expense [Member] | Continuing Operations [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Segment Reporting, Previously Allocated Income (Expense) to Discontinued Operations | ($13,500,000) | ($20,500,000) | ($15,200,000) | |||||||||||||||||||||
[1] | Assets held for sale are not part of the mortgage insurance or MRES segments. | |||||||||||||||||||||||
[2] | The 2014 and 2013 amounts reflect unrealized gains (losses), respectively, on our trading securities. | |||||||||||||||||||||||
[3] | Includes corporate income and expenses that have been reallocated to the mortgage insurance segment that were previously allocated to the financial guaranty segment, but were not reclassified to discontinued operations. These items include net investment income of $4.8 million, other income of $0.3 million, interest expense of $53.3 million and corporate overhead expenses of $13.5 million for the year ended December 31, 2014. | |||||||||||||||||||||||
[4] | Net investment income of $6.5 million and $9.5 million has been reallocated to the mortgage insurance segment for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
[5] | Does not include change in fair value of derivative instruments of $0.6 million and ($0.2) million for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
[6] | Other income of $0.2 million has been reallocated to the mortgage insurance segment for each of the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||
[7] | For the year ended December 31, 2013, excludes the following revenue items not included in adjusted pretax operating loss: (a) net losses on investments of $98.9 million; (b) net losses on other financial instruments of $7.6 million; and (c) change in fair value of derivative instruments of $0.6 million. For the year ended December 31, 2012, excludes the following revenue items not included in adjusted pretax operating loss: (a) net gains on investments of $114.3 million;(b) net losses on other financial instruments of $7.8 million; and (c) change in fair value of derivative instruments of ($0.2) million. | |||||||||||||||||||||||
[8] | Includes inter-segment expenses of $0.8 million in the mortgage insurance segment. | |||||||||||||||||||||||
[9] | Excludes $6.7 million of acquisition-related expenses not included in segment other operating expenses. | |||||||||||||||||||||||
[10] | Corporate overhead expenses of $20.5 million and $15.2 million have been reallocated to the mortgage insurance segment for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
[11] | Interest expense of $56.6 million and $44.4 million has been reallocated to the mortgage insurance segment for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
[12] | Includes certain corporate income and expenses that have been reallocated to the mortgage insurance segment for all periods presented, as listed in the preceding detailed tables. These amounts represent items that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations. | |||||||||||||||||||||||
[13] | Includes inter-segment expenses of $0.8 million for the year ended December 31, 2014. | |||||||||||||||||||||||
[14] | Does not include assets held for sale of $1.8 billion and $2.0 billion for the years ended December 31, 2013 and 2012, respectively, which are not a part of the mortgage insurance segment. | |||||||||||||||||||||||
[15] | Includes the acquisition of Clayton, effective June 30, 2014. | |||||||||||||||||||||||
[16] | Includes a de minimis amount of inter-segment revenues in the MRES segment. | |||||||||||||||||||||||
[17] | Includes inter-segment revenues of $0.8 million for the year ended December 31, 2014. | |||||||||||||||||||||||
[18] | Excludes the following revenue items not included in adjusted pretax operating income: (a) net gains on investments of $83.9 million; and (b) net losses on other financial instruments of $3.9 million. Includes inter-segment revenues of $0.8 million in the MRES segment. |
Note_4_Segment_Reporting_Recon
Note 4 - Segment Reporting Reconciliation of Segment to Consolidated Results Pretax (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | $342,382,000 | ($67,435,000) | ($395,253,000) | |||||||||||||||||||
Derivative, Gain on Derivative | 0 | 635,000 | ||||||||||||||||||||
Derivative, Loss on Derivative | -192,000 | |||||||||||||||||||||
Change In Present Value of Estimated Credit Loss Payments | -113,000 | 21,000 | -933,000 | |||||||||||||||||||
Change in Fair Value of Derivative Instruments Expected to Reverse Over Time | 113,000 | 614,000 | 741,000 | |||||||||||||||||||
Net gains (losses) on investments | 18,658,000 | [1] | -6,308,000 | [1] | 28,233,000 | [1] | 43,286,000 | [1] | -2,631,000 | [1] | -6,366,000 | [1] | -86,808,000 | [1] | -3,140,000 | [1] | 83,869,000 | [1] | -98,945,000 | [1] | 114,282,000 | |
Net (losses) gains on other financial instruments | -675,000 | 14,000 | -2,901,000 | -318,000 | -2,208,000 | -193,000 | 60,000 | -5,239,000 | -3,880,000 | -7,580,000 | 7,802,000 | |||||||||||
Business Combination, Acquisition Related Costs | -6,680,000 | 0 | 0 | |||||||||||||||||||
Increase (Decrease) in Goodwill and Intangible Assets | -5,354,000 | -3,294,000 | 0 | 0 | -8,648,000 | 0 | 0 | |||||||||||||||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | 407,156,000 | -173,346,000 | -272,428,000 | |||||||||||||||||||
Mortgage Insurance Segment | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Entity Wide Revenue, Major Customer, Number of Customers | 1 | 1 | 1 | |||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 336,936,000 | [2],[3] | -67,435,000 | [2] | -395,253,000 | [2] | ||||||||||||||||
Change In Present Value of Estimated Credit Loss Payments | 113,000 | -21,000 | 933,000 | |||||||||||||||||||
Costs and Expenses, Related Party | 800,000 | |||||||||||||||||||||
Mortgage and Real Estate Services Segment [Member] | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 5,446,000 | [4],[5] | 0 | 0 | ||||||||||||||||||
Change In Present Value of Estimated Credit Loss Payments | 0 | [5] | ||||||||||||||||||||
Revenue from Related Parties | $800,000 | |||||||||||||||||||||
Geographic Concentration Risk [Member] | CALIFORNIA | Primary Risk In Force [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Concentration Risk, Percentage | 13.70% | 13.70% | ||||||||||||||||||||
Geographic Concentration Risk [Member] | CALIFORNIA | Pool Risk in Force [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Concentration Risk, Percentage | 9.80% | 10.00% | ||||||||||||||||||||
Geographic Concentration Risk [Member] | CALIFORNIA | New Insurance Written [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Concentration Risk, Percentage | 17.20% | 18.40% | 17.10% | |||||||||||||||||||
Minimum [Member] | Geographic Concentration Risk [Member] | CALIFORNIA | Primary Risk In Force [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Concentration Risk, Percentage | 10.00% | |||||||||||||||||||||
Customer A [Member] | Customer Concentration Risk [Member] | New Insurance Written [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Concentration Risk, Percentage | 4.00% | 5.80% | 6.20% | |||||||||||||||||||
Customer B [Member] | Earned Premium Benchmark, Amount [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Entity Wide Revenue, Major Customer, Number of Customers | 1 | 1 | ||||||||||||||||||||
Customer B [Member] | Customer Concentration Risk [Member] | Earned Premium Benchmark, Amount [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Concentration Risk, Percentage | 19.00% | 21.00% | 19.00% | |||||||||||||||||||
Customer C [Member] | Customer Concentration Risk [Member] | Earned Premium Benchmark, Amount [Member] | Mortgage Insurance Segment | ||||||||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||||||||||
Concentration Risk, Percentage | 17.00% | |||||||||||||||||||||
[1] | The 2014 and 2013 amounts reflect unrealized gains (losses), respectively, on our trading securities. | |||||||||||||||||||||
[2] | Includes certain corporate income and expenses that have been reallocated to the mortgage insurance segment for all periods presented, as listed in the preceding detailed tables. These amounts represent items that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations. | |||||||||||||||||||||
[3] | Includes inter-segment expenses of $0.8 million for the year ended December 31, 2014. | |||||||||||||||||||||
[4] | Includes inter-segment revenues of $0.8 million for the year ended December 31, 2014. | |||||||||||||||||||||
[5] | Includes the acquisition of Clayton, effective June 30, 2014. |
Note_5_Fair_Value_of_Financial2
Note 5 - Fair Value of Financial Instruments Fair Value Assets Liabilities by Hierarchy Level (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value by Hierarchy Level [Line Items] | ||||
Held-to-maturity Securities | $0 | $358,000 | ||
Reported Value Measurement [Member] | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Held-to-maturity Securities | 0 | 400,000 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 3,614,700,000 | [1] | 3,338,900,000 | [2] |
Total Assets at Fair Value | 3,614,700,000 | 3,338,900,000 | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | |||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | ||
Fair Value, Measurements, Recurring | Reported Value Measurement [Member] | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Other invested assets fair value disclosure | 14,600,000 | 22,400,000 | ||
US government and agency securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 839,900,000 | 696,600,000 | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 137,300,000 | |||
State and municipal obligations | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 362,800,000 | 374,100,000 | ||
Money market instruments | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 600,300,000 | 484,800,000 | ||
Corporate bonds and notes | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 992,800,000 | 880,400,000 | ||
RMBS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 132,300,000 | 338,800,000 | ||
CMBS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 246,800,000 | 209,200,000 | ||
Other ABS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 185,500,000 | 121,400,000 | ||
Foreign government securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 37,700,000 | 28,300,000 | ||
Equity securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 215,600,000 | [3] | 204,300,000 | [3] |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 21,000,000 | |||
Other investments | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 1,000,000 | [4] | 1,000,000 | [4] |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 1,601,200,000 | [1] | 1,063,100,000 | [2] |
Total Assets at Fair Value | 1,601,200,000 | 1,063,100,000 | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 495,100,000 | |||
Fair Value, Inputs, Level 1 | US government and agency securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 836,900,000 | 450,000,000 | ||
Fair Value, Inputs, Level 1 | State and municipal obligations | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Money market instruments | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 600,300,000 | 484,800,000 | ||
Fair Value, Inputs, Level 1 | Corporate bonds and notes | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | 0 | ||
Fair Value, Inputs, Level 1 | RMBS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | 0 | ||
Fair Value, Inputs, Level 1 | CMBS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Other ABS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Foreign government securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Equity securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 164,000,000 | [3] | 128,300,000 | [3] |
Fair Value, Inputs, Level 1 | Other investments | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | [4] | 0 | [4] |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 2,013,500,000 | [1] | 2,274,500,000 | [2] |
Total Assets at Fair Value | 2,013,500,000 | 2,274,500,000 | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 839,200,000 | |||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Reported Value Measurement [Member] | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Held-to-maturity Securities | 400,000 | |||
Fair Value, Inputs, Level 2 | US government and agency securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 3,000,000 | 246,600,000 | ||
Fair Value, Inputs, Level 2 | State and municipal obligations | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 362,800,000 | 374,100,000 | ||
Fair Value, Inputs, Level 2 | Money market instruments | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | 0 | ||
Fair Value, Inputs, Level 2 | Corporate bonds and notes | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 992,800,000 | 880,400,000 | ||
Fair Value, Inputs, Level 2 | RMBS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 132,300,000 | 338,800,000 | ||
Fair Value, Inputs, Level 2 | CMBS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 246,800,000 | 209,200,000 | ||
Fair Value, Inputs, Level 2 | Other ABS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 185,500,000 | 120,500,000 | ||
Fair Value, Inputs, Level 2 | Foreign government securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 37,700,000 | 28,300,000 | ||
Fair Value, Inputs, Level 2 | Equity securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 51,600,000 | [3] | 75,600,000 | [3] |
Fair Value, Inputs, Level 2 | Other investments | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 1,000,000 | [4] | 1,000,000 | [4] |
Fair Value, Inputs, Level 2 | Short Term CDs | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 1,000,000 | 1,000,000 | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 1,300,000 | [2] | ||
Total Assets at Fair Value | 0 | 1,300,000 | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 102,600,000 | |||
VIE debt - at fair value | 3,800,000 | 2,800,000 | ||
Total Level III Liabilities | 100.00% | 100.00% | ||
Fair Value, Inputs, Level 3 | US government and agency securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | |||
Fair Value, Inputs, Level 3 | State and municipal obligations | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | |||
Fair Value, Inputs, Level 3 | Money market instruments | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | |||
Fair Value, Inputs, Level 3 | Corporate bonds and notes | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | |||
Fair Value, Inputs, Level 3 | RMBS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | |||
Fair Value, Inputs, Level 3 | CMBS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | |||
Fair Value, Inputs, Level 3 | Other ABS | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 900,000 | |||
Fair Value, Inputs, Level 3 | Foreign government securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 0 | |||
Fair Value, Inputs, Level 3 | Equity securities | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | 400,000 | [3] | ||
Fair Value, Inputs, Level 3 | Other investments | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Investments at Fair Value | $0 | [4] | ||
Fair Value, Inputs, Level 3 | Maximum [Member] | Fair Value, Measurements, Recurring | ||||
Fair Value by Hierarchy Level [Line Items] | ||||
Total Level III Assets as a Percentage of Total Assets Measured at Fair Value | 1.00% | |||
[1] | Does not include certain other invested assets ($14.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Also excludes investments classified as assets held for sale of $495.1 million, $839.2 million and $102.6 million, with fair values categorized in Level I, Level II and Level III, respectively. | |||
[2] | Does not include fixed-maturities held to maturity ($0.4 million) and certain other invested assets ($22.4 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. | |||
[3] | Comprising broadly diversified domestic equity mutual funds and certain common stocks included within Level I and various preferred stocks invested across numerous companies and industries included within Level II. | |||
[4] | Comprising short-term CDs ($1.0 million) included within Level II. |
Note_5_Fair_Value_of_Financial3
Note 5 - Fair Value of Financial Instruments Other Fair Value Disclosure (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Held-to-maturity Securities | $0 | $358,000 | ||
Fixed-maturities held to maturity | 0 | 351,000 | ||
Long-term debt | 1,209,926,000 | 930,072,000 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Held-to-maturity Securities | 0 | 400,000 | ||
Other Invested Assets, Carrying Amount | 14,600,000 | 22,400,000 | ||
Long-term debt | 1,209,900,000 | 930,100,000 | ||
Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Other invested assets fair value disclosure | 14,600,000 | 22,400,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Held-to-maturity Securities | 400,000 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed-maturities held to maturity | 0 | 400,000 | [1] | |
Other invested assets fair value disclosure | 20,500,000 | [1] | 27,800,000 | [1] |
Long-term Debt, Fair Value | $1,859,300,000 | [1] | $1,502,700,000 | [1] |
[1] | These estimated fair values would be classified in Level II of the fair value hierarchy. |
Note_6_Investments_Total_Debt_
Note 6 - Investments Total Debt and Equity Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fixed maturities held to maturity | ||||
Held-to-maturity Securities | $0 | $358,000 | ||
Held-to-maturity Securities, Fair Value Disclosure | 0 | 351,000 | ||
Fixed maturities available for sale securities | ||||
Amortized cost | 528,660,000 | 35,511,000 | ||
Fair value | 680,258,000 | |||
Gross unrealized gains | 77,231,000 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 2,533,000 | |||
Equity securities available for sale | ||||
Available-for-sale Equity Securities, Amortized Cost Basis | 76,900,000 | 76,900,000 | ||
Equity securities available for sale—at fair value | 143,368,000 | 129,161,000 | ||
Total debt and equity securities | ||||
Amortized Cost | 605,560,000 | |||
AFS and HTM Securities, Accumulated Unrecognized Gain, before Tax | 52,960,000 | |||
AFS and HTM Securities, Accumulated Unrecognized Loss, Before Tax | 1,072,000 | |||
Amortized Cost Debt and Equity Securities | 112,769,000 | |||
Fair Value Debt and Equity Securities | 164,657,000 | |||
US States and Political Subdivisions Debt Securities [Member] | ||||
Fixed maturities held to maturity | ||||
Held-to-maturity Securities | 358,000 | |||
Held-to-maturity Securities, Fair Value Disclosure | 351,000 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Gross unrealized losses | 7,000 | |||
Fixed maturities available for sale securities | ||||
Amortized cost | 17,727,000 | 17,924,000 | ||
Fair value | 18,910,000 | 17,403,000 | ||
Gross unrealized gains | 1,183,000 | 24,000 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 545,000 | ||
US government and agency securities | ||||
Fixed maturities available for sale securities | ||||
Amortized cost | 5,709,000 | 5,636,000 | ||
Fair value | 5,751,000 | 5,697,000 | ||
Gross unrealized gains | 48,000 | 97,000 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 6,000 | 36,000 | ||
Corporate Debt Securities | ||||
Fixed maturities available for sale securities | ||||
Amortized cost | 277,678,000 | 11,951,000 | ||
Fair value | 284,408,000 | 12,045,000 | ||
Gross unrealized gains | 7,288,000 | 578,000 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 558,000 | 484,000 | ||
RMBS | ||||
Fixed maturities available for sale securities | ||||
Amortized cost | 41,467,000 | |||
Fair value | 42,520,000 | |||
Gross unrealized gains | 1,053,000 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
CMBS | ||||
Fixed maturities available for sale securities | ||||
Amortized cost | 57,358,000 | |||
Fair value | 58,234,000 | |||
Gross unrealized gains | 876,000 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |||
Other ABS | ||||
Fixed maturities available for sale securities | ||||
Amortized cost | 109,420,000 | |||
Fair value | 107,701,000 | |||
Gross unrealized gains | 8,000 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,727,000 | |||
Foreign government securities | ||||
Fixed maturities available for sale securities | ||||
Amortized cost | 19,301,000 | |||
Fair value | 19,366,000 | |||
Gross unrealized gains | 307,000 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 242,000 | |||
Debt Securities | ||||
Fixed maturities held to maturity | ||||
Held-to-maturity Securities | 358,000 | |||
Held-to-maturity Securities, Fair Value Disclosure | 351,000 | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | |||
Gross unrealized losses | 7,000 | |||
Fixed maturities available for sale securities | ||||
Amortized cost | 528,660,000 | 35,511,000 | ||
Fair value | 536,890,000 | 35,145,000 | ||
Gross unrealized gains | 10,763,000 | 699,000 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 2,533,000 | 1,065,000 | ||
Equity securities | ||||
Fixed maturities available for sale securities | ||||
Gross unrealized gains | 66,468,000 | [1] | 52,261,000 | [2] |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | [1] | 0 | [2] |
Equity securities available for sale | ||||
Available-for-sale Equity Securities, Amortized Cost Basis | 76,900,000 | [1] | 76,900,000 | [2] |
Equity securities available for sale—at fair value | 143,368,000 | [1] | 129,161,000 | [2] |
Equity Securities Additional Disclosure [Abstract] | ||||
Diversified Equity Mutual Funds | 143,000,000 | 128,300,000 | ||
Preferred And Common Stocks | $400,000 | $900,000 | ||
[1] | Comprising broadly diversified domestic equity mutual funds ($143.0 million fair value) and a preferred stock investment in Freddie Mac ($0.4 million fair value). | |||
[2] | Comprising broadly diversified domestic equity mutual funds ($128.3 million fair value) and various preferred and common stocks invested across numerous companies and industries ($0.9 million fair value). |
Note_6_Investments_Investments
Note 6 - Investments Investments Trading Securities (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | $1,633,584,000 | $2,238,741,000 | |
Trading Securities, Change in Unrealized Holding Gain (Loss) | 92,226,000 | -117,198,000 | -36,435,000 |
Investments | 3,629,299,000 | 3,361,678,000 | |
Securities (Assets) | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities, Change in Unrealized Holding Gain (Loss) | 65,700,000 | 88,400,000 | |
US government and agency securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 134,530,000 | 240,860,000 | |
State and municipal obligations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 343,926,000 | 356,715,000 | |
Corporate bonds and notes | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 708,361,000 | 868,403,000 | |
RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 89,810,000 | 338,776,000 | |
CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 188,615,000 | 209,191,000 | |
Other ABS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 77,755,000 | 121,399,000 | |
Foreign government securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 18,331,000 | 28,303,000 | |
Equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 72,256,000 | 75,094,000 | |
Portugal, Ireland, Italy, Greece, Spain and Hungary Government Securities [Member] | Foreign government securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Investments | 0 | 0 | |
Non European Countries Outside U.S. Under Economic Stress [Member] | Foreign government securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Investments | $0 | $0 |
Note_6_Investments_Investment_
Note 6 - Investments Investment Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Investment Income [Line Items] | |||
Investment Income, Gross | $70,733 | $74,948 | $78,473 |
Investment Income, Investment Expense | -5,078 | -6,827 | -5,794 |
Investment Income, Net | 65,655 | 68,121 | 72,679 |
Fixed Maturities [Member] | |||
Net Investment Income [Line Items] | |||
Investment Income, Gross | 62,352 | 66,131 | 66,518 |
Equity Securities [Member] | |||
Net Investment Income [Line Items] | |||
Investment Income, Gross | 6,287 | 6,592 | 7,738 |
Short-term Investments [Member] | |||
Net Investment Income [Line Items] | |||
Investment Income, Gross | 246 | 255 | 304 |
Other Security Investments [Member] | |||
Net Investment Income [Line Items] | |||
Investment Income, Gross | $1,848 | $1,970 | $3,913 |
Note_6_Investments_Gain_Loss_o
Note 6 - Investments Gain (Loss) on Investments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Gain (Loss) on Investments [Line Items] | |||||||||||||||||||||
Fixed-maturities held to maturity | ($9) | $2 | $37 | ||||||||||||||||||
Fixed-maturities available for sale | -1,599 | 937 | 2,726 | ||||||||||||||||||
Equities available for sale | 0 | 349 | 5,070 | ||||||||||||||||||
Trading securities | -6,996 | 7,997 | 142,502 | ||||||||||||||||||
Short-term investments | 1 | 1 | 7 | ||||||||||||||||||
Other invested assets | 0 | 8,841 | 375 | ||||||||||||||||||
Gain (Loss) on Disposition of Other Assets | 246 | 126 | 0 | ||||||||||||||||||
Net realized gains (losses) on investments | -8,357 | 18,253 | 150,717 | ||||||||||||||||||
Unrealized gains (losses) on trading securities | 92,226 | -117,198 | -36,435 | ||||||||||||||||||
Net gains (losses) on investments | $18,658 | [1] | ($6,308) | [1] | $28,233 | [1] | $43,286 | [1] | ($2,631) | [1] | ($6,366) | [1] | ($86,808) | [1] | ($3,140) | [1] | $83,869 | [1] | ($98,945) | [1] | $114,282 |
[1] | The 2014 and 2013 amounts reflect unrealized gains (losses), respectively, on our trading securities. |
Note_6_Investments_Available_F
Note 6 - Investments Available For Sale Securities, Proceeds and Gains (Losses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds received from redemptions | $4,985 | $538 | $5,815 |
Proceeds from sales of fixed-maturity investments available for sale | 19,672 | 17,185 | 30,966 |
Proceeds received from sales | 0 | 0 | 31,235 |
Fixed Maturities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds received from redemptions | 4,985 | 538 | 5,815 |
Proceeds from sales of fixed-maturity investments available for sale | 19,672 | 17,185 | 30,966 |
Gross investment gains from sales and redemptions | 99 | 1,078 | 3,018 |
Gross investment losses from sales and redemptions | -1,698 | -141 | -292 |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds received from sales | 0 | 10,503 | 31,235 |
Gross investment gains from sales and redemptions | $0 | $348 | $5,070 |
Note_6_Investments_Change_in_U
Note 6 - Investments Change in Unrealized Gains (Losses) Recorded in AOCI (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | |||
Unrealized holding gains (losses) arising during the period, net of tax | $13,650 | $19,149 | $12,266 |
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | -1,039 | 656 | 6,918 |
Net unrealized gains on investments | 14,689 | 18,493 | 5,348 |
Fixed Maturities [Member] | |||
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | |||
Unrealized holding gains (losses) arising during the period, net of tax | 4,531 | -240 | 2,694 |
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | -1,039 | 929 | 3,395 |
Net unrealized gains on investments | 5,570 | -1,169 | -701 |
Equity Securities [Member] | |||
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | |||
Unrealized holding gains (losses) arising during the period, net of tax | 9,119 | 19,389 | 9,572 |
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | 0 | -273 | 3,523 |
Net unrealized gains on investments | $9,119 | $19,662 | $6,049 |
Note_6_Investments_Schedule_of
Note 6 - Investments Schedule of Unrealized Losses (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
security | security | ||
Schedule of Securities With Unrealized Losses | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses | $0 | $0 | $0 |
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | 62 | ||
Number of Securities In Continuous Unrealized Loss Position Less Than Twelve Months | 3 | ||
Fair value available-for-sale securities | 144,626 | ||
Fair value HTM And AFS state and municipal obligations | 9,374 | ||
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAggregateLossesAccumulatedInAOCI | 2,379 | ||
Unrealized losses AFS And HTM state and municipal obligations | 54 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | 2 | ||
Number Of Securities In Continuous Unrealized Loss Position Twelve Months Or Longer | 4 | ||
Fair value available-for-sale securities | 4,482 | ||
Fair value HTM And AFS state and municipal obligations | 8,480 | ||
AvailableForSaleSecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLossesAccumulatedInAOCI | 154 | ||
Unrealized Losses AFS And HTM state and municipal obligations | 1,018 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 64 | ||
Number of securities | 7 | ||
Fair value available-for-sale securities | 149,108 | ||
Fair Value HTM And AFS state and municipal obligations | 17,854 | ||
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLossesAccumulatedInAOCI | 2,533 | ||
Unrealized losses AFS and HTM state and municipal obligations | 1,072 | ||
US government and agency securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | 0 | 1 | |
Fair value available-for-sale securities | 0 | 3,413 | |
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAggregateLossesAccumulatedInAOCI | 0 | 36 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | 1 | 0 | |
Fair value available-for-sale securities | 3,455 | 0 | |
AvailableForSaleSecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLossesAccumulatedInAOCI | 6 | 0 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | 1 | |
Fair value available-for-sale securities | 3,455 | 3,413 | |
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLossesAccumulatedInAOCI | 6 | 36 | |
State and municipal obligations | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities In Continuous Unrealized Loss Position Less Than Twelve Months | 2 | ||
Fair value HTM And AFS state and municipal obligations | 5,961 | ||
Unrealized losses AFS And HTM state and municipal obligations | 18 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number Of Securities In Continuous Unrealized Loss Position Twelve Months Or Longer | 2 | ||
Fair value HTM And AFS state and municipal obligations | 5,514 | ||
Unrealized Losses AFS And HTM state and municipal obligations | 534 | ||
Continuous Loss Position, Total | |||
Number of securities | 4 | ||
Fair Value HTM And AFS state and municipal obligations | 11,475 | ||
Unrealized losses AFS and HTM state and municipal obligations | 552 | ||
Corporate bonds and notes | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | 24 | 0 | |
Fair value available-for-sale securities | 40,917 | 0 | |
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAggregateLossesAccumulatedInAOCI | 410 | 0 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | 1 | 2 | |
Fair value available-for-sale securities | 1,027 | 2,966 | |
AvailableForSaleSecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLossesAccumulatedInAOCI | 148 | 484 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 25 | 2 | |
Fair value available-for-sale securities | 41,944 | 2,966 | |
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLossesAccumulatedInAOCI | 558 | 484 | |
Other ABS | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | 34 | ||
Fair value available-for-sale securities | 97,356 | ||
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAggregateLossesAccumulatedInAOCI | 1,727 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | 0 | ||
Fair value available-for-sale securities | 0 | ||
AvailableForSaleSecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLossesAccumulatedInAOCI | 0 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 34 | ||
Fair value available-for-sale securities | 97,356 | ||
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLossesAccumulatedInAOCI | 1,727 | ||
Foreign government securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | 4 | ||
Fair value available-for-sale securities | 6,353 | ||
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAggregateLossesAccumulatedInAOCI | 242 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | 0 | ||
Fair value available-for-sale securities | 0 | ||
AvailableForSaleSecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAggregateLossesAccumulatedInAOCI | 0 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 4 | ||
Fair value available-for-sale securities | 6,353 | ||
AvailableForSaleSecuritiesContinuousUnrealizedLossPositionAggregateLossesAccumulatedInAOCI | $242 |
Note_6_Investments_Schedule_of1
Note 6 - Investments Schedule of Contractual Maturities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Available-for-sale Securities, Amortized Cost | |||
Amortized cost | $528,660 | $35,511 | |
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | 536,890 | 35,145 | |
Debt Securities | |||
Available-for-sale Securities, Amortized Cost | |||
Amortized cost | 528,660 | ||
Available-for-sale Securities, Fair Value | |||
Fixed-maturities available for sale—at fair value | 536,890 | ||
Non Asset Backed Security Investments, Contractual Maturities | |||
Available-for-sale Securities, Amortized Cost | |||
Due in one year or less | 2,247 | [1] | |
Due after one year through five years | 39,483 | [1] | |
Due after five years through ten years | 154,234 | [1] | |
Due after ten years | 124,451 | [1] | |
Available-for-sale Securities, Fair Value | |||
Due in one year or less | 2,295 | [1] | |
Due after one year through five years | 39,420 | [1] | |
Due after five years through ten years | 155,790 | [1] | |
Due after ten years | 130,930 | [1] | |
RMBS | |||
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 41,467 | [2] | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 42,520 | [2] | |
CMBS | |||
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 57,358 | [2] | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 58,234 | [2] | |
Other ABS | |||
Available-for-sale Securities, Fair Value | |||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 109,420 | [2] | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | $107,701 | [2] | |
[1] | Actual maturities may differ as a result of calls before scheduled maturity. | ||
[2] | RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date. |
Note_6_Investments_Investments1
Note 6 - Investments Investments In Any Person And Its Affiliates That Exceed 10% of Total Stockholders' Equity (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 29, 2017 |
In Millions, unless otherwise specified | |||
Debt Securities | |||
Investment Holdings [Line Items] | |||
Assets Held by Insurance Regulators | $12.10 | $12.10 | |
Radian Guaranty Inc [Member] | 2013 Freddie Mac Agreement [Member] | |||
Investment Holdings [Line Items] | |||
Restricted Investments Held as Collateral for Master Transaction Agreement, Net | 209.3 | 206.8 | |
Minimum [Member] | |||
Investment Holdings [Line Items] | |||
Investment as a Percentage of Total Stockholder's Equity | 10.00% | ||
Subsequent Event [Member] | Minimum [Member] | Mortgage Insurance Segment | 2013 Freddie Mac Agreement [Member] | |||
Investment Holdings [Line Items] | |||
Restricted Investments Held as Collateral for Master Transaction Agreement, Net | $205 |
Note_7_Goodwill_and_Other_Inta2
Note 7 - Goodwill and Other Intangible Assets, Net Schedule of Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | ||
Goodwill [Line Items] | ||||
Goodwill, Net | $191,932 | $191,932 | ||
Mortgage and Real Estate Services Segment [Member] | ||||
Goodwill [Line Items] | ||||
Beginning Balance, Goodwill, Gross | 2,095 | |||
Beginning Balance, Accumulated Impairment Loss | 0 | |||
Goodwill, Net | 2,095 | |||
Goodwill, Acquired During Period | 191,932 | |||
Goodwill, Impairment Loss | -2,100 | -2,095 | ||
Ending Balance, Goodwill, Gross | 194,027 | 194,027 | ||
Ending Balance, Accumulated Impairment Loss | -2,095 | -2,095 | ||
Goodwill, Net | $191,932 | [1] | $191,932 | [1] |
[1] | Includes the acquisition of Clayton, effective June 30, 2014. |
Note_7_Goodwill_and_Other_Inta3
Note 7 - Goodwill and Other Intangible Assets, Net Schedule of Acquired Finite-Lived Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $102,858 | $205 |
Finite-Lived Intangible Assets, Accumulated Amortization | -6,550 | 0 |
Finite-Lived Intangible Assets, Net | 96,308 | 205 |
Business Acquisition, Goodwill and Other Intangible Assets, Expected Number of Years For Tax Deduction | 15 years | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 79,203 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -2,917 | |
Finite-Lived Intangible Assets, Net | 76,286 | |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 8,970 | 200 |
Finite-Lived Intangible Assets, Accumulated Amortization | -797 | 0 |
Finite-Lived Intangible Assets, Net | 8,173 | 200 |
Technology-Based Intangible Assets [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |
Technology-Based Intangible Assets [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 7,860 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -393 | |
Finite-Lived Intangible Assets, Net | 7,467 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |
Order or Production Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 6,680 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -2,406 | |
Finite-Lived Intangible Assets, Net | 4,274 | |
Order or Production Backlog [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |
Order or Production Backlog [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 145 | 5 |
Finite-Lived Intangible Assets, Accumulated Amortization | -37 | 0 |
Finite-Lived Intangible Assets, Net | $108 | $5 |
Noncompete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years |
Note_7_Goodwill_and_Other_Inta4
Note 7 - Goodwill and Other Intangible Assets, Net Schedule of Finite Lived Assets Future Amortization (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $12,009 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 10,886 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 10,579 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 10,389 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 9,372 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $43,074 |
Note_8_Reinsurance_Reinsurance
Note 8 - Reinsurance Reinsurance Premiums (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Prepaid Reinsurance Premiums | $57,291 | $60,512 | $57,291 | $60,512 | |||||||
Premiums Written, Net [Abstract] | |||||||||||
Direct Premiums Written | 982,976 | 1,033,323 | 892,650 | ||||||||
Assumed Premiums Written | -882 | -904 | -903 | ||||||||
Ceded Premiums Written | -56,913 | -81,421 | -85,442 | ||||||||
Net premiums written—insurance | 925,181 | 950,998 | 806,305 | ||||||||
Premiums Earned, Net [Abstract] | |||||||||||
Direct Premiums Earned | 905,502 | 848,655 | 743,736 | ||||||||
Assumed Premiums Earned | 43 | 56 | -953 | ||||||||
Ceded Premiums Earned | -61,017 | -67,291 | -40,398 | ||||||||
Net premiums earned—insurance | 224,293 | 217,827 | 203,646 | 198,762 | 200,356 | 200,120 | 197,952 | 182,992 | 844,528 | 781,420 | 702,385 |
Mortgage Insurance and Financial Guarantee Contracts [Member] | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Prepaid Reinsurance Premiums | 57,300 | 60,500 | 57,300 | 60,500 | |||||||
Radian Guaranty [Member] | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Risk To Capital Ratio, Regulatory Maximum | 25.00% | 25.00% | |||||||||
Mortgage Insurance Segment | |||||||||||
Premiums Written, Net [Abstract] | |||||||||||
Direct Premiums Written | 982,976 | 1,033,323 | 892,650 | ||||||||
Assumed Premiums Written | -882 | -904 | -903 | ||||||||
Ceded Premiums Written | -56,913 | -81,421 | -85,442 | ||||||||
Net premiums written—insurance | 925,181 | 950,998 | 806,305 | ||||||||
Premiums Earned, Net [Abstract] | |||||||||||
Direct Premiums Earned | 905,502 | 848,655 | 743,736 | ||||||||
Assumed Premiums Earned | 43 | 56 | -953 | ||||||||
Ceded Premiums Earned | -61,017 | -67,291 | -40,398 | ||||||||
Net premiums earned—insurance | $844,528 | $781,420 | $702,385 |
Note_8_Reinsurance_Reinsurance1
Note 8 - Reinsurance Reinsurance Transaction Details (Details) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2015 | Jan. 01, 2015 | Jun. 30, 2012 | Apr. 02, 2013 | |
Reinsurance Transaction Details [Line Items] | ||||||||
Ceded Premiums Written | $56,913,000 | $81,421,000 | $85,442,000 | |||||
Ceded Premiums Earned | 61,017,000 | 67,291,000 | 40,398,000 | |||||
Prepaid Reinsurance Premiums | 57,291,000 | 60,512,000 | 60,512,000 | |||||
Radian Guaranty [Member] | Initial Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
Ceded Premiums Written | 10,217,000 | 23,047,000 | 52,151,000 | |||||
Ceded Premiums Earned | 17,319,000 | 29,746,000 | 16,088,000 | |||||
Fees and Commissions | 4,862,000 | 5,762,000 | 13,038,000 | |||||
Percentage of New Insurance Written To Be Ceded | 20.00% | |||||||
First Lien Primary Mortgage Insurance Risk In Force Ceded | 1,100,000,000 | |||||||
Ceded Premiums Earned | 9,200,000 | |||||||
Unearned Ceding Commissions | 15,000,000 | |||||||
Prepaid Reinsurance Commissions, Amortization Period | 5 years | |||||||
Ceded Commission Percentage | 25.00% | |||||||
Radian Guaranty [Member] | Second Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
Ceded Premiums Written | 33,751,000 | 40,225,000 | 9,648,000 | |||||
Ceded Premiums Earned | 29,820,000 | 18,356,000 | 504,000 | |||||
Fees and Commissions | 11,813,000 | 14,079,000 | 3,377,000 | |||||
Maximum [Member] | Initial Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
Percentage of Reinsurance Able To Be Commuted | 66.70% | |||||||
Maximum [Member] | Radian Guaranty [Member] | Initial Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
First Lien Primary Mortgage Insurance Risk In Force Ceded | 1,600,000,000 | |||||||
Maximum [Member] | Radian Guaranty [Member] | Second Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
First Lien Primary Mortgage Insurance Risk In Force Ceded | $1,600,000,000 | |||||||
Conventional Mortgage Loan [Member] | Radian Guaranty [Member] | Second Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
Percentage of New Insurance Written To Be Ceded | 20.00% | 5.00% | ||||||
Percentage of Premium and Losses Incurred To Be Ceded | 20.00% | 20.00% | ||||||
Ceded Commission Percentage | 35.00% | |||||||
Ceded Commission Percentage Charged on Ceded Risk in Force in the Event of Unexercised Commutation Option | 30.00% | 30.00% | ||||||
Conventional Mortgage Loan [Member] | Maximum [Member] | Second Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
Percentage of Reinsurance Able To Be Commuted | 50.00% | |||||||
Non Conventional Mortgage Loan [Member] | Radian Guaranty [Member] | Second Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
Percentage of Premium and Losses Incurred To Be Ceded | 100.00% | 100.00% | ||||||
Ceded Commission Percentage | 25.00% | |||||||
Subsequent Event [Member] | Initial Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
Percentage of Ceded Insurance Subjected to Change in Commission Percentage | 66.70% | |||||||
Subsequent Event [Member] | Radian Guaranty [Member] | Initial Quota Share Reinsurance Transaction [Member] | ||||||||
Reinsurance Transaction Details [Line Items] | ||||||||
Ceded Commission Percentage | 20.00% |
Note_8_Reinsurance_Captive_and
Note 8 - Reinsurance Captive and Smart Home Transactions (Details) (USD $) | 12 Months Ended | 48 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2007 | |
transaction | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverables | $28,119,000 | $46,846,000 | ||
Ceded Premiums Written | 56,913,000 | 81,421,000 | 85,442,000 | |
Ceded Premiums Earned | 61,017,000 | 67,291,000 | 40,398,000 | |
Radian Guaranty [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Policyholder Benefits and Claims Incurred, Assumed and Ceded | 21,200,000 | 47,200,000 | 34,700,000 | |
Radian Guaranty [Member] | Smart Home [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Number Of Aggregate Excess Of Loss Transactions Completed With Special Purpose Reinsurers | 4 | |||
Radian Guaranty [Member] | Captives [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Captive Reinsurers Minimum Capitalization Percentage To Risk Assumed | 10.00% | |||
Amount of New Business Being Placed Into Captive Reinsurance Arrangements | 0 | |||
Contracts in Force Ceded Under Captive Reinsurance Arrangements | 129,800,000 | 199,800,000 | ||
Reinsurance Recoverables on Unpaid Losses | 24,700,000 | 45,000,000 | ||
Percentage of Ceded Losses Recoverable Attributable To Two Captive Reinsurers | 43.00% | |||
Number Of Captive Reinsurers Accounting For Largest Combined Percentage Of Ceded Losses Recoverable | 2 | |||
Ceded Premiums Written | 12,900,000 | 17,800,000 | 23,300,000 | |
Ceded Premiums Earned | $13,000,000 | $17,900,000 | $23,400,000 |
Note_9_Other_Assets_Schedule_o
Note 9 - Other Assets Schedule of Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Deposit with the IRS (Note 14) | $88,557 | $88,557 | ||
Life Insurance, Corporate or Bank Owned, Amount | 80,755 | 78,354 | ||
Prepaid Reinsurance Premiums | 57,291 | 60,512 | ||
Reinsurance recoverables | 28,119 | 46,846 | ||
Property and Equipment, Owned, Net | 27,248 | [1] | 10,496 | [1] |
Accrued investment income | 20,022 | 21,306 | ||
Deferred policy acquisition costs | 12,003 | 29,741 | ||
Other Assets, Miscellaneous | 61,496 | 44,091 | ||
Other assets | 375,491 | 379,903 | ||
Property and Equipment, Owned, Accumulated Depreciation | $100,207 | $96,058 | ||
[1] | Property and equipment, at cost less accumulated depreciation of $100,207 and $96,058 at December 31, 2014 and 2013, respectively. |
Note_10_Losses_and_Loss_Adjust2
Note 10 - Losses and Loss Adjustment Expenses Mortgage Insurance Reserves by Product (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
In Thousands, unless otherwise specified | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Reserve for losses and loss adjustment expenses (“LAEâ€) | $1,560,032 | $2,164,353 | ||||||
Reinsurance recoverables | 28,119 | 46,846 | ||||||
Mortgage Insurance Segment | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Reserve for losses and loss adjustment expenses (“LAEâ€) | 1,560,032 | 2,164,353 | 3,083,608 | 3,247,900 | ||||
Reinsurance recoverables | 26,665 | [1] | 38,363 | [1] | 83,238 | [1] | 151,569 | [1] |
Mortgage Insurance Segment | First Lien Mortgage Insurance Products [Member] | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Reserve for losses and loss adjustment expenses (“LAEâ€) | 1,558,615 | 2,159,058 | ||||||
Mortgage Insurance Segment | Total Primary Insurance Mortgage Insurance Products [Member] | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Reserve for losses and loss adjustment expenses (“LAEâ€) | 1,477,513 | 1,974,999 | ||||||
Mortgage Insurance Segment | Prime Mortgage Insurance Product [Member] | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Liability for Unpaid Claims | 700,174 | 937,307 | ||||||
Mortgage Insurance Segment | Alt A Mortgage Insurance Product [Member] | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Liability for Unpaid Claims | 292,293 | 384,841 | ||||||
Mortgage Insurance Segment | A Minus and Below Mortgage Insurance Product [Member] | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Liability for Unpaid Claims | 179,103 | 215,545 | ||||||
Mortgage Insurance Segment | Primary Mortgage Product [Member] | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Liability for Incurred but Not Reported Claims | 223,114 | 347,698 | ||||||
Liability for Claims Adjustment Expense | 56,164 | 51,245 | ||||||
Reinsurance recoverables | 26,665 | [2] | 38,363 | [2] | ||||
Mortgage Insurance Segment | Pool Insurance Mortgage Insurance Product [Member] | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Liability for Unpaid Claims | 75,785 | 169,682 | ||||||
Reserve for losses and loss adjustment expenses (“LAEâ€) | 81,102 | 184,059 | ||||||
Liability for Incurred but Not Reported Claims | 1,775 | 8,938 | ||||||
Liability for Claims Adjustment Expense | 3,542 | 5,439 | ||||||
Mortgage Insurance Segment | Second Lien Mortgage Insurance Product [Member] | ||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||
Reserve for losses and loss adjustment expenses (“LAEâ€) | $1,417 | [3] | $5,295 | [3] | ||||
[1] | Related to ceded losses on captive transactions, Smart Home (for 2012) and QSR Reinsurance Transactions. See Note 8 for additional information. | |||||||
[2] | Represents ceded losses on captive transactions and the QSR Reinsurance Transactions. | |||||||
[3] | Does not include our Second-lien PDR that is included in other liabilities. |
Note_10_Losses_and_Loss_Adjust3
Note 10 - Losses and Loss Adjustment Expenses Mortgage Insurance Loss Reserves Rollforward (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Loss reserve [Roll Forward] | ||||||
Balance at January 1 | $2,164,353,000 | |||||
Less reinsurance recoverables | 46,846,000 | |||||
Deduct paid claims and LAE related to [Abstract] | ||||||
Add reinsurance recoverables | 28,119,000 | 46,846,000 | ||||
Balance at December 31 | 1,560,032,000 | 2,164,353,000 | ||||
Increase (Decrease) in Reinsurance Recoverable | -18,156,000 | -42,358,000 | -66,385,000 | |||
Mortgage Insurance Segment | ||||||
Loss reserve [Roll Forward] | ||||||
Balance at January 1 | 2,164,353,000 | 3,083,608,000 | 3,247,900,000 | |||
Less reinsurance recoverables | 38,363,000 | [1] | 83,238,000 | [1] | 151,569,000 | [1] |
Balance at beginning of period, net of reinsurance recoverables | 2,125,990,000 | 3,000,370,000 | 3,096,331,000 | |||
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract] | ||||||
Current year | 422,999,000 | [2] | 584,174,000 | [2] | 899,511,000 | [2] |
Prior years | -177,360,000 | -19,526,000 | 21,996,000 | |||
Total incurred losses and LAE | 245,639,000 | 564,648,000 | 921,507,000 | |||
Deduct paid claims and LAE related to [Abstract] | ||||||
Paid Losses and LAE Current year | 9,006,000 | [2] | 31,399,000 | [2] | 12,503,000 | [2] |
Paid losses and LAE Prior years | 829,256,000 | 1,407,629,000 | 1,004,965,000 | |||
Total paid losses and LAE | 838,262,000 | 1,439,028,000 | 1,017,468,000 | |||
Balance at end of period, net of reinsurance recoverables | 1,533,367,000 | 2,125,990,000 | 3,000,370,000 | |||
Add reinsurance recoverables | 26,665,000 | [1] | 38,363,000 | [1] | 83,238,000 | [1] |
Balance at December 31 | 1,560,032,000 | 2,164,353,000 | 3,083,608,000 | |||
Default To Claim Rate Detail [Abstract] | ||||||
Percentage Point Change In Severity Used In Assumption Shift Analysis | 1 | |||||
Mortgage Insurance Segment | Smart Home [Member] | ||||||
Deduct paid claims and LAE related to [Abstract] | ||||||
Increase (Decrease) in Reinsurance Recoverable | -46,800,000 | |||||
2013 Freddie Mac Agreement [Member] | Mortgage Insurance Segment | ||||||
Deduct paid claims and LAE related to [Abstract] | ||||||
Total paid losses and LAE | 255,000,000 | |||||
Provision for Loan Losses Expensed | $22,000,000 | |||||
Primary Mortgage Product [Member] | Mortgage Insurance Segment | ||||||
Default To Claim Rate Detail [Abstract] | ||||||
Weighted Average Default To Claim Rate Assumption Net Of Denials Rescissions and Reinstatements | 52.00% | 50.00% | ||||
Weighted Average Default To Claim Rate Assumption Excluding Pending Claims Net Of Denials And Rescissions | 47.00% | |||||
Primary Mortgage Product [Member] | New Defaults [Member] | Mortgage Insurance Segment | ||||||
Default To Claim Rate Detail [Abstract] | ||||||
Gross Default To Claim Rate Estimate | 16.00% | |||||
Primary Mortgage Product [Member] | Pre Foreclosure Defaults [Member] | Mortgage Insurance Segment | ||||||
Default To Claim Rate Detail [Abstract] | ||||||
Gross Default To Claim Rate Estimate | 65.00% | |||||
Primary Mortgage Product [Member] | Foreclosure Defaults [Member] | Mortgage Insurance Segment | ||||||
Default To Claim Rate Detail [Abstract] | ||||||
Gross Default To Claim Rate Estimate | 81.00% | |||||
[1] | Related to ceded losses on captive transactions, Smart Home (for 2012) and QSR Reinsurance Transactions. See Note 8 for additional information. | |||||
[2] | Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. |
Note_10_Losses_and_Loss_Adjust4
Note 10 - Losses and Loss Adjustment Expenses Rescissions And Denials (Details) (Mortgage Insurance Segment, USD $) | 12 Months Ended | 24 Months Ended | 18 Months Ended | 36 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Aug. 29, 2017 | |||
percentagepoint | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Claim rescissions | $56.80 | $81.20 | $279.30 | |||||||
Claim denials | 87.9 | 171.7 | 539.4 | |||||||
Total rescissions and denials | 144.7 | [1] | 252.9 | [1] | 818.7 | [1] | ||||
Decrease To Our Loss Reserves Due To Estimated Rescissions And Denials | 125 | 247 | 125 | 125 | 125 | |||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 163.6 | 281.9 | 163.6 | 163.6 | 163.6 | |||||
Accrued Liability For Premiums Expected To Be Refunded From Rescissions | 9 | 17 | 9 | 9 | 9 | |||||
Percentage Point Change In Severity Used In Assumption Shift Analysis | 1 | 1 | 1 | 1 | ||||||
First Lien Primary Claim Severity | 103.70% | |||||||||
Impact To Loss Reserves Based On One Percentage Change In Primary Claim Severity | 12 | 12 | 12 | 12 | ||||||
Impact To Loss Reserves Based On One Percentage Change in Default To Claim Rate | 23 | 23 | 23 | 23 | ||||||
Denials [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 18.3 | 18.3 | 18.3 | 18.3 | ||||||
Rescissions [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 1.4 | 1.4 | 1.4 | 1.4 | ||||||
Claim Curtailments [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 3.4 | 3.4 | 3.4 | 3.4 | ||||||
Claims Denied in the Last Twelve Months [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Gross Exposure Related to Denied Claims From Previous Twelve Months | 113.3 | |||||||||
Policies Rescinded in the Last Twenty Four Months [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Gross Exposure Related to Rescinded Policies Within Twenty Four Months | 90.5 | |||||||||
Claim Curtailments [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Claim Curtailments, Gross | 34.8 | |||||||||
Bank of America Settlement Agreement [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 133 | 133 | 133 | 133 | ||||||
Loss Contingency, Settlement Agreement, Percentage of Subject Loans Not Held by Insureds or Are Non-GSE Investors | 12.00% | 12.00% | 12.00% | 12.00% | ||||||
Primary Mortgage Product [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Weighted Average Default To Claim Rate Assumption Net Of Denials And Rescissions | 52.00% | 50.00% | ||||||||
2013 Freddie Mac Agreement [Member] | First Lien Position [Member] | Primary Mortgage Product [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Final Loss Mitigation Activity | 48 | |||||||||
Not Final Loss Mitigation Activity | 113 | |||||||||
Pro Forma [Member] | First Lien Position [Member] | Primary Mortgage Product [Member] | Bank of America Settlement Agreement [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Not Final Loss Mitigation Activity | 23 | |||||||||
Projected Final Loss Mitigation Activity Amount Including Settlement of Dispute | 116 | |||||||||
Maximum [Member] | Bank of America Settlement Agreement [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Number of Days Delinquent for a Loan to be Considered for Curtailment | 90 days | |||||||||
Subsequent Event [Member] | Minimum [Member] | 2013 Freddie Mac Agreement [Member] | ||||||||||
Claims Rescissions and Denials [Abstract] | ||||||||||
Restricted Investments Held as Collateral for Master Transaction Agreement, Net | $205 | |||||||||
[1] | Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured. |
Note_11_LongTerm_Debt_Schedule
Note 11 - Long-Term Debt Schedule of Long Term Debt (Details) (USD $) | 12 Months Ended | 8 Months Ended | 2 Months Ended | 10 Months Ended | ||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2013 | Jun. 30, 2005 | Jun. 01, 2005 | Nov. 30, 2010 | Mar. 31, 2013 | 31-May-14 | Nov. 15, 2010 | |||||
basispoint | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | $1,209,926,000 | $930,072,000 | $1,209,926,000 | $930,072,000 | ||||||||||||
Repayments of Long-term Debt | 57,223,000 | 79,372,000 | 153,261,000 | |||||||||||||
Senior Notes Due 2015 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.38% | |||||||||||||||
Long-term debt | 0 | 54,481,000 | 0 | 54,481,000 | ||||||||||||
Debt Instrument, Face Amount | 250,000,000 | |||||||||||||||
Gains (Losses) on Extinguishment of Debt | -2,800,000 | |||||||||||||||
Repayments of Long-term Debt | 57,200,000 | |||||||||||||||
Senior Notes Due 2017 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | ||||||||||||||
Long-term debt | 192,605,000 | 191,611,000 | 192,605,000 | 191,611,000 | ||||||||||||
Convertible Senior Notes Due 2017 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | |||||||||||||||
Long-term debt | 375,310,000 | [1] | 353,798,000 | [1] | 375,310,000 | [1] | 353,798,000 | [1] | ||||||||
Convertible Senior Notes Due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | |||||||||||||||
Long-term debt | 342,011,000 | [2] | 330,182,000 | [2] | 342,011,000 | [2] | 330,182,000 | [2] | ||||||||
Senior Notes Due 2019 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |||||||||||||||
Long-term debt | 300,000,000 | 0 | 300,000,000 | 0 | ||||||||||||
Debt Instrument, Face Amount | 300,000,000 | |||||||||||||||
Proceeds from Issuance of Long-term Debt | 293,800,000 | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||||
Number of Basis Points Added to Treasury Rate Used in Calculating Redemption Price of Debt | 50 | 50 | ||||||||||||||
Total Long Term Debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt | 1,209,926,000 | 930,072,000 | 1,209,926,000 | 930,072,000 | ||||||||||||
Senior Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Percent of Stock With Ordinary Voting Rights That the Company Must Retain In Order to Make Any Capital Stock Transactions Under Debt Covenant Agreement | 80.00% | 80.00% | ||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2017 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | |||||||||||||||
Long-term debt | 375,310,000 | 353,798,000 | 375,310,000 | 353,798,000 | ||||||||||||
Long-term Debt, Gross | 450,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | ||||||||||||
Debt Instrument, Face Amount | 450,000,000 | |||||||||||||||
Proceeds from Issuance of Long-term Debt | 391,300,000 | |||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.75% | |||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 85.5688 | |||||||||||||||
Debt Conversion, Converted Instrument, Amount | 1,000 | |||||||||||||||
Debt Instrument, Convertible, Conversion Price | $11.69 | $11.69 | ||||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 51,000,000 | 51,000,000 | ||||||||||||||
Maximum Stock Price Per Share Included In Capped Call Transaction | $14.11 | $14.11 | ||||||||||||||
Cash Paid To Purchase Capped Call Transactions | 46,100,000 | |||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | |||||||||||||||
Long-term debt | 342,011,000 | 330,182,000 | 342,011,000 | 330,182,000 | ||||||||||||
Long-term Debt, Gross | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ||||||||||||
Debt Instrument, Face Amount | 400,000,000 | |||||||||||||||
Proceeds from Issuance of Long-term Debt | 389,800,000 | |||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.25% | |||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 94.3396 | |||||||||||||||
Debt Conversion, Converted Instrument, Amount | 1,000 | |||||||||||||||
Debt Instrument, Convertible, Conversion Price | $10.60 | $10.60 | ||||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 50,000,000 | 50,000,000 | ||||||||||||||
Redemption Trigger based on Company Stock Price [Member] | Convertible Debt [Member] | Convertible Senior Notes Due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 20 | |||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | |||||||||||||||
Debt Instrument, Convertible, Stock Price Trigger, Percent | 130.00% | |||||||||||||||
Debt Instrument, Convertible, Redemption Price, Percentage | 100.00% | |||||||||||||||
Conversion Trigger based on Company Stock Price [Member] | Convertible Debt [Member] | Convertible Senior Notes Due 2017 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 20 | |||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | |||||||||||||||
Debt Instrument, Convertible, Stock Price Trigger, Percent | 130.00% | |||||||||||||||
Conversion Trigger based on Company Stock Price [Member] | Convertible Debt [Member] | Convertible Senior Notes Due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 20 | |||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | |||||||||||||||
Debt Instrument, Convertible, Stock Price Trigger, Percent | 130.00% | |||||||||||||||
Conversion Trigger based on Trading Price of Debt Versus Company Stock Price [Member] | Convertible Debt [Member] | Convertible Senior Notes Due 2017 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 5 | |||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 5 days | |||||||||||||||
Debt Instrument, Convertible, Debt Price Trigger, Percent | 98.00% | |||||||||||||||
Conversion Trigger based on Trading Price of Debt Versus Company Stock Price [Member] | Convertible Debt [Member] | Convertible Senior Notes Due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 5 | |||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 5 days | |||||||||||||||
Debt Instrument, Convertible, Debt Price Trigger, Percent | 98.00% | |||||||||||||||
Debt Due 2015 Exchange | Senior Notes Due 2015 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Extinguishment of Debt, Amount | 195,500,000 | |||||||||||||||
Debt Due 2015 Exchange | Senior Notes Due 2017 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | ||||||||||||||
Debt Instrument, Face Amount | 195,500,000 | 195,500,000 | ||||||||||||||
Gains (Losses) on Extinguishment of Debt | ($4,000,000) | |||||||||||||||
[1] | The principal amount of these notes is $450 million. | |||||||||||||||
[2] | The principal amount of these notes is $400 million. |
Note_11_LongTerm_Debt_Schedule1
Note 11 - Long-Term Debt Schedule of Liability and Equity Components of Convertible Debt (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Liability and Equity Components of Convertible Debt [Line Items] | ||||
Long-term debt | $1,209,926 | $930,072 | ||
Debt Instrument, Convertible, Gross Amount of Equity Component | 74,690 | 0 | ||
Convertible Senior Notes Due 2017 | ||||
Schedule of Liability and Equity Components of Convertible Debt [Line Items] | ||||
Long-term debt | 375,310 | [1] | 353,798 | [1] |
Convertible Senior Notes Due 2017 | Convertible Debt [Member] | ||||
Schedule of Liability and Equity Components of Convertible Debt [Line Items] | ||||
Principal amount of convertible debt in liabilities | 450,000 | 450,000 | ||
Less: debt discount, net (1) | -74,690 | [2] | -96,202 | [2] |
Long-term debt | 375,310 | 353,798 | ||
Debt Instrument, Convertible, Gross Amount of Equity Component | 74,690 | 0 | ||
Equity component (net of tax impact) (2) | -9,011 | [3],[4] | 65,679 | [3] |
Convertible Senior Notes Due 2019 | ||||
Schedule of Liability and Equity Components of Convertible Debt [Line Items] | ||||
Long-term debt | 342,011 | [5] | 330,182 | [5] |
Convertible Senior Notes Due 2019 | Convertible Debt [Member] | ||||
Schedule of Liability and Equity Components of Convertible Debt [Line Items] | ||||
Principal amount of convertible debt in liabilities | 400,000 | 400,000 | ||
Less: debt discount, net (1) | -57,989 | [2] | -69,818 | [2] |
Long-term debt | 342,011 | 330,182 | ||
Debt Instrument, Convertible, Gross Amount of Equity Component | 0 | 0 | ||
Equity component (net of tax impact) (2) | 77,026 | [3],[6] | 77,026 | [3],[6] |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | $0 | $0 | ||
[1] | The principal amount of these notes is $450 million. | |||
[2] | Included within long-term debt and is being amortized over the life of the convertible notes. | |||
[3] | Amount included within additional paid-in capital, net of the capped call transactions (Convertible Senior Notes due 2017) and related issuance costs (Convertible Senior Notes due 2017 and 2019). | |||
[4] | Primarily represents the deferred tax amount related to this transaction due to the reclassification of the debt discount to temporary equity. | |||
[5] | The principal amount of these notes is $400 million. | |||
[6] | There was no net tax impact recorded in equity related to the Convertible Senior Notes due 2019, as a result of our full valuation allowance at the time the debt was issued. |
Note_11_LongTerm_Debt_Interest
Note 11 - Long-Term Debt Interest Expense Recognized Related to Convertible Debt (Details) (Convertible Debt [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Convertible Senior Notes Due 2017 | ||
Schedule of Interest Expense Recognized Related to Convertible Debt [Line Items] | ||
Contractual interest expense of convertible debt | $13,500 | $13,500 |
Amortization of debt issuance costs | 1,226 | 1,157 |
Amortization of debt discount | 21,512 | 19,544 |
Total interest expense for convertible debt | 36,238 | 34,201 |
Convertible Senior Notes Due 2019 | ||
Schedule of Interest Expense Recognized Related to Convertible Debt [Line Items] | ||
Contractual interest expense of convertible debt | 9,000 | 7,425 |
Amortization of debt issuance costs | 1,282 | 1,025 |
Amortization of debt discount | 11,829 | 9,223 |
Total interest expense for convertible debt | $22,111 | $17,673 |
Note_12_Accumulated_Other_Comp2
Note 12 - Accumulated Other Comprehensive Income Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $37,383 | |||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Net foreign currency translation adjustments | -226 | 0 | -7 | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 13,650 | 19,149 | 12,266 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | -1,039 | 656 | 6,918 | |||
Net unrealized gains on investments | 14,689 | 18,493 | 5,348 | |||
Other Comprehensive Income (Loss), Net of Tax, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | -302 | 2,597 | -488 | |||
Other comprehensive income | 14,161 | 21,090 | 4,853 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 51,485 | 37,383 | ||||
Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), before Tax | 57,345 | 24,904 | 12,039 | |||
Accumulated Other Comprehensive Income, Tax (Benefit) | 19,962 | 8,809 | 639 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 37,383 | 16,095 | 11,400 | |||
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | -326 | -11 | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 21,204 | 29,460 | 18,870 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | -1,599 | [1] | 1,285 | [1] | 7,796 | [1] |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | 22,803 | 28,175 | 11,074 | |||
Other Comprehensive Income (Loss), Before Tax, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | -329 | 3,961 | 2,045 | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 22,148 | 32,136 | 13,108 | |||
Net actuarial gain (loss), before Tax | -285 | 305 | -243 | |||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | -100 | -4 | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 7,554 | 10,311 | 6,604 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | -560 | [1] | 629 | [1] | 878 | [1] |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 8,114 | 9,682 | 5,726 | |||
Other Comprehensive Income (Loss), Tax Effect, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | -27 | 1,364 | 2,533 | |||
Other Comprehensive Income (Loss), Tax | 7,987 | 11,046 | 8,255 | |||
Net actuarial gain (loss), Tax | -226 | 107 | -85 | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Net foreign currency translation adjustments | -226 | -7 | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 13,650 | 19,149 | 12,266 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | -1,039 | [1] | 656 | [1] | 6,918 | [1] |
Net unrealized gains on investments | 14,689 | 18,493 | 5,348 | |||
Other Comprehensive Income (Loss), Net of Tax, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | -302 | 2,597 | -488 | |||
Other comprehensive income | 14,161 | 21,090 | 4,853 | |||
Net actuarial gain (loss) | -59 | 198 | -158 | |||
Accumulated Other Comprehensive Income (Loss), before Tax | 79,208 | 57,345 | 24,904 | |||
Accumulated Other Comprehensive Income, Tax (Benefit) | 27,723 | 19,962 | 8,809 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $51,485 | $37,383 | $16,095 | |||
[1] | Included in net gains (losses) on investments on our consolidated statements of operations. |
Note_13_Income_Taxes_Schedule_
Note 13 - Income Taxes Schedule of Components of Income Tax Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Components of Income Tax Provision [Line Items] | |||
Current (benefit) provision | ($26,575) | $352 | ($56,140) |
Deferred income tax (benefit) expense | -825,843 | -31,847 | 7,817 |
Income tax (benefit) provision | ($852,418) | ($31,495) | ($48,323) |
Note_13_Income_Taxes_Reconcili
Note 13 - Income Taxes Reconciliation of Taxes from Statutory Rate to Provision (Benefit) for Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation from Statutory Rate to Provision (Benefit) for Income Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | 35.00% | 35.00% |
(Benefit) provision for income taxes computed at the statutory tax rate | $142,504 | ($60,671) | ($95,350) |
Tax-exempt municipal bond interest and dividends received deduction (net of proration) | -1,286 | -1,494 | -1,818 |
Foreign tax (benefit) expense | 270 | -1 | 54 |
State tax expense (benefit) | -693 | 1,460 | 4,002 |
Unrecognized tax expense (benefit) | 407 | 1,696 | -2,906 |
Deferred inventory adjustment related to fair value of derivatives and other financial instruments | 0 | 0 | -23,217 |
Valuation allowance | -995,008 | 24,546 | 71,072 |
Other, net | 1,388 | 2,969 | -160 |
Income tax (benefit) provision | ($852,418) | ($31,495) | ($48,323) |
Note_13_Income_Taxes_Schedule_1
Note 13 - Income Taxes Schedule of Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of Deferred Tax Assets [Abstract] | ||
Accrued expenses | $60,858 | $74,968 |
Unearned premiums | 82,800 | 50,779 |
Premium deficiency reserves | 780 | 625 |
NOL | 475,095 | 628,573 |
Differences in fair value of derivative and other financial instruments | 0 | 31,812 |
Rescission premium | 3,151 | 5,964 |
State and Local NOL Carryforwards | 34,851 | 33,095 |
Foreign tax credit carryforward | 6,015 | 6,015 |
Depreciation | 70 | 6,783 |
Partnership Investments | 74,179 | 74,569 |
Loss reserves | 6,362 | 13,586 |
Outside basis difference of investment in subsidiary | 14,084 | 0 |
Foreign currency | 97 | 0 |
Alternative minimum tax credit carryforward | 2,286 | 0 |
Other | 37,878 | 31,547 |
Total deferred tax assets | 798,506 | 958,316 |
Components of Deferred Tax Liabilities [Abstract] | ||
Deferred policy acquisition cost | 4,203 | 10,410 |
Convertible and other long-term debt | 38,750 | 47,579 |
Differences in fair value of derivative and other financial instruments | 352 | 0 |
Net unrealized gain on investments | 26,145 | 18,163 |
Foreign currency | 0 | 18 |
Other | 10,981 | 5,609 |
Total deferred tax liabilities | 80,431 | 81,779 |
Valuation Allowance, Amount | 17,874 | 858,635 |
Deferred Tax Assets, Net | $700,201 | $17,902 |
Note_13_Income_Taxes_Income_Ta
Note 13 - Income Taxes Income Tax Details (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 22, 2014 | |
percentagepoint | ||||
Operating Loss Carryforwards [Line Items] | ||||
Accrued Income Taxes, Current | $132,800,000 | |||
Income Taxes Receivable, Current | 3,500,000 | |||
Operating Loss Carryforwards | 1,500,000,000 | |||
Foreign tax credit carryforward | 6,015,000 | 6,015,000 | ||
Alternative minimum tax credit carryforward | 2,286,000 | 0 | ||
State net operating loss carryforward | 34,851,000 | 33,095,000 | ||
Number of Years Used in Cumulative Loss Position Calculation | 3 years | |||
Cumulative Loss Position | 16,000,000 | 2,800,000,000 | ||
Valuation Allowance, Amount | 17,874,000 | 858,635,000 | ||
Percentage of Stock Ownership Needed to Be Included in Calculation of Change in Control Under Section 382 of Internal Revenue Code of 1986 | 5.00% | |||
Number of Basis Point Increase in Ownership Over Three Year Period Needed By the Entity's Five Percent Shareholders | 50 | |||
Number of Years (Rolling) Used for Calculating Percentage Change in Ownership for Change in Control | 3 years | |||
Internal Revenue Service (IRS) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Examination, Amount of Claimed Income Tax Refund Being Disallowed for Tax Years 2006 and 2007 | 105,000,000 | |||
REMIC Residual [Member] | Internal Revenue Service (IRS) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Examination, Notice of Deficiency, Amounts Related to Unpaid Taxes and Penalties | 157,000,000 | |||
Income Tax Examination, Estimated Interest on Notice of Deficiency Amounts | 115,000,000 | |||
Income Tax Examination, Proposed State Liabilities Resulting from IRS Examination of Tax Years 2000 Through 2007 | 30,000,000 | |||
Sale of Radian Asset Assurance [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | 468,000,000 | |||
Sale of Radian Asset Assurance [Member] | Parent Company | ||||
Operating Loss Carryforwards [Line Items] | ||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | 790,000,000 | |||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | $468,000,000 |
Note_13_Income_Taxes_Summary_o
Note 13 - Income Taxes Summary of Income Tax Examinations (Details) (REMIC Residual [Member], Internal Revenue Service (IRS) [Member], USD $) | 3-May-10 | Jun. 30, 2008 |
In Millions, unless otherwise specified | ||
REMIC Residual [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Examination [Line Items] | ||
Qualified Deposit With The U.S. Department Of Treasury Relating to Tax Years 2000 Through 2004 | $85 | |
Qualified Deposit With The U.S. Department Of Treasury Relating To Tax Years 2005 Through 2007 | $4 |
Note_13_Income_Taxes_Effect_of
Note 13 - Income Taxes Effect of Unrecognized Tax Benefits on Consolidated Balance Sheets and Results of Operations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effect of Unrecognized Tax Benefits on Balance Sheets and Results of Operations [Line Items] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $61.10 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 60.9 | ||
Unrecognized Tax Benefits, Interest and Penalties Charged to Income | $2.50 | $5.40 | ($0.80) |
Note_13_Income_Taxes_Summary_o1
Note 13 - Income Taxes Summary of Income Tax Contingencies Rollforward of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $119,236,000 | $114,013,000 | |
Tax positions related to the current year [Abstract] | |||
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 2,352,000 | 2,363,000 | |
Tax positions related to prior years [Abstract] | |||
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 24,361,000 | 29,962,000 | |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | -1,546,000 | -3,615,000 | |
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | -24,180,000 | -23,487,000 | |
Balance at end of period | 120,223,000 | 119,236,000 | |
Unrecognized Tax Benefits, Net Amount Related to Prior Period Tax Positions | 22,800,000 | ||
Recognition of Insurance Premium Income [Member] | |||
Tax positions related to prior years [Abstract] | |||
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | -24,200,000 | ||
Scenario, Forecast [Member] | |||
Tax positions related to prior years [Abstract] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $73,600,000 |
Note_14_Statutory_Information_2
Note 14 - Statutory Information Statutory Information (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Dec. 31, 2015 | |
years | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Restricted Cash and Cash Equivalents | 2,200,000,000 | ||||||
Additional Risk And Capital Information | |||||||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 7,600,000 | ||||||
Differences Between GAAP Basis and STAT Basis [Member] | |||||||
STAT Accounting Information [Abstract] | |||||||
Mortgage Guaranty Insurance Companies Are Required Each Year To Establish A Contingency Reserve Equal To This Percentage Of Premiums Earned In Such Year | 50.00% | ||||||
Number Of Years A Fifty Percent Contingency Reserve Is Required To Be Maintained | 10 | ||||||
Mortgage Guaranty Insurance Companies Contingency Reserve May Be Reduced With Regulatory Approval To The Extent That Losses In Any Calendar Year Exceed This Percentage Of Earned Premiums For Such Year | 35.00% | ||||||
PENNSYLVANIA | |||||||
Additional Risk And Capital Information | |||||||
Policyholder Dividends, Rate on Policy Earnings | 10.00% | ||||||
New York State Division of Taxation and Finance [Member] | |||||||
STAT Accounting Information [Abstract] | |||||||
For Financial Guaranty Policies, Each Insurer Must Establish A Contingency Reserve Equal To The Greater Of This Percentage Of Premiums Written Or A Stated Percentage Of The Principal Guaranteed | 50.00% | ||||||
Range Of Years The Contingency Reserve Must Be Maintained, Low End | 15 years | ||||||
Range Of Years The Contingency Reserve Must Be Maintained, High End | 20 years | ||||||
Radian Guaranty [Member] | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Statutory Unassigned Negative Surplus | 623,100,000 | 715,700,000 | |||||
Statutory policyholders’ surplus | 1,317,800,000 | 1,325,200,000 | 926,000,000 | ||||
Statutory contingency reserve | 23,000,000 | 389,400,000 | 0 | ||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Net Income Amount | -23,800,000 | 273,700,000 | -175,900,000 | ||||
Radian Guaranty [Member] | Scenario, Forecast [Member] | |||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 0 | ||||||
Radian Guaranty Reinsurance Inc [Member] | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Income Tax Examination, Amount Indemnified Under Agreement Related to Deficiency Amounts | 163,000,000 | ||||||
Statutory Unassigned Negative Surplus | 360,700,000 | 341,200,000 | |||||
Statutory policyholders’ surplus | 59,300,000 | 78,800,000 | 42,300,000 | ||||
Statutory contingency reserve | 38,500,000 | 81,400,000 | 0 | ||||
Additional Risk And Capital Information | |||||||
Required statutory surplus | 20,000,000 | ||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Net Income Amount | 55,500,000 | 62,500,000 | 16,000,000 | ||||
Radian Guaranty Reinsurance Inc [Member] | Scenario, Forecast [Member] | |||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 0 | ||||||
Radian Insurance [Member] | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Statutory Unassigned Negative Surplus | 305,000,000 | 279,500,000 | |||||
Statutory policyholders’ surplus | 230,800,000 | 256,300,000 | 218,600,000 | ||||
Statutory contingency reserve | 35,500,000 | 46,700,000 | 20,600,000 | ||||
Additional Risk And Capital Information | |||||||
Required statutory surplus | 20,000,000 | ||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Net Income Amount | 26,500,000 | 32,000,000 | 58,000,000 | ||||
Radian Insurance [Member] | Scenario, Forecast [Member] | |||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 0 | ||||||
Radian Mortgage Insurance Inc [Member] | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Statutory Unassigned Negative Surplus | 69,100,000 | 46,000,000 | |||||
Statutory policyholders’ surplus | 98,000,000 | 121,100,000 | 81,800,000 | ||||
Statutory contingency reserve | 6,900,000 | 12,600,000 | 0 | ||||
Additional Risk And Capital Information | |||||||
Required statutory surplus | 20,000,000 | ||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Net Income Amount | 18,100,000 | 18,900,000 | 1,700,000 | ||||
Radian Mortgage Insurance Inc [Member] | Scenario, Forecast [Member] | |||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 0 | ||||||
Radian Mortgage Assurance [Member] | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Risk In Force | 0 | ||||||
Statutory Unassigned Negative Surplus | 161,000,000 | 161,500,000 | |||||
Statutory policyholders’ surplus | 18,000,000 | 17,500,000 | 18,500,000 | ||||
Additional Risk And Capital Information | |||||||
Required statutory surplus | 1,125,000 | ||||||
Minimum Statutory Surplus Committed To Be Maintained Each Quarter | 5,000,000 | ||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Net Income Amount | -500,000 | -500,000 | 2,000,000 | ||||
Radian Mortgage Assurance [Member] | Scenario, Forecast [Member] | |||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 0 | ||||||
Radian Investor Surety Inc. [Member] | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 20,000,000 | ||||||
Risk In Force | 0 | ||||||
Statutory policyholders’ surplus | 20,000,000 | ||||||
Radian Asset Assurance [Member] | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Statutory policyholders’ surplus | 1,198,000,000 | 1,138,900,000 | 1,144,100,000 | ||||
Statutory contingency reserve | 264,000,000 | 189,100,000 | 300,100,000 | ||||
Additional Risk And Capital Information | |||||||
Claims Paying Resources | 1,400,000,000 | ||||||
Required statutory surplus | 66,400,000 | ||||||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 150,000,000 | 36,000,000 | 54,000,000 | ||||
Statutory Minimum Policyholders' Surplus Required For Financial Guaranty Insurers In The State Of New York | 65,000,000 | ||||||
Statutory Minimum Policyholders' Surplus Required For Other Lines Of Insurance By The State Of New York | 1,400,000 | ||||||
STAT Accounting Information [Abstract] | |||||||
Statutory Accounting Practices, Statutory Net Income Amount | $24,900,000 | 12,600,000 | $103,300,000 | ||||
Radian Asset Assurance [Member] | New York State Department of Financial Services [Member] | |||||||
Additional Risk And Capital Information | |||||||
Policyholder Dividends, Rate on Policy Earnings | 10.00% | ||||||
Statutory Accounting Practices, Percent of Statutory Adjusted Net Investment Income Available for Dividend Payments without Regulatory Approval | 100.00% | ||||||
Radian Asset Assurance [Member] | Minimum [Member] | NEW YORK | |||||||
Additional Risk And Capital Information | |||||||
Aggregate Risk Limit for Financial Guarantee Insurance Contracts | 0.33% | ||||||
Radian Asset Assurance [Member] | Maximum [Member] | NEW YORK | |||||||
Additional Risk And Capital Information | |||||||
Aggregate Risk Limit for Financial Guarantee Insurance Contracts | 4.00% |
Note_14_Statutory_Information_3
Note 14 - Statutory Information Risk To Capital Calculation (Details) (Radian Guaranty [Member], USD $) | 1 Months Ended | |||||
In Millions, unless otherwise specified | Feb. 28, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Risk to Capital Line Items [Line Items] | ||||||
Risk In Force | $30,615.70 | [1] | $26,128.20 | [1] | ||
Statutory policyholders’ surplus | 1,325.20 | 1,317.80 | 926 | |||
Contingency reserve | 389.4 | 23 | 0 | |||
Statutory capital | 1,714.60 | 1,340.80 | ||||
Risk-to-capital | 17.9 | 19.5 | ||||
Subsequent Event [Member] | ||||||
Risk to Capital Line Items [Line Items] | ||||||
Statutory Accounting Practices, Capital Contributions Considered Under SAP 72 | $100 | |||||
[1] | Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans. |
Note_15_ShareBased_and_Other_C2
Note 15 - Share-Based and Other Compensation Plans (Awards Summary - Textual) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares remaining available for grant (shares reserve) | 4,258,907 | ||
Equity Compensation Plan, 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock authorized for issuance | 6,416,180 | ||
Number of shares remaining available for grant (shares reserve) | 4,240,002 | ||
Share-based Compensation Arrangement By Share-based Payment Award Number of Shares Available for Grant Excluding Adjustments | 4,728,559 | ||
Equity Compensation Plan, 2014 [Member] | Restricted Stock, Restricted Stock Units and Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation, Reduction of Shares Available for Grant by Each Grant of Equity Award | 1.31 | ||
Equity Compensation Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum contractual term for all awards | 10 years | ||
Change of control, estimated pre-tax accounting charge, acceleration of compensation expense | $17.50 | $31.90 | $22.40 |
Equity Compensation Plans [Member] | Restricted Stock, Restricted Stock Units and Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Third Anniversary | 100.00% | ||
Equity Compensation Plans [Member] | Stock Options and SARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Third Anniversary | 50.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Fourth Anniversary | 50.00% | ||
Grants Awarded Prior to May 13 2009 [Member] | Equity Compensation Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Third party minimum threshold percentage acquisition of outstanding common stock | 40.00% | ||
Share-based Compensation Arrangements, Number of Months (Rolling) Used For Calculation of Change in Control | 24 months | ||
Percentage of Change in Members of Board of Directors Defined As Change in Control | 75.00% | ||
Percentage of Board of Directors Who Oppose Change in Control | 75.00% | ||
Grants Awarded Prior to May 13 2009 [Member] | Equity Compensation Plan, 1995 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Third party minimum threshold percentage acquisition of outstanding common stock | 20.00% | ||
Grants Awarded From May 13 2009 and Forward [Member] | Equity Compensation Plans [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Change of control, grantee employment termination, vesting period range (in days and years) | 90 days | ||
Grants Awarded From May 13 2009 and Forward [Member] | Equity Compensation Plans [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Change of control, grantee employment termination, vesting period range (in days and years) | 1 year |
Note_15_ShareBased_and_Other_C3
Note 15 - Share-Based and Other Compensation Plans (Awards Summary - Tables) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Compensation Cost Recognized | $43,011 | [1] | $94,981 | [1] | $28,366 | [1] |
Less: Costs deferred as acquisition costs | 1,047 | 1,769 | 465 | |||
Stock-based compensation expense impact on net loss before income taxes - increase | 41,964 | 93,212 | 27,901 | |||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Options, Equity Instruments Outstanding | 3,029,348 | 3,989,641 | ||||
Cash Settled [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Liability Recorded | 65,752 | 112,309 | 30,766 | |||
Share-based Compensation Programs, Compensation Cost Recognized | 32,749 | [1] | 87,866 | [1] | 24,799 | [1] |
Cash Settled [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Liability Recorded | 65,157 | 104,114 | 26,164 | |||
Share-based Compensation Programs, Compensation Cost Recognized | 31,834 | [1] | 79,322 | [1] | 21,301 | [1] |
Cash Settled [Member] | Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Liability Recorded | 595 | 8,195 | 4,602 | |||
Share-based Compensation Programs, Compensation Cost Recognized | 915 | [1] | 8,544 | [1] | 3,498 | [1] |
Equity Settled [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Compensation Cost Recognized | 10,262 | [1] | 7,115 | [1] | 3,567 | [1] |
Equity Settled [Member] | Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Compensation Cost Recognized | 267 | [1] | 267 | [1] | 253 | [1] |
Equity Settled [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Compensation Cost Recognized | 7,461 | [1] | 4,336 | [1] | 1,466 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,056,596 | 1,273,556 | 990,881 | |||
Equity Settled [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Compensation Cost Recognized | 2,531 | [1] | 2,488 | [1] | 1,787 | [1] |
Share-based Compensation Programs, Options, Equity Instruments Outstanding | 3,029,348 | 3,989,641 | 4,402,344 | |||
Equity Settled [Member] | Phantom Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Compensation Cost Recognized | 3 | [1] | 3 | [1] | 4 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 284,645 | 284,645 | 343,094 | |||
Equity Settled [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Programs, Compensation Cost Recognized | $0 | [1] | $21 | [1] | $57 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 0 | 0 | 131,374 | |||
[1] | For purposes of calculating compensation cost recognized, we generally consider time-vested awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. However, under the terms of our stock option awards granted in 2014, 2013, and 2012, legal vesting for retirement occurs when the grantee actually separates from service, with the exception of certain senior executives for whom vesting remains dependent on the stock price hurdle being met regardless of when the executive separates from service. Performance-based RSU awards granted in 2014, 2013, and 2012 provide that vesting remains dependent on the Company’s performance for the full term of the awards notwithstanding the grantee’s earlier retirement. |
Note_15_ShareBased_and_Other_C4
Note 15 - Share-Based and Other Compensation Plans (RSUs - Cash Settled) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Timed-Vested RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
2014 Award Year [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 702,180 | ||
2014 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 170,176 | ||
2014 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Key Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 85,133 | ||
2014 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 85,043 | ||
2013 Award Year [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 435,970 | ||
2013 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 102,618 | ||
2013 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Key Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 13,260 | ||
2013 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 89,358 | ||
2012 Award Year [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 0 | ||
2012 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 558,216 | ||
2012 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Key Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 7,812 | ||
2012 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 550,404 | ||
Equity Compensation Plan, 2008 [Member] | Stock Appreciation Rights (SARs) [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Third Anniversary | 50.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Fourth Anniversary | 50.00% | ||
Equity Compensation Plan, 2008 [Member] | Timed-Vested RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | 3 years | 3 years |
Equity Compensation Plan, 2008 [Member] | 2014 Award Year [Member] | Performance Based RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 0 | ||
Equity Compensation Plan, 2008 [Member] | 2014 Award Year [Member] | Timed-Vested RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 1,470 | ||
Equity Compensation Plan, 2008 [Member] | 2013 Award Year [Member] | Performance Based RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 0 | ||
Equity Compensation Plan, 2008 [Member] | 2013 Award Year [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Maximum Payout Percentage of Target Award | 200.00% | ||
Share Based Compensation, Maximum Multiplier for Target Payout | 6 | ||
Equity Compensation Plan, 2008 [Member] | 2013 Award Year [Member] | Performance Based RSUs [Member] | Maximum [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Payout Percentage of Target Award When Absolute TSR is Negative | 50.00% | ||
Equity Compensation Plan, 2008 [Member] | 2013 Award Year [Member] | Timed-Vested RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 7,670 | ||
Equity Compensation Plan, 2008 [Member] | 2012 Award Year [Member] | Performance Based RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 2,211,640 | ||
Award Requisite Service Period | 3 years | ||
Vesting period (in years) | 3 years | ||
Maximum Payout Percentage of Target Award | 200.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested Shares Based on Performance When TSR is Negative | 0 | ||
Grant Price | 0 | ||
Equity Compensation Plan, 2008 [Member] | 2012 Award Year [Member] | Timed-Vested RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 151,154 | ||
Equity Compensation Plan, 2008 [Member] | 2011 Award Year [Member] | Performance Based RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Maximum Payout Percentage of Target Award | 200.00% |
Note_15_ShareBased_and_Other_C5
Note 15 - Share-Based and Other Compensation Plans (SARs - Cash Settled) (Details) (Equity Compensation Plan, 2008 [Member], Cash Settled [Member], USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | |
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Fourth Anniversary | 50.00% | ||||
Share-based Compensation Arrangement, Maximum Contractual Term | 5 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Third Anniversary | 50.00% | ||||
Timed-Vested RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | 3 years | 3 years | ||
2010 Award Year [Member] | Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants by Compensation Committee | 192,100 | ||||
Grant Price | $10.42 | ||||
Estimated fair value | 6.3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 102,450 | ||||
2009 Award Year [Member] | Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants by Compensation Committee | 1,623,500 | ||||
Grant Price | $2.68 |
Note_15_ShareBased_and_Other_C6
Note 15 - Share-Based and Other Compensation Plans (Non-Qualified Stock Options) (Details) (USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
days | ||||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 938,740 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Outstanding, Beginning of Period, Number of Shares | 3,989,641 | |||||
Outstanding, Beginning of Period, Weighted Average Exercise Price Per Share | $10.63 | |||||
Granted, Number of Shares | 289,500 | 279,650 | 1,312,590 | |||
Granted, Weighted Average Exercise Price Per Share | $15.44 | |||||
Exercised, Number of Shares | -29,765 | 0 | ||||
Exercised, Weighted Average Exercise Price Per Share | $8.69 | |||||
Forfeited, Number of Shares | -47,170 | |||||
Forfeited, Weighted Average Exercise Price Per Share | $9.18 | |||||
Expired, Number of Shares | -1,172,858 | |||||
Expired, Weighted Average Exercise Price Per Share | $25.28 | |||||
Outstanding, End of Period, Number of Shares | 3,029,348 | 3,989,641 | ||||
Outstanding, End of Period, Weighted Average Exercise Price Per Share | $5.46 | $10.63 | ||||
Exercisable, Number of Shares | 938,740 | |||||
Exercisable, Weighted Average Exercise Price Per Share | $4.64 | |||||
Available for grant | 4,258,907 | |||||
Weighted average fair value per share of stock options granted | $12.18 | $10.95 | $1.92 | |||
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | $0.26 | $0.06 | ||||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 0.07 | 0.06 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 0.19 | 0.17 | ||||
Total intrinsic value of options outstanding | 34.1 | 27 | 7.8 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Fair value of options vested during the year | 1.8 | |||||
Aggregate intrinsic value (excess market price over exercise price) | 11.3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 2 years 0 months 22 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Risk-free interest rate | 2.57% | [1] | 1.96% | [1] | 1.66% | [1] |
Volatility | 94.26% | [2] | 94.63% | [2] | 96.97% | [2] |
Dividend yield | 0.07% | 0.07% | 0.41% | |||
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement | 10 | |||||
Share-based Compensation Arrangements, Windfall Tax Benefit, Threshold Amount | $17.30 | |||||
Equity Compensation Plan, 2014 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Available for grant | 4,240,002 | |||||
Maximum [Member] | Derived Service Period [Member] | Equity Compensation Plan, 2008 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected life (years) | 4 years | 4 years | ||||
Maximum [Member] | Derived Service Period [Member] | Equity Compensation Plan, 2014 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected life (years) | 3 years 350 days | |||||
Minimum [Member] | Derived Service Period [Member] | Equity Compensation Plan, 2008 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected life (years) | 3 years 9 days | 3 years 50 days | ||||
Minimum [Member] | Derived Service Period [Member] | Equity Compensation Plan, 2014 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected life (years) | 2 years 360 days | |||||
2014 Award Year [Member] | Minimum [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Closing Price of Common Stock Vesting Criteria | $19.30 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | |||||
2013 Award Year [Member] | Minimum [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Closing Price of Common Stock Vesting Criteria | $17.49 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | |||||
2012 Award Year [Member] | Minimum [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Closing Price of Common Stock Vesting Criteria | $4.90 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 200.00% | |||||
[1] | The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||
[2] | Volatility is determined at the date of grant using historical share price volatility and expected life of each award. |
Note_15_ShareBased_and_Other_C7
Note 15 - Share-Based and Other Compensation Plans (Non-Qualified Stock Options - Range of Exercise Prices) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | 3,029,348 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 3 months 26 days | ||
Options Exercisable, Number Exercisable | 938,740 | ||
$2.45 - $3.58 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit | 2.45 | ||
Range of Exercise Prices, Upper Range Limit | 3.58 | ||
$2.45 - $3.58 [Member] | Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | 2,228,150 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 2 months 6 days | ||
Options Outstanding, Weighted Average Exercise Price | 2.73 | ||
Options Exercisable, Number Exercisable | 712,610 | ||
Options Exercisable, Weighted Average Exercise Price | 2.89 | ||
$5.76 - $7.06 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit | 5.76 | ||
Range of Exercise Prices, Upper Range Limit | 7.06 | ||
$5.76 - $7.06 [Member] | Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | 60,778 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 2 months 6 days | ||
Options Outstanding, Weighted Average Exercise Price | 6.89 | ||
Options Exercisable, Number Exercisable | 23,200 | ||
Options Exercisable, Weighted Average Exercise Price | 6.92 | ||
$10.42 - $15.44 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit | 10.42 | ||
Range of Exercise Prices, Upper Range Limit | 15.44 | ||
$10.42 - $15.44 [Member] | Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | 740,420 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years 1 month 27 days | ||
Options Outstanding, Weighted Average Exercise Price | 13.56 | ||
Options Exercisable, Number Exercisable | 202,930 | ||
Options Exercisable, Weighted Average Exercise Price | 10.49 | ||
2013 Award Year [Member] | Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 125.00% | ||
2012 Award Year [Member] | Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria | 200.00% |
Note_15_ShareBased_and_Other_C8
Note 15 - Share-Based and Other Compensation Plans (Phantom Stock) (Details) (Phantom Stock [Member], USD $) | Dec. 31, 2014 |
Phantom Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $0 |
Share-based Compensation Arrangement, Dividend Equivalent Shares Accrued | 4,452 |
Note_15_ShareBased_and_Other_C9
Note 15 - Share-Based and Other Compensation Plans (RSUs - Equity Settled) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | ||
Timed-Vested RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 872,356 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested, Beginning of Period, Number of Shares | 1,273,556 | ||
Unvested, Beginning of Period, Weighted Average Grant-Date Fair Value Per Share | 7.75 | ||
Granted, Number of Shares | 872,356 | ||
Granted, Weighted Average Grant-Date Fair Value Per Share | 14.97 | ||
Vested, Number of Shares | -31,599 | ||
Vested, Weighted Average Grant-Date Fair Value Per Share | 6.88 | ||
Forfeited, Number of Shares | -57,717 | ||
Forfeited, Weighted Average Grant-Date Fair Value Per Share | 14.22 | ||
Unvested, End of Period, Number of Shares | 2,056,596 | ||
Unvested, End of Period, Weighted Average Grant-Date Fair Value Per Share | 10.65 | ||
2013 Award Year [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 435,970 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Performance period | 3 years | ||
Risk-free interest rate | 0.40% | ||
Volatility | 81.80% | ||
Dividend yield | 0.07% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 435,970 | ||
2013 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 102,618 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 102,618 | ||
2013 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Key Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 13,260 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 13,260 | ||
2013 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 89,358 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 89,358 | ||
2014 Award Year [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 702,180 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Performance period | 3 years | ||
Risk-free interest rate | 1.00% | ||
Volatility | 71.90% | ||
Dividend yield | 0.06% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 702,180 | ||
2014 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 170,176 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 170,176 | ||
2014 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Key Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 85,133 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 85,133 | ||
2014 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 85,043 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 85,043 | ||
2012 Award Year [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 0 | ||
2012 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 558,216 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 558,216 | ||
2012 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Key Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 7,812 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 7,812 | ||
2012 Award Year [Member] | Timed-Vested RSUs [Member] | Equity Settled [Member] | Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 550,404 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 550,404 | ||
2014 and 2013 Award Years [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum Payout Percentage of Target Award | 200.00% | ||
Share Based Compensation, Maximum Multiplier for Target Payout | 6 | ||
Vesting period (in years) | 3 years | ||
2014 and 2013 Award Years [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation, Total Shareholder Return | 25.00% | ||
2014 and 2013 Award Years [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Payout Percentage of Target Award When Absolute TSR is Negative | 50.00% | ||
Equity Compensation Plan, 2008 [Member] | Timed-Vested RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | 3 years | 3 years |
Equity Compensation Plan, 2008 [Member] | 2013 Award Year [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum Payout Percentage of Target Award | 200.00% | ||
Share Based Compensation, Maximum Multiplier for Target Payout | 6 | ||
Vesting period (in years) | 3 years | ||
Equity Compensation Plan, 2008 [Member] | 2013 Award Year [Member] | Performance Based RSUs [Member] | Equity Settled [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Payout Percentage of Target Award When Absolute TSR is Negative | 50.00% | ||
Equity Compensation Plan, 2008 [Member] | 2013 Award Year [Member] | Performance Based RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 0 | ||
Equity Compensation Plan, 2008 [Member] | 2013 Award Year [Member] | Timed-Vested RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 7,670 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 7,670 | ||
Equity Compensation Plan, 2008 [Member] | 2014 Award Year [Member] | Performance Based RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 0 | ||
Equity Compensation Plan, 2008 [Member] | 2014 Award Year [Member] | Timed-Vested RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 1,470 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 1,470 | ||
Equity Compensation Plan, 2008 [Member] | 2012 Award Year [Member] | Performance Based RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 2,211,640 | ||
Maximum Payout Percentage of Target Award | 200.00% | ||
Vesting period (in years) | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 2,211,640 | ||
Equity Compensation Plan, 2008 [Member] | 2012 Award Year [Member] | Timed-Vested RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 151,154 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Number of Shares | 151,154 |
Recovered_Sheet1
Note 15 - Share-Based and Other Compensation Plans (Restricted Stock) (Details) (Restricted Stock [Member], Equity Settled [Member]) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Number of Shares | 0 | 0 | 0 | |
2009 Award Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Number of Shares | 375,500 |
Recovered_Sheet2
Note 15 - Share-Based and Other Compensation Plans (Employee Stock Purchase Plan) (Details) (Employee Stock Purchase Plan [Member], Employee Stock Purchase Plan [Member], Equity Settled [Member]) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Equity Settled [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of common stock authorized for issuance | 2,000,000 | 2,000,000 | |||
Shares sold to employees under ESPP Plans | 67,743 | 95,287 | 204,834 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Expected life (months) | 6 months | 6 months | |||
Risk-free interest rate | 0.32% | 0.34% | |||
Volatility | 36.69% | 46.99% | |||
Dividend yield | 0.03% | 0.04% |
Recovered_Sheet3
Note 15 - Share-Based and Other Compensation Plans (Unrecognized Compensation Expense) (Details) (Equity Compensation Plans [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to unvested portion of all stock-based awards | $17.50 | $31.90 | $22.40 |
Unrecognized compensation expense weighted average recognition period (in years) | 2 years | ||
Pro Forma [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to unvested portion of all stock-based awards | $17.50 |
Note_16_Benefit_Plans_Details
Note 16 - Benefit Plans (Details) (Other Postretirement Benefit Plan [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Postretirement Benefit Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Cash Surrender Value of Life Insurance | $11,200,000 | ||
Defined Contribution Plan Maximum Percentage Of Base Earnings Qualifying For Pre-Tax Contributions | 100.00% | ||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount | 17,500 | ||
Defined Benefit Plan, Employee Discretionary Contribution Maximum Amount | 5,500 | ||
Defined Contribution Plan Parent Company Matching Contribution Percentage | 100.00% | ||
Defined Contribution Plan Percentage Of Base Earnings Qualifying For Parent Company Matching Contribution | 6.00% | ||
Defined Contribution Plan, Cost Recognized | $3,100,000 | $2,700,000 | $2,500,000 |
Defined Contribution Plan, Employer Matching Contribution, Arrangement with Individual Requisite Service Period | 3 years | ||
Defined Contribution Plans, Number of Years to Apply Transition Credits for Active Pension Plan Participants | 5 years |
Note_17_Commitments_and_Contin2
Note 17 - Commitments and Contingencies Legal Proceedings (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
plaintiff | |
loan | |
Loss Reserve Information [Abstract] | |
Minimum Number of Pending or Threatened Matters That Could Effect Our Results | 1 |
Internal Revenue Service (IRS) [Member] | |
Loss Reserve Information [Abstract] | |
Income Tax Examination, Amount of Claimed Income Tax Refund Being Disallowed for Tax Years 2006 and 2007 | 105 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Number Of Home Mortgage Loans Involved In Pending Litigation | 1 |
Loss Reserve Information [Abstract] | |
Loss Contingency, Number of Plaintiffs | 1 |
REMIC Residual [Member] | Internal Revenue Service (IRS) [Member] | |
Loss Contingencies [Line Items] | |
Income Tax Examination, Notice of Deficiency, Amounts Related to Unpaid Taxes and Penalties | 157 |
Loss Reserve Information [Abstract] | |
Income Tax Examination, Estimated Interest on Notice of Deficiency Amounts | 115 |
Income Tax Examination, Proposed State Liabilities Resulting from IRS Examination of Tax Years 2000 Through 2007 | 30 |
Insurance Claims [Member] | Maximum [Member] | Total Primary Insurance Mortgage Insurance Products [Member] | |
Loss Reserve Information [Abstract] | |
Loss Contingency, Legal Actions Commencement, Period | 2 years |
Insurance Claims [Member] | Maximum [Member] | Pool Insurance Mortgage Insurance Product [Member] | |
Loss Reserve Information [Abstract] | |
Loss Contingency, Legal Actions Commencement, Period | 3 years |
Note_17_Commitments_and_Contin3
Note 17 - Commitments and Contingencies Guarantor Obligations (Details) (Guaranteed Structured Transactions [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | transaction |
Guaranteed Structured Transactions [Member] | |
Guarantor Obligations [Line Items] | |
Number of Guaranteed Structured Transactions For Radian Guaranty | 2 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $128.80 |
Note_17_Commitments_and_Contin4
Note 17 - Commitments and Contingencies Purchase Committment, Excluding Long Term Committment (Details) (Purchase Commitment [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Purchase Commitment [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | $7.40 |
Note_17_Commitments_and_Contin5
Note 17 - Commitments and Contingencies Contract Underwriting (Details) (Mortgage Insurance Segment, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Contract Underwriting [Line Items] | |
Losses Paid For Contract Underwriting Remedies | $14.40 |
Provision For Contract underwriting Expense | 11.7 |
Reserve For Contract Underwriting Obligations | 0.9 |
Legacy Portfolio [Member] | |
Contract Underwriting [Line Items] | |
Losses Paid For Contract Underwriting Remedies | $11.20 |
Note_17_Commitments_and_Contin6
Note 17 - Commitments and Contingencies Commitment for Non Cancelable Operating Leases in Future Years (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | $5,600,000 | $4,300,000 | $5,600,000 |
Operating Leases, Future Minimum Payments Due, Current | 10,849,000 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 5,257,000 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 3,860,000 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 692,000 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 620,000 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 3,274,000 | ||
Operating Leases, Future Minimum Payments Due | 24,552,000 | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 3,800,000 | ||
Sale of Radian Asset Assurance [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | $1,700,000 | $1,700,000 | $2,300,000 |
Note_18_Net_Income_Loss_Per_Sh2
Note 18 - Net Income (Loss) Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | $878,026 | [1] | $132,031 | [1] | $103,537 | [1] | $145,980 | [1] | ($16,047) | ($28,011) | ($77,579) | ($20,214) | $1,259,574 | [1] | ($141,851) | ($224,105) | ||||||
Loss from discontinued operations, net of tax | -449,691 | [2] | 21,559 | [2] | 71,296 | [2] | 56,779 | [2] | 52,416 | 15,329 | 44,407 | -167,286 | -300,057 | [2] | -55,134 | -227,363 | ||||||
Net Income (Loss) Available to Common Stockholders, Basic | 959,517 | -196,985 | -451,468 | |||||||||||||||||||
Income (Loss) From Continuing Operations, Diluted, Amount | 1,273,946 | -141,851 | -224,105 | |||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | 973,889 | -196,985 | -451,468 | |||||||||||||||||||
Average common shares outstanding | 184,551,000 | 166,366,000 | 132,533,000 | |||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 3,150,000 | [3] | 0 | [3] | 0 | [3] | ||||||||||||||||
Adjusted shares outstanding-diluted | 242,801,000 | [4] | 238,067,000 | [4] | 230,779,000 | [4] | 222,668,000 | [4] | 173,099,000 | [4] | 171,830,000 | [4] | 171,783,000 | [4] | 144,355,000 | [4] | 233,902,000 | [4] | 166,366,000 | [4] | 132,533,000 | |
Income (Loss) from Continuing Operations, Per Basic Share | $6.83 | ($0.85) | ($1.69) | |||||||||||||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | ($1.63) | ($0.33) | ($1.72) | |||||||||||||||||||
Net (loss) income per share—basic | $5.20 | ($1.18) | ($3.41) | |||||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $5.44 | ($0.85) | ($1.69) | |||||||||||||||||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | ($1.28) | ($0.33) | ($1.72) | |||||||||||||||||||
Net (loss) income per share—diluted | $1.78 | [4],[5] | $0.67 | [4],[5] | $0.78 | [4],[5] | $0.94 | [4],[5] | $0.21 | [4],[5] | ($0.07) | [4],[5] | ($0.19) | [4],[5] | ($1.30) | [4],[5] | $4.16 | [4],[5] | ($1.18) | [4],[5] | ($3.41) | |
Stock Compensation Plan [Member] | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 541,720 | |||||||||||||||||||||
Stock Compensation Plan and Convertible Debt Securities [Member] | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 43,287,966 | 5,872,600 | ||||||||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2017 | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 8,465,000 | 0 | 0 | |||||||||||||||||||
Convertible Debt [Member] | Convertible Senior Notes Due 2019 | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Interest on Convertible Debt, Net of Tax | $14,372 | [6] | $0 | [6] | $0 | [6] | ||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 37,736,000 | 0 | 0 | |||||||||||||||||||
[1] | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter. | |||||||||||||||||||||
[2] | This amount reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter. | |||||||||||||||||||||
[3] | For the year ended December 31, 2014, 541,720 shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of diluted net income per share as of such date because they were anti-dilutive. As a result of our net loss from continuing operations for the years ended December 31, 2013 and 2012, 43,287,966 and 5,872,600 shares, respectively, of our common stock equivalents issued under our stock-based compensation arrangements and convertible debt were not included in the calculation of diluted net loss per share as of such dates because they were anti-dilutive. | |||||||||||||||||||||
[4] | Diluted net income (loss) per share and average shares outstanding per the accounting standard regarding earnings per share. | |||||||||||||||||||||
[5] | Diluted net income (loss) per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income (loss) per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income (loss) from continuing operations. | |||||||||||||||||||||
[6] | As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. |
Note_19_Quarterly_Financial_Da2
Note 19 - Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Net premiums earned—insurance | $224,293 | $217,827 | $203,646 | $198,762 | $200,356 | $200,120 | $197,952 | $182,992 | $844,528 | $781,420 | $702,385 | ||||||||||
Services revenue | 34,450 | 42,243 | 0 | 0 | 76,693 | 0 | 0 | ||||||||||||||
Net investment income | 16,531 | 17,143 | 16,663 | 15,318 | 17,722 | 16,351 | 17,087 | 16,961 | 65,655 | 68,121 | 72,679 | ||||||||||
Net (losses) gains on other financial instruments | -675 | 14 | -2,901 | -318 | -2,208 | -193 | 60 | -5,239 | -3,880 | -7,580 | 7,802 | ||||||||||
Provision for losses | 82,867 | 48,942 | 64,648 | 49,626 | 144,072 | 149,687 | 137,661 | 131,327 | 246,083 | 562,747 | 921,548 | ||||||||||
Policy Acquisition Amortization Expense And Other Operating Expenses | 92,243 | 55,465 | 67,497 | 61,524 | 68,473 | 70,324 | 62,487 | 84,603 | 276,729 | 285,887 | |||||||||||
Direct cost of services | 19,709 | 23,896 | 0 | 0 | 43,605 | 0 | 0 | ||||||||||||||
Increase (Decrease) in Goodwill and Intangible Assets | 5,354 | 3,294 | 0 | 0 | 8,648 | 0 | 0 | ||||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 878,026 | [1] | 132,031 | [1] | 103,537 | [1] | 145,980 | [1] | -16,047 | -28,011 | -77,579 | -20,214 | 1,259,574 | [1] | -141,851 | -224,105 | |||||
Loss from discontinued operations, net of tax | -449,691 | [2] | 21,559 | [2] | 71,296 | [2] | 56,779 | [2] | 52,416 | 15,329 | 44,407 | -167,286 | -300,057 | [2] | -55,134 | -227,363 | |||||
Net income (loss) | 428,335 | 153,590 | 174,833 | 202,759 | 36,369 | -12,682 | -33,172 | -187,500 | 959,517 | -196,985 | -451,468 | ||||||||||
Net (loss) income per share—diluted | $1.78 | [3],[4] | $0.67 | [3],[4] | $0.78 | [3],[4] | $0.94 | [3],[4] | $0.21 | [3],[4] | ($0.07) | [3],[4] | ($0.19) | [3],[4] | ($1.30) | [3],[4] | $4.16 | [3],[4] | ($1.18) | [3],[4] | ($3.41) |
Weighted-average number of common and common equivalent shares outstanding—diluted | 242,801 | [3] | 238,067 | [3] | 230,779 | [3] | 222,668 | [3] | 173,099 | [3] | 171,830 | [3] | 171,783 | [3] | 144,355 | [3] | 233,902 | [3] | 166,366 | [3] | 132,533 |
Net gains (losses) on investments | 18,658 | [5] | -6,308 | [5] | 28,233 | [5] | 43,286 | [5] | -2,631 | [5] | -6,366 | [5] | -86,808 | [5] | -3,140 | [5] | 83,869 | [5] | -98,945 | [5] | 114,282 |
Sale of Radian Asset Assurance [Member] | |||||||||||||||||||||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | $468,000 | ||||||||||||||||||||
[1] | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter. | ||||||||||||||||||||
[2] | This amount reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter. | ||||||||||||||||||||
[3] | Diluted net income (loss) per share and average shares outstanding per the accounting standard regarding earnings per share. | ||||||||||||||||||||
[4] | Diluted net income (loss) per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income (loss) per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income (loss) from continuing operations. | ||||||||||||||||||||
[5] | The 2014 and 2013 amounts reflect unrealized gains (losses), respectively, on our trading securities. |
Schedule_I_Summary_Of_Investme2
Schedule I Summary Of Investments (Details) (USD $) | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | $3,549,780 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 3,635,227 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 3,629,299 | |
US Treasury and Government [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 5,709 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 5,751 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 5,751 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 17,727 | [1] |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 18,910 | [1] |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 18,910 | [1] |
All Other Corporate Bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 277,678 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 284,408 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 284,408 | |
RMBS | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 41,467 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 42,520 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 42,520 | |
CMBS | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 57,358 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 58,234 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 58,234 | |
Other ABS | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 109,420 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 107,701 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 107,701 | |
Foreign government securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 19,301 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 19,366 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 19,366 | |
Fixed Maturities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 528,660 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 536,890 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 536,890 | |
Trading Assets, Excluding Debt and Equity Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 1,628,769 | [2] |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,633,584 | [2] |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 1,633,584 | [2] |
Common Stocks, by Industry [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 76,827 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 142,981 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 142,981 | |
Nonredeemable Preferred Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 73 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 387 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 387 | |
Equity Securities, Investment Summary [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 76,900 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 143,368 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 143,368 | |
Short-term Investments [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 1,300,866 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,300,872 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 1,300,872 | |
Other Long-term Investments [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 14,585 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 20,513 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | $14,585 | |
[1] | Available for sale. | |
[2] | Includes foreign government and agency securities. |
Schedule_II_Financial_Informat2
Schedule II Financial Information of Registrant Parent Company Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Thousands, except Share data, unless otherwise specified | ||||||
Assets | ||||||
Trading securities—at fair value | $1,633,584 | $2,238,741 | ||||
Other short-term investments | 1,300,872 | 935,852 | ||||
Cash | 30,465 | 22,880 | 29,408 | 33,020 | ||
Restricted cash | 14,031 | 22,527 | ||||
Investment in subsidiaries, at equity in net assets | 2,200,000 | |||||
Property and equipment, at cost (less accumulated depreciation of $50,648 and $49,632) | 27,248 | [1] | 10,496 | [1] | ||
Other assets | 375,491 | 379,903 | ||||
Assets held for sale | 1,736,444 | [2] | 1,768,061 | 2,000,000 | ||
Total assets | 6,859,963 | 5,621,691 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Long-term debt | 1,209,926 | 930,072 | ||||
Other liabilities | 326,743 | 377,930 | ||||
Liabilities held for sale | 947,008 | 642,619 | ||||
Total liabilities | 4,688,213 | 4,682,046 | ||||
Equity component of currently redeemable convertible senior notes (Note 11) | 74,690 | 0 | ||||
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2014 and 2013; 208,601,020 and 190,636,972 shares issued at December 31, 2014 and 2013, respectively; 191,053,530 and 173,099,515 shares outstanding at December 31, 2014 and 2013, respectively | 209 | 191 | ||||
Treasury stock, at cost: 17,547,490 and 17,537,457 shares at December 31, 2014 and 2013, respectively | -892,961 | -892,807 | ||||
Additional paid-in capital | 2,531,513 | 2,347,104 | ||||
Retained earnings (deficit) | 406,814 | -552,226 | ||||
Accumulated other comprehensive income (“AOCIâ€) | 51,485 | 37,383 | ||||
Total common stockholders’ equity | 2,097,060 | 939,645 | ||||
Balance Sheet Parentheticals [Abstract] | ||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 100,207 | 96,058 | ||||
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | ||||
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 | ||||
Common Stock, Shares, Issued | 208,601,020 | 190,636,972 | ||||
Common Stock, Shares, Outstanding | 191,053,530 | 173,099,515 | ||||
Treasury Stock, Shares | 17,547,490 | 17,537,457 | ||||
Parent Company | ||||||
Assets | ||||||
Trading securities—at fair value | 5,447 | 5,240 | ||||
Other short-term investments | 631,934 | 633,178 | ||||
Cash | 1,951 | 4,304 | 2,978 | 453 | ||
Restricted cash | 124 | 123 | ||||
Investment in subsidiaries, at equity in net assets | 2,746,915 | 1,419,360 | ||||
Debt issuance costs | 17,627 | 15,741 | ||||
Due from affiliates, net | 13,110 | 12,283 | ||||
Accounts and Notes Receivable, Net | 305,856 | 8,105 | ||||
Property and equipment, at cost (less accumulated depreciation of $50,648 and $49,632) | 1,624 | 1,281 | ||||
Other assets | 16,660 | 12,880 | ||||
Assets held for sale | 18,027 | 0 | ||||
Total assets | 3,759,275 | 2,112,495 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Accrued interest payable | 6,796 | 5,551 | ||||
Accrued compensation expense | 86,258 | 132,848 | ||||
Long-term debt | 1,209,926 | 930,072 | ||||
Federal income taxes—current and deferred | 262,583 | 98,476 | ||||
Other liabilities | 3,935 | 5,903 | ||||
Liabilities held for sale | 18,027 | 0 | ||||
Total liabilities | 1,587,525 | 1,172,850 | ||||
Equity component of currently redeemable convertible senior notes (Note 11) | 74,690 | 0 | ||||
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2014 and 2013; 208,601,020 and 190,636,972 shares issued at December 31, 2014 and 2013, respectively; 191,053,530 and 173,099,515 shares outstanding at December 31, 2014 and 2013, respectively | 209 | 191 | ||||
Treasury stock, at cost: 17,547,490 and 17,537,457 shares at December 31, 2014 and 2013, respectively | -892,961 | -892,807 | ||||
Additional paid-in capital | 2,531,513 | 2,347,104 | ||||
Retained earnings (deficit) | 406,814 | -552,226 | ||||
Accumulated other comprehensive income (“AOCIâ€) | 51,485 | 37,383 | ||||
Total common stockholders’ equity | 2,097,060 | 939,645 | ||||
Total liabilities and stockholders’ equity | 3,759,275 | 2,112,495 | ||||
Balance Sheet Parentheticals [Abstract] | ||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $50,648 | $49,632 | ||||
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | ||||
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 | ||||
Common Stock, Shares, Issued | 208,601,020 | 190,636,972 | ||||
Common Stock, Shares, Outstanding | 191,053,530 | 173,099,515 | ||||
Treasury Stock, Shares | 17,547,490 | 17,537,457 | ||||
[1] | Property and equipment, at cost less accumulated depreciation of $100,207 and $96,058 at December 31, 2014 and 2013, respectively. | |||||
[2] | Assets held for sale are not part of the mortgage insurance or MRES segments. |
Schedule_II_Financial_Informat3
Schedule II Financial Information of Registrant Parent Company Statement of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Revenues: | ||||||||||||||||
Net investment income | $16,531 | $17,143 | $16,663 | $15,318 | $17,722 | $16,351 | $17,087 | $16,961 | $65,655 | $68,121 | $72,679 | |||||
Net (losses) gains on other financial instruments | -675 | 14 | -2,901 | -318 | -2,208 | -193 | 60 | -5,239 | -3,880 | -7,580 | 7,802 | |||||
Other income | 5,820 | 6,890 | 5,595 | |||||||||||||
Total revenues | 1,072,685 | 749,906 | 902,743 | |||||||||||||
Expenses: | ||||||||||||||||
Other operating expenses | 252,283 | 257,402 | 167,660 | |||||||||||||
Interest expense | 90,464 | 74,618 | 51,832 | |||||||||||||
Total expenses | 665,529 | 923,252 | 1,175,171 | |||||||||||||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | 407,156 | -173,346 | -272,428 | |||||||||||||
Provision (benefit) for income taxes | -852,418 | -31,495 | -48,323 | |||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 878,026 | [1] | 132,031 | [1] | 103,537 | [1] | 145,980 | [1] | -16,047 | -28,011 | -77,579 | -20,214 | 1,259,574 | [1] | -141,851 | -224,105 |
Loss from discontinued operations, net of tax | -449,691 | [2] | 21,559 | [2] | 71,296 | [2] | 56,779 | [2] | 52,416 | 15,329 | 44,407 | -167,286 | -300,057 | [2] | -55,134 | -227,363 |
Net income (loss) | 428,335 | 153,590 | 174,833 | 202,759 | 36,369 | -12,682 | -33,172 | -187,500 | 959,517 | -196,985 | -451,468 | |||||
Parent Company | ||||||||||||||||
Revenues: | ||||||||||||||||
Net investment income | 9,515 | 4,300 | 9,093 | |||||||||||||
Net gains (losses) on investments | 133 | -930 | 8,816 | |||||||||||||
Net (losses) gains on other financial instruments | -2,865 | -6,026 | 9,180 | |||||||||||||
Other income | 7 | 0 | 3 | |||||||||||||
Total revenues | 6,790 | -2,656 | 27,092 | |||||||||||||
Expenses: | ||||||||||||||||
Other operating expenses | 0 | 0 | 2,690 | |||||||||||||
Interest expense | 57,366 | 37,087 | 17,756 | |||||||||||||
Total expenses | 57,366 | 37,087 | 20,446 | |||||||||||||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | -50,576 | -39,743 | 6,646 | |||||||||||||
Provision (benefit) for income taxes | 143,912 | 9,234 | -40,187 | |||||||||||||
Equity in net income (loss) of affiliates | 1,172,032 | -148,008 | -498,301 | |||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 977,544 | -196,985 | -451,468 | |||||||||||||
Loss from discontinued operations, net of tax | -18,027 | 0 | 0 | |||||||||||||
Net income (loss) | $959,517 | ($196,985) | ($451,468) | |||||||||||||
[1] | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter. | |||||||||||||||
[2] | This amount reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter. |
Schedule_II_Financial_Informat4
Schedule II Financial Information of Registrant Parent Company Statement of Cash Flows (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Cash flows from operating activities: | ||||
Net income (loss) | $959,517,000 | ($196,985,000) | ($451,468,000) | |
Loss from discontinued operations, net of tax | 300,057,000 | [1] | 55,134,000 | 227,363,000 |
Net (Gains) Losses On Investments, Other Financial Instruments, Change in Fair Value Of Derivatives And Net Impairment Losses Recognized In Earnings | 79,989,000 | -105,890,000 | 121,892,000 | |
Deferred income tax (benefit) provision | -825,843,000 | -31,847,000 | 7,817,000 | |
Depreciation and other amortization, net | 57,301,000 | 69,726,000 | 53,257,000 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 7,600,000 | |||
Change in other assets | 26,744,000 | -16,764,000 | 50,080,000 | |
Change in other liabilities | -55,592,000 | 54,354,000 | 24,635,000 | |
Net cash used in operating activities, continuing operations | -153,245,000 | -619,040,000 | -247,163,000 | |
Net cash used in operating activities, discontinued operations | 17,071,000 | -45,897,000 | -263,337,000 | |
Net cash (used in) provided by operating activities | -136,174,000 | -664,937,000 | -510,500,000 | |
Cash flows from investing activities: | ||||
Proceeds from sales of fixed-maturity investments available for sale | 19,672,000 | 17,185,000 | 30,966,000 | |
Purchases of trading securities | 0 | -259,897,000 | -3,877,633,000 | |
(Purchases) sales and redemptions of short-term investments, net | -364,855,000 | -363,446,000 | 356,274,000 | |
Sales of other assets, net | 7,836,000 | 41,397,000 | 12,691,000 | |
Purchases of property and equipment, net | -18,495,000 | -6,004,000 | -2,199,000 | |
Payments to Acquire Businesses, Net of Cash Acquired | -295,977,000 | 0 | 0 | |
Net cash (used in) provided by investing activities | -337,632,000 | 60,299,000 | 661,073,000 | |
Cash flows from financing activities: | ||||
Dividends paid | -1,865,000 | -1,632,000 | -1,335,000 | |
Proceeds/payments related to issuance or exchange of debt, net | 293,809,000 | 377,783,000 | 0 | |
Redemption of long-term debt | -57,223,000 | -79,372,000 | -153,261,000 | |
Issuance of common stock | 247,188,000 | 299,410,000 | 0 | |
Net cash provided by (used in) financing activities | 482,016,000 | 596,941,000 | -154,596,000 | |
Cash, beginning of period | 22,880,000 | 29,408,000 | 33,020,000 | |
Cash, end of period | 30,465,000 | 22,880,000 | 29,408,000 | |
Parent Company | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 959,517,000 | -196,985,000 | -451,468,000 | |
Loss from discontinued operations, net of tax | 18,027,000 | 0 | 0 | |
Net (Gains) Losses On Investments, Other Financial Instruments, Change in Fair Value Of Derivatives And Net Impairment Losses Recognized In Earnings | -53,000 | 3,004,000 | -1,821,000 | |
Losses (gains) on the repurchase of long-term debt | 2,785,000 | 3,952,000 | -16,175,000 | |
Equity in undistributed net (income) loss of subsidiaries and affiliates | -1,172,005,000 | 150,090,000 | 505,267,000 | |
(Decrease) increase in federal income taxes | -6,626,000 | 6,583,000 | -7,145,000 | |
Deferred income tax (benefit) provision | 170,757,000 | 0 | 0 | |
Depreciation and other amortization, net | 34,213,000 | 30,286,000 | 18,603,000 | |
Change in other assets | 13,768,000 | 23,301,000 | -17,708,000 | |
Change in other liabilities | -47,536,000 | 85,450,000 | 25,336,000 | |
Net cash used in operating activities, continuing operations | -27,153,000 | 105,681,000 | 54,889,000 | |
Net cash used in operating activities, discontinued operations | -18,027,000 | 0 | 0 | |
Net cash (used in) provided by operating activities | -45,180,000 | 105,681,000 | 54,889,000 | |
Cash flows from investing activities: | ||||
Sales/redemptions of trading securities | 0 | 9,000,000 | 153,992,000 | |
Purchases of trading securities | 0 | 0 | -3,000 | |
(Purchases) sales and redemptions of short-term investments, net | 1,372,000 | -496,979,000 | 41,042,000 | |
Sales of other assets, net | 0 | 21,473,000 | 8,709,000 | |
Purchases of property and equipment, net | -1,351,000 | -647,000 | -1,124,000 | |
Capital contributions to subsidiaries and affiliates | -139,103,000 | -233,391,000 | -100,384,000 | |
Issuance of notes receivable from affiliates | -300,000,000 | 0 | 0 | |
Net cash (used in) provided by investing activities | -439,082,000 | -700,544,000 | 102,232,000 | |
Cash flows from financing activities: | ||||
Dividends paid | -1,865,000 | -1,632,000 | -1,335,000 | |
Proceeds/payments related to issuance or exchange of debt, net | 293,809,000 | 377,783,000 | 0 | |
Redemption of long-term debt | -57,223,000 | -79,372,000 | -153,261,000 | |
Issuance of common stock | 247,188,000 | 299,410,000 | 0 | |
Net cash provided by (used in) financing activities | 481,909,000 | 596,189,000 | -154,596,000 | |
(Decrease) increase in cash | -2,353,000 | 1,326,000 | 2,525,000 | |
Cash, beginning of period | 4,304,000 | 2,978,000 | 453,000 | |
Cash, end of period | $1,951,000 | $4,304,000 | $2,978,000 | |
[1] | This amount reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter. |
Schedule_II_Financial_Informat5
Schedule II Financial Information of Registrant Parent Company Only Financial Information (Details) (USD $) | 12 Months Ended | 2 Months Ended | 10 Months Ended | 8 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2015 | 31-May-14 | Mar. 31, 2013 | Dec. 22, 2014 | Jun. 30, 2005 | Jun. 01, 2005 | Nov. 30, 2010 | Nov. 15, 2010 | |
basispoint | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Short-term investments—at fair value | $1,300,872,000 | $935,852,000 | $935,852,000 | $1,300,872,000 | |||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 7,600,000 | ||||||||||||||
Repayments of Long-term Debt | 57,223,000 | 79,372,000 | 153,261,000 | ||||||||||||
Issuance of common stock | 247,188,000 | 299,410,000 | 0 | ||||||||||||
Senior Notes Due 2017 | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | |||||||||||||
Senior Notes Due 2015 | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Debt Instrument, Face Amount | 250,000,000 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.38% | ||||||||||||||
Gains (Losses) on Extinguishment of Debt | -2,800,000 | ||||||||||||||
Repayments of Long-term Debt | 57,200,000 | ||||||||||||||
Convertible Senior Notes Due 2017 | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||||||||||||||
Convertible Senior Notes Due 2017 | Convertible Debt [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Debt Instrument, Face Amount | 450,000,000 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||||||||||||||
Proceeds/payments related to issuance or exchange of debt, net | 391,300,000 | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.75% | ||||||||||||||
Long-term Debt, Gross | 450,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | |||||||||||
Convertible Senior Notes Due 2019 | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | ||||||||||||||
Convertible Senior Notes Due 2019 | Convertible Debt [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Debt Instrument, Face Amount | 400,000,000 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | ||||||||||||||
Proceeds/payments related to issuance or exchange of debt, net | 389,800,000 | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.25% | ||||||||||||||
Long-term Debt, Gross | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | |||||||||||
Senior Notes Due 2019 [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Debt Instrument, Face Amount | 300,000,000 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||
Number of Basis Points Added to Treasury Rate Used in Calculating Redemption Price of Debt | 50 | 50 | |||||||||||||
Proceeds/payments related to issuance or exchange of debt, net | 293,800,000 | ||||||||||||||
Parent Company | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Short-term investments—at fair value | 631,934,000 | 633,178,000 | 633,178,000 | 631,934,000 | |||||||||||
Interest Income, Related Party | 8,900,000 | ||||||||||||||
Notes Receivable, Related Parties | 300,000,000 | 300,000,000 | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Restricted Funds Included In Short Term Investments | 45,100,000 | 41,600,000 | 41,600,000 | 45,100,000 | |||||||||||
Restricted Cash Held As Collateral For Insurance Trust Agreement | 100,000 | 100,000 | 100,000 | 100,000 | |||||||||||
Total Operating Expenses and Interest Expense Allocated to Subsidiaries From Parent Company | 92,500,000 | 140,000,000 | 93,200,000 | ||||||||||||
Tax Payments to Parent from Subsidiaries | 8,800,000 | 500,000 | 36,800,000 | ||||||||||||
Gains (Losses) on Extinguishment of Debt | 2,785,000 | 3,952,000 | -16,175,000 | ||||||||||||
Repayments of Long-term Debt | 57,223,000 | 79,372,000 | 153,261,000 | ||||||||||||
Issuance of common stock | 247,188,000 | 299,410,000 | 0 | ||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 645,501,000 | 645,501,000 | |||||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 700,000,000 | 700,000,000 | |||||||||||||
Long-term Debt, Gross | 1,345,501,000 | 1,345,501,000 | |||||||||||||
Subsidiaries [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Proceeds from Contributions from Parent | 139,100,000 | 313,900,000 | 100,400,000 | ||||||||||||
Radian Guaranty [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Proceeds from Contributions from Parent | 230,000,000 | 100,000,000 | 100,000,000 | ||||||||||||
Cash Distributed From Parent to Consolidated Subsidiary | 400,000 | 300,000 | |||||||||||||
RDN Investments [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Proceeds from Contributions from Parent | 80,500,000 | ||||||||||||||
Radian Mortgage Services [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Proceeds from Contributions from Parent | 20,000,000 | 2,900,000 | |||||||||||||
Radian Clayton Holdings Inc. [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Proceeds from Contributions from Parent | 19,000,000 | ||||||||||||||
Radian Mortgage Reinsurance [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Proceeds from Contributions from Parent | 100,000 | 100,000 | 100,000 | ||||||||||||
Subsequent Event [Member] | Radian Guaranty [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Proceeds from Contributions from Parent | 100,000,000 | ||||||||||||||
Debt Due 2015 Exchange | Senior Notes Due 2017 | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Debt Instrument, Face Amount | 195,500,000 | 195,500,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | |||||||||||||
Gains (Losses) on Extinguishment of Debt | -4,000,000 | ||||||||||||||
Debt Due 2015 Exchange | Senior Notes Due 2015 | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Redemption of long-term debt | 195,500,000 | ||||||||||||||
Common Stock | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Shares Issued, Price Per Share | $14.50 | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 17,825,000 | 39,100,000 | |||||||||||||
Sale of Stock, Price Per Share | $14.50 | $8 | |||||||||||||
Issuance of common stock | $299,400,000 | $247,200,000 | |||||||||||||
Sale of Radian Asset Assurance [Member] | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | ||||||||||||||
Sale of Radian Asset Assurance [Member] | Parent Company | |||||||||||||||
Supplemental Notes [Abstract] | |||||||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% |
Schedule_IV_Reinsurance_Detail
Schedule IV Reinsurance (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct Premiums Earned | $905,502 | $848,655 | $743,736 | ||||||||
Ceded Premiums Earned | 61,017 | 67,291 | 40,398 | ||||||||
Assumed Premiums Earned | 43 | 56 | -953 | ||||||||
Net premiums earned—insurance | $224,293 | $217,827 | $203,646 | $198,762 | $200,356 | $200,120 | $197,952 | $182,992 | $844,528 | $781,420 | $702,385 |
Premiums, Percentage Assumed to Net | 0.01% | 0.01% | -0.14% |