Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 24, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | Radian Group Inc. | ||
Entity Central Index Key | 890,926 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 197,500,450 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,890,495,962 |
Consolidated Balance Sheets Sta
Consolidated Balance Sheets Statement - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Fixed-maturities available for sale—at fair value (amortized cost $1,893,356 and $528,660) | $ 1,865,461 | $ 536,890 | |
Equity securities available for sale—at fair value (cost $75,538 and $76,900) | 75,430 | 143,368 | |
Trading securities—at fair value | 1,279,137 | 1,633,584 | |
Short-term investments—at fair value | 1,076,944 | 1,300,872 | |
Other invested assets | 1,714 | 14,585 | |
Total investments | 4,298,686 | 3,629,299 | |
Cash | 46,898 | 30,465 | |
Restricted cash | 13,000 | 14,031 | |
Accounts and notes receivable | 61,734 | 85,792 | |
Deferred income taxes, net (Note 13) | 577,945 | 700,201 | |
Goodwill and other intangible assets, net (Note 7) | 289,417 | 288,240 | |
Other assets (Note 9) | 354,420 | 357,864 | |
Assets held for sale (Note 3) | 0 | 1,736,444 | [1] |
Total assets | 5,642,100 | 6,842,336 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Unearned premiums | 680,300 | 644,504 | |
Reserve for losses and loss adjustment expenses (“LAE”) (Note 10) | 976,399 | 1,560,032 | |
Long-term debt (Note 11) | 1,219,454 | 1,192,299 | |
Other liabilities | 269,016 | 326,743 | |
Liabilities held for sale (Note 3) | 0 | 947,008 | |
Total liabilities | $ 3,145,169 | $ 4,670,586 | |
Commitments and Contingencies (Note 17) | |||
Equity component of currently redeemable convertible senior notes (Note 11) | $ 0 | $ 74,690 | |
Stockholders’ equity | |||
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2015 and 2014; 224,432,465 and 208,601,020 shares issued at December 31, 2015 and 2014, respectively; 206,871,768 and 191,053,530 shares outstanding at December 31, 2015 and 2014, respectively | 224 | 209 | |
Treasury stock, at cost: 17,560,697 and 17,547,490 shares at December 31, 2015 and 2014, respectively | (893,176) | (892,961) | |
Additional paid-in capital | 2,716,618 | 2,531,513 | |
Retained earnings | 691,742 | 406,814 | |
Accumulated other comprehensive (loss) income (“AOCI”) (Note 12) | (18,477) | 51,485 | |
Total stockholders’ equity | 2,496,931 | 2,097,060 | |
Total liabilities and stockholders’ equity | $ 5,642,100 | $ 6,842,336 | |
[1] | Assets held for sale are not part of the Mortgage Insurance or Services segments. |
Balance Sheet Parenthetical (Pa
Balance Sheet Parenthetical (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Debt Securities, Amortized Cost Basis | $ 1,893,356 | $ 528,660 |
Available-for-sale Equity Securities, Amortized Cost Basis | $ 75,538 | $ 76,900 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 |
Common Stock, Shares, Issued | 224,432,465 | 208,601,020 |
Common Stock, Shares, Outstanding | 206,871,768 | 191,053,530 |
Treasury Stock, Shares | 17,560,697 | 17,547,490 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Revenues: | |||||
Net premiums earned—insurance | $ 915,908 | $ 844,528 | $ 781,420 | ||
Services revenue | 153,815 | 76,693 | 0 | ||
Net investment income | 81,537 | 65,655 | 68,121 | ||
Net gains (losses) on investments and other financial instruments | 35,693 | [1],[2] | 79,989 | [1],[2] | (106,525) |
Other income | 6,300 | 5,820 | 6,890 | ||
Total revenues | 1,193,253 | 1,072,685 | 749,906 | ||
Expenses: | |||||
Provision for losses | 198,585 | 246,083 | 562,747 | ||
Policy acquisition costs | 22,424 | 24,446 | 28,485 | ||
Direct cost of services | 89,963 | 43,605 | 0 | ||
Other operating expenses | 246,157 | 252,283 | 257,402 | ||
Interest expense | 91,102 | 90,464 | 74,618 | ||
Loss on induced conversion and debt extinguishment | 94,207 | 0 | 0 | ||
Increase (Decrease) in Goodwill and Intangible Assets | 12,986 | 8,648 | 0 | ||
Total expenses | 755,424 | 665,529 | 923,252 | ||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | 437,829 | 407,156 | (173,346) | ||
Income tax provision (benefit) | 156,290 | (852,418) | (31,495) | ||
Net income (loss) from continuing operations | 281,539 | 1,259,574 | [3] | (141,851) | |
Loss from discontinued operations, net of tax | 5,385 | [4] | (300,057) | [4],[5] | (55,134) |
Net income (loss) | $ 286,924 | $ 959,517 | $ (196,985) | ||
Earnings Per Share, Basic: | |||||
Net income (loss) from continuing operations, per basic share | $ 1.41 | $ 6.83 | $ (0.85) | ||
Net income (loss) from discontinued operations, per basic share | 0.03 | (1.63) | (0.33) | ||
Net income (loss), per basic share | 1.44 | 5.20 | (1.18) | ||
Earnings Per Share, Diluted: | |||||
Net income (loss) from continuing operations, per diluted share | 1.20 | 5.44 | (0.85) | ||
Net income (loss) from discontinued operations and disposal of discontinued operations, net of tax, per diluted share | 0.02 | (1.28) | (0.33) | ||
Net income (loss) per diluted share | $ 1.22 | [6],[7] | $ 4.16 | [6],[7] | $ (1.18) |
Weighted-average number of common shares outstanding—basic | 199,910 | 184,551 | 166,366 | ||
Weighted-average number of common and common equivalent shares outstanding—diluted | 246,332 | [6] | 233,902 | [6] | 166,366 |
Dividends per share | $ 0.01 | $ 0.01 | $ 0.01 | ||
[1] | The 2015 and 2014 amounts reflect primarily unrealized (losses) gains, respectively, on our trading securities. | ||||
[2] | The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains (losses) on investments and other financial instruments has been adjusted by income of $0.1 million and $0.6 million for the years ended December 31, 2014 and 2013, respectively, to reverse this item. | ||||
[3] | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter of 2014. | ||||
[4] | Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. | ||||
[5] | Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014. | ||||
[6] | Diluted net income per share and average shares outstanding per the accounting standard regarding earnings per share. | ||||
[7] | Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income from continuing operations. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income (loss) | $ 286,924 | $ 959,517 | $ (196,985) |
Foreign currency translation adjustments: | |||
Net foreign currency translation adjustments | (217) | (226) | 0 |
Unrealized (losses) gains on investments: | |||
Unrealized holding (losses) gains arising during the period | (22,573) | 13,650 | 19,149 |
Less: Reclassification adjustment for net (losses) gains included in net income (loss) | 44,183 | (1,039) | 656 |
Net unrealized gains on investments | (66,756) | 14,689 | 18,493 |
Activity related to investments recorded as assets held for sale | (3,254) | (302) | 2,597 |
Other comprehensive income, net of tax | (70,227) | 14,161 | 21,090 |
Comprehensive income (loss) | $ 216,697 | $ 973,678 | $ (175,895) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Common Stockholders' Equity - USD ($) $ in Thousands | Total | Parent [Member] | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings/(Deficit) | Accumulated Other Comprehensive Income (Loss) [Member] |
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) | 0 | |||
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 | 672 | 0 | 672 | ||||
Stock-based compensation expense, net | 4,191 | 4,191 | |||||
Issuance of convertible debt (See Note 11) | 77,026 | 77,026 | |||||
Net actuarial gain (loss) | 198 | 198 | |||||
Dividends declared | (1,632) | (1,632) | |||||
Dividends, Common Stock | 0 | ||||||
Balance, at Dec. 31, 2013 | 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 | 182 | ||||
Issuance of common stock under benefit plans | 0 | 959 | 0 | 959 | |||
Stock-based compensation expense, net | 12,176 | 12,176 | |||||
Net actuarial gain (loss) | (59) | (59) | |||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | (74,690) | (74,690) | |||||
Dividends declared | (1,865) | (1,388) | |||||
Dividends, Common Stock, Cash | 477 | ||||||
Balance, at Dec. 31, 2014 | 2,097,060 | 2,097,060 | 209 | (892,961) | 2,531,513 | 406,814 | 51,485 |
Net income (loss) | 286,924 | 286,924 | 286,924 | ||||
Net foreign currency translation adjustment, net of tax | (217) | (217) | (217) | ||||
Net unrealized gain on investments, net of tax | (66,756) | (70,010) | (70,010) | ||||
Repurchases of common stock under incentive plans | (215) | (215) | 0 | ||||
Issuance of common stock under incentive plans | 1,285 | 1 | 1,284 | ||||
Issuance of common stock under benefit plans | 1,138 | 0 | 1,138 | ||||
Stock-based compensation expense, net | 15,513 | 15,513 | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 28 | ||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | 336,386 | 336,358 | |||||
Net actuarial gain (loss) | 265 | 0 | 0 | 0 | 0 | 265 | |
Stock Repurchased During Period, Value | (202,000) | (11) | 0 | (201,989) | 0 | 0 | |
Equity Impact of Termination of Capped Call Transaction | 13,150 | (3) | 0 | 13,153 | 0 | 0 | |
Change in equity component of currently redeemable convertible senior notes | 19,648 | 19,648 | |||||
Dividends declared | (1,996) | 0 | |||||
Dividends, Common Stock, Cash | 1,996 | ||||||
Balance, at Dec. 31, 2015 | $ 2,496,931 | $ 2,496,931 | $ 224 | $ (893,176) | $ 2,716,618 | $ 691,742 | $ (18,477) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Cash flows from operating activities [Abstract] | |||||
Net income (loss) | $ 286,924 | $ 959,517 | $ (196,985) | ||
Loss from discontinued operations, net of tax | 5,385 | [1] | (300,057) | [1],[2] | (55,134) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||
Net (gains) losses on investments and other financial instruments recognized in earnings | (35,693) | (79,989) | 105,890 | ||
Loss on induced conversion and debt extinguishment | 94,207 | 0 | 0 | ||
Net payments related to derivative contracts and VIEs | (3,203) | (125) | (8,574) | ||
Net cash (paid) received for commutations, terminations and recaptures | (8,047) | 1,105 | (254,667) | ||
Deferred income tax provision (benefit) | 156,170 | (825,843) | (31,847) | ||
Increase (Decrease) in Goodwill and Intangible Assets | 12,986 | 8,648 | 0 | ||
Depreciation and other amortization, net | 68,639 | 57,301 | 69,726 | ||
Change in: | |||||
Accounts Receivable, Net | 25,656 | (28,310) | 6,556 | ||
Unearned premiums | 35,796 | 77,432 | 184,659 | ||
Reserve for losses and LAE | (575,594) | (604,906) | (664,588) | ||
Other assets | 21,620 | 37,460 | 61,302 | ||
Other liabilities | (58,562) | (55,592) | 54,354 | ||
Net cash provided by (used in) operating activities, continuing operations | 15,514 | (153,245) | (619,040) | ||
Net cash used in operating activities, discontinued operations | (1,759) | 17,071 | (45,897) | ||
Net cash used in operating activities | 13,755 | (136,174) | (664,937) | ||
Cash flows from investing activities: | |||||
Proceeds from sales of fixed-maturity investments available for sale | 20,100 | 19,672 | 17,185 | ||
Proceeds from sales of equity securities available for sale | 146,049 | 0 | 0 | ||
Proceeds from sales of trading securities | 78,826 | 469,582 | 299,577 | ||
Proceeds from redemptions of fixed-maturity investments held to maturity | 0 | 350 | 325 | ||
Proceeds from redemptions of fixed-maturity investments available for sale | 103,595 | 4,985 | 538 | ||
Proceeds from redemptions of equity securities available for sale | 0 | 0 | 10,503 | ||
Proceeds from redemptions of fixed-maturity investments held to maturity | 221,914 | 201,597 | 233,763 | ||
Purchases of fixed-maturity investments available for sale | (1,486,318) | (519,166) | (21,432) | ||
Purchases of equity securities available for sale | (75,538) | 0 | 0 | ||
Purchases of trading securities | 0 | 0 | (259,897) | ||
Sales, redemptions (purchases) of short-term investments, net | 222,882 | (364,855) | (363,446) | ||
Sales of other assets and other invested assets, net | 16,717 | 7,836 | 41,397 | ||
Proceeds from the sale of investment in affiliate, net of cash transferred | 784,866 | 0 | 0 | ||
Purchases of property and equipment, net | (25,466) | (18,495) | (6,004) | ||
Acquisitions, net of cash received | (10,837) | (295,977) | 0 | ||
Net cash (used in) investing activities, continuing operations | (3,210) | (494,471) | (47,491) | ||
Net cash provided by investing activities, discontinued operations | 4,999 | 156,839 | 107,790 | ||
Net cash provided by (used in) investing activities | 1,789 | (337,632) | 60,299 | ||
Cash flows from financing activities: | |||||
Dividends paid | (1,996) | (1,865) | (1,632) | ||
Issuance of long-term debt, net | 343,334 | 293,809 | 377,783 | ||
Purchases and redemptions of long-term debt | (156,172) | (57,223) | (79,372) | ||
Proceeds from Hedge, Financing Activities | 13,150 | 0 | 0 | ||
Issuance of common stock | 1,285 | 247,188 | 299,410 | ||
Payments for Repurchase of Common Stock | (202,000) | 0 | 0 | ||
Excess tax benefits from stock-based awards | 3,000 | 107 | 752 | ||
Net cash provided by financing activities, continuing operations | 601 | 482,016 | 596,941 | ||
Net cash provided by (used in) financing activities, discontinued operations | 0 | 0 | 0 | ||
Net cash (used in) provided by financing activities | 601 | 482,016 | 596,941 | ||
Effect of exchange rate changes on cash | (133) | (68) | 0 | ||
Increase (decrease) in cash | 16,012 | 8,142 | (7,697) | ||
Cash, beginning of period | 30,465 | 22,880 | 29,408 | ||
Change in cash of business held for sale | (421) | 557 | (1,169) | ||
Cash, end of period | 46,898 | 30,465 | 22,880 | ||
Supplemental disclosures of cash flow information: | |||||
Income Taxes Paid, Net | 3,712 | (4,312) | 4,436 | ||
Income taxes paid, discontinued operations | 2,036 | 13,891 | 1,051 | ||
Interest paid | $ 61,077 | $ 50,702 | $ 40,380 | ||
[1] | Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. | ||||
[2] | Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014. |
Note 1 - Description of Busines
Note 1 - Description of Business and Recent Developments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
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 have two reportable business segments—Mortgage Insurance and Services. On April 1, 2015, Radian Guaranty completed the sale of its subsidiary, Radian Asset Assurance, a financial guaranty insurer, to Assured, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. The operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our consolidated balance sheets and consolidated statements of operations. 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 nationwide. 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 supports increased levels of home ownership by facilitating 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-lien mortgage loans. At December 31, 2015 , primary insurance on first-lien mortgage loans represented approximately 97.4% of our $45.8 billion total direct RIF. At December 31, 2015 , pool insurance represented approximately 2.5% 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 $49.4 million as of December 31, 2015 , representing less than 1% of our total direct RIF. 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, as well as the PMIERs Financial Requirements discussed below. Failure to comply with applicable financial requirements 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. See Note 14 for additional regulatory information. Services Our Services segment provides services and solutions to the real estate and mortgage finance industries. Our Services segment provides outsourced services, mortgage-related analytics and specialized consulting and surveillance services for buyers and sellers of, and investors in, mortgage- and real estate-related loans and securities as well as other ABS. The primary lines of business in our Services segment include: • Loan Review and 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 —Monitoring of mortgage servicer and loan performance, with Risk Management and Servicing Oversight solutions that include RMBS surveillance, Regulatory and Operational loan level oversight, asset representation review and consulting services; • Valuation and Component Services —Outsourced solutions offered through Green River Capital, primarily focused on the SFR market, including valuations, property inspections, title reviews, lease reviews, tax lien reviews and due diligence reviews for SFR and residential real estate markets; as well as outsourced solutions for appraisal, title and closing services; • REO Management —REO asset management services offered through 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. During the first quarter of 2015, Clayton expanded its service offerings by acquiring Red Bell, a real estate brokerage company that provides products and services that include automated valuation models; broker price opinions used by investors, lenders and loan servicers; and advanced technology solutions for: (1) monitoring loan portfolio performance; (2) tracking non-performing loans; (3) managing REO assets; and (4) valuing and selling residential real estate through a secure platform. In addition, in October 2015, Clayton acquired ValuAmerica, a national title agency and appraisal management company with a technology platform that helps mortgage lenders and their vendors streamline and manage their supply chains and operational workflow. Red Bell and ValuAmerica are also included in the Services segment since the dates of acquisition. See Note 7 for additional information. Discontinued Operations On April 1, 2015, Radian Guaranty completed the sale of 100% of the issued and outstanding shares of Radian Asset Assurance for a purchase price of approximately $810 million , pursuant to the Radian Asset Assurance Stock Purchase Agreement. The divestiture was intended to better position Radian Guaranty to comply with the PMIERs and to support Radian’s strategic focus on the mortgage and real estate industries. After closing costs and other adjustments, Radian Guaranty received net proceeds of $789 million . For additional information related to discontinued operations, see Note 3. Recent Developments PMIERs In order to be eligible to insure loans purchased by the GSEs, mortgage insurers such as Radian Guaranty must meet the GSEs’ eligibility requirements, or PMIERS. The GSEs recently revised the PMIERs, effective December 31, 2015, with the aim of ensuring that approved insurers will possess the financial and operational capacity to serve as strong counterparties to the GSEs throughout various market conditions. As a consequence, the PMIERs are comprehensive, covering virtually all aspects of the business and operations of a private mortgage insurer, including internal risk management and quality controls, the relationship between the GSEs and the approved insurer and the approved insurer’s financial condition. The GSEs have significant discretion under the PMIERs as well as a broad range of consent rights to approve various actions of the approved insurer. The GSEs may amend the PMIERs at any time in their sole discretion. If Radian Guaranty is unable to satisfy the requirements set forth in the PMIERs, Freddie Mac and/or Fannie Mae could restrict it from conducting certain types of business with them or take actions that may include not purchasing loans insured by Radian Guaranty. The PMIERs Financial Requirements require that a mortgage insurer’s Available Assets (as defined, these primarily include liquid assets and exclude premiums received but not yet earned) meet or exceed its Minimum Required Assets (a risk-based minimum required asset amount calculated based on net RIF, and which is intended to approximate the maximum loss exposure based on a variety of criteria designed to evaluate credit quality). Under the final PMIERs, Radian Guaranty’s Available Assets and Minimum Required Assets are determined on an aggregate basis, taking into account the assets and insured risk of Radian Guaranty and its affiliated reinsurers. Therefore, developments that impact the assets and insured risk of Radian Guaranty’s affiliated reinsurers individually (such as capital contributions from Radian Group) also will impact the aggregate Available Assets and Minimum Required Assets, and importantly, Radian Guaranty’s compliance with the PMIERs Financial Requirements. As a result, references to Radian Guaranty’s Available Assets and Minimum Required Assets take into consideration both Radian Guaranty and its affiliated reinsurers. As of December 31, 2015, Radian Guaranty satisfied the PMIERs Financial Requirements, with its Available Assets exceeding Minimum Required Assets. The implementation of the final PMIERs has: (1) increased the amount of capital that Radian Guaranty is required to hold, and therefore, may reduce our returns on subsidiary capital; (2) imposed higher capital requirements for certain types of mortgage insurance policies, that may potentially impact the type and volume of business that Radian Guaranty and other private mortgage insurers are willing to write; (3) imposed extensive and more stringent operational requirements in areas such as claim processing, loss mitigation, document retention, underwriting, quality control, reporting and monitoring, among others, that may result in additional costs to maintain compliance; and (4) imposed a requirement for Radian Guaranty to receive the consent of the GSEs prior to taking certain actions such as paying dividends, entering into various intercompany agreements, and commuting or reinsuring risk, among others. In order to comply with the PMIERs and to increase our financial flexibility, we executed the following transactions in the fourth quarter of 2015: • Radian Group transferred $325 million of cash and marketable securities to Radian Guaranty in exchange for a Surplus Note issued by Radian Guaranty. This Surplus Note has a 0% interest rate and is scheduled to mature on December 31, 2025. See Note 14 for additional information. • Radian Group contributed $50 million to an exclusive affiliated reinsurer of Radian Guaranty. See Note 14 for information on Radian Reinsurance. In addition, Radian Guaranty had the option to recapture a portion of the risk ceded under its existing Second QSR Transaction on December 31, 2015. In order to manage its Minimum Required Assets under the PMIERs, Radian Guaranty chose not to exercise its option to recapture that risk and received a profit commission of approximately $8.0 million based on performance to date. In addition, Radian Guaranty received an $8.5 million prepaid supplemental ceding commission, the recognition of which has been deferred and is expected to be amortized as a reduction to our other operating expenses over approximately five years . See Note 8 for information on reinsurance transactions. 2015 Debt and Equity Transactions During 2015, Radian Group completed a series of transactions to strengthen its capital position, including reducing its overall cost of capital and improving the maturity profile of its debt. This series of transactions had four components: • the issuance of $350 million aggregate principal amount of Senior Notes due 2020; • the purchases of approximately $389.1 million aggregate principal amount of Convertible Senior Notes due 2017; • the termination of a corresponding portion of the capped call transactions related to the purchased Convertible Senior Notes due 2017; and • the entry into an ASR program to repurchase an aggregate of $202 million of Radian Group common stock. The above purchases of Convertible Senior Notes due 2017 resulted in a pretax charge of approximately $91.9 million during 2015, recorded as loss on induced conversion and debt extinguishment. See Notes 11 and 18 for additional information. 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, 2015 | |
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. 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, including the adoption of an update to the accounting standard for the presentation of debt issuance costs in financial statements, as further described below in “— Recent Accounting Pronouncements .” Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the dates of the financial statements 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. Reserve for Losses and LAE We establish reserves to provide for losses and LAE, including 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 loss reserve involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss, including an estimate of the impact of our Loss Mitigation Activities. 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. For example, our mortgage insurance loss reserves generally increase 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. While we believe this remains accurate, following the financial crisis, there are a significant number of loans in our defaulted portfolio that have been in default for an extended period of time, but which have not been subject to foreclosure, and therefore, have not resulted in claims. As a result, significant uncertainty remains with respect to the ultimate resolution of these aged defaults. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. 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. In our Mortgage Insurance business, the default and claim cycle begins with the receipt of a default notice from the loan 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. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. 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 and type of insurance (i.e., primary or pool). 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 as well as the date that a loan goes into default. The Default to Claim Rate also includes our estimates with respect to expected Rescissions and Claim Denials, which have the effect of reducing our Default to Claim Rates. We forecast the impact of our Loss Mitigation Activity 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 Rescissions or cancellations and Claim Denials, to help determine the Default to Claim Rate. Our Loss Mitigation Activities have resulted in challenges from certain lender and servicer customers, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials and Claim Curtailments. Although we believe that our Loss Mitigation Activities are justified under our policies, if any of these challenges result in disputes or are not resolved, they could result in arbitration or judicial proceedings and we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. 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. The assumptions embedded in our estimated Default to Claim Rate on our in-force default inventory include an adjustment to our estimated Rescissions and Claim Denials 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. After estimating the Default to Claim Rate, we estimate Claim Severity based on the average of recently observed severity rates within product type, type of insurance, and Time in Default cohorts. These average severity estimates are then applied to individual loan coverage amounts to determine reserves. Similar to the Default to Claim Rate, Claim Severity also is impacted by the length of time that loans are in default and by our Loss Mitigation Activity. For claims under our 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. Therefore, Claim Severity generally increases the longer that a loan is in default. In addition, we estimate the impact that the amount that Claim Curtailments due to servicer noncompliance with our insurance policies and servicing guidelines have on the amount that we ultimately will have to pay with respect to claims. As part of our claims review process, we assess whether defaulted loans were serviced appropriately in accordance with our insurance policies and servicing guidelines. If a servicer 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. 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. IBNR and Other Reserves We also establish reserves for defaults that we estimate have been incurred but have not been reported to us on a timely basis by the servicer, as well as for previous Rescissions and Claim Denials that we estimate will be reinstated and subsequently paid. We generally give the policyholder up to 30 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. The impact to our reserve due to estimated future Rescissions and Claim Denials incorporates our expectations regarding the number of policies that we expect to be reinstated as a result of our claims rebuttal process. Rescissions and Claim Denials may occur 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. The level of Rescissions and Claim Denials has been declining in recent periods as our defaulted Legacy Portfolio continues to decline, and we expect this trend to continue. 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 limit Rescissions, Claim Denials or Claim Curtailments. See Note 10 for additional information about the BofA Settlement Agreement. Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we consider our claim payments and our Rescissions, Claim Denials and Claim 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, Claim Denials and Claim 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, Claim Denials, Claim Curtailments, and cancellations for this population of loans, determined using assumptions that are consistent with those utilized to determine our overall loss reserves. See Note 10 for additional information about the Freddie Mac Agreement. Senior management regularly reviews the modeled frequency, Rescission, Claim Denial and Claim 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 and determines how they should be considered in its reserve estimates. 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 Claim 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, 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 successful 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 expensed 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 arrangements related to these costs are also deferred and accounted for using similar assumptions, including certain amounts received under the QSR Transactions (See Note 8). Estimates of expected gross profit, including the Persistency Rate 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. 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 Services 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 Services 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 Services 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 in our Services segment. 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. Our framework for assessing the recoverability of our DTAs requires consideration of all available evidence, including: • whether there are cumulative losses from previous years; • future projections of taxable income within the applicable carryback and carryforward periods, including the sustainability of our forecasts of future taxable income under potential stress scenarios; • degree of certainty regarding our projected incurred losses; • future reversals of existing taxable temporary differences; and • potential tax planning strategies. 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 2015 and 2014. When estimating our full year 2015 and 2014 effective tax rates, we adjust our forecasted pre-tax income for gains and losses on our 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 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, 2015 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; (3) funds held in trust for the benefit of certain policyholders; (4) escrow funds held for servicer liabilities; and (5) escrow funds held for title services obligations. 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 investment activity for trading securities relates to overall strategic initiatives and is not trading related, it is recorded as cash flows from investing activities. 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, if any, 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 Services customers for services our Services segment has performed, and, as of December 31, 2014, 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. Property and Equipment Property and equipment is carried at cost, net of depreciation. For financial statement reporting purposes, computer hardware and software is generally depreciated over three or five 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 is an asset representing the estimated future economic benefits arising from the assets we have acquired that were not individually identified and separately recognized, 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 at the reporting unit level. A reporting unit represents a business for which discrete financial information is available; more than one reporting unit may be aggregated into a single reporting unit if they have similar economic characteristics. The value of goodwill is primarily supported by revenue projections, which are driven primarily by projected transaction volume and margins. 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 customer relations |
Note 3 - Discontinued Operation
Note 3 - Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations On April 1, 2015, Radian Guaranty completed the sale of 100% of the issued and outstanding shares of Radian Asset Assurance for a purchase price of approximately $810 million , pursuant to the Radian Asset Assurance Stock Purchase Agreement. Radian Asset Assurance provided direct insurance and reinsurance on credit-based risks. As a result, the assets and liabilities associated with the discontinued operations had 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. The divestiture was intended to better position Radian Guaranty to comply with the PMIERs (which are discussed in Note 1) and to support Radian’s strategic focus on the mortgage and real estate industries. After closing costs and other adjustments, Radian Guaranty received net proceeds of $789 million . 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 a pre-tax impairment charge of $467.5 million for the year ended December 31, 2014 and an additional pre-tax impairment charge of $14.3 million through April 1, 2015, when the sale was completed. We recorded total net income from discontinued operations of $5.4 million related to this sale in 2015, consisting primarily of the recognition of investment gains previously deferred and recorded in accumulated other comprehensive income and recognized as a result of the completion of the sale of Radian Asset Assurance to Assured on April 1, 2015, as well as adjustments to estimated transaction costs and taxes. The operating results of Radian Asset Assurance are classified 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 and, as a result, we 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, were reallocated to the Mortgage Insurance segment for those periods in which discontinued operations are presented. The income (loss) from discontinued operations consisted of the following components for the periods indicated: Year Ended December 31, (In thousands) 2015 2014 2013 Net premiums earned $ 1,007 $ 37,194 $ 49,474 Net investment income 9,153 35,633 39,966 Net gains (losses) on investments and other financial instruments 21,486 55,312 (47,930 ) Impairment losses on investments — — (3 ) Change in fair value of derivative instruments 2,625 130,617 (32,406 ) Other income — 88 (20 ) Total revenues 34,271 258,844 9,081 Provision for losses 502 2,853 2,486 Policy acquisition costs (191 ) 6,340 13,178 Other operating expense 4,107 23,726 27,127 Total expenses 4,418 32,919 42,791 Equity in net (loss) income of affiliates (13 ) (13 ) 1 Income (loss) from operations of businesses held for sale 29,840 225,912 (33,709 ) Loss on sale (14,280 ) (467,527 ) — Income tax provision 10,175 58,442 21,425 Income (loss) from discontinued operations, net of tax $ 5,385 $ (300,057 ) $ (55,134 ) 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, 2015 and 2014 : December 31, (In thousands) 2015 2014 Fixed-maturity investments $ — $ 224,552 Equity securities — 3,749 Trading securities — 689,887 Short-term investments — 435,413 Other invested assets — 108,206 Other assets — 274,637 Total assets held for sale $ — $ 1,736,444 Unearned premiums $ — $ 158,921 Reserve for losses and LAE — 31,558 VIE debt — 85,016 Derivative liabilities — 183,370 Other liabilities — 488,143 Total liabilities held for sale $ — $ 947,008 |
Note 4 - Segment Reporting Leve
Note 4 - Segment Reporting Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Reporting We have two strategic business units that we manage separately—Mortgage Insurance and, effective with the June 30, 2014 acquisition of Clayton, our Services segment. Adjusted pretax operating income for each segment represents segment results on a standalone basis; therefore, inter-segment eliminations and reclassifications required for consolidated GAAP presentation have not been reflected. See Note 3 for information related to discontinued operations. We allocate to our Mortgage Insurance segment: (i) corporate expenses based on an allocated percentage of time spent on the Mortgage Insurance segment; (ii) all interest expense except for interest expense related to the Senior Notes due 2019 that were issued to fund our purchase of Clayton; and (iii) all corporate cash and investments. We allocate to our Services segment: (i) corporate expenses based on an allocated percentage of time spent on the Services segment; and (ii) all interest expense related to the Senior Notes due 2019, the proceeds of which were used to fund our acquisition of Clayton. No corporate cash or investments are allocated to the Services segment. We have included Clayton’s results of operations from the June 30, 2014 date of acquisition. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation. 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 each 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; loss on induced conversion and debt extinguishment; acquisition-related expenses; amortization and impairment of intangible assets; and net impairment losses recognized in earnings. 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) 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. 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. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). However, we include the change in expected economic loss or recovery associated with our consolidated VIEs, if any, in the calculation of adjusted pretax operating income (loss). (2) Loss on induced conversion and debt extinguishment. Gains or losses on early extinguishment of debt or losses incurred to purchase our convertible debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial and capital positions; therefore, these activities are not viewed as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). (3) 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 strategic 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). (4) 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). (5) 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 operating results for our segments as of and for the periods indicated, are as follows: December 31, 2015 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance $ 968,505 $ — $ 968,505 Increase in unearned premiums (52,597 ) — (52,597 ) Net premiums earned—insurance 915,908 — 915,908 Services revenue — 157,416 157,416 Net investment income 81,537 — 81,537 Other income 6,300 — 6,300 Total 1,003,745 157,416 (1) 1,161,161 (2) Provision for losses 198,433 — 198,433 Policy acquisition costs 22,424 — 22,424 Direct cost of services — 93,504 93,504 Other operating expenses before corporate allocations 149,941 43,622 193,563 Total 370,798 (1) 137,126 507,924 Adjusted pretax operating income before corporate allocations 632,947 20,290 653,237 Allocation of corporate operating expenses 46,418 4,823 51,241 Allocation of interest expense 73,402 17,700 91,102 Adjusted pretax operating income (loss) $ 513,127 $ (2,233 ) $ 510,894 Total assets $ 5,281,597 $ 360,503 $ 5,642,100 NIW (in millions) $ 41,411 ________________ (1) Includes inter-segment expenses and revenues as follows: December 31, 2015 (In thousands) Mortgage Insurance Services Inter-segment revenues $ — $ 3,601 Inter-segment expenses 3,601 — (2) Excludes net gains on investments and other financial instruments of $35.7 million , not included in adjusted pretax operating income. December 31, 2014 (In thousands) Mortgage Insurance Services (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 — 76,709 76,709 Net investment income 65,655 — 65,655 Other income 5,321 1,265 6,586 Total 915,504 77,974 (2) 993,478 (3) Provision for losses 246,865 — 246,865 Change in expected economic loss or recovery for consolidated VIEs 113 — 113 Policy acquisition costs 24,446 — 24,446 Direct cost of services — 43,605 43,605 Other operating expenses before corporate allocations 170,390 18,915 189,305 Total 441,814 (2) 62,520 504,334 Adjusted pretax operating income before corporate allocations 473,690 15,454 489,144 Allocation of corporate operating expenses 55,154 1,144 56,298 Allocation of interest expense 81,600 8,864 90,464 Adjusted pretax operating income $ 336,936 $ 5,446 $ 342,382 Assets held for sale (4) $ — $ — $ 1,736,444 Total assets 4,769,014 336,878 6,842,336 NIW (in millions) $ 37,349 ________________ (1) Includes the acquisition of Clayton, effective June 30, 2014. (2) Includes inter-segment expenses and revenues as follows: December 31, 2014 (In thousands) Mortgage Insurance Services Inter-segment revenues $ — $ 782 Inter-segment expenses 782 — (3) Excludes net gains on investments and other financial instruments of $80.0 million , not included in adjusted pretax operating income. (4) Assets held for sale are not part of the Mortgage Insurance or Services segments. December 31, 2013 Mortgage Insurance (In thousands) Net premiums written—insurance $ 950,998 Increase in unearned premiums (169,578 ) Net premiums earned—insurance 781,420 Net investment income 68,121 Other income 6,255 Total (1) 855,796 Provision for losses 562,747 Change in expected economic loss or recovery for consolidated VIEs (21 ) Policy acquisition costs 28,485 Other operating expenses before corporate allocations 160,327 Total 751,538 Adjusted pretax operating income before corporate allocations 104,258 Allocation of corporate operating expenses 97,075 Allocation of interest expense 74,618 Adjusted pretax operating loss $ (67,435 ) Total assets (2) $ 3,837,889 NIW (in millions) $ 47,255 ________________ (1) Excludes the following revenue items not included in adjusted pretax operating loss: (i) net losses on investments and other financial instruments of $106.5 million ; (ii) change in fair value of derivative instruments of $0.6 million . (2) Does not include assets held for sale of $1.8 billion which are not a part of the Mortgage Insurance segment. The reconciliation of adjusted pretax operating income (loss) to consolidated pretax income (loss) from continuing operations is as follows: December 31, (In thousands) 2015 2014 2013 Adjusted pretax operating income (loss): Mortgage insurance (1) $ 513,127 $ 336,936 $ (67,435 ) Services (1) (2,233 ) 5,446 — Total adjusted pretax operating income (loss) $ 510,894 $ 342,382 $ (67,435 ) Net gains (losses) on investments and other financial instruments (2) 35,693 80,102 (105,911 ) Loss on induced conversion and debt extinguishment (94,207 ) — — Acquisition-related expenses (1,565 ) (6,680 ) — Amortization and impairment of intangible assets (12,986 ) (8,648 ) — Consolidated pretax income (loss) from continuing operations $ 437,829 $ 407,156 $ (173,346 ) ________________ (1) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. (2) The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains (losses) on investments and other financial instruments has been adjusted by income of $0.1 million and $0.6 million for the years ended December 31, 2014 and 2013 , respectively, to reverse this item. 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, 2015 , California is the only state that accounted for more than 10% of our mortgage insurance business measured by primary RIF. California accounted for 12.8% of our Mortgage Insurance segment’s primary RIF at December 31, 2015 , compared to 13.7% at December 31, 2014 . California accounted for 15.2% of our Mortgage Insurance segment’s direct primary NIW for the year ended December 31, 2015 , compared to 17.2% and 18.4% for the years ended December 31, 2014 and 2013 , respectively. The largest single mortgage insurance customer (including branches and affiliates), measured by primary NIW, accounted for 4.6% of NIW during 2015 , compared to 4.0% and 5.8% from the largest single customer in 2014 and 2013 , respectively. Earned premiums from one mortgage insurance customer represented 16% , 19% and 21% of our consolidated revenues in 2015 , 2014 and 2013 , respectively. |
Note 5 - Fair Value of Financia
Note 5 - Fair Value of Financial Instruments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value of Financial Instruments The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2015 : December 31, 2015 (In millions) Level I Level II Level III Total Assets and Liabilities at Fair Value Investment Portfolio: U.S. government and agency securities $ 670.3 $ 8.0 $ — $ 678.3 State and municipal obligations — 341.9 — 341.9 Money market instruments 443.3 — — 443.3 Corporate bonds and notes — 1,383.2 — 1,383.2 RMBS — 297.1 — 297.1 CMBS — 544.6 — 544.6 Other ABS — 371.6 — 371.6 Foreign government and agency securities — 37.6 — 37.6 Equity securities 74.9 25.0 0.5 100.4 Other investments (1) — 99.0 — 99.0 Total Investments at Fair Value (2) 1,188.5 3,108.0 0.5 4,297.0 Total Assets at Fair Value $ 1,188.5 $ 3,108.0 $ 0.5 $ 4,297.0 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets ( $1.7 million ), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. At December 31, 2015 , total Level III assets of $0.5 million accounted for less than 0.1% of total assets measured at fair value. This investment was purchased during the three months ended June 30, 2015, and there were no related gains or losses recorded during the year ended December 31, 2015 . There were no Level III liabilities at December 31,2015. There were no investment transfers between Level I and Level II for the year ended December 31, 2015 . There were also no transfers involving Level III assets or liabilities for the year ended December 31, 2015 . The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2014 : 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 $ 3.0 $ 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) 164.0 51.6 215.6 Other investments (2) — 1.0 1.0 Total Investments at Fair Value (3) 1,601.2 2,013.5 3,614.7 Total Assets at Fair Value $ 1,601.2 $ 2,013.5 $ 3,614.7 ______________________ (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 certificates of deposit. (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 other than those classified as assets held for sale, 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 . Rollforward activity of Level III assets and liabilities (including realized and unrealized gains and losses, purchases, sales, issuances, settlements and transfers) was immaterial for the years ended December 31, 2015 and 2014 . 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. Valuation 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 valuations. Other investments — These securities primarily consist of short-term certificates of deposit , 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, 2015 December 31, 2014 (In millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Other invested assets $ 1.7 $ 4.9 $ 14.6 $ 20.5 (1) Liabilities: Long-term debt 1,219.5 1,414.9 1,192.3 1,859.3 (1) ______________________ (1) These estimated fair values would be classified in Level II of the fair value hierarchy. 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 (N
Note 6 - Investments Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investments Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated: December 31, 2015 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 13,773 $ 13,752 $ — $ 21 State and municipal obligations 36,920 37,900 1,100 120 Corporate bonds and notes 815,024 802,193 4,460 17,291 RMBS 226,744 224,905 625 2,464 CMBS 415,780 406,910 69 8,939 Other ABS 359,452 355,494 16 3,974 Foreign government and agency securities 25,663 24,307 27 1,383 $ 1,893,356 $ 1,865,461 $ 6,297 $ 34,192 Equity securities available for sale (1) $ 75,538 $ 75,430 $ — $ 108 Total debt and equity securities $ 1,968,894 $ 1,940,891 $ 6,297 $ 34,300 ______________________ (1) Comprising primarily a multi-sector exchange-traded fund. December 31, 2014 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized 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 primarily broadly diversified domestic equity mutual funds. 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) 2015 2014 Trading securities: U.S. government and agency securities $ 129,913 $ 134,530 State and municipal obligations 303,946 343,926 Corporate bonds and notes 580,993 708,361 RMBS 72,192 89,810 CMBS 137,678 188,615 Other ABS 16,131 77,755 Foreign government and agency securities 13,268 18,331 Equity securities 25,016 72,256 Total $ 1,279,137 $ 1,633,584 For trading securities that were held at December 31, 2015 and 2014 , we had net unrealized losses during 2015 and net unrealized gains during 2014 associated with those securities in the amount of $25.2 million and $65.7 million , respectively. As of December 31, 2015 and 2014 , our investment portfolio included no Sovereign securities of countries that have Sovereign obligations that have been under particular stress due to economic uncertainty, potential restructuring and ratings downgrades, including the Stressed European Countries (Greece, Spain, Italy, Hungary, Portugal and Ireland, collectively). For the years ended December 31, 2015 , 2014 and 2013 , we did not sell or transfer any fixed-maturity investments classified as held to maturity. For the years ended December 31, 2015 , 2014 and 2013 , 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) 2015 2014 2013 Investment income: Fixed-maturities $ 81,127 $ 62,352 $ 66,131 Equity securities 4,539 6,287 6,592 Short-term investments 745 246 255 Other 600 1,848 1,970 Gross investment income 87,011 70,733 74,948 Investment expenses (5,474 ) (5,078 ) (6,827 ) Net investment income $ 81,537 $ 65,655 $ 68,121 Net realized and unrealized gains (losses) on investments and other financial instruments consisted of: Year Ended December 31, (In thousands) 2015 2014 2013 Net realized gains (losses) on investments: Fixed-maturities held to maturity $ — $ (9 ) $ 2 Fixed-maturities available for sale (1,176 ) (1,599 ) 937 Equities available for sale 69,150 — 349 Trading securities (9,231 ) (6,996 ) 7,997 Short-term investments (24 ) 1 1 Other invested assets 3,267 — 8,841 Other gains 110 246 126 Net realized gains (losses) on investments 62,096 (8,357 ) 18,253 Unrealized (losses) gains on trading securities (27,015 ) 92,226 (117,198 ) Total gains (losses) on investments 35,081 83,869 (98,945 ) Net gains (losses) on other financial instruments 612 (3,880 ) (7,580 ) Net gains (losses) on investments and other financial instruments $ 35,693 $ 79,989 $ (106,525 ) 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) 2015 2014 2013 Fixed-maturities available for sale: Proceeds received from redemptions $ 103,595 $ 4,985 $ 538 Proceeds received from sales 20,100 19,672 17,185 Gross investment gains from sales and redemptions 64 99 1,078 Gross investment losses from sales and redemptions (1,240 ) (1,698 ) (141 ) Equities available for sale: Proceeds received from sales and redemptions 146,049 — 10,503 Gross investment gains from sales and redemptions 69,150 — 349 The change in unrealized gains (losses) recorded in accumulated other comprehensive income (loss) consisted of the following: Year Ended December 31, (In thousands) 2015 2014 2013 Fixed-maturities: Unrealized holding (losses) gains arising during the period, net of tax $ (24,246 ) $ 4,531 $ (240 ) Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax (764 ) (1,039 ) 929 Net unrealized (losses) gains on investments, net of tax $ (23,482 ) $ 5,570 $ (1,169 ) Equities: Unrealized holding gains arising during the period, net of tax $ 1,673 $ 9,119 $ 19,389 Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax 44,947 — (273 ) Net unrealized (losses) gains on investments, net of tax $ (43,274 ) $ 9,119 $ 19,662 The following tables show the gross unrealized losses and fair value of our securities deemed “available for sale” 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, 2015 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 1 $ 5,752 $ 21 $ — $ — 1 $ 5,752 $ 21 State and municipal obligations 2 11,674 120 — — — 2 11,674 120 Corporate bonds and notes 117 510,807 16,773 6 8,700 518 123 519,507 17,291 RMBS 12 168,415 2,464 — — — 12 168,415 2,464 CMBS 58 387,268 8,939 — — — 58 387,268 8,939 Other ABS 96 284,998 2,559 14 43,225 1,415 110 328,223 3,974 Foreign government and agency securities 18 18,733 1,095 3 2,278 288 21 21,011 1,383 Equity securities 1 74,930 108 — — — 1 74,930 108 Total 305 $ 1,462,577 $ 32,079 23 $ 54,203 $ 2,221 328 $ 1,516,780 $ 34,300 December 31, 2014 ($ in thousands) Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities — $ — $ — 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 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. There were no credit-related impairment losses recognized in earnings in 2015 , 2014 or 2013 . We had securities in an unrealized loss position that we did not consider to be other-than-temporarily impaired as of December 31, 2015 . For all investment categories, the unrealized losses of 12 months or greater duration as of December 31, 2015 , 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, 2015 , 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, 2015 . The contractual maturities of fixed-maturity investments are as follows: December 31, 2015 Available for Sale (In thousands) Amortized Cost Fair Value Due in one year or less (1) $ — $ — Due after one year through five years (1) 173,191 172,705 Due after five years through ten years (1) 437,248 430,476 Due after ten years (1) 280,941 274,971 RMBS (2) 226,744 224,905 CMBS (2) 415,780 406,910 Other ABS (2) 359,452 355,494 Total $ 1,893,356 $ 1,865,461 ______________________ (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, 2015 , 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 $10.4 million and $12.1 million at December 31, 2015 and 2014 , respectively. At December 31, 2015 and 2014 , Radian Guaranty had $74.7 million and $209.3 million , respectively, in a collateral account pursuant to the Freddie Mac Agreement. This collateral account, which contains investments primarily invested in trading securities, is pledged to cover Loss Mitigation Activity on the loans subject to the Freddie Mac 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 that agreement. See Note 10 for additional information. |
Note 7 - Goodwill and Other Int
Note 7 - Goodwill and Other Intangible Assets, Net (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets, Net Our goodwill and intangible asset balances at December 31, 2015 and 2014 relates entirely to our Services segment, as a result of our acquisition of Clayton and its subsequent acquisitions of Red Bell and ValuAmerica, as discussed further below and in Note 2. The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014: (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2013 $ 2,095 $ — $ 2,095 Goodwill acquired 191,932 — 191,932 Impairment losses — (2,095 ) (2,095 ) Balance at December 31, 2014 194,027 (2,095 ) 191,932 Goodwill acquired 3,238 — 3,238 Impairment losses — — — Balance at December 31, 2015 $ 197,265 $ (2,095 ) $ 195,170 During the first quarter of 2015, Clayton expanded its service offerings by acquiring Red Bell, a real estate brokerage company that provides products and services that include automated valuation models; broker price opinions used by investors, lenders and loan servicers; and advanced technology solutions for: (1) monitoring loan portfolio performance; (2) tracking non-performing loans; (3) managing REO assets; and (4) valuing and selling residential real estate through a secure platform. The transaction was treated as a purchase for accounting purposes, with the excess of the acquisition price over the estimated fair value of the net assets acquired resulting in goodwill of $2.4 million . In addition, in October 2015, Clayton acquired ValuAmerica, a national title agency and appraisal management company with a technology platform that helps mortgage lenders and their vendors streamline and manage their supply chains and operational workflow. The transaction was treated as a purchase for accounting purposes, with the excess of the acquisition price over the estimated fair value of the net assets acquired resulting in goodwill of $0.8 million . Neither of these acquisitions met the criteria to be considered a material business combination. The goodwill in these acquisitions is an asset representing the estimated future economic benefits arising from the assets we have acquired that were not individually identified and separately recognized, and includes the value of the discounted expected future cash flows, the workforce, expected synergies with our other affiliates and other unidentifiable intangible assets. These acquisitions expand Clayton’s scope of services and are consistent with our strategy to be positioned to offer products and services throughout the entire mortgage value chain. 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. We conducted our annual goodwill impairment analysis in the fourth quarters of 2014 and 2015. In 2014, we recorded a goodwill impairment of $2.1 million related to a small subsidiary within our Services 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 was no goodwill remaining for this subsidiary at December 31, 2014. The goodwill impairment test is a two-step process as required by the accounting standard related to intangible assets. Step one compares a reporting unit’s estimated fair value to its carrying value. If the carrying amount exceeds the estimated fair value, the second step must be completed to measure the amount of the reporting unit’s goodwill impairment loss, if any. For purposes of performing our 2015 annual goodwill impairment test, we concluded that the Services segment constitutes one reporting unit to which all of the goodwill recorded is related. In 2015, the estimated fair value of the reporting unit exceeded its carrying amount; therefore, there was no impairment as of December 31, 2015. 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, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 83,471 $ (11,038 ) $ 72,433 Technology 15,100 (2,949 ) 12,151 Trade name and trademarks 8,340 (1,243 ) 7,097 Client backlog 6,680 (4,184 ) 2,496 Non-competition agreements 185 (115 ) 70 Total $ 113,776 $ (19,529 ) $ 94,247 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 79,203 $ (2,917 ) $ 76,286 Technology 8,970 (797 ) 8,173 Trade name and trademarks 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 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 - 8 years Trademark 10 years Client backlog 3 years - 5 years Non-competition agreements 2 years - 3 years For the years ended December 31, 2015 and 2014 , amortization expense was $13.0 million and $8.6 million , respectively. The amortization expense for 2014 includes an impairment loss of $2.1 million , as disclosed above. There was no amortization expense in 2013. The estimated aggregate amortization expense for 2016 and thereafter is as follows (in thousands): 2016 $ 13,138 2017 12,492 2018 11,845 2019 10,609 2020 9,058 Thereafter 37,105 Total $ 94,247 |
Note 8 - Reinsurance
Note 8 - Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
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. Premiums are ceded under captive arrangements and the QSR Transactions. Included in other assets are prepaid reinsurance premiums of $40.5 million and $57.3 million at December 31, 2015 and 2014 , respectively. The effect of reinsurance on net premiums written and earned is as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Net premiums written-insurance: Direct $ 1,009,409 $ 982,976 $ 1,033,323 Assumed 104 (882 ) (904 ) Ceded (41,008 ) (56,913 ) (81,421 ) Net premiums written-insurance $ 968,505 $ 925,181 $ 950,998 Net premiums earned-insurance: Direct $ 973,645 $ 905,502 $ 848,655 Assumed 43 43 56 Ceded (57,780 ) (61,017 ) (67,291 ) Net premiums earned-insurance $ 915,908 $ 844,528 $ 781,420 The following table shows the amounts related to the QSR Transactions for the periods indicated: Initial QSR Transaction Second QSR Transaction Year Ended December 31, Year Ended December 31, (In thousands) 2015 2014 2013 2015 2014 2013 Ceded premiums written $ 14,471 $ 10,217 $ 23,047 $ 15,742 $ 33,751 $ 40,225 Ceded premiums earned 22,157 17,319 29,746 24,818 29,820 18,356 Ceding commissions written 3,134 4,862 5,762 8,309 11,813 14,079 Ceded losses to date under the QSR 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. As of December 31, 2015 , RIF ceded under the Initial QSR Transaction declined to $0.8 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 through December 31, 2014, which increased net premiums earned, and a $15.0 million upfront supplemental ceding commission, which has been deferred and is being amortized as a reduction to our policy acquisition costs over approximately five years beginning January 1, 2015. In addition, pursuant to the original agreement and effective January 1, 2015, the ceding commission was reduced from 25% to 20% for two-thirds of the remaining 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 in 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. As of December 31, 2015 , RIF ceded under the Second QSR Transaction declined to $1.3 billion . Similar to the Initial QSR Transaction, pursuant to the Second QSR Transaction Radian Guaranty had the ability, at its option, to recapture one-half of the reinsurance ceded with respect to conventional GSE loans as of December 31, 2015. Radian Guaranty chose not to recapture that risk and negotiated an amendment to the Second QSR Transaction pursuant to which we received a profit commission of approximately $8.0 million based on performance to date, which increased net premiums earned during 2015. In addition, pursuant to the amendment, Radian Guaranty received an $8.5 million prepaid supplemental ceding commission, the recognition of which has been deferred and is expected to be amortized as a reduction to our other operating expenses over approximately five years . Finally, pursuant to the original agreement and effective January 1, 2016, the ceding commission was reduced from 35% to 30% for one-half of the remaining reinsurance ceded under the Second QSR Transaction. 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, losses increased significantly and almost all captive reinsurance arrangements have attached, thereby 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. We have not entered into any new captives since 2007 and, pursuant to consent orders with the CFPB and with the order with the Minnesota Department of Commerce, we have agreed not to enter into any new captives until 2025. See Note 17 regarding our Consent Order with the Minnesota Department of Commerce. 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. Trust assets related to our captive arrangements are required to be invested in investment grade securities. As of December 31, 2015 , 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 thousands) 2015 2014 RIF ceded under captive reinsurance arrangements 71,359 129,795 Ceded losses recoverable related to captives 7,293 24,711 Year Ended December 31, (In thousands) 2015 2014 2013 Ceded premiums written related to captives 9,950 12,948 17,812 Ceded premiums earned related to captives 9,959 12,958 17,853 Ceded recoveries, excluding amounts received upon terminations of captive reinsurance transactions 20,950 21,213 47,151 |
Note 9 - Other Assets (Notes)
Note 9 - Other Assets (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 Deposit with the IRS (Note 13) $ 88,557 $ 88,557 Corporate-owned life insurance 82,543 80,755 Property and equipment (1) 46,802 27,248 Prepaid reinsurance premiums 40,491 57,291 Accrued investment income 25,620 20,022 Deferred policy acquisition costs 14,267 12,003 Reinsurance recoverables 11,044 28,119 Other 45,096 43,869 Total other assets $ 354,420 $ 357,864 ______________________ (1) Property and equipment, at cost less accumulated depreciation of $106.9 million and $100.2 million at December 31, 2015 and 2014 , respectively. |
Note 10 - Losses and Loss Adjus
Note 10 - Losses and Loss Adjustment Expenses Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance Loss Reserves [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | Losses and Loss Adjustment Expenses All of the balance and activity of our consolidated reserve for losses and loss adjustment expense relate to the Mortgage Insurance segment. The following table shows our reserve for losses and LAE by category at the end of each period indicated: Year Ended December 31, (In thousands) 2015 2014 Reserves for losses by category: Prime $ 480,481 $ 700,174 Alt-A 203,706 292,293 A minus and below 129,352 179,103 IBNR and other 83,066 (1) 223,114 LAE 26,108 56,164 Reinsurance recoverable (2) 8,286 26,665 Total primary reserves 930,999 1,477,513 Pool 42,084 75,785 IBNR and other 1,118 1,775 LAE 1,335 3,542 Total pool reserves 44,537 81,102 Total first-lien reserves 975,536 1,558,615 Second-lien and other (3) 863 1,417 Total reserve for losses $ 976,399 $ 1,560,032 ______________________ (1) Primarily related to expected payments under the Freddie Mac Agreement. (2) Primarily represents ceded losses on captive transactions and the QSR Transactions. (3) Does not include our Second-lien PDR that is included in other liabilities. The following table presents information relating to our reserve for losses, including our IBNR reserve and LAE but excluding Second-lien PDR, for the periods indicated: Year Ended December 31, (In thousands) 2015 2014 2013 Mortgage Insurance Balance at January 1 $ 1,560,032 $ 2,164,353 $ 3,083,608 Less reinsurance recoverables (1) 26,665 38,363 83,238 Balance at January 1, net of reinsurance recoverables 1,533,367 2,125,990 3,000,370 Add losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 229,061 351,184 (3) 519,188 (3) Prior years (29,647 ) (105,545 ) 45,460 Total incurred 199,414 245,639 564,648 Deduct paid claims and LAE related to: Current year (2) 10,837 13,562 35,108 Prior years 753,831 824,700 1,403,920 Total paid 764,668 838,262 1,439,028 Balance at end of period, net of reinsurance recoverables 968,113 1,533,367 2,125,990 Add reinsurance recoverables (1) 8,286 26,665 38,363 Balance at December 31 $ 976,399 $ 1,560,032 $ 2,164,353 _________________________ (1) Related to ceded losses on captive reinsurance transactions and the QSR 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. (3) Amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year and prior years have been reclassified to correct an error. There was no net change to total incurred losses in any period as a result of these reclassifications. For the years ended December 31, 2014 and 2013, the amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year have been revised downward by approximately $71.8 million and $65.0 million , respectively, with equal and offsetting adjustments to the amount previously reported for default notices reported and unreported in prior years. 2015 Activity Our loss reserve declined in 2015 from December 31, 2014 , primarily as a result of the volume of paid claims, Cures and Rescissions and Claim Denials continuing to outpace new default notices received. Total incurred losses for 2015 decreased by $46.2 million as compared to 2014. This decrease was driven primarily by a continued decline in the number of new current year defaults and a decrease in the Default to Claim Rate assumptions applied to such defaults. During the year ended December 31, 2015, we reduced our gross Default to Claim Rate assumption for new primary defaults from 16% to approximately 13% , based on continued improvement observed in actual claim development trends. This favorable impact to current year defaults was partially offset by a decline in the favorable reserve development from prior year defaults, which, although still positive, provided less of a benefit to our provision for losses in 2015 as compared to 2014. The $29.6 million favorable development on prior year defaults observed in 2015 was driven primarily by a decrease in our actual and estimated Default to Claim Rate assumptions on prior year defaults, as a result of higher Cures than were previously estimated, partially offset by a decline in our estimates for future Rescissions and Claim Denials. Total paid claims decreased for 2015 as compared to 2014 primarily due to the overall decline in defaulted loans and ongoing reduction in pending claims. 2014 Activity Our loss reserve declined in 2014 from December 31, 2013 , primarily as a result of the volume of paid claims, Cures and Rescissions and Claim Denials outpacing 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 2013 is consistent with the overall decline in defaulted loans. 2013 Activity Our loss reserve also declined in 2013 from December 31, 2012 , 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 Rescissions and Claim Denials outpaced new default notices received. Total paid claims for 2013 were impacted 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 negatively impacted by reserve development on prior year defaults, including an initial loss of $22 million related to prior year defaults included in the Freddie Mac Agreement. Default to Claim Rate Our aggregate weighted average Default to Claim Rate assumption (net of Claim Denials and Rescissions) used in estimating our primary reserve for losses was 46% ( 42% excluding pending claims) at December 31, 2015 compared to 52% ( 47% excluding pending claims) at December 31, 2014 . The change in our Default to Claim Rate in 2015 resulted primarily from a decrease in the proportion of pending claims, which have higher Default to Claim Rates, and a decrease in the assumed gross Default to Claim Rate for new defaults from 16% to approximately 13% , as noted above. Our gross Default to Claim Rates on our primary portfolio ranged from approximately 13% for new defaults, to 65% for defaults not in Foreclosure Stage, and 81% for Foreclosure Stage Defaults. 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 grouped according to the period in which the default occurred, as measured by the progress toward foreclosure sale and the number of months in default. Our estimate of expected Rescissions and Claim Denials (net of expected Reinstatements) embedded in our Default to Claim Rate is generally based on our recent experience; in 2015, we refined this assumption to give more weight to our experience in the most recent nine months. Consideration is also given for differences in characteristics between those rescinded policies and denied claims and the loans remaining in our defaulted inventory, as well as the estimated impact of the BofA Settlement Agreement, as described below. Loss Mitigation The implementation of the BofA Settlement Agreement resulted in Reinstatements exceeding Rescissions and Claim Denials for first-lien claims during 2015 . Reinstatements, net of Rescissions and Claim Denials, for primary loans totaled $64.5 million for 2015 . Rescissions and Claim Denials, net of Reinstatements totaled $144.7 million for 2014 . Although our estimates of future Rescissions and Claim Denials have been declining, they remain elevated compared to levels experienced before 2009. The elevated levels of our rate of Rescissions and Claim Denials have reduced our paid losses and have resulted in a reduction in our loss reserve. Our estimate of net future Rescissions and Claim Denials reduced our loss reserve as of December 31, 2015 and 2014 by approximately $69 million and $125 million , respectively. The amount of estimated Rescissions and Claim 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 Claim 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, 2015 , these assumptions also reflect the estimated impact of the BofA Settlement Agreement, as further discussed below. As our Legacy Portfolio has become a smaller percentage of our overall insured portfolio, we have undertaken 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 recent years. Our reported Rescission, Claim Denial and Claim Curtailment activity in any given period is subject to challenge by our lender and servicer customers. We expect that a portion of previous Rescissions will be reinstated and previous Claim Denials will be resubmitted with the required documentation and ultimately paid; therefore, we have incorporated this expectation into our IBNR reserve estimate. Our IBNR reserve estimate was $26.6 million and $163.6 million at December 31, 2015 and 2014 , respectively. As of December 31, 2015 , the IBNR reserve estimate of $26.6 million included approximately $3.0 million for loans subject to the BofA Settlement Agreement. This amount compares to approximately $133.0 million in IBNR reserves for loans subject to the BofA Settlement Agreement as of December 31, 2014 . The significant decrease in our IBNR reserve estimate at December 31, 2015 as compared to December 31, 2014 reflects the implementation of the BofA Settlement Agreement that commenced on February 1, 2015, including the reinstatement and payment during the period of certain previous Rescissions and Claim Denials. The remaining IBNR reserve estimate as of December 31, 2015 included an estimate of future Reinstatements of previous Claim Denials, Rescissions and Claim Curtailments of $13.3 million , $0.6 million and $2.1 million , respectively. These IBNR reserves relate to $41.9 million of claims that were denied within the preceding 12 months, $42.8 million of policies rescinded within the preceding 24 months, and $22.7 million of Claim Curtailments within the preceding 24 months. We also accrue for the premiums that we expect to refund to our lender customers in connection with our estimated Rescissions. Our accrued liability for such refunds, which is included within other liabilities on our consolidated balance sheets, was $2.3 million and $9.0 million as of December 31, 2015 and 2014 , respectively. Sensitivity Analysis We considered the sensitivity of first-lien loss reserve estimates at December 31, 2015 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 101.4% of risk exposure at December 31, 2015 ), we estimated that our loss reserves would change by approximately $8.2 million at December 31, 2015 . For every one percentage point change in our overall primary net Default to Claim Rate (which we estimate to be 46% at December 31, 2015 , including our assumptions related to Rescissions and Claim Denials), we estimated a $17.4 million change in our loss reserves at December 31, 2015 . BofA Settlement Agreement On September 16, 2014, Radian Guaranty entered into the BofA Settlement Agreement 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 certain Subject Loans. 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 as of that date. Approximately 12% of the Subject Loans are neither held in portfolio by the Insureds nor owned by the GSEs, and required 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). During 2015, most of such other investors provided consent, and therefore, the associated implementation of the BofA Settlement Agreement has commenced with respect to these loans. Our previous reserve assumptions assumed that these consents would be obtained. The BofA Settlement Agreement provides that all claims decisions by Radian Guaranty on Legacy Loans (including claims paid, coverage Rescissions, Claim Denials and Claim 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 limit Rescissions, Claim Denials or Claim 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 Claim 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 Claim Curtailment Loans”) and any Future Legacy Loans serviced by a servicer other than the Insureds (a “Protected Claim 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 Claim 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 Claim Curtailments (excluding Protected Claim Curtailments, which may continue in the ordinary course) and, to the extent any Claim Curtailments previously have been effected on such loans, Radian Guaranty will pay a reimbursement amount equal to the Claim Curtailment amount. The BofA Settlement Agreement does not affect Radian Guaranty’s right to effect Rescissions or Claim Denials on any Servicing Only Loans and any such Rescissions or Claim 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. Freddie Mac Agreement 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 our future Loss Mitigation Activity on these loans. At December 31, 2015 and 2014 , Radian Guaranty had $74.7 million and $209.3 million , respectively, in the collateral account pursuant to the Freddie Mac 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 that agreement. In accordance with these provisions, Radian Guaranty withdrew approximately $135.9 million from this account in October 2015 related to Loss Mitigation Activity that had become final as of August 31, 2015. Following this withdrawal, if, as of August 29, 2017, the amount of additional Loss Mitigation Activity that has become final in accordance with the Freddie Mac Agreement is less than approximately $74.0 million , then any shortfall will be paid on that date to Freddie Mac from the funds remaining in the collateral account, subject to certain adjustments designed to allow for any Loss Mitigation Activity that has not become final or any claims evaluation that has not been completed as of that date. Through December 31, 2015 , approximately $4.4 million of additional Loss Mitigation Activity had become final in accordance with the Freddie Mac Agreement and approximately $8.9 million of additional submitted claims had been rescinded, denied, curtailed or cancelled, but were not yet considered final in accordance with the Freddie Mac Agreement. We currently expect that Radian Guaranty will pay approximately $57.5 million to Freddie Mac from the funds remaining in the collateral account, due to our expected shortfall in Loss Mitigation activity. This amount is included in our reserve for losses and loss adjustment expenses as of December 31, 2015. |
Note 11 - Long-Term Debt Level
Note 11 - Long-Term Debt Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt [Text Block] | Long-Term Debt As described in Note 2, as of June 30, 2015, we early adopted the accounting update related to the presentation of debt issuance costs in financial statements. We believe that presenting long-term debt net of debt issuance costs is preferable as it is consistent with our presentation of debt discounts and premiums. The change in accounting principle has been applied retrospectively to prior periods. As a result, a reclassification of approximately $17.6 million of remaining debt issuance costs was made on our December 31, 2014 consolidated balance sheet, resulting in a reduction in other assets and a reduction in long-term debt; there was no impact on our results of operations or retained earnings. The following illustrates the impact of the reclassification: December 31, 2014 (In thousands) As Previously Reported Adjustment As Adjusted 9.000% Senior Notes due 2017 $ 192,605 $ (2,360 ) $ 190,245 3.000% Convertible Senior Notes due 2017 375,310 (3,974 ) 371,336 2.250% Convertible Senior Notes due 2019 342,011 (5,878 ) 336,133 5.500% Senior Notes due 2019 300,000 (5,415 ) 294,585 Total long-term debt $ 1,209,926 $ (17,627 ) $ 1,192,299 The carrying value of our long-term debt at December 31, 2015 and 2014 was as follows: December 31, ($ in thousands) 2015 2014 9.000% Senior Notes due 2017 $ 192,261 $ 190,245 3.000% Convertible Senior Notes due 2017 46,115 371,336 2.250% Convertible Senior Notes due 2019 341,214 336,133 5.500% Senior Notes due 2019 295,751 294,585 5.250% Senior Notes due 2020 344,113 — Total long-term debt $ 1,219,454 $ 1,192,299 Senior Notes Senior Notes due 2020. In June 2015, we issued $350 million aggregate principal amount of Senior Notes due 2020 and received net proceeds of approximately $343.3 million . These notes mature on June 15, 2020 and bear interest at a rate of 5.250% per annum, payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2015. 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; or (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. 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 in order to improve 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, the Senior Notes due 2019 and the Senior Notes due 2020 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, the Senior Notes due 2019 and the Senior Notes due 2020 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% . Following the pricing of our Senior Notes due 2020, in June 2015, we entered into privately negotiated agreements with certain holders of our Convertible Senior Notes due 2017 to purchase an aggregate principal amount of $389.1 million of our outstanding Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock. We funded the purchases with $126.8 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to the sellers approximately 28.4 million shares of Radian Group common stock. These purchases of Convertible Senior Notes due 2017 resulted in a pretax charge of approximately $91.9 million . This charge represents: • the $35.5 million market premium representing the consideration paid to the sellers of the Convertible Senior Notes due 2017 in excess of the conversion value of the purchased Convertible Senior Notes due 2017; • the $52.3 million difference between the fair value and the carrying value of the liability component of the purchased Convertible Senior Notes due 2017; and • the $4.1 million net impact of transaction costs and unamortized debt issuance costs on the purchased Convertible Senior Notes due 2017. Pursuant to the original terms, holders of the remaining Convertible Senior Notes due 2017 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, 2015 , we had approximately 23 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. 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. During the three-month period ended December 31, 2015 , our closing stock price did not exceed 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, 2016 . 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 was 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. In connection with our June 2015 purchases of our Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received total consideration of approximately $54.9 million , consisting of 2.3 million shares of Radian Group common stock and $13.2 million in cash. In accordance with the accounting standards regarding equity and contracts in an entity’s own equity, the total consideration received was recorded as an increase to additional paid-in capital. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares. 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, 2015 , 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. 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. 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. During the three-month period ended December 31, 2015 , our closing stock price did not exceed 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, 2016 . 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. Upon issuance of the Convertible Senior Notes due 2017 and 2019, in accordance with accounting standards related to convertible debt instruments that may be settled in cash upon conversion, the Company recorded a pretax equity component of $101.0 million and $77.0 million , respectively, net of the capped call transaction (Convertible Senior Notes due 2017) and related issuance costs (Convertible Senior Notes due 2017 and 2019). The pretax equity component is not subject to remeasurement, and therefore remained unchanged through December 31, 2014. However, as a result of redemptions during 2015, the remaining pretax equity component associated with the Convertible Senior Notes due 2017 and 2019 decreased from $101.0 million and $77.0 million , respectively, at December 31, 2014 to $11.3 million and $75.1 million , respectively, at December 31, 2015. See Note 13 for information on DTLs associated with our convertible and other long-term debt. 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. 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) 2015 2014 2015 2014 Liability component: Principal $ 52,370 $ 450,000 $ 389,992 $ 400,000 Debt discount, net (1) (5,941 ) (74,690 ) (44,313 ) (57,989 ) Debt issuance costs (1) (314 ) (3,974 ) (4,465 ) (5,878 ) Net carrying amount $ 46,115 $ 371,336 $ 341,214 $ 336,133 __________________ (1) Included within long-term debt and is being amortized over the life of the convertible notes. 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, 2015 2014 2015 2014 (In thousands) Contractual interest expense $ 7,359 $ 13,500 $ 8,925 $ 9,000 Amortization of debt issuance costs 696 1,226 1,292 1,282 Amortization of debt discount 12,621 21,512 12,487 11,829 Total interest expense $ 20,676 $ 36,238 $ 22,704 $ 22,111 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 Com
Note 12 - Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Accumulated Other Comprehensive Income (Loss) The following table shows the rollforward of AOCI as of the periods indicated. During 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify fully as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million . Year Ended December 31, 2015 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 79,208 $ 27,723 $ 51,485 OCI: Net foreign currency translation adjustments (333 ) (116 ) (217 ) Unrealized losses on investments: Unrealized holding losses arising during the period (34,728 ) (12,155 ) (22,573 ) Less: Reclassification adjustment for net gains included in net income (1) 67,974 23,791 44,183 Net unrealized losses on investments (102,702 ) (35,946 ) (66,756 ) Activity related to investments recorded as assets held for sale (2) (5,006 ) (1,752 ) (3,254 ) OCI (108,041 ) (37,814 ) (70,227 ) Actuarial gain 408 143 265 Balance at end of period $ (28,425 ) $ (9,948 ) $ (18,477 ) 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 loss included in net loss (1) (1,599 ) (560 ) (1,039 ) Net unrealized gains on investments 22,803 8,114 14,689 Activity related to investments recorded as assets held for sale (3) (329 ) (27 ) (302 ) OCI 22,148 7,987 14,161 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 Activity related to investments recorded as assets held for sale (3) 3,961 1,364 2,597 OCI 32,136 11,046 21,090 Net actuarial loss 305 107 198 Balance at end of period $ 57,345 $ 19,962 $ 37,383 _________________________ (1) Included in net gains (losses) on investments on our consolidated statements of operations. (2) For 2015, this amount represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in AOCI. (3) Represents the unrealized holding gains (losses) arising during the period on investments recorded as assets held for sale, net of reclassification adjustments for net gains (losses) included in net income from discontinued operations. |
Note 13 - Income Taxes Level 1
Note 13 - Income Taxes Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The components of our consolidated income tax provision (benefit) from continuing operations are as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Current provision (benefit) $ 120 $ (26,575 ) $ 352 Deferred provision (benefit) 156,170 (825,843 ) (31,847 ) Total income tax provision (benefit) $ 156,290 $ (852,418 ) $ (31,495 ) The reconciliation of taxes computed at the statutory tax rate of 35% to the provision (benefit) for income taxes on continuing operations is as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Provision (benefit) for income taxes computed at the statutory tax rate $ 153,240 $ 142,504 $ (60,671 ) Change in tax resulting from: Tax-exempt municipal bond interest and dividends received deduction (net of proration) (1,085 ) (1,286 ) (1,494 ) Repurchase premium on convertible notes (6,674 ) — — Foreign tax expense (benefit) 357 270 (1 ) State tax (benefit) expense (7,619 ) (451 ) 949 Unrecognized tax expense 5,233 407 1,696 Valuation allowance 11,931 (995,008 ) 24,546 Other, net 907 1,146 3,480 Provision (benefit) for income taxes $ 156,290 $ (852,418 ) $ (31,495 ) The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows: December 31, (In thousands) 2015 2014 DTAs: Accrued expenses $ 38,456 $ 60,858 Unearned premiums 87,609 82,800 NOL 342,002 475,095 Differences in fair value of financial instruments 7,767 — Net unrealized loss on investments 9,801 — State and Local NOL Carryforwards 46,914 34,851 Partnership investments 74,309 74,179 Loss reserves 4,720 6,362 Outside basis difference of investment in subsidiary — 14,084 Alternative minimum tax credit carryforward 5,923 2,286 Other 34,241 47,991 Total DTAs 651,742 798,506 DTLs: Convertible and other long-term debt 16,654 38,750 Net unrealized gain on investments — 26,145 Depreciation 6,397 — Other 14,516 15,536 Total DTLs 37,567 80,431 Less: Valuation allowance 36,230 17,874 Net DTA $ 577,945 $ 700,201 As of December 31, 2015 , we recorded a net current income tax payable of approximately $124.0 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 $9.7 million . Before consideration of uncertain tax positions, we have approximately $1.1 billion of U.S. NOL carryforwards, $0.9 million of foreign tax credit carryforwards and approximately $5.9 million of alternative minimum tax credit carryforwards as of December 31, 2015 . To the extent not utilized, the U.S. NOL carryforwards will expire during tax years 2029 through 2032 and the foreign tax credit carryforwards will expire during tax years 2019 and 2020. The alternative minimum tax credit carryforwards have no expiration date. Certain entities within our consolidated group have also generated DTAs of approximately $46.9 million relating to state and local NOL carryforwards, which if unutilized, will expire during various future tax periods. At each balance sheet date, we assess our need for a valuation allowance against our DTA, based on whether it is more likely than not that all or some portion of our DTA will not be realized. We weigh the potential effect of positive and negative evidence, with the weight given to the evidence commensurate with the extent to which it can be objectively verified. In the fourth quarter of 2014, we released substantially all of our previously established DTA valuation allowance based on our analysis of significant positive, objectively verifiable evidence that outweighed all negative evidence and supported a conclusion that it was 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. Forecasts related to our core business were significantly more positive than in prior years, absent the degree of uncertainty existing in previous years and given the ability to generate profits based on our improved book of business. In evaluating negative evidence, consideration was given to the extensive U.S. NOL Carryforward period. Based on management’s projections, including adverse scenarios considered in our sensitivity analysis, we expect to fully utilize our U.S. NOL Carryforward of approximately $1.1 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. We have determined that certain non-insurance entities within Radian may continue to generate taxable losses on a separate company basis in the near term and may not be able to fully utilize certain state and local NOLs on their state and local tax returns. Therefore, with respect to DTAs relating to these state and local NOLs, we retained a valuation allowance of approximately $17.9 million at December 31, 2014 and $36.2 million at December 31, 2015. 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, 2015 , 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 expect to present the Plan and the Charter Amendment to our stockholders for re-approval at the 2016 annual meeting of stockholders. If our stockholders do not re-approve these measures at our 2016 annual meeting of stockholders, neither the Charter Amendment nor the Bylaw Amendment will remain effective and the transfer restrictions they impose, as well as the Plan, would terminate on the close of business on the second business day following adjournment of the annual meeting. As previously disclosed, 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 has proposed denying the associated tax benefits of these items. We appealed these 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 incremental above-market-rate interest with respect to the proposed adjustments. We attempted to reach a compromised settlement with Appeals, but in September 2014 we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties of approximately $157 million . The Deficiency Amount has not been reduced to reflect our NOL carryback ability. As of December 31, 2015 , there also would be interest of approximately $125 million related to these matters. Depending on the outcome, additional state income taxes, penalties and interest (estimated in the aggregate to be approximately $32 million as of December 31, 2015) 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. On September 1, 2015, we received a notice that the case had been scheduled for trial. However, the parties jointly filed, and the U.S. Tax Court approved, motions for continuance in this matter to postpone the trial date. 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, 2015 , we have approximately $66.3 million of unrecognized tax benefits, including approximately $61.7 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 $0.8 million , $2.5 million and $5.4 million were recorded for the years ended December 31, 2015, 2014 and 2013, respectively. A reconciliation of the beginning and ending unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2015 2014 Balance at beginning of period $ 120,223 $ 119,236 Tax positions related to the current year: Increases 6,461 2,352 Decreases (336 ) — Tax positions related to prior years: Increases 22,734 24,361 Decreases (2,102 ) (1,546 ) Lapses of applicable statute of limitation (22,734 ) (24,180 ) Balance at end of period $ 124,246 $ 120,223 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 $20.6 million during 2015 . 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 $22.7 million due to the expiration of the applicable statute of limitations for the taxable period ended December 31, 2011, the related amounts continued to impact subsequent years resulting in a corresponding increase to the unrecognized tax benefits related primarily to the 2012 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 and the parties have filed motions for continuance, which may postpone the trial date. Over the next 12 months, if we determine that a compromised settlement cannot be reached with the IRS, then it is estimated that approximately $73.5 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 (1) 2000 - 2007, 2012 - 2014 Significant State and Local Jurisdictions (2) 1999 - 2014 _________________________ (1) For the 2000 through 2007 calendar tax years, 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, 2015 | |
Statutory Information [Abstract] | |
Insurance Disclosure [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 are established by a variety of NAIC publications, 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, 2015 , we did not have any prescribed or permitted statutory accounting practices that resulted in reported statutory surplus or risk-based capital being different from what would have been reported had NAIC statutory accounting practices been followed. 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 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, 2015 , the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $2.9 billion of our consolidated net assets. The ability of Radian’s insurance subsidiaries 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. Effective December 31, 2015, as part of our efforts to streamline our operations, we obtained the necessary approvals from the Pennsylvania Insurance Commissioner to effectuate a reorganization of our mortgage insurance subsidiaries, which included a significant redistribution of assets and RIF among our legal entities. As a result of these actions, substantially all of the RIF and assets previously held by RGRI, RMAI, Radian Insurance and Radian Mortgage Insurance were transferred to Radian Guaranty and a new exclusive affiliated reinsurer, Radian Reinsurance. None of the distributions from these entities were retained by Radian Group, as all proceeds were distributed to either Radian Guaranty or Radian Reinsurance. At December 31, 2015, Radian Guaranty had negative unassigned surplus of $679.9 million , compared to negative unassigned surplus of $715.7 million at December 31, 2014 . Radian Reinsurance, which began operations in December 2015, had negative unassigned surplus of $127.3 million at December 31, 2015, as a result of the establishment of contingency reserves. If either of these insurers had positive unassigned surplus as of the end of the prior fiscal year, 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 2015 , no dividends or other distributions can be paid from Radian Guaranty or Radian Reinsurance in 2016 without approval from the Pennsylvania Insurance Commissioner. Neither Radian Guaranty nor Radian Reinsurance paid any dividends in 2015 or 2014 . 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. 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. There are sixteen RBC States that 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, such as Radian Guaranty, 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. 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, 2015 . The NAIC is in the process of developing a new Model Act for mortgage insurers, which would include among other items, new capital adequacy requirements for mortgage insurers. While the outcome of this process is uncertain, the new Model Act, if and when finalized by the NAIC, has the potential to increase capital requirements in those states that adopt the Model Act. See also Note 1 for information regarding the PMIERs, which set requirements for private mortgage insurers to remain eligible insurers of loans purchased by the GSEs. Radian Guaranty’s statutory net income (loss), statutory policyholders’ surplus and contingency reserve as of or for the years ended December 31, 2015 , 2014 and 2013 were as follows: December 31, (In millions) 2015 2014 2013 Statutory net income (loss) $ 754.8 $ 273.7 $ (23.8 ) Statutory policyholders’ surplus 1,686.5 1,325.2 1,317.8 Contingency reserve 860.9 389.4 23.0 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, 2015 2014 ($ in millions) RIF, net (1) $ 36,396.1 $ 30,615.7 Statutory policyholders’ surplus $ 1,686.5 $ 1,325.2 Contingency reserve 860.9 389.4 Statutory capital $ 2,547.4 $ 1,714.6 Risk-to-capital 14.3:1 17.9:1 _______________________ (1) Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans. We have actively managed 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. For the years ended December 31, 2015, 2014 and 2013, Radian Guaranty received capital contributions from Radian Group totaling $100.0 million , $100.0 million and $230.4 million , respectively. In addition, in December 2015, Radian Group transferred $325 million of cash and marketable securities to Radian Guaranty in exchange for a Surplus Note issued by Radian Guaranty. This Surplus Note has a 0% interest rate and is scheduled to mature on December 31, 2025. Radian Guaranty currently expects to seek to redeem a portion and possibly all of the Surplus Note in 2016, and any remaining amounts in 2017. Early redemption of the Surplus Note is subject to approval by the Pennsylvania Insurance Department. In addition, the GSEs have approved early redemption of the note based on the following criteria: • Radian Guaranty may redeem 50% of the Surplus Note balance on or after June 30, 2016. • On or after June 30, 2016, and prior to May 31, 2017, in addition to amounts paid above, Radian Guaranty may redeem the note balance up to the amount by which Available Assets then exceed Minimum Required Assets, less $150 million . • On or after May 31, 2017, Radian Guaranty may redeem any remaining note balance. The reduction in Radian Guaranty’s Risk-to-capital in 2015 was primarily due to the Surplus Note issuance and to increases in statutory net income, partially offset by an increase in net RIF at Radian Guaranty due in part to the termination of certain intercompany reinsurance agreements as a result of our legal entity reorganization. Radian Reinsurance Effective December 2015, Radian Reinsurance 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. Radian Reinsurance is only licensed or authorized to write direct mortgage guaranty insurance in Pennsylvania. Radian Reinsurance is required to maintain a minimum statutory surplus of $20 million to remain an authorized reinsurer in all states. During 2015, Radian Reinsurance received cash capital contributions from Radian Group totaling $50 million . Radian Reinsurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2015 , 2014 and 2013 were as follows: December 31, (In millions) 2015 Statutory net loss $ (1.0 ) Statutory policyholders’ surplus 138.7 Contingency reserve 128.8 Combined Risk-to-Capital Ratio and Other Mortgage Insurance Subsidiaries The Risk-to-capital ratio for our combined mortgage insurance operations was 14.6 to 1 as of December 31, 2015, compared to 20.3 to 1 as of December 31, 2014. In addition to Radian Guaranty and Radian Reinsurance, this combined ratio also includes RGRI, RMAI, Radian Insurance, Radian Mortgage Insurance, and Radian Mortgage Guaranty Inc.; of these entities, only Radian Insurance had any remaining RIF as of December 31, 2015, totaling $48.5 million . The aggregate statutory net income, statutory policyholders’ surplus and contingency reserve for these five subsidiaries as of and for the years ended December 31, 2015 , 2014 and 2013 were as follows: December 31, (In millions) 2015 2014 2013 Statutory net income $ 92.9 $ 112.9 $ 99.6 Statutory policyholders’ surplus 55.0 473.7 406.1 Contingency reserve 1.1 140.7 80.9 During 2015, Radian Mortgage Guaranty Inc. was newly established as a mortgage guaranty insurer domiciled in Pennsylvania, and received capital contributions from Radian Group totaling $20 million . 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. Following a return of capital to Radian Group in December 2015 of $15 million , its statutory policyholders’ surplus as of December 31, 2015 was approximately $5 million and there is no RIF as of December 31, 2015 . Principal Differences between GAAP and SAP The differences between the statutory financial statements and financial statements presented on a GAAP basis represent differences between GAAP and SAP principally 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, 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. (h) 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 non-recognized subsequent event. |
Note 15 - Share-Based and Other
Note 15 - Share-Based and Other Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
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. 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 2,803,988 shares remaining available for grant under the 2014 Equity Plan as of December 31, 2015 (the “share reserve”), which includes Prior Plan Shares. 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 4,694,662 shares as of December 31, 2015 . Unless otherwise described below, awards under the Equity Plans include the following terms: • Generally, 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 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, 2015 , we estimate that the vesting of awards would have resulted in a pretax accounting charge to us of approximately $11.7 million , representing the acceleration of compensation expense assuming all “double trigger” vesting occurred. We use the Monte Carlo valuation model to determine the fair value of all cash-settled awards where stock price is a factor in determining the vesting, as well as for cash- or equity-settled performance awards where there exists a similar stock price-based market condition (we refer to these awards as “Market Condition Awards”). The Monte Carlo valuation model incorporates multiple input variables, including expected life, volatility, risk-free rate of return and dividend yield for each award to estimate the probability that a vesting condition will be achieved. In determining these assumptions for the Monte Carlo valuations, we consider historic and observable market data. Depending on certain characteristics of the awards granted under the various Equity Plans noted above, they are accounted for as either liabilities or equity instruments. The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the years ended: December 31, ($ in thousands) 2015 2014 2013 Share-Based Compensation Programs Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liabilities: RSUs — Cash-Settled $ 3,595 $ 10,244 $ 65,157 $ 31,834 $ 104,114 $ 79,322 SARs — Cash-Settled — 159 595 915 8,195 8,544 Liabilities $ 3,595 10,403 $ 65,752 32,749 $ 112,309 87,866 Equity: Stock Options 2,692,457 2,984 3,029,348 2,531 3,989,641 2,488 Phantom Stock 230,196 2 284,645 3 284,645 3 RSUs — Equity Settled 2,472,861 9,243 2,056,596 7,461 1,273,556 4,336 Restricted Stock — — — — — 21 ESPP 396 267 267 Equity 12,625 10,262 7,115 Total all share-based plans $ 23,028 $ 43,011 $ 94,981 ______________ (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 2015 , 2014 , and 2013 , 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 2015 , 2014 , and 2013 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) 2015 2014 2013 Total compensation cost recognized $ 23,028 $ 43,011 $ 94,981 Less: Costs deferred as acquisition costs 500 1,047 1,769 Stock-based compensation expense $ 22,528 $ 41,964 $ 93,212 RSUs (Cash-Settled) Performance-Based RSUs — In 2012, a total of 2,211,640 performance-based RSUs (to be settled in cash) were granted to eligible officers under the 2008 Equity Plan. These performance-based RSUs entitled grantees to a cash amount equal to the fair market value of RSUs that vested at the end of a three -year performance period in 2015. There were no cash-settled performance-based RSUs granted in 2015, 2014 or 2013. Vesting of awards granted to both non-executives and executives in 2011 and 2012 was dependent upon the performance of Radian Group’s TSR 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 and 2013, certain non-executive officers were granted 1,470 and 7,670 , 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. There were no cash-settled time-vested RSUs granted in 2015. Non-Qualified Stock Options Information with regard to stock options for the periods indicated is as follows: Number of Shares Weighted Average Exercise Price Per Share Outstanding, December 31, 2014 3,029,348 $ 5.46 Granted 212,230 18.42 Exercised (496,496 ) 2.59 Forfeited (52,625 ) 8.89 Expired — — Outstanding, December 31, 2015 2,692,457 6.94 Exercisable, December 31, 2015 1,435,232 4.44 Available for grant, December 31, 2015 2,803,988 In 2015 , 2014 and 2013 , 212,230 , 289,500 and 279,650 , respectively, of non-qualified stock options were granted to executive and certain non-executive officers. The weighted average grant date fair value per share of the stock options granted during 2015 , 2014 and 2013 was $14.68 , $12.18 and $10.95 , respectively. The amount of cash received from the exercise of stock options for the years ended December 31, 2015 , 2014 and 2013 was approximately $1.28 million , $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, 2015 , 2014 and 2013 was $7.15 million , $0.19 million and $0.17 million , respectively, and the related tax benefits were approximately $2.50 million , $0.07 million and $0.06 million , respectively. The total intrinsic value of the stock options outstanding at December 31, 2015 , 2014 and 2013 was $19.1 million , $34.1 million and $27.0 million , respectively, based on the closing price of our common stock as of such dates relative to the exercise prices for such stock options. Upon the exercise of stock options, we generally issue shares from the authorized, unissued share reserves when the exercise price is less than the treasury stock repurchase price and from treasury stock when the exercise price is greater than the treasury stock repurchase price. The table below summarizes information regarding fully vested stock options as of December 31, 2015 : ($ in millions, except share and per share amounts) Outstanding and Exercisable Number of options vested 1,435,232 Fair value of options vested during the year $ 3.4 Weighted-average exercise price per share $ 4.44 Aggregate intrinsic value (excess market price over exercise price) $ 12.9 Weighted-average remaining contractual term of options (in years) 4.1 years The following table summarizes information concerning outstanding and exercisable options at December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $2.45 - $3.58 1,718,010 5.2 $ 2.80 1,153,515 $ 2.98 $5.76 - $7.06 47,967 2.2 6.92 47,967 6.92 $10.42 - $15.44 718,790 6.1 13.53 225,580 10.91 $18.42 207,690 3.0 18.42 8,170 18.42 2,692,457 4.3 1,435,232 We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2015 2014 2013 Derived service period (years) 3.02 - 4.00 2.99 - 3.96 3.02 - 4.00 Risk-free interest rate (1) 2.32 % 2.57 % 1.96 % Volatility (2) 93.70 % 94.26 % 94.63 % Dividend yield 0.05 % 0.07 % 0.07 % ______________ (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 2015 , 2014 and 2013 , 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 $23.03 ( 125% of the option exercise price), $19.30 ( 125% of the option exercise price) and $17.49 ( 125% 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 $20.2 million at December 31, 2015 , the excess would be reflected in the consolidated statements of operations. RSUs (Equity Settled) Performance-Based RSUs —In 2015 , 2014 and 2013 , executive and non-executive officers were granted a total of 499,740 ; 702,180 ; and 435,970 ; respectively, performance-based RSUs to be settled in common stock. Vesting of awards granted to executive officers in 2015 , 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 and subject to certain conditions. 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. 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: 2015 2014 2013 Expected life 3 years 3 years 3 years Risk-free interest rate 1.0 % 1.0 % 0.4 % Volatility 40.6 % 71.9 % 81.8 % Dividend yield 0.05 % 0.06 % 0.07 % Time-Vested RSUs —In 2015, a total of 113,141 shares of time-vested RSUs to be settled in common stock were granted, including 56,970 shares awarded to non-executive officers and 56,171 shares awarded to non-employee directors. In 2014, a total of 170,176 shares of time-vested RSUs to be settled in common stock were granted, including 85,133 shares awarded to non-executive officers and 85,043 shares awarded to non-employee directors. In 2013, a total of 102,618 shares of time-vested RSUs to be settled in common stock were granted, including 13,260 shares awarded to non-executive officers and 89,358 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 generally 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 Shares Weighted Average Grant Date Fair Value Unvested, December 31, 2014 2,056,596 $ 10.65 Granted 612,881 18.26 Vested (121,989 ) 5.83 Forfeited (74,627 ) 15.55 Unvested, December 31, 2015 2,472,861 12.62 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 94,676 ; 67,743 ; and 95,287 shares to employees during the years ended December 31, 2015 , 2014 and 2013 , 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 2015 : January 1, 2015 July 1, 2015 Expected life 6 months 6 months Risk-free interest rate 0.36 % 0.44 % Volatility 35.03 % 26.83 % Dividend yield 0.03 % 0.03 % Unrecognized Compensation Expense As of December 31, 2015 , 2014 and 2013 , unrecognized compensation expense related to the unvested portion of all of our share-based awards was approximately $11.7 million , $17.5 million and $31.9 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 2.4 years . |
Note 16 - Benefit Plans
Note 16 - Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Benefit Plans [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Benefit Plans The Radian Group Inc. Savings Incentive Plan (“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 $18,000 for 2015 . 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 2015 was $6,000 . Effective January 1, 2016, we will match up to 100% of the first 4.5% of base earnings contributed in any given year. Previously, the match was up to 100% of the first 6% of annual base earnings exclusive of Clayton, which had its own employee match of 25% of the first 6% of base earnings contributed in any given year. Beginning January 1, 2016, Clayton was merged into the Savings Plan. Our expense for matching funds for the years ended December 31, 2015 , 2014 and 2013 was $3.1 million , $3.1 million and $2.7 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. Other Contributions We contributed immaterial amounts to other postretirement benefit plans in 2015 . |
Note 17 - Commitments and Conti
Note 17 - Commitments and Contingencies Level 1 (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Legal and Regulatory Proceedings We are routinely involved in a number of legal actions, reviews and audits, as well as inquiries and investigations by various regulatory entities involving compliance with laws or other regulations, the outcome of which are uncertain. These 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 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 and regulatory matters, we determine whether it is reasonably possible that a potential loss 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 such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to 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 and other proceedings, actual results may differ materially from any amounts that have been accrued. As previously disclosed, we had been named as a defendant in certain putative class action lawsuits alleging, among other things, that our captive reinsurance agreements violated RESPA. The cases included The White Case, The Menichino Case and The Manners Case. On March 25, 2015, Radian Guaranty and the plaintiffs in these putative class action lawsuits entered into a settlement agreement, pursuant to which the plaintiffs agreed to voluntarily dismiss their claims with prejudice and to fully release Radian Guaranty from any future claims related to the claims in these lawsuits. We are also 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. We are subject to regulatory inquiries, investigations and reviews. In the past, 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 June 2015, Radian Guaranty executed a Consent Order with the Minnesota Department of Commerce that resolved the Minnesota Department of Commerce’s outstanding inquiries related to captive reinsurance arrangements involving mortgage insurance in Minnesota without any findings of wrongdoing. As part of the Consent Order, Radian Guaranty paid an immaterial amount to Minnesota and agreed not to enter into new captive reinsurance arrangements for a period of ten years ending in June 2025. We have not entered into any new captive reinsurance arrangements since 2007. In June 2015, we and other mortgage insurers received a letter from the Wisconsin OCI requesting information pertaining to customized insurance rates and terms offered to mortgage insurance customers. We submitted a response to the Wisconsin OCI in June 2015, as requested. Although we believe we are in compliance with applicable Wisconsin state law requirements for mortgage guaranty insurance, we cannot predict the outcome of this matter or whether additional inquiries, actions or proceedings may be pursued against us by the Wisconsin OCI or other regulators. As described in Note 13, on September 4, 2014 we received formal Notices of Deficiency from the IRS related to certain losses and deductions resulting from our investment in a portfolio of non-economic REMIC residual interest. 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. Our Master Policies establish the timeline within which any suit or action arising from any right of an insured under the policy generally must be commenced. In general, any suit or action arising from any right of an insured under the policy must be commenced within two years after such right first arose for primary insurance and within three years for certain other policies, including certain pool insurance policies. Although we believe that our Loss Mitigation Activities are justified under our policies, we continue to face challenges from certain lender and servicer customers regarding our Loss Mitigation Activities, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials or Claim Curtailments. We are currently in discussions with these customers regarding Loss Mitigation Activities and our claim payment practices, which if not resolved, could result in arbitration or judicial proceedings and we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. See Note 10 for further information. Further, there are 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 are evaluating these loans regarding this potential violation and our corresponding rights under the Prior Master Policy. While we can provide no assurance regarding the ultimate resolution of these issues, it is possible that arbitration or legal proceedings could result. Other Securities regulations became effective in 2005 that impose enhanced disclosure requirements on issuers of ABS (including MBS). 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 $119.2 million of remaining credit exposure as of December 31, 2015 . Our mortgage insurance business provides contract underwriting, an outsourced service to its customers. 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 2015 , we paid losses related to contract underwriting remedies of approximately $0.01 million . In 2015 , our provision for contract underwriting expenses was approximately $0.6 million and our reserve for contract underwriting obligations at December 31, 2015 was approximately $0.3 million . Rising mortgage interest rates or further economic uncertainty may expose our contract underwriting business to an increase in such costs. 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 August 2032, contain provisions for scheduled periodic rent increases. Net rental expense in connection with these leases totaled $5.0 million in 2015 , $3.9 million in 2014 and $3.1 million in 2013 , excluding the net rental expense related to discontinued operations. The commitment for non-cancelable operating leases in future years is as follows: (In thousands) 2016 $ 8,646 2017 5,922 2018 2,416 2019 5,698 2020 5,663 Thereafter 56,309 $ 84,654 At December 31, 2015 there were no future minimum receipts expected from sublease rental payments. |
Note 18 - Capital Stock (Notes)
Note 18 - Capital Stock (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Capital Stock In June 2015, we entered into privately negotiated agreements with certain of the holders of our Convertible Senior Notes due 2017 to purchase an aggregate principal amount of $389.1 million of our outstanding Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock. We funded the purchases with $126.8 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to the sellers approximately 28.4 million shares of Radian Group common stock. In connection with our purchases of Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received total consideration of approximately $54.9 million , consisting of 2.3 million shares of Radian Group common stock and $13.2 million in cash. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares. On June 18, 2015, we authorized an ASR program to repurchase an aggregate of $202 million of Radian Group common stock. Under the ASR program, the total number of shares ultimately delivered to Radian Group was based on the average of the daily volume-weighted average price of Radian Group common stock during the term of the transaction, less a negotiated discount and subject to certain other adjustments pursuant to the terms and conditions of the program. During the three-month period ended June 30, 2015, 9.2 million shares were repurchased under this program. The counterparty delivered to Radian Group 1.8 million additional shares of Radian Group common stock at final settlement of the ASR program in August 2015, based on the calculated price of $18.32 during the term of the transaction. The shares of Radian Group common stock received pursuant to the ASR and the termination of the capped call transactions were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares. All share repurchases pursuant to the ASR program were funded in the second quarter of 2015 from the proceeds of the Senior Notes due 2020. We also may purchase shares on the open market to meet option exercise obligations and to fund 401(k) matches and purchases under our ESPP. In addition, upon the vesting of certain restricted stock awards under our equity compensation plans, we may withhold from such vested awards shares of our common stock to satisfy the tax liability of the award recipients. |
Note 19 - Net Income (Loss) Per
Note 19 - Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 (In thousands, except share and per-share amounts) Net income (loss) from continuing operations: Net income (loss) from continuing operations - basic $ 281,539 $ 1,259,574 $ (141,851 ) Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) 14,758 14,372 — Net income (loss) from continuing operations - diluted $ 296,297 $ 1,273,946 $ (141,851 ) Net income (loss): Net income (loss) from continuing operations - basic $ 281,539 $ 1,259,574 $ (141,851 ) Income (loss) from discontinued operations, net of tax 5,385 (300,057 ) (55,134 ) Net income (loss) - basic 286,924 959,517 (196,985 ) Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) 14,758 14,372 — Net income (loss) - diluted $ 301,682 $ 973,889 $ (196,985 ) Average common shares outstanding-basic 199,910 184,551 166,366 Dilutive effect of Convertible Senior Notes due 2017 6,293 8,465 — Dilutive effect of Convertible Senior Notes due 2019 37,736 37,736 — Dilutive effect of stock-based compensation arrangements (2) 2,393 3,150 — Adjusted average common shares outstanding—diluted 246,332 233,902 166,366 Net income (loss) per share: Basic: Net income (loss) from continuing operations $ 1.41 $ 6.83 $ (0.85 ) Income (loss) from discontinued operations 0.03 (1.63 ) (0.33 ) Net income (loss) $ 1.44 $ 5.20 $ (1.18 ) Diluted: Net income (loss) from continuing operations $ 1.20 $ 5.44 $ (0.85 ) Income (loss) from discontinued operations 0.02 (1.28 ) (0.33 ) Net income (loss) $ 1.22 $ 4.16 $ (1.18 ) ________________ (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) The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of net income (loss) per share because they were anti-dilutive: Year Ended December 31, (in thousands) 2015 2014 2013 Shares of common stock equivalents 728 542 43,288 |
Note 20 - Subsequent Events (No
Note 20 - Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On January 15, 2016, we announced that our board of directors had approved a share repurchase program that authorized the company to spend up to an aggregate of $100 million to repurchase Radian Group common stock. This authorization provided Radian the flexibility to repurchase shares opportunistically, based on market and business conditions, stock price and other factors. Under the share repurchase program, Radian made purchases through a Rule 10b5-1 plan, pursuant to pre-determined price targets and other metrics set forth in the plan. Subsequent to this authorization, we purchased approximately 9.4 million shares of Radian Group common stock for $100.2 million , at a weighted average price per share of $10.62 , including commissions. No further purchase authority remains under this share repurchase program. In February 2016, in order to manage the mix of business in our portfolio and to continue managing Radian Guaranty’s Minimum Required Assets under the PMIERs in a cost-effective manner, we entered into the Single Premium QSR. The Single Premium QSR (including the amount of the benefit to our Minimum Required Assets under PMIERs) remains subject to GSE approval, and therefore, we have not yet begun to cede any business under this agreement. |
Note 21 - Quarterly Financial D
Note 21 - Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) (In thousands, except per share information) 2015 Quarters First Second Third Fourth Year Net premiums earned—insurance $ 224,595 $ 237,437 $ 227,433 $ 226,443 $ 915,908 Services revenue (1) 30,630 43,503 42,189 37,493 153,815 Net investment income 17,328 19,285 22,091 22,833 81,537 Net gains (losses) on investments and other financial instruments (2) 16,779 28,448 3,868 (13,402 ) 35,693 Provision for losses 45,028 32,560 64,192 56,805 198,585 Policy acquisition 7,750 6,963 2,880 4,831 22,424 Direct cost of services 19,253 23,520 24,949 22,241 89,963 Other operating expenses 53,774 67,731 65,082 59,570 246,157 Loss on induced conversion and debt extinguishment — 91,876 11 2,320 94,207 Amortization and impairment of intangible assets 3,023 3,281 3,273 3,409 12,986 Net income from continuing operations 91,727 45,193 70,091 74,528 281,539 Income from discontinued operations, net of tax (3) 530 4,855 — — 5,385 Net income 92,257 50,048 70,091 74,528 286,924 Diluted net income per share (4)(5) $ 0.39 $ 0.22 $ 0.29 $ 0.32 $ 1.22 Weighted average shares outstanding-diluted (4) 243,048 246,650 250,795 247,981 246,332 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 and other financial instruments (2) 42,968 25,332 (6,294 ) 17,983 79,989 Provision for losses 49,626 64,648 48,942 82,867 246,083 Policy acquisition 7,017 6,746 4,240 6,443 24,446 Direct cost of services — — 23,896 19,709 43,605 Other operating expenses 54,507 60,751 51,225 85,800 252,283 Amortization and impairment of intangible assets — — 3,294 5,354 8,648 Net income (loss) from continuing operations (6) 145,980 103,537 132,031 878,026 1,259,574 Income (loss) from discontinued operations, net of tax (3)(7) 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 ______________ (1) Services revenue for the first quarter includes $101 thousand that had previously been included in other income. (2) The 2015 and 2014 amounts reflect primarily unrealized (losses) gains, respectively, on our trading securities. (3) Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. (4) Diluted net income per share and average shares outstanding per the accounting standard regarding earnings per share. (5) Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income 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 from continuing operations. (6) This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter of 2014. (7) Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014. In the first, second, and third quarters of 2015, certain cash flows were incorrectly classified in the Company’s Condensed Consolidated Statements of Cash Flows. The Company has determined that these misclassifications are not material to the financial statements of any period. These amounts (described below in thousands) have been corrected in the Consolidated Statements of Cash Flows for the year ended December 31, 2015, and will be corrected in the comparative Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2015, six months ended June 30, 2015 and nine months ended September 30, 2015 that will appear in the Company’s quarterly Form 10-Q filings in 2016. As previously disclosed, for the three months ended March 31, 2015, the adjustments to the affected categories within the Consolidated Statements of Cash Flows consist of the following: (i) net cash provided by operating activities, continuing operations, reported as $80 will be adjusted to $666 ; (ii) net cash used in operating activities, discontinued operations, reported as $12,168 will be adjusted to $1,759 ; (iii) net cash provided by investing activities, discontinued operations, reported as $9,514 will be adjusted to $4,999 ; (iv) net increase in cash reported as $23,499 will be adjusted to $29,979 ; (v) change in cash of business held for sale represented as a decrease of $3,240 will be represented as an increase of $3,240 . For the six months ended June 30, 2015 and nine months ended September 30, 2015, the adjustments affected certain line items within cash flows from investing activities, but had no net impact to net cash provided by (used in) investing activities. For the six months ended June 30, 2015, these adjustments to the affected line items within the Consolidated Statements of Cash Flows consist of the following: (i) proceeds from sales of fixed-maturity investments available for sale reported as $57,309 will be adjusted to $3,621 ; and (ii) purchases of fixed-maturity investments available for sale reported as $725,640 will be adjusted to $671,952 . For the nine months ended September 30, 2015, the adjustments consist of the following: (i) proceeds from sales of fixed-maturity investments AFS reported as $96,684 will be adjusted to $16,208 ; and (ii) purchases of fixed-maturity investments AFS reported as $1,087,461 will be adjusted to $1,006,985 . |
Schedule I Summary Of Investmen
Schedule I Summary Of Investments | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Type of Investment Amortized Cost Fair Value Amount Reflected on the Balance Sheet (In thousands) Fixed-Maturities: Bonds: U.S. government and agency securities $ 13,773 $ 13,752 $ 13,752 State and municipal obligations (1) 36,920 37,900 37,900 Corporate bonds and notes 815,024 802,193 802,193 RMBS 226,744 224,905 224,905 CMBS 415,780 406,910 406,910 Other ABS 359,452 355,494 355,494 Foreign government and agency securities 25,663 24,307 24,307 Total fixed-maturities 1,893,356 1,865,461 1,865,461 Trading securities (2) 1,301,187 1,279,137 1,279,137 Equity securities available for sale: Common stocks 75,038 74,930 74,930 Nonredeemable preferred stocks 500 500 500 Total equity securities available for sale 75,538 75,430 75,430 Short-term investments 1,077,087 1,076,944 1,076,944 Other invested assets 1,714 4,900 1,714 Total investments other than investments in related parties $ 4,348,882 $ 4,301,872 $ 4,298,686 __________________ (1) Available for sale. (2) Includes foreign government and agency securities. |
Schedule II Financial Informati
Schedule II Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2015 | |
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 Condensed Balance Sheets Parent Company Only December 31, (In thousands, except share and per-share amounts) 2015 2014 Assets Investments Fixed-maturities available for sale—at fair value $ 41,176 $ — Equity securities available for sale—at fair value 25,510 — Trading securities—at fair value 5,482 5,447 Short-term investments—at fair value 158,658 631,934 Total investments 230,826 637,381 Cash 3,301 1,951 Restricted cash (Note B) 124 124 Investment in subsidiaries, at equity in net assets 3,001,846 2,746,915 Accounts and notes receivable (Note G) 631,636 305,856 Other assets (Note H) 124,983 31,394 Assets held for sale (Note A) — 18,027 Total assets $ 3,992,716 $ 3,741,648 Liabilities and Stockholders’ Equity Long-term debt (Note E) $ 1,219,454 $ 1,192,299 Federal income taxes—current and deferred 229,939 262,583 Other liabilities 46,392 96,989 Liabilities held for sale (Note A) — 18,027 Total liabilities 1,495,785 1,569,898 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, 2015 and 2014; 224,432,465 and 208,601,020 shares issued at December 31, 2015 and 2014, respectively; 206,871,768 and 191,053,530 shares outstanding at December 31, 2015 and 2014, respectively 224 209 Treasury stock, at cost: 17,560,697 and 17,547,490 shares at December 31, 2015 and 2014, respectively (893,176 ) (892,961 ) Additional paid-in capital 2,716,618 2,531,513 Retained earnings 691,742 406,814 Accumulated other comprehensive (loss) income (18,477 ) 51,485 Total common stockholders’ equity 2,496,931 2,097,060 Total liabilities and stockholders’ equity $ 3,992,716 $ 3,741,648 See Supplemental Notes. Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Statements of Operations Parent Company Only Year Ended December 31, (In thousands) 2015 2014 2013 Revenues: Net investment income $ 17,917 $ 9,515 $ 4,300 Net gains (losses) on investments and other financial instruments 2,975 (2,732 ) (6,956 ) Other income — 7 — Total revenues 20,892 6,790 (2,656 ) Expenses: Loss on induced conversion and debt extinguishment 94,207 — — Interest expense 55,768 57,366 37,087 Total expenses 149,975 57,366 37,087 Pretax loss from continuing operations (129,083 ) (50,576 ) (39,743 ) Income tax (benefit) provision (43,854 ) 143,912 9,234 Equity in net income (loss) of affiliates 371,949 1,172,032 (148,008 ) Net income (loss) from continuing operations 286,720 977,544 (196,985 ) Income (loss) from discontinued operations, net of taxes 204 (18,027 ) — Net income (loss) 286,924 959,517 (196,985 ) Other comprehensive (loss) income, net of tax (70,227 ) 14,161 21,090 Comprehensive income (loss) $ 216,697 $ 973,678 $ (175,895 ) See Supplemental Notes. Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Statements of Cash Flows Parent Company Only Year Ended December 31, (In thousands) 2015 2014 2013 Net cash (used in) provided by operating activities, continuing operations $ (128,879 ) $ (27,153 ) $ 105,681 Net cash used in operating activities, discontinued operations — (18,027 ) — Net cash (used in) provided by operating activities (128,879 ) (45,180 ) 105,681 Cash flows from investing activities: Proceeds from redemptions of trading securities — — 9,000 Purchases of fixed-maturities available for sale (39,667 ) — — Purchases of equity securities available for sale (25,545 ) — — Sales, redemptions (purchases) of short-term investments, net 473,350 1,372 (496,979 ) Sales of other assets and other invested assets, net — — 21,473 Other, net (688 ) (1,351 ) (647 ) Capital distributions from subsidiaries and affiliates 113,784 — — Capital contributions to subsidiaries and affiliates (182,307 ) (139,103 ) (233,391 ) Issuance of note receivable from affiliate (Note G) (208,527 ) (300,000 ) — Net cash provided by (used in) investing activities 130,400 (439,082 ) (700,544 ) Cash flows from financing activities: Dividends paid (1,996 ) (1,865 ) (1,632 ) Issuance of long-term debt, net 343,334 293,809 377,783 Purchases and redemptions of long-term debt (156,172 ) (57,223 ) (79,372 ) Proceeds from termination of capped calls 13,150 — — Issuance of common stock 1,285 247,188 299,410 Purchase of shares under ASR (202,000 ) — — Excess tax benefits from stock-based awards 2,228 — — Net cash (used in) provided by financing activities (171 ) 481,909 596,189 Increase (decrease) in cash 1,350 (2,353 ) 1,326 Cash, beginning of year 1,951 4,304 2,978 Cash, end of year $ 3,301 $ 1,951 $ 4,304 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. These financial statements should be read in conjunction with our consolidated financial statements and the accompanying notes thereto. Certain prior period amounts have been reclassified to conform to current period presentation, including the adoption of an update to the accounting standard for the presentation of debt issuance costs in financial statements. See Notes 2 and 11 of Notes to Consolidated Financial Statements for additional information. On April 1, 2015, Radian Guaranty completed the sale of Radian Asset Assurance pursuant to the Radian Asset Assurance Stock Purchase Agreement. 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 had paid Radian Asset Assurance for losses and foreign tax credits it had generated, and Radian Group had 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 rather 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, for the year ended December 31, 2014, the Parent Company 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. These DTAs were transferred to Assured upon completion of the sale of Radian Asset Assurance in 2015. Note B Included in short-term investments at December 31, 2014 is $45.1 million of restricted funds that had been required to support potential tax payments to Radian Asset Assurance under the terms of our current tax-sharing agreement. The restrictions on such funds were released upon the sale of Radian Asset Assurance in 2015. We also had $0.1 million at both December 31, 2015 and 2014 , 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 2015 , 2014 and 2013 . Total operating expenses and interest expense allocated to subsidiaries for 2015 , 2014 and 2013 were $84.7 million , $92.5 million and $140.0 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. 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 2015 , the Parent Company made total capital contributions of $398.3 million to its subsidiaries. This amount included a cash contribution of $100.0 million to Radian Guaranty, contributions of cash ( $50.0 million ) and marketable securities ( $216.0 million ) totaling $266.0 million to Radian Reinsurance, and cash contributions of $20.0 million , $12.1 million and $0.2 million to Radian Mortgage Guaranty Inc., Radian Clayton Holdings Inc., and Radian Mortgage Reinsurance Company, respectively. During 2015, the Parent Company received dividends from its subsidiaries totaling $446.2 million in cash and marketable securities. This amount included marketable securities of $216.0 million from Enhance Financial Services Group Inc. and cash of $15.0 million from Radian MI Services Inc., which were used to partially fund the creation of Radian Reinsurance as part of an approved reorganization of our mortgage insurance subsidiaries. In addition, the Parent Company received a total of $215.2 million in cash ( $98.7 million ) and marketable securities ( $116.5 million ) from RDN Investments, Inc., to partially fund the acquisition of a Surplus Note from Radian Guaranty (see Note G for additional information). The Parent Company also received tax payments of $16.0 million from its subsidiaries in 2015 under our tax-sharing agreement. During 2014 , the Parent Company made total capital contributions of $139.1 million to its subsidiaries. This amount included cash 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. The Parent Company did not receive any dividends from its subsidiaries in 2014. The Parent Company did receive tax payments of $8.8 million from its subsidiaries in 2014 under our tax-sharing agreement. During 2013 , the Parent Company made total capital contributions of $313.9 million to its subsidiaries. This amount included cash contributions totaling $230.4 million to Radian Guaranty, a contribution of marketable securities 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. During 2013 , the Parent Company received dividends from its subsidiaries of $7.6 million . The Parent Company also received tax payments of $0.5 million from its subsidiaries in 2013 under our tax-sharing agreement. Note E During 2015, the Parent Company successfully completed a series of transactions to strengthen its capital position, including reducing its overall cost of capital and improving the maturity profile of its debt. See Notes 11 and 18 of Notes to Consolidated Financial Statements for additional information on our loss on induced conversion and debt extinguishment, long-term debt and capital stock. At December 31, 2015 , the maturities of the principal amount of our long-term debt in future years are as follows: (In thousands) 2017 $ 247,871 2019 689,992 2020 350,000 $ 1,287,863 Note F Net investment income increased in 2015 compared to 2014 primarily due to a full year of interest earned on a note receivable from Radian Clayton Holdings Inc., which totaled $17.7 million in net investment income for the year ended December 31, 2015 (see Note G for additional information). Net investment income increased in 2014 compared to 2013 primarily due to $8.9 million of interest earned on that note receivable for part of the year, offset by lower market yields for our investments during 2014. 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 reduction in interest expense in 2015 was primarily attributable to lower expense following the induced conversion and extinguishment of substantially all of our Convertible Senior Notes due 2017, partially offset by interest expense related to our Senior Notes due 2020, issued in 2015, and a full year of interest expense attributable to the Senior Notes due 2019 that were issued in 2014. 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. Note G Accounts and notes receivable included a $300 million note receivable from Radian Clayton Holdings Inc. as of December 31, 2015 and 2014. This represents the principal amount related to the Senior Notes due 2019, which funded the acquisition of Clayton in June 2014. 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. Accounts and notes receivable also included, as of December 31, 2015, a $325 million Surplus Note from Radian Guaranty. In December 2015, the Parent Company transferred $325 million of cash ( $208.5 million ) and marketable securities ( $116.5 million ) to Radian Guaranty in exchange for a Surplus Note issued by Radian Guaranty. See Note 14 of Notes to Consolidated Financial Statements for additional information related to the terms of this Surplus Note. Note H Other assets increased as of December 31, 2015, compared to December 31, 2014, primarily as a result of the transfer of an $89 million deposit with the IRS to the Parent Company from RGRI, in exchange for cash. See Note 13 of Notes to Consolidated Financial Statements for additional information related to this “qualified deposit” and the status of the examination by the IRS of our 2000 through 2007 consolidated federal income tax returns. Note I We and certain of our subsidiaries have entered into the following intercompany guarantees: • 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 every calendar quarter. RMAI had $8.1 million of statutory policyholders’ surplus and no RIF exposure as of December 31, 2015. • Radian Group and Radian Mortgage Insurance, a subsidiary of Radian Guaranty, are parties to a guaranty agreement in which Radian Group has agreed for the benefit of Radian Mortgage Insurance’s creditors to make funds available on demand for the full and complete payment of all due but unpaid liabilities. Radian Mortgage Insurance had $2.8 million of statutory policyholders’ surplus at December 31, 2015. • To allow our mortgage insurance customers to comply with applicable securities regulations for issuers of ABS (including MBS), we have been required, depending on the amount of credit enhancement we were providing, to provide: (1) audited financial statements for the insurance subsidiary participating in these transactions; 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 with approximately $119.2 million of aggregate remaining credit exposure as of December 31, 2015. • Radian Group and RGRI are parties to an Assumption and Indemnification Agreement with regard to RGRI’s portion of the Deficiency Amounts relating to the IRS litigation. This indemnification agreement was made in lieu of an immediate capital contribution to RGRI that otherwise would have been required for RGRI to maintain its minimum statutory policyholders’ surplus requirements in light of the remeasurement as of December 31, 2011 of uncertain tax positions related to the portfolio of REMIC residual interests. See Note H for additional information. |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Insurance Premiums Earned [Abstract] | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Text Block] | Radian Group Inc. Schedule IV—Reinsurance Insurance Premiums Earned Year Ended December 31, 2015 , 2014 and 2013 ($ in thousands) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Assumed Premiums as a Percentage of Net Premiums 2015 $ 973,645 $ 57,780 $ 43 $ 915,908 0.00 % 2014 $ 905,502 $ 61,017 $ 43 $ 844,528 0.01 % 2013 $ 848,655 $ 67,291 $ 56 $ 781,420 0.01 % |
Note 2 - Significant Accounti32
Note 2 - Significant Accounting Policies Level 2 (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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. 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, including the adoption of an update to the accounting standard for the presentation of debt issuance costs in financial statements, as further described below in “— Recent Accounting Pronouncements .” |
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 and disclosure of our 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, including 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 loss reserve involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss, including an estimate of the impact of our Loss Mitigation Activities. 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. For example, our mortgage insurance loss reserves generally increase 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. While we believe this remains accurate, following the financial crisis, there are a significant number of loans in our defaulted portfolio that have been in default for an extended period of time, but which have not been subject to foreclosure, and therefore, have not resulted in claims. As a result, significant uncertainty remains with respect to the ultimate resolution of these aged defaults. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. 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. In our Mortgage Insurance business, the default and claim cycle begins with the receipt of a default notice from the loan 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. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. 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 and type of insurance (i.e., primary or pool). 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 as well as the date that a loan goes into default. The Default to Claim Rate also includes our estimates with respect to expected Rescissions and Claim Denials, which have the effect of reducing our Default to Claim Rates. We forecast the impact of our Loss Mitigation Activity 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 Rescissions or cancellations and Claim Denials, to help determine the Default to Claim Rate. Our Loss Mitigation Activities have resulted in challenges from certain lender and servicer customers, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials and Claim Curtailments. Although we believe that our Loss Mitigation Activities are justified under our policies, if any of these challenges result in disputes or are not resolved, they could result in arbitration or judicial proceedings and we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. 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. The assumptions embedded in our estimated Default to Claim Rate on our in-force default inventory include an adjustment to our estimated Rescissions and Claim Denials 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. After estimating the Default to Claim Rate, we estimate Claim Severity based on the average of recently observed severity rates within product type, type of insurance, and Time in Default cohorts. These average severity estimates are then applied to individual loan coverage amounts to determine reserves. Similar to the Default to Claim Rate, Claim Severity also is impacted by the length of time that loans are in default and by our Loss Mitigation Activity. For claims under our 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. Therefore, Claim Severity generally increases the longer that a loan is in default. In addition, we estimate the impact that the amount that Claim Curtailments due to servicer noncompliance with our insurance policies and servicing guidelines have on the amount that we ultimately will have to pay with respect to claims. As part of our claims review process, we assess whether defaulted loans were serviced appropriately in accordance with our insurance policies and servicing guidelines. If a servicer 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. 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. IBNR and Other Reserves We also establish reserves for defaults that we estimate have been incurred but have not been reported to us on a timely basis by the servicer, as well as for previous Rescissions and Claim Denials that we estimate will be reinstated and subsequently paid. We generally give the policyholder up to 30 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. The impact to our reserve due to estimated future Rescissions and Claim Denials incorporates our expectations regarding the number of policies that we expect to be reinstated as a result of our claims rebuttal process. Rescissions and Claim Denials may occur 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. The level of Rescissions and Claim Denials has been declining in recent periods as our defaulted Legacy Portfolio continues to decline, and we expect this trend to continue. 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 limit Rescissions, Claim Denials or Claim Curtailments. See Note 10 for additional information about the BofA Settlement Agreement. Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we consider our claim payments and our Rescissions, Claim Denials and Claim 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, Claim Denials and Claim 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, Claim Denials, Claim Curtailments, and cancellations for this population of loans, determined using assumptions that are consistent with those utilized to determine our overall loss reserves. See Note 10 for additional information about the Freddie Mac Agreement. Senior management regularly reviews the modeled frequency, Rescission, Claim Denial and Claim 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 and determines how they should be considered in its reserve estimates. |
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 Claim 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, 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 successful 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 expensed 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 arrangements related to these costs are also deferred and accounted for using similar assumptions, including certain amounts received under the QSR Transactions (See Note 8). Estimates of expected gross profit, including the Persistency Rate 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. |
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 Services 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 Services 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 Services 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 in our Services segment. 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. Our framework for assessing the recoverability of our DTAs requires consideration of all available evidence, including: • whether there are cumulative losses from previous years; • future projections of taxable income within the applicable carryback and carryforward periods, including the sustainability of our forecasts of future taxable income under potential stress scenarios; • degree of certainty regarding our projected incurred losses; • future reversals of existing taxable temporary differences; and • potential tax planning strategies. 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 2015 and 2014. When estimating our full year 2015 and 2014 effective tax rates, we adjust our forecasted pre-tax income for gains and losses on our 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. |
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, 2015 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; (3) funds held in trust for the benefit of certain policyholders; (4) escrow funds held for servicer liabilities; and (5) escrow funds held for title services obligations. 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 investment activity for trading securities relates to overall strategic initiatives and is not trading related, it is recorded as cash flows from investing activities. |
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, if any, 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 Services customers for services our Services segment has performed, and, as of December 31, 2014, 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. |
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 generally depreciated over three or five 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 is an asset representing the estimated future economic benefits arising from the assets we have acquired that were not individually identified and separately recognized, 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 at the reporting unit level. A reporting unit represents a business for which discrete financial information is available; more than one reporting unit may be aggregated into a single reporting unit if they have similar economic characteristics. The value of goodwill is primarily supported by revenue projections, which are driven primarily by projected transaction volume and margins. 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 customer relationships, technology, trade name and trademarks, client backlog and non-competition agreements. Customer 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 is performed using an income approach and 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 customer relationships. In particular, future expected cash flows include estimated transaction volumes that are not currently contracted, as well as volume projections associated with non-agency RMBS securitizations, for which current market conditions are not favorable. 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. |
Debt, Policy [Policy Text Block] | June 2015 Purchases of Convertible Debt Prior to Maturity We accounted for the June 2015 purchases of a portion of our outstanding convertible debt in exchange for cash and shares of Radian Group common stock as an induced conversion of convertible debt in accordance with the accounting standard regarding derecognition of debt with conversion and other options, and the accounting standard regarding debt modifications and extinguishments. The accounting standards require the recognition through earnings of an inducement charge equal to the fair value of the consideration delivered in excess of the consideration issuable under the original conversion terms. The remaining consideration delivered and transaction costs incurred are required to be allocated between the extinguishment of the liability component and the reacquisition of the equity component. Therefore, we recognized as a loss on induced conversion and debt extinguishment the sum of: (i) the inducement charge; (ii) the difference between the fair value and the carrying value of the liability component of the purchased debt; (iii) transaction costs allocated to the debt component; and (iv) unamortized debt issuance costs related to the purchased debt. |
Accelerated Share Repurchases [Policy Text Block] | We reflect the ASR program as a repurchase of common stock in the periods delivered for purposes of calculating earnings per share and as forward contracts indexed to the company’s own common stock. The ASR program met all of the applicable criteria for equity classification, and therefore, was not accounted for as a derivative instrument. Accelerated Share Repurchase Our ASR program consisted of the combination of the purchase of Radian Group common stock from an investment bank and a forward contract with that investment bank indexed to Radian Group common stock. We accounted for the ASR program in accordance with the provisions of the accounting standards regarding derivatives and hedging for contracts indexed to an entity’s own stock, and the accounting standard regarding equity. The up-front payment to the investment bank as part of the ASR program was accounted for as a reduction to stockholders’ equity in our consolidated balance sheets in the second quarter of 2015, the period in which the payment was made. |
Accounting Standards Update 2014-08 [Member] | |
Significant Accounting Policies Line Items [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements 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 were 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 was 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 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 a portion of the revenues from our Services segment. In July 2015, the FASB delayed the effective date for this updated standard to interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update, if any. |
Accounting Standards Update 2015-03 [Member] | |
Significant Accounting Policies Line Items [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In April 2015, the FASB issued an update to the accounting standard for the presentation of debt issuance costs in financial statements. The new standard requires an entity to present debt issuance costs related to a recognized debt liability as a direct reduction from the carrying amount of the related debt liability, consistent with debt discounts, rather than as a separate asset as currently required. The recognition and measurement guidance for debt issuance costs are not affected by the update. The provisions of this update are effective for interim and annual periods beginning after December 15, 2015, and must be applied on a retrospective basis for all periods presented. We early adopted this update effective June 30, 2015, as permitted for financial statements that have not been previously issued. The implementation of this update resulted in a reclassification of approximately $17.6 million of remaining debt issuance costs on our December 31, 2014 consolidated balance sheet, from other assets, to be presented as a reduction of the related debt liability. This update has also been applied retrospectively to prior periods presented. |
Accounting Standards Update 2015-05 [Member] | |
Significant Accounting Policies Line Items [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In April 2015, the FASB issued an update to the accounting standard for the accounting of internal-use software. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The provisions of this update are effective for interim and annual periods beginning after December 15, 2015, and early adoption is permitted. We do not expect a material impact to our financial position, results of operations or cash flows from this update. |
Accounting Standards Update 2015-09 [Member] | |
Significant Accounting Policies Line Items [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2015, the FASB issued an update to the accounting standard for the accounting of short-duration insurance contracts by insurance entities. The amendments in this update require insurance entities to disclose certain information about the liability for unpaid claims and claim adjustment expenses. The additional information required is focused on improvements in disclosures regarding insurance liabilities, including the timing, nature and uncertainty of future cash flows related to insurance liabilities and the effect of those cash flows on the statement of comprehensive income. The disclosures required by this update are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016; early adoption is permitted. We are currently evaluating the additional disclosures required in our financial statements as a result of this update. |
Accounting Standards Update 2015-16 [Member] | |
Significant Accounting Policies Line Items [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In September 2015, the FASB issued an update to the accounting standard for the accounting of business combinations to simplify the accounting for measurement period adjustments. The update requires adjustments to provisional amounts that are identified during the measurement period to be recognized by the acquirer in the reporting period in which the adjustment amounts are determined. In that same reporting period, the acquirer must record in its financial statements the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Prior to the update to the accounting standard, adjustments to provisional amounts were required to be made retrospectively, with a corresponding adjustment to goodwill. The changes required by this update must be applied prospectively to provisional amount adjustments that are recorded in annual periods beginning after the December 15, 2015 effective date; early application is permitted for financial statements that have not been issued. The significance of this guidance for the Company will depend on future acquisition activity. |
Accounting Standards Update 2016-01 [Member] | |
Significant Accounting Policies Line Items [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In January 2016, the FASB issued an update that makes certain changes to the standard for the accounting of financial instruments. Among other things, the update requires: (i) equity investments to be measured at fair value with changes in fair value recognized in net income; (ii) the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iii) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset; and (iv) separate presentation in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The update also eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. This update is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted, with the exception of the “own credit” provision. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update. |
Note 3 - Discontinued Operati33
Note 3 - Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The income (loss) from discontinued operations consisted of the following components for the periods indicated: Year Ended December 31, (In thousands) 2015 2014 2013 Net premiums earned $ 1,007 $ 37,194 $ 49,474 Net investment income 9,153 35,633 39,966 Net gains (losses) on investments and other financial instruments 21,486 55,312 (47,930 ) Impairment losses on investments — — (3 ) Change in fair value of derivative instruments 2,625 130,617 (32,406 ) Other income — 88 (20 ) Total revenues 34,271 258,844 9,081 Provision for losses 502 2,853 2,486 Policy acquisition costs (191 ) 6,340 13,178 Other operating expense 4,107 23,726 27,127 Total expenses 4,418 32,919 42,791 Equity in net (loss) income of affiliates (13 ) (13 ) 1 Income (loss) from operations of businesses held for sale 29,840 225,912 (33,709 ) Loss on sale (14,280 ) (467,527 ) — Income tax provision 10,175 58,442 21,425 Income (loss) from discontinued operations, net of tax $ 5,385 $ (300,057 ) $ (55,134 ) 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, 2015 and 2014 : December 31, (In thousands) 2015 2014 Fixed-maturity investments $ — $ 224,552 Equity securities — 3,749 Trading securities — 689,887 Short-term investments — 435,413 Other invested assets — 108,206 Other assets — 274,637 Total assets held for sale $ — $ 1,736,444 Unearned premiums $ — $ 158,921 Reserve for losses and LAE — 31,558 VIE debt — 85,016 Derivative liabilities — 183,370 Other liabilities — 488,143 Total liabilities held for sale $ — $ 947,008 |
Note 4 - Segment Reporting Le34
Note 4 - Segment Reporting Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Summarized operating results for our segments as of and for the periods indicated, are as follows: December 31, 2015 (In thousands) Mortgage Insurance Services Total Net premiums written—insurance $ 968,505 $ — $ 968,505 Increase in unearned premiums (52,597 ) — (52,597 ) Net premiums earned—insurance 915,908 — 915,908 Services revenue — 157,416 157,416 Net investment income 81,537 — 81,537 Other income 6,300 — 6,300 Total 1,003,745 157,416 (1) 1,161,161 (2) Provision for losses 198,433 — 198,433 Policy acquisition costs 22,424 — 22,424 Direct cost of services — 93,504 93,504 Other operating expenses before corporate allocations 149,941 43,622 193,563 Total 370,798 (1) 137,126 507,924 Adjusted pretax operating income before corporate allocations 632,947 20,290 653,237 Allocation of corporate operating expenses 46,418 4,823 51,241 Allocation of interest expense 73,402 17,700 91,102 Adjusted pretax operating income (loss) $ 513,127 $ (2,233 ) $ 510,894 Total assets $ 5,281,597 $ 360,503 $ 5,642,100 NIW (in millions) $ 41,411 ________________ (1) Includes inter-segment expenses and revenues as follows: December 31, 2015 (In thousands) Mortgage Insurance Services Inter-segment revenues $ — $ 3,601 Inter-segment expenses 3,601 — (2) Excludes net gains on investments and other financial instruments of $35.7 million , not included in adjusted pretax operating income. December 31, 2014 (In thousands) Mortgage Insurance Services (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 — 76,709 76,709 Net investment income 65,655 — 65,655 Other income 5,321 1,265 6,586 Total 915,504 77,974 (2) 993,478 (3) Provision for losses 246,865 — 246,865 Change in expected economic loss or recovery for consolidated VIEs 113 — 113 Policy acquisition costs 24,446 — 24,446 Direct cost of services — 43,605 43,605 Other operating expenses before corporate allocations 170,390 18,915 189,305 Total 441,814 (2) 62,520 504,334 Adjusted pretax operating income before corporate allocations 473,690 15,454 489,144 Allocation of corporate operating expenses 55,154 1,144 56,298 Allocation of interest expense 81,600 8,864 90,464 Adjusted pretax operating income $ 336,936 $ 5,446 $ 342,382 Assets held for sale (4) $ — $ — $ 1,736,444 Total assets 4,769,014 336,878 6,842,336 NIW (in millions) $ 37,349 ________________ (1) Includes the acquisition of Clayton, effective June 30, 2014. (2) Includes inter-segment expenses and revenues as follows: December 31, 2014 (In thousands) Mortgage Insurance Services Inter-segment revenues $ — $ 782 Inter-segment expenses 782 — (3) Excludes net gains on investments and other financial instruments of $80.0 million , not included in adjusted pretax operating income. (4) Assets held for sale are not part of the Mortgage Insurance or Services segments. December 31, 2013 Mortgage Insurance (In thousands) Net premiums written—insurance $ 950,998 Increase in unearned premiums (169,578 ) Net premiums earned—insurance 781,420 Net investment income 68,121 Other income 6,255 Total (1) 855,796 Provision for losses 562,747 Change in expected economic loss or recovery for consolidated VIEs (21 ) Policy acquisition costs 28,485 Other operating expenses before corporate allocations 160,327 Total 751,538 Adjusted pretax operating income before corporate allocations 104,258 Allocation of corporate operating expenses 97,075 Allocation of interest expense 74,618 Adjusted pretax operating loss $ (67,435 ) Total assets (2) $ 3,837,889 NIW (in millions) $ 47,255 ________________ (1) Excludes the following revenue items not included in adjusted pretax operating loss: (i) net losses on investments and other financial instruments of $106.5 million ; (ii) change in fair value of derivative instruments of $0.6 million . (2) Does not include assets held for sale of $1.8 billion which are not a part of the Mortgage Insurance segmen |
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) 2015 2014 2013 Adjusted pretax operating income (loss): Mortgage insurance (1) $ 513,127 $ 336,936 $ (67,435 ) Services (1) (2,233 ) 5,446 — Total adjusted pretax operating income (loss) $ 510,894 $ 342,382 $ (67,435 ) Net gains (losses) on investments and other financial instruments (2) 35,693 80,102 (105,911 ) Loss on induced conversion and debt extinguishment (94,207 ) — — Acquisition-related expenses (1,565 ) (6,680 ) — Amortization and impairment of intangible assets (12,986 ) (8,648 ) — Consolidated pretax income (loss) from continuing operations $ 437,829 $ 407,156 $ (173,346 ) ________________ (1) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. (2) The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains (losses) on investments and other financial instruments has been adjusted by income of $0.1 million and $0.6 million for the years ended December 31, 2014 and 2013 , respectively, to reverse this item. On a |
Note 5 - Fair Value of Financ35
Note 5 - Fair Value of Financial Instruments Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 that are measured at fair value by hierarchy level as of December 31, 2015 : December 31, 2015 (In millions) Level I Level II Level III Total Assets and Liabilities at Fair Value Investment Portfolio: U.S. government and agency securities $ 670.3 $ 8.0 $ — $ 678.3 State and municipal obligations — 341.9 — 341.9 Money market instruments 443.3 — — 443.3 Corporate bonds and notes — 1,383.2 — 1,383.2 RMBS — 297.1 — 297.1 CMBS — 544.6 — 544.6 Other ABS — 371.6 — 371.6 Foreign government and agency securities — 37.6 — 37.6 Equity securities 74.9 25.0 0.5 100.4 Other investments (1) — 99.0 — 99.0 Total Investments at Fair Value (2) 1,188.5 3,108.0 0.5 4,297.0 Total Assets at Fair Value $ 1,188.5 $ 3,108.0 $ 0.5 $ 4,297.0 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include certain other invested assets ( $1.7 million ), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. At December 31, 2015 , total Level III assets of $0.5 million accounted for less than 0.1% of total assets measured at fair value. This investment was purchased during the three months ended June 30, 2015, and there were no related gains or losses recorded during the year ended December 31, 2015 . There were no Level III liabilities at December 31,2015. There were no investment transfers between Level I and Level II for the year ended December 31, 2015 . There were also no transfers involving Level III assets or liabilities for the year ended December 31, 2015 . The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2014 : 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 $ 3.0 $ 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) 164.0 51.6 215.6 Other investments (2) — 1.0 1.0 Total Investments at Fair Value (3) 1,601.2 2,013.5 3,614.7 Total Assets at Fair Value $ 1,601.2 $ 2,013.5 $ 3,614.7 ______________________ (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 certificates of deposit. (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. |
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, 2015 December 31, 2014 (In millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Other invested assets $ 1.7 $ 4.9 $ 14.6 $ 20.5 (1) Liabilities: Long-term debt 1,219.5 1,414.9 1,192.3 1,859.3 (1) ______________________ (1) These estimated fair values would be classified in Level II of the fair value hierarchy. |
Note 6 - Investments Level 3 (T
Note 6 - Investments Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Marketable Securities [Table Text Block] | Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated: December 31, 2015 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fixed-maturities available for sale: U.S. government and agency securities $ 13,773 $ 13,752 $ — $ 21 State and municipal obligations 36,920 37,900 1,100 120 Corporate bonds and notes 815,024 802,193 4,460 17,291 RMBS 226,744 224,905 625 2,464 CMBS 415,780 406,910 69 8,939 Other ABS 359,452 355,494 16 3,974 Foreign government and agency securities 25,663 24,307 27 1,383 $ 1,893,356 $ 1,865,461 $ 6,297 $ 34,192 Equity securities available for sale (1) $ 75,538 $ 75,430 $ — $ 108 Total debt and equity securities $ 1,968,894 $ 1,940,891 $ 6,297 $ 34,300 ______________________ (1) Comprising primarily a multi-sector exchange-traded fund. December 31, 2014 (In thousands) Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized 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 primarily broadly diversified domestic equity mutual funds |
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) 2015 2014 Trading securities: U.S. government and agency securities $ 129,913 $ 134,530 State and municipal obligations 303,946 343,926 Corporate bonds and notes 580,993 708,361 RMBS 72,192 89,810 CMBS 137,678 188,615 Other ABS 16,131 77,755 Foreign government and agency securities 13,268 18,331 Equity securities 25,016 72,256 Total $ 1,279,137 $ 1,633,584 |
Investment Income [Table Text Block] | Net investment income consisted of: Year Ended December 31, (In thousands) 2015 2014 2013 Investment income: Fixed-maturities $ 81,127 $ 62,352 $ 66,131 Equity securities 4,539 6,287 6,592 Short-term investments 745 246 255 Other 600 1,848 1,970 Gross investment income 87,011 70,733 74,948 Investment expenses (5,474 ) (5,078 ) (6,827 ) Net investment income $ 81,537 $ 65,655 $ 68,121 |
Gain (Loss) on Investments [Table Text Block] | Net realized and unrealized gains (losses) on investments and other financial instruments consisted of: Year Ended December 31, (In thousands) 2015 2014 2013 Net realized gains (losses) on investments: Fixed-maturities held to maturity $ — $ (9 ) $ 2 Fixed-maturities available for sale (1,176 ) (1,599 ) 937 Equities available for sale 69,150 — 349 Trading securities (9,231 ) (6,996 ) 7,997 Short-term investments (24 ) 1 1 Other invested assets 3,267 — 8,841 Other gains 110 246 126 Net realized gains (losses) on investments 62,096 (8,357 ) 18,253 Unrealized (losses) gains on trading securities (27,015 ) 92,226 (117,198 ) Total gains (losses) on investments 35,081 83,869 (98,945 ) Net gains (losses) on other financial instruments 612 (3,880 ) (7,580 ) Net gains (losses) on investments and other financial instruments $ 35,693 $ 79,989 $ (106,525 ) |
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) 2015 2014 2013 Fixed-maturities available for sale: Proceeds received from redemptions $ 103,595 $ 4,985 $ 538 Proceeds received from sales 20,100 19,672 17,185 Gross investment gains from sales and redemptions 64 99 1,078 Gross investment losses from sales and redemptions (1,240 ) (1,698 ) (141 ) Equities available for sale: Proceeds received from sales and redemptions 146,049 — 10,503 Gross investment gains from sales and redemptions 69,150 — 349 |
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) 2015 2014 2013 Fixed-maturities: Unrealized holding (losses) gains arising during the period, net of tax $ (24,246 ) $ 4,531 $ (240 ) Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax (764 ) (1,039 ) 929 Net unrealized (losses) gains on investments, net of tax $ (23,482 ) $ 5,570 $ (1,169 ) Equities: Unrealized holding gains arising during the period, net of tax $ 1,673 $ 9,119 $ 19,389 Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax 44,947 — (273 ) Net unrealized (losses) gains on investments, net of tax $ (43,274 ) $ 9,119 $ 19,662 |
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” 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, 2015 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities 1 $ 5,752 $ 21 $ — $ — 1 $ 5,752 $ 21 State and municipal obligations 2 11,674 120 — — — 2 11,674 120 Corporate bonds and notes 117 510,807 16,773 6 8,700 518 123 519,507 17,291 RMBS 12 168,415 2,464 — — — 12 168,415 2,464 CMBS 58 387,268 8,939 — — — 58 387,268 8,939 Other ABS 96 284,998 2,559 14 43,225 1,415 110 328,223 3,974 Foreign government and agency securities 18 18,733 1,095 3 2,278 288 21 21,011 1,383 Equity securities 1 74,930 108 — — — 1 74,930 108 Total 305 $ 1,462,577 $ 32,079 23 $ 54,203 $ 2,221 328 $ 1,516,780 $ 34,300 December 31, 2014 ($ in thousands) Less Than 12 Months 12 Months or Greater Total # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses # of securities Fair Value Unrealized Losses U.S. government and agency securities — $ — $ — 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 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturities of fixed-maturity investments are as follows: December 31, 2015 Available for Sale (In thousands) Amortized Cost Fair Value Due in one year or less (1) $ — $ — Due after one year through five years (1) 173,191 172,705 Due after five years through ten years (1) 437,248 430,476 Due after ten years (1) 280,941 274,971 RMBS (2) 226,744 224,905 CMBS (2) 415,780 406,910 Other ABS (2) 359,452 355,494 Total $ 1,893,356 $ 1,865,461 ______________________ (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 I37
Note 7 - Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014: (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2013 $ 2,095 $ — $ 2,095 Goodwill acquired 191,932 — 191,932 Impairment losses — (2,095 ) (2,095 ) Balance at December 31, 2014 194,027 (2,095 ) 191,932 Goodwill acquired 3,238 — 3,238 Impairment losses — — — Balance at December 31, 2015 $ 197,265 $ (2,095 ) $ 195,170 |
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, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 83,471 $ (11,038 ) $ 72,433 Technology 15,100 (2,949 ) 12,151 Trade name and trademarks 8,340 (1,243 ) 7,097 Client backlog 6,680 (4,184 ) 2,496 Non-competition agreements 185 (115 ) 70 Total $ 113,776 $ (19,529 ) $ 94,247 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 79,203 $ (2,917 ) $ 76,286 Technology 8,970 (797 ) 8,173 Trade name and trademarks 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 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 - 8 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 2016 and thereafter is as follows (in thousands): 2016 $ 13,138 2017 12,492 2018 11,845 2019 10,609 2020 9,058 Thereafter 37,105 Total $ 94,247 |
Note 8 - Reinsurance (Tables)
Note 8 - Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance [Table Text Block] | The effect of reinsurance on net premiums written and earned is as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Net premiums written-insurance: Direct $ 1,009,409 $ 982,976 $ 1,033,323 Assumed 104 (882 ) (904 ) Ceded (41,008 ) (56,913 ) (81,421 ) Net premiums written-insurance $ 968,505 $ 925,181 $ 950,998 Net premiums earned-insurance: Direct $ 973,645 $ 905,502 $ 848,655 Assumed 43 43 56 Ceded (57,780 ) (61,017 ) (67,291 ) Net premiums earned-insurance $ 915,908 $ 844,528 $ 781,420 |
Ceded Credit Risk [Table Text Block] | The following tables present information related to our captive transactions for the periods indicated: Year Ended December 31, (In thousands) 2015 2014 RIF ceded under captive reinsurance arrangements 71,359 129,795 Ceded losses recoverable related to captives 7,293 24,711 Year Ended December 31, (In thousands) 2015 2014 2013 Ceded premiums written related to captives 9,950 12,948 17,812 Ceded premiums earned related to captives 9,959 12,958 17,853 Ceded recoveries, excluding amounts received upon terminations of captive reinsurance transactions 20,950 21,213 47,151 The following table shows the amounts related to the QSR Transactions for the periods indicated: Initial QSR Transaction Second QSR Transaction Year Ended December 31, Year Ended December 31, (In thousands) 2015 2014 2013 2015 2014 2013 Ceded premiums written $ 14,471 $ 10,217 $ 23,047 $ 15,742 $ 33,751 $ 40,225 Ceded premiums earned 22,157 17,319 29,746 24,818 29,820 18,356 Ceding commissions written 3,134 4,862 5,762 8,309 11,813 14,079 |
Note 9 - Other Assets (Tables)
Note 9 - Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 Deposit with the IRS (Note 13) $ 88,557 $ 88,557 Corporate-owned life insurance 82,543 80,755 Property and equipment (1) 46,802 27,248 Prepaid reinsurance premiums 40,491 57,291 Accrued investment income 25,620 20,022 Deferred policy acquisition costs 14,267 12,003 Reinsurance recoverables 11,044 28,119 Other 45,096 43,869 Total other assets $ 354,420 $ 357,864 ______________________ (1) Property and equipment, at cost less accumulated depreciation of $106.9 million and $100.2 million at December 31, 2015 and 2014 , respectively. |
Note 10 - Losses and Loss Adj40
Note 10 - Losses and Loss Adjustment Expenses Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Future Policy Benefits, by Product Segment [Table Text Block] | : Year Ended December 31, (In thousands) 2015 2014 Reserves for losses by category: Prime $ 480,481 $ 700,174 Alt-A 203,706 292,293 A minus and below 129,352 179,103 IBNR and other 83,066 (1) 223,114 LAE 26,108 56,164 Reinsurance recoverable (2) 8,286 26,665 Total primary reserves 930,999 1,477,513 Pool 42,084 75,785 IBNR and other 1,118 1,775 LAE 1,335 3,542 Total pool reserves 44,537 81,102 Total first-lien reserves 975,536 1,558,615 Second-lien and other (3) 863 1,417 Total reserve for losses $ 976,399 $ 1,560,032 ______________________ (1) Primarily related to expected payments under the Freddie Mac Agreement. (2) Primarily represents ceded losses on captive transactions and the QSR Transactions. (3) 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 reserve for losses, including our IBNR reserve and LAE but excluding Second-lien PDR, for the periods indicated: Year Ended December 31, (In thousands) 2015 2014 2013 Mortgage Insurance Balance at January 1 $ 1,560,032 $ 2,164,353 $ 3,083,608 Less reinsurance recoverables (1) 26,665 38,363 83,238 Balance at January 1, net of reinsurance recoverables 1,533,367 2,125,990 3,000,370 Add losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 229,061 351,184 (3) 519,188 (3) Prior years (29,647 ) (105,545 ) 45,460 Total incurred 199,414 245,639 564,648 Deduct paid claims and LAE related to: Current year (2) 10,837 13,562 35,108 Prior years 753,831 824,700 1,403,920 Total paid 764,668 838,262 1,439,028 Balance at end of period, net of reinsurance recoverables 968,113 1,533,367 2,125,990 Add reinsurance recoverables (1) 8,286 26,665 38,363 Balance at December 31 $ 976,399 $ 1,560,032 $ 2,164,353 _________________________ (1) Related to ceded losses on captive reinsurance transactions and the QSR 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. (3) Amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year and prior years have been reclassified to correct an error. There was no net change to total incurred losses in any period as a result of these reclassifications. For the years ended December 31, 2014 and 2013, the amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year have been revised downward by approximately $71.8 million and $65.0 million , respectively, with equal and offsetting adjustments to the amount previously reported for default notices reported and unreported in prior years. |
Note 11 - Long-Term Debt Leve41
Note 11 - Long-Term Debt Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The carrying value of our long-term debt at December 31, 2015 and 2014 was as follows: December 31, ($ in thousands) 2015 2014 9.000% Senior Notes due 2017 $ 192,261 $ 190,245 3.000% Convertible Senior Notes due 2017 46,115 371,336 2.250% Convertible Senior Notes due 2019 341,214 336,133 5.500% Senior Notes due 2019 295,751 294,585 5.250% Senior Notes due 2020 344,113 — Total long-term debt $ 1,219,454 $ 1,192,299 |
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) 2015 2014 2015 2014 Liability component: Principal $ 52,370 $ 450,000 $ 389,992 $ 400,000 Debt discount, net (1) (5,941 ) (74,690 ) (44,313 ) (57,989 ) Debt issuance costs (1) (314 ) (3,974 ) (4,465 ) (5,878 ) Net carrying amount $ 46,115 $ 371,336 $ 341,214 $ 336,133 __________________ (1) Included within long-term debt and is being amortized over the life of the convertible notes. 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, 2015 2014 2015 2014 (In thousands) Contractual interest expense $ 7,359 $ 13,500 $ 8,925 $ 9,000 Amortization of debt issuance costs 696 1,226 1,292 1,282 Amortization of debt discount 12,621 21,512 12,487 11,829 Total interest expense $ 20,676 $ 36,238 $ 22,704 $ 22,111 |
Accounting Standards Update 2015-03 [Member] | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The following illustrates the impact of the reclassification: December 31, 2014 (In thousands) As Previously Reported Adjustment As Adjusted 9.000% Senior Notes due 2017 $ 192,605 $ (2,360 ) $ 190,245 3.000% Convertible Senior Notes due 2017 375,310 (3,974 ) 371,336 2.250% Convertible Senior Notes due 2019 342,011 (5,878 ) 336,133 5.500% Senior Notes due 2019 300,000 (5,415 ) 294,585 Total long-term debt $ 1,209,926 $ (17,627 ) $ 1,192,299 |
Note 12 - Accumulated Other C42
Note 12 - Accumulated Other Comprehensive Income Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. During 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify fully as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million . Year Ended December 31, 2015 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 79,208 $ 27,723 $ 51,485 OCI: Net foreign currency translation adjustments (333 ) (116 ) (217 ) Unrealized losses on investments: Unrealized holding losses arising during the period (34,728 ) (12,155 ) (22,573 ) Less: Reclassification adjustment for net gains included in net income (1) 67,974 23,791 44,183 Net unrealized losses on investments (102,702 ) (35,946 ) (66,756 ) Activity related to investments recorded as assets held for sale (2) (5,006 ) (1,752 ) (3,254 ) OCI (108,041 ) (37,814 ) (70,227 ) Actuarial gain 408 143 265 Balance at end of period $ (28,425 ) $ (9,948 ) $ (18,477 ) 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 loss included in net loss (1) (1,599 ) (560 ) (1,039 ) Net unrealized gains on investments 22,803 8,114 14,689 Activity related to investments recorded as assets held for sale (3) (329 ) (27 ) (302 ) OCI 22,148 7,987 14,161 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 Activity related to investments recorded as assets held for sale (3) 3,961 1,364 2,597 OCI 32,136 11,046 21,090 Net actuarial loss 305 107 198 Balance at end of period $ 57,345 $ 19,962 $ 37,383 _________________________ (1) Included in net gains (losses) on investments on our consolidated statements of operations. (2) For 2015, this amount represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in AOCI. (3) Represents the unrealized holding gains (losses) arising during the period on investments recorded as assets held for sale, net of reclassification adjustments for net gains (losses) included in net income from discontinued operations. |
Note 13 - Income Taxes Level 3
Note 13 - Income Taxes Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense [Table Text Block] | The components of our consolidated income tax provision (benefit) from continuing operations are as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Current provision (benefit) $ 120 $ (26,575 ) $ 352 Deferred provision (benefit) 156,170 (825,843 ) (31,847 ) Total income tax provision (benefit) $ 156,290 $ (852,418 ) $ (31,495 ) |
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 provision (benefit) for income taxes on continuing operations is as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Provision (benefit) for income taxes computed at the statutory tax rate $ 153,240 $ 142,504 $ (60,671 ) Change in tax resulting from: Tax-exempt municipal bond interest and dividends received deduction (net of proration) (1,085 ) (1,286 ) (1,494 ) Repurchase premium on convertible notes (6,674 ) — — Foreign tax expense (benefit) 357 270 (1 ) State tax (benefit) expense (7,619 ) (451 ) 949 Unrecognized tax expense 5,233 407 1,696 Valuation allowance 11,931 (995,008 ) 24,546 Other, net 907 1,146 3,480 Provision (benefit) for income taxes $ 156,290 $ (852,418 ) $ (31,495 ) |
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) 2015 2014 DTAs: Accrued expenses $ 38,456 $ 60,858 Unearned premiums 87,609 82,800 NOL 342,002 475,095 Differences in fair value of financial instruments 7,767 — Net unrealized loss on investments 9,801 — State and Local NOL Carryforwards 46,914 34,851 Partnership investments 74,309 74,179 Loss reserves 4,720 6,362 Outside basis difference of investment in subsidiary — 14,084 Alternative minimum tax credit carryforward 5,923 2,286 Other 34,241 47,991 Total DTAs 651,742 798,506 DTLs: Convertible and other long-term debt 16,654 38,750 Net unrealized gain on investments — 26,145 Depreciation 6,397 — Other 14,516 15,536 Total DTLs 37,567 80,431 Less: Valuation allowance 36,230 17,874 Net DTA $ 577,945 $ 700,201 |
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) 2015 2014 Balance at beginning of period $ 120,223 $ 119,236 Tax positions related to the current year: Increases 6,461 2,352 Decreases (336 ) — Tax positions related to prior years: Increases 22,734 24,361 Decreases (2,102 ) (1,546 ) Lapses of applicable statute of limitation (22,734 ) (24,180 ) Balance at end of period $ 124,246 $ 120,223 |
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 (1) 2000 - 2007, 2012 - 2014 Significant State and Local Jurisdictions (2) 1999 - 2014 _________________________ (1) For the 2000 through 2007 calendar tax years, 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 Informati44
Note 14 - Statutory Information Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 ($ in millions) RIF, net (1) $ 36,396.1 $ 30,615.7 Statutory policyholders’ surplus $ 1,686.5 $ 1,325.2 Contingency reserve 860.9 389.4 Statutory capital $ 2,547.4 $ 1,714.6 Risk-to-capital 14.3:1 17.9:1 _______________________ (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, 2015 , 2014 and 2013 were as follows: December 31, (In millions) 2015 2014 2013 Statutory net income (loss) $ 754.8 $ 273.7 $ (23.8 ) Statutory policyholders’ surplus 1,686.5 1,325.2 1,317.8 Contingency reserve 860.9 389.4 23.0 |
Radian Reinsurance [Member] | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices Disclosure [Table Text Block] | Radian Reinsurance’s statutory net income, statutory policyholders’ surplus and contingency reserve as of and for the years ended December 31, 2015 , 2014 and 2013 were as follows: December 31, (In millions) 2015 Statutory net loss $ (1.0 ) Statutory policyholders’ surplus 138.7 Contingency reserve 128.8 |
Other MI Companies [Member] | |
Statutory Accounting Practices [Line Items] | |
Statutory Accounting Practices Disclosure [Table Text Block] | The aggregate statutory net income, statutory policyholders’ surplus and contingency reserve for these five subsidiaries as of and for the years ended December 31, 2015 , 2014 and 2013 were as follows: December 31, (In millions) 2015 2014 2013 Statutory net income $ 92.9 $ 112.9 $ 99.6 Statutory policyholders’ surplus 55.0 473.7 406.1 Contingency reserve 1.1 140.7 80.9 |
Note 15 - Share-Based and Oth45
Note 15 - Share-Based and Other Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Share-Based Compensation Programs Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liability Recorded/ Equity Instruments Outstanding Compensation Cost Recognized (1) Liabilities: RSUs — Cash-Settled $ 3,595 $ 10,244 $ 65,157 $ 31,834 $ 104,114 $ 79,322 SARs — Cash-Settled — 159 595 915 8,195 8,544 Liabilities $ 3,595 10,403 $ 65,752 32,749 $ 112,309 87,866 Equity: Stock Options 2,692,457 2,984 3,029,348 2,531 3,989,641 2,488 Phantom Stock 230,196 2 284,645 3 284,645 3 RSUs — Equity Settled 2,472,861 9,243 2,056,596 7,461 1,273,556 4,336 Restricted Stock — — — — — 21 ESPP 396 267 267 Equity 12,625 10,262 7,115 Total all share-based plans $ 23,028 $ 43,011 $ 94,981 ______________ (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 2015 , 2014 , and 2013 , 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 2015 , 2014 , and 2013 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) 2015 2014 2013 Total compensation cost recognized $ 23,028 $ 43,011 $ 94,981 Less: Costs deferred as acquisition costs 500 1,047 1,769 Stock-based compensation expense $ 22,528 $ 41,964 $ 93,212 |
Schedule of information with regard to stock options | Information with regard to stock options for the periods indicated is as follows: Number of Shares Weighted Average Exercise Price Per Share Outstanding, December 31, 2014 3,029,348 $ 5.46 Granted 212,230 18.42 Exercised (496,496 ) 2.59 Forfeited (52,625 ) 8.89 Expired — — Outstanding, December 31, 2015 2,692,457 6.94 Exercisable, December 31, 2015 1,435,232 4.44 Available for grant, December 31, 2015 2,803,988 |
Schedule of fully vested share options | The table below summarizes information regarding fully vested stock options as of December 31, 2015 : ($ in millions, except share and per share amounts) Outstanding and Exercisable Number of options vested 1,435,232 Fair value of options vested during the year $ 3.4 Weighted-average exercise price per share $ 4.44 Aggregate intrinsic value (excess market price over exercise price) $ 12.9 Weighted-average remaining contractual term of options (in years) 4.1 years |
Schedule of outstanding and exercisable options | The following table summarizes information concerning outstanding and exercisable options at December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $2.45 - $3.58 1,718,010 5.2 $ 2.80 1,153,515 $ 2.98 $5.76 - $7.06 47,967 2.2 6.92 47,967 6.92 $10.42 - $15.44 718,790 6.1 13.53 225,580 10.91 $18.42 207,690 3.0 18.42 8,170 18.42 2,692,457 4.3 1,435,232 |
Schedule of valuation assumptions of stock options granted | We use the Monte Carlo valuation model in determining the grant date fair value of stock options issued to executives and non-executives using the assumptions noted in the following table: Year Ended December 31, 2015 2014 2013 Derived service period (years) 3.02 - 4.00 2.99 - 3.96 3.02 - 4.00 Risk-free interest rate (1) 2.32 % 2.57 % 1.96 % Volatility (2) 93.70 % 94.26 % 94.63 % Dividend yield 0.05 % 0.07 % 0.07 % ______________ (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: 2015 2014 2013 Expected life 3 years 3 years 3 years Risk-free interest rate 1.0 % 1.0 % 0.4 % Volatility 40.6 % 71.9 % 81.8 % Dividend yield 0.05 % 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 Shares Weighted Average Grant Date Fair Value Unvested, December 31, 2014 2,056,596 $ 10.65 Granted 612,881 18.26 Vested (121,989 ) 5.83 Forfeited (74,627 ) 15.55 Unvested, December 31, 2015 2,472,861 12.62 |
Schedule of valuation assumptions of ESPP | The following are assumptions used in our calculation of ESPP compensation expense during 2015 : January 1, 2015 July 1, 2015 Expected life 6 months 6 months Risk-free interest rate 0.36 % 0.44 % Volatility 35.03 % 26.83 % Dividend yield 0.03 % 0.03 % |
Note 17 - Commitments and Con46
Note 17 - Commitments and Contingencies Schedule of Commitment for Non-Cancellable Operating Leases in Future Years (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2016 $ 8,646 2017 5,922 2018 2,416 2019 5,698 2020 5,663 Thereafter 56,309 $ 84,654 |
Note 19 - Net Income (Loss) P47
Note 19 - Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 (In thousands, except share and per-share amounts) Net income (loss) from continuing operations: Net income (loss) from continuing operations - basic $ 281,539 $ 1,259,574 $ (141,851 ) Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) 14,758 14,372 — Net income (loss) from continuing operations - diluted $ 296,297 $ 1,273,946 $ (141,851 ) Net income (loss): Net income (loss) from continuing operations - basic $ 281,539 $ 1,259,574 $ (141,851 ) Income (loss) from discontinued operations, net of tax 5,385 (300,057 ) (55,134 ) Net income (loss) - basic 286,924 959,517 (196,985 ) Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) 14,758 14,372 — Net income (loss) - diluted $ 301,682 $ 973,889 $ (196,985 ) Average common shares outstanding-basic 199,910 184,551 166,366 Dilutive effect of Convertible Senior Notes due 2017 6,293 8,465 — Dilutive effect of Convertible Senior Notes due 2019 37,736 37,736 — Dilutive effect of stock-based compensation arrangements (2) 2,393 3,150 — Adjusted average common shares outstanding—diluted 246,332 233,902 166,366 Net income (loss) per share: Basic: Net income (loss) from continuing operations $ 1.41 $ 6.83 $ (0.85 ) Income (loss) from discontinued operations 0.03 (1.63 ) (0.33 ) Net income (loss) $ 1.44 $ 5.20 $ (1.18 ) Diluted: Net income (loss) from continuing operations $ 1.20 $ 5.44 $ (0.85 ) Income (loss) from discontinued operations 0.02 (1.28 ) (0.33 ) Net income (loss) $ 1.22 $ 4.16 $ (1.18 ) ________________ (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) The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of net income (loss) per share because they were anti-dilutive: Year Ended December 31, (in thousands) 2015 2014 2013 Shares of common stock equivalents 728 542 43,288 |
Note 21 - Quarterly Financial48
Note 21 - Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | (In thousands, except per share information) 2015 Quarters First Second Third Fourth Year Net premiums earned—insurance $ 224,595 $ 237,437 $ 227,433 $ 226,443 $ 915,908 Services revenue (1) 30,630 43,503 42,189 37,493 153,815 Net investment income 17,328 19,285 22,091 22,833 81,537 Net gains (losses) on investments and other financial instruments (2) 16,779 28,448 3,868 (13,402 ) 35,693 Provision for losses 45,028 32,560 64,192 56,805 198,585 Policy acquisition 7,750 6,963 2,880 4,831 22,424 Direct cost of services 19,253 23,520 24,949 22,241 89,963 Other operating expenses 53,774 67,731 65,082 59,570 246,157 Loss on induced conversion and debt extinguishment — 91,876 11 2,320 94,207 Amortization and impairment of intangible assets 3,023 3,281 3,273 3,409 12,986 Net income from continuing operations 91,727 45,193 70,091 74,528 281,539 Income from discontinued operations, net of tax (3) 530 4,855 — — 5,385 Net income 92,257 50,048 70,091 74,528 286,924 Diluted net income per share (4)(5) $ 0.39 $ 0.22 $ 0.29 $ 0.32 $ 1.22 Weighted average shares outstanding-diluted (4) 243,048 246,650 250,795 247,981 246,332 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 and other financial instruments (2) 42,968 25,332 (6,294 ) 17,983 79,989 Provision for losses 49,626 64,648 48,942 82,867 246,083 Policy acquisition 7,017 6,746 4,240 6,443 24,446 Direct cost of services — — 23,896 19,709 43,605 Other operating expenses 54,507 60,751 51,225 85,800 252,283 Amortization and impairment of intangible assets — — 3,294 5,354 8,648 Net income (loss) from continuing operations (6) 145,980 103,537 132,031 878,026 1,259,574 Income (loss) from discontinued operations, net of tax (3)(7) 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 ______________ (1) Services revenue for the first quarter includes $101 thousand that had previously been included in other income. (2) The 2015 and 2014 amounts reflect primarily unrealized (losses) gains, respectively, on our trading securities. (3) Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. (4) Diluted net income per share and average shares outstanding per the accounting standard regarding earnings per share. (5) Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income 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 from continuing operations. (6) This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter of 2014. (7) Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014. |
Schedule I Summary Of Investm49
Schedule I Summary Of Investments Summary of Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Type of Investment Amortized Cost Fair Value Amount Reflected on the Balance Sheet (In thousands) Fixed-Maturities: Bonds: U.S. government and agency securities $ 13,773 $ 13,752 $ 13,752 State and municipal obligations (1) 36,920 37,900 37,900 Corporate bonds and notes 815,024 802,193 802,193 RMBS 226,744 224,905 224,905 CMBS 415,780 406,910 406,910 Other ABS 359,452 355,494 355,494 Foreign government and agency securities 25,663 24,307 24,307 Total fixed-maturities 1,893,356 1,865,461 1,865,461 Trading securities (2) 1,301,187 1,279,137 1,279,137 Equity securities available for sale: Common stocks 75,038 74,930 74,930 Nonredeemable preferred stocks 500 500 500 Total equity securities available for sale 75,538 75,430 75,430 Short-term investments 1,077,087 1,076,944 1,076,944 Other invested assets 1,714 4,900 1,714 Total investments other than investments in related parties $ 4,348,882 $ 4,301,872 $ 4,298,686 __________________ (1) Available for sale. (2) Includes foreign government and agency securities. |
Schedule II Financial Informa50
Schedule II Financial Information of Registrant Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Condensed Balance Sheets Parent Company Only December 31, (In thousands, except share and per-share amounts) 2015 2014 Assets Investments Fixed-maturities available for sale—at fair value $ 41,176 $ — Equity securities available for sale—at fair value 25,510 — Trading securities—at fair value 5,482 5,447 Short-term investments—at fair value 158,658 631,934 Total investments 230,826 637,381 Cash 3,301 1,951 Restricted cash (Note B) 124 124 Investment in subsidiaries, at equity in net assets 3,001,846 2,746,915 Accounts and notes receivable (Note G) 631,636 305,856 Other assets (Note H) 124,983 31,394 Assets held for sale (Note A) — 18,027 Total assets $ 3,992,716 $ 3,741,648 Liabilities and Stockholders’ Equity Long-term debt (Note E) $ 1,219,454 $ 1,192,299 Federal income taxes—current and deferred 229,939 262,583 Other liabilities 46,392 96,989 Liabilities held for sale (Note A) — 18,027 Total liabilities 1,495,785 1,569,898 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, 2015 and 2014; 224,432,465 and 208,601,020 shares issued at December 31, 2015 and 2014, respectively; 206,871,768 and 191,053,530 shares outstanding at December 31, 2015 and 2014, respectively 224 209 Treasury stock, at cost: 17,560,697 and 17,547,490 shares at December 31, 2015 and 2014, respectively (893,176 ) (892,961 ) Additional paid-in capital 2,716,618 2,531,513 Retained earnings 691,742 406,814 Accumulated other comprehensive (loss) income (18,477 ) 51,485 Total common stockholders’ equity 2,496,931 2,097,060 Total liabilities and stockholders’ equity $ 3,992,716 $ 3,741,648 |
Condensed Financial Information Statement Of Income Of Parent Company [Table Text Block] | Radian Group Inc. Schedule II—Financial Information of Registrant Condensed Statements of Operations Parent Company Only Year Ended December 31, (In thousands) 2015 2014 2013 Revenues: Net investment income $ 17,917 $ 9,515 $ 4,300 Net gains (losses) on investments and other financial instruments 2,975 (2,732 ) (6,956 ) Other income — 7 — Total revenues 20,892 6,790 (2,656 ) Expenses: Loss on induced conversion and debt extinguishment 94,207 — — Interest expense 55,768 57,366 37,087 Total expenses 149,975 57,366 37,087 Pretax loss from continuing operations (129,083 ) (50,576 ) (39,743 ) Income tax (benefit) provision (43,854 ) 143,912 9,234 Equity in net income (loss) of affiliates 371,949 1,172,032 (148,008 ) Net income (loss) from continuing operations 286,720 977,544 (196,985 ) Income (loss) from discontinued operations, net of taxes 204 (18,027 ) — Net income (loss) 286,924 959,517 (196,985 ) Other comprehensive (loss) income, net of tax (70,227 ) 14,161 21,090 Comprehensive income (loss) $ 216,697 $ 973,678 $ (175,895 ) |
Condensed Financial Information Statement of Cash Flows of Parent Company [Table Text Block] | Year Ended December 31, (In thousands) 2015 2014 2013 Net cash (used in) provided by operating activities, continuing operations $ (128,879 ) $ (27,153 ) $ 105,681 Net cash used in operating activities, discontinued operations — (18,027 ) — Net cash (used in) provided by operating activities (128,879 ) (45,180 ) 105,681 Cash flows from investing activities: Proceeds from redemptions of trading securities — — 9,000 Purchases of fixed-maturities available for sale (39,667 ) — — Purchases of equity securities available for sale (25,545 ) — — Sales, redemptions (purchases) of short-term investments, net 473,350 1,372 (496,979 ) Sales of other assets and other invested assets, net — — 21,473 Other, net (688 ) (1,351 ) (647 ) Capital distributions from subsidiaries and affiliates 113,784 — — Capital contributions to subsidiaries and affiliates (182,307 ) (139,103 ) (233,391 ) Issuance of note receivable from affiliate (Note G) (208,527 ) (300,000 ) — Net cash provided by (used in) investing activities 130,400 (439,082 ) (700,544 ) Cash flows from financing activities: Dividends paid (1,996 ) (1,865 ) (1,632 ) Issuance of long-term debt, net 343,334 293,809 377,783 Purchases and redemptions of long-term debt (156,172 ) (57,223 ) (79,372 ) Proceeds from termination of capped calls 13,150 — — Issuance of common stock 1,285 247,188 299,410 Purchase of shares under ASR (202,000 ) — — Excess tax benefits from stock-based awards 2,228 — — Net cash (used in) provided by financing activities (171 ) 481,909 596,189 Increase (decrease) in cash 1,350 (2,353 ) 1,326 Cash, beginning of year 1,951 4,304 2,978 Cash, end of year $ 3,301 $ 1,951 $ 4,304 |
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 31, 2015 , the maturities of the principal amount of our long-term debt in future years are as follows: (In thousands) 2017 $ 247,871 2019 689,992 2020 350,000 $ 1,287,863 |
Note 1 - Description of Busin51
Note 1 - Description of Business and Recent Developments Capital and Liquidity (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 18, 2015USD ($) | |
Business Overview [Abstract] | |||||
Number of Reportable Segments | segment | 2 | ||||
Debt and Equity Transactions [Abstract] | |||||
Stock Repurchase Program, Authorized Amount | $ 202,000 | $ 202,000 | |||
Parent Company | |||||
Insurance Regulatory Capital Requirements [Abstract] | |||||
Related Party Transaction, Rate | 0.00% | ||||
Debt and Equity Transactions [Abstract] | |||||
Long-term Debt, Gross | $ 1,287,863 | ||||
Radian Reinsurance [Member] | |||||
Insurance Regulatory Capital Requirements [Abstract] | |||||
Proceeds from Contributions from Parent | 50,000 | ||||
Radian Guaranty [Member] | |||||
Insurance Regulatory Capital Requirements [Abstract] | |||||
Surplus Notes | 325,000 | ||||
Proceeds from Contributions from Parent | $ 100,000 | $ 100,000 | $ 230,400 | ||
Mortgage Insurance Segment | |||||
Mortgage Insurance [Abstract] | |||||
Private Mortgage Insurance Protects Lenders For Loans Made With This Maximum Downpayment Percentage | 20.00% | ||||
Percentage Of Primary Insurance On Domestic First-Lien Mortgages To Total Risk In Force | 97.40% | ||||
Risk In Force | $ 45,800,000 | ||||
Percentage Of Pool Insurance On Domestic First-Lien Mortgages To Total Risk In Force | 2.50% | ||||
Nontraditional Risk In Force | $ 49,400 | ||||
Mortgage Insurance Segment | Maximum [Member] | |||||
Mortgage Insurance [Abstract] | |||||
Percentage Of Non-Traditional RIF To Total RIF | 1.00% | ||||
Reinsurer Concentration Risk [Member] | Second Quota Share Reinsurance Transaction [Member] | Radian Guaranty [Member] | |||||
Insurance Regulatory Capital Requirements [Abstract] | |||||
Profit Commission Earned on Ceded Risk | $ 8,000 | ||||
Unearned Ceding Commissions | $ 8,500 | ||||
Prepaid Reinsurance Commissions, Amortization Period | 5 years | ||||
Senior Notes Due 2020 [Member] | |||||
Debt and Equity Transactions [Abstract] | |||||
Long-term Debt, Gross | $ 350,000 | ||||
Convertible Senior Notes Due 2017 [Member] | |||||
Debt and Equity Transactions [Abstract] | |||||
Extinguishment of Debt, Amount | $ 389,100 | 389,100 | |||
Gain (Loss) on Repurchase of Debt Instrument | $ (91,900) | $ (91,900) |
Note 2 - Significant Accounti52
Note 2 - Significant Accounting Policies Accounting Policy (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)grouppayment | |
Investments [Abstract] | |
Number of Investment Categories | 3 |
Maximum Maturity Duration for Short Term Investment Grouping | 3 months |
Minimum [Member] | |
Losses and LAE Mortgage Insurance [Abstract] | |
Number Of Payments Missed For Insured Loans | payment | 2 |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Useful Life, Maximum | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Useful Life, Maximum | 5 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 |
Accounting Standards Update 2015-03 [Member] | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Unamortized Debt Issuance Expense | $ | $ 17.6 |
Note 3 - Discontinued Operati53
Note 3 - Discontinued Operations Disposal Group, Income Statement, Balance Sheet and Additional Disclosures (Details) - USD ($) | Apr. 01, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Apr. 02, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||
Net investment income | $ 22,833,000 | $ 22,091,000 | $ 19,285,000 | $ 17,328,000 | $ 16,531,000 | $ 17,143,000 | $ 16,663,000 | $ 15,318,000 | $ 81,537,000 | $ 65,655,000 | $ 68,121,000 | |||||||||||||
Net gains (losses) on investments | 35,081,000 | 83,869,000 | (98,945,000) | |||||||||||||||||||||
Other Income | 6,300,000 | 5,820,000 | 6,890,000 | |||||||||||||||||||||
Total revenues | 1,193,253,000 | 1,072,685,000 | 749,906,000 | |||||||||||||||||||||
Policy acquisition costs | 4,831,000 | 2,880,000 | 6,963,000 | 7,750,000 | 6,443,000 | 4,240,000 | 6,746,000 | 7,017,000 | 22,424,000 | 24,446,000 | 28,485,000 | |||||||||||||
Total expenses | 755,424,000 | 665,529,000 | 923,252,000 | |||||||||||||||||||||
Loss from discontinued operations, net of tax | 0 | [1] | $ 0 | [1] | $ 4,855,000 | [1] | $ 530,000 | [1] | (449,691,000) | [1],[2] | $ 21,559,000 | [1],[2] | $ 71,296,000 | [1],[2] | $ 56,779,000 | [1],[2] | 5,385,000 | [1] | (300,057,000) | [1],[2] | (55,134,000) | |||
Fixed-maturities available for sale—at fair value | 1,865,461,000 | 536,890,000 | 1,865,461,000 | 536,890,000 | ||||||||||||||||||||
Equity securities available for sale—at fair value | 75,430,000 | 143,368,000 | 75,430,000 | 143,368,000 | ||||||||||||||||||||
Trading securities—at fair value | 1,279,137,000 | 1,633,584,000 | 1,279,137,000 | 1,633,584,000 | ||||||||||||||||||||
Short-term investments—at fair value | 1,076,944,000 | 1,300,872,000 | 1,076,944,000 | 1,300,872,000 | ||||||||||||||||||||
Other invested assets | 1,714,000 | 14,585,000 | 1,714,000 | 14,585,000 | ||||||||||||||||||||
Other Assets | 354,420,000 | 357,864,000 | 354,420,000 | 357,864,000 | ||||||||||||||||||||
Assets held for sale | 0 | 1,736,444,000 | [3] | 0 | 1,736,444,000 | [3] | ||||||||||||||||||
Unearned premiums | 680,300,000 | 644,504,000 | 680,300,000 | 644,504,000 | ||||||||||||||||||||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 10) | 976,399,000 | 1,560,032,000 | 976,399,000 | 1,560,032,000 | ||||||||||||||||||||
Other liabilities | 269,016,000 | 326,743,000 | 269,016,000 | 326,743,000 | ||||||||||||||||||||
Liabilities held for sale | 0 | 947,008,000 | 0 | 947,008,000 | ||||||||||||||||||||
Parent Company | ||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||
Total Operating Expenses and Interest Expense Allocated to Subsidiaries From Parent Company | 84,700,000 | 92,500,000 | 140,000,000 | |||||||||||||||||||||
Net investment income | 17,917,000 | 9,515,000 | 4,300,000 | |||||||||||||||||||||
Other Income | 0 | 7,000 | 0 | |||||||||||||||||||||
Total revenues | 20,892,000 | 6,790,000 | (2,656,000) | |||||||||||||||||||||
Total expenses | 149,975,000 | 57,366,000 | 37,087,000 | |||||||||||||||||||||
Loss from discontinued operations, net of tax | 204,000 | (18,027,000) | 0 | |||||||||||||||||||||
Fixed-maturities available for sale—at fair value | 41,176,000 | 0 | 41,176,000 | 0 | ||||||||||||||||||||
Equity securities available for sale—at fair value | 25,510,000 | 0 | 25,510,000 | 0 | ||||||||||||||||||||
Trading securities—at fair value | 5,482,000 | 5,447,000 | 5,482,000 | 5,447,000 | ||||||||||||||||||||
Short-term investments—at fair value | 158,658,000 | 631,934,000 | 158,658,000 | 631,934,000 | ||||||||||||||||||||
Other Assets | 124,983,000 | 31,394,000 | 124,983,000 | 31,394,000 | ||||||||||||||||||||
Assets held for sale | 0 | 18,027,000 | 0 | 18,027,000 | ||||||||||||||||||||
Other liabilities | 46,392,000 | 96,989,000 | 46,392,000 | 96,989,000 | ||||||||||||||||||||
Liabilities held for sale | 0 | 18,027,000 | 0 | 18,027,000 | ||||||||||||||||||||
Discontinued Operations, Held-for-sale [Member] | ||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||
Total revenues | 258,844,000 | 9,081,000 | ||||||||||||||||||||||
Discontinued Operations, Held-for-sale [Member] | 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 | $ 14,300,000 | 467,500,000 | (467,527,000) | 0 | ||||||||||||||||||||
Total Operating Expenses and Interest Expense Allocated to Subsidiaries From Parent Company | 0 | |||||||||||||||||||||||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | 37,194,000 | 49,474,000 | ||||||||||||||||||||||
Net investment income | 35,633,000 | 39,966,000 | ||||||||||||||||||||||
Net gains (losses) on investments | 55,312,000 | (47,930,000) | ||||||||||||||||||||||
Impairment losses on investments | 0 | (3,000) | ||||||||||||||||||||||
Derivative, Gain on Derivative | 130,617,000 | |||||||||||||||||||||||
Derivative, Loss on Derivative | (32,406,000) | |||||||||||||||||||||||
Other Income | 88,000 | (20,000) | ||||||||||||||||||||||
Provision for losses | 2,853,000 | 2,486,000 | ||||||||||||||||||||||
Policy acquisition costs | 6,340,000 | 13,178,000 | ||||||||||||||||||||||
Other operating expenses | 23,726,000 | 27,127,000 | ||||||||||||||||||||||
Total expenses | 32,919,000 | 42,791,000 | ||||||||||||||||||||||
Equity in net (loss) income of affiliates | (13,000) | 1,000 | ||||||||||||||||||||||
Income (loss) from operations of businesses held for sale | 225,912,000 | (33,709,000) | ||||||||||||||||||||||
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation | 58,442,000 | 21,425,000 | ||||||||||||||||||||||
Loss from discontinued operations, net of tax | $ 5,400,000 | (300,057,000) | $ (55,134,000) | |||||||||||||||||||||
Fixed-maturities available for sale—at fair value | 224,552,000 | 224,552,000 | ||||||||||||||||||||||
Equity securities available for sale—at fair value | 3,749,000 | 3,749,000 | ||||||||||||||||||||||
Trading securities—at fair value | 689,887,000 | 689,887,000 | ||||||||||||||||||||||
Short-term investments—at fair value | 435,413,000 | 435,413,000 | ||||||||||||||||||||||
Other invested assets | 108,206,000 | 108,206,000 | ||||||||||||||||||||||
Other Assets | 274,637,000 | 274,637,000 | ||||||||||||||||||||||
Assets held for sale | 1,736,444,000 | 1,736,444,000 | ||||||||||||||||||||||
Unearned premiums | 158,921,000 | 158,921,000 | ||||||||||||||||||||||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 10) | 31,558,000 | 31,558,000 | ||||||||||||||||||||||
VIE debt—at fair value | 85,016,000 | 85,016,000 | ||||||||||||||||||||||
Derivative Liabilities | 183,370,000 | 183,370,000 | ||||||||||||||||||||||
Other liabilities | 488,143,000 | 488,143,000 | ||||||||||||||||||||||
Liabilities held for sale | $ 947,008,000 | $ 947,008,000 | ||||||||||||||||||||||
Discontinued Operations, Disposed of by Sale [Member] | 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 | |||||||||||||||||||||||
Equity Method Investment, Net Sales Proceeds | $ 789,000,000 | |||||||||||||||||||||||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | (14,280,000) | |||||||||||||||||||||||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | 1,007,000 | |||||||||||||||||||||||
Net investment income | 9,153,000 | |||||||||||||||||||||||
Net gains (losses) on investments | 21,486,000 | |||||||||||||||||||||||
Impairment losses on investments | 0 | |||||||||||||||||||||||
Derivative, Gain on Derivative | 2,625,000 | |||||||||||||||||||||||
Other Income | 0 | |||||||||||||||||||||||
Total revenues | 34,271,000 | |||||||||||||||||||||||
Provision for losses | 502,000 | |||||||||||||||||||||||
Policy acquisition costs | (191,000) | |||||||||||||||||||||||
Other operating expenses | 4,107,000 | |||||||||||||||||||||||
Total expenses | 4,418,000 | |||||||||||||||||||||||
Equity in net (loss) income of affiliates | (13,000) | |||||||||||||||||||||||
Income (loss) from operations of businesses held for sale | 29,840,000 | |||||||||||||||||||||||
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation | 10,175,000 | |||||||||||||||||||||||
Loss from discontinued operations, net of tax | 5,385,000 | |||||||||||||||||||||||
Fixed-maturities available for sale—at fair value | 0 | 0 | ||||||||||||||||||||||
Equity securities available for sale—at fair value | 0 | 0 | ||||||||||||||||||||||
Trading securities—at fair value | 0 | 0 | ||||||||||||||||||||||
Short-term investments—at fair value | 0 | 0 | ||||||||||||||||||||||
Other invested assets | 0 | 0 | ||||||||||||||||||||||
Other Assets | 0 | 0 | ||||||||||||||||||||||
Assets held for sale | 0 | 0 | ||||||||||||||||||||||
Unearned premiums | 0 | 0 | ||||||||||||||||||||||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 10) | 0 | 0 | ||||||||||||||||||||||
VIE debt—at fair value | 0 | 0 | ||||||||||||||||||||||
Derivative Liabilities | 0 | 0 | ||||||||||||||||||||||
Other liabilities | 0 | 0 | ||||||||||||||||||||||
Liabilities held for sale | $ 0 | $ 0 | ||||||||||||||||||||||
[1] | Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. | |||||||||||||||||||||||
[2] | Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014. | |||||||||||||||||||||||
[3] | Assets held for sale are not part of the Mortgage Insurance or Services segments. |
Note 4 - Segment Reporting Sche
Note 4 - Segment Reporting Schedule of Segment Reporting Information by Segment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||||||||||||||
Net premiums earned—insurance | $ 226,443 | $ 227,433 | $ 237,437 | $ 224,595 | $ 224,293 | $ 217,827 | $ 203,646 | $ 198,762 | $ 915,908 | $ 844,528 | $ 781,420 | ||||||||||||
Services revenue | 37,493 | 42,189 | 43,503 | 30,630 | [1] | 34,450 | 42,243 | 0 | 153,815 | 76,693 | 0 | ||||||||||||
Net investment income | 22,833 | 22,091 | 19,285 | 17,328 | 16,531 | 17,143 | 16,663 | 15,318 | 81,537 | 65,655 | 68,121 | ||||||||||||
Other Income | 6,300 | 5,820 | 6,890 | ||||||||||||||||||||
Provision for losses | 56,805 | 64,192 | 32,560 | 45,028 | 82,867 | 48,942 | 64,648 | 49,626 | 198,585 | 246,083 | 562,747 | ||||||||||||
Policy acquisition costs | 4,831 | 2,880 | 6,963 | 7,750 | 6,443 | 4,240 | 6,746 | 7,017 | 22,424 | 24,446 | 28,485 | ||||||||||||
Direct cost of services | 22,241 | 24,949 | 23,520 | 19,253 | 19,709 | 23,896 | 0 | 0 | 89,963 | 43,605 | 0 | ||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | 510,894 | 342,382 | (67,435) | ||||||||||||||||||||
Assets held for sale | 0 | 1,736,444 | [2] | 0 | 1,736,444 | [2] | |||||||||||||||||
Total assets | 5,642,100 | 6,842,336 | 5,642,100 | 6,842,336 | |||||||||||||||||||
Net gains (losses) on investments and other financial instruments | (13,402) | [3] | $ 3,868 | [3] | $ 28,448 | [3] | $ 16,779 | [3] | 17,983 | [3] | $ (6,294) | [3] | $ 25,332 | [3] | $ 42,968 | [3] | 35,693 | [3],[4] | 79,989 | [3],[4] | (106,525) | ||
Change in Fair Value of Derivative Instruments Expected to Reverse Over Time | 100 | 600 | |||||||||||||||||||||
Mortgage Insurance Segment | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net premiums written—insurance | 968,505 | 925,181 | 950,998 | ||||||||||||||||||||
(Increase) decrease in unearned premiums | (52,597) | (80,653) | (169,578) | ||||||||||||||||||||
Net premiums earned—insurance | 915,908 | 844,528 | 781,420 | ||||||||||||||||||||
Services revenue | 0 | ||||||||||||||||||||||
Net investment income | 81,537 | 65,655 | 68,121 | ||||||||||||||||||||
Other Income | 6,300 | 5,321 | 6,255 | ||||||||||||||||||||
Revenue Non GAAP Basis | 1,003,745 | 915,504 | 855,796 | [5] | |||||||||||||||||||
Provision for losses | 198,433 | 246,865 | 562,747 | ||||||||||||||||||||
Change In Present Value of Estimated Credit Loss Payments | 113 | (21) | |||||||||||||||||||||
Policy acquisition costs | 22,424 | 24,446 | 28,485 | ||||||||||||||||||||
Direct cost of services | 0 | ||||||||||||||||||||||
Other operating expenses | 149,941 | 170,390 | 160,327 | ||||||||||||||||||||
Total Expenses Non-GAAP | 370,798 | [6] | 441,814 | [7] | 751,538 | ||||||||||||||||||
Operating Income (Loss) Pretax Non GAAP Before Corporate Allocations | 632,947 | 473,690 | 104,258 | ||||||||||||||||||||
Total Operating Expenses Allocated to Subsidiaries From Parent Company | 46,418 | 55,154 | 97,075 | ||||||||||||||||||||
Total Interest Expense Allocated to Subsidiaries From Parent Company | 73,402 | 81,600 | 74,618 | ||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [8] | 513,127 | 336,936 | (67,435) | |||||||||||||||||||
Total assets | 5,281,597 | 4,769,014 | 5,281,597 | 4,769,014 | 3,837,889 | [9] | |||||||||||||||||
New Insurance Written | 41,411,000 | 37,349,000 | 47,255,000 | ||||||||||||||||||||
Revenue from Related Parties | 0 | 0 | |||||||||||||||||||||
Costs and Expenses, Related Party | 3,601 | 782 | |||||||||||||||||||||
Mortgage and Real Estate Services Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net premiums written—insurance | 0 | ||||||||||||||||||||||
(Increase) decrease in unearned premiums | 0 | ||||||||||||||||||||||
Net premiums earned—insurance | 0 | ||||||||||||||||||||||
Services revenue | 157,416 | 76,709 | [10] | ||||||||||||||||||||
Net investment income | [10] | 0 | 0 | ||||||||||||||||||||
Other Income | 0 | 1,265 | [10] | ||||||||||||||||||||
Revenue Non GAAP Basis | 157,416 | [6] | 77,974 | [7],[10] | |||||||||||||||||||
Provision for losses | 0 | ||||||||||||||||||||||
Policy acquisition costs | 0 | ||||||||||||||||||||||
Direct cost of services | 93,504 | 43,605 | [10] | ||||||||||||||||||||
Other operating expenses | 43,622 | 18,915 | [10] | ||||||||||||||||||||
Total Expenses Non-GAAP | 137,126 | 62,520 | [10] | ||||||||||||||||||||
Operating Income (Loss) Pretax Non GAAP Before Corporate Allocations | 20,290 | 15,454 | [10] | ||||||||||||||||||||
Total Operating Expenses Allocated to Subsidiaries From Parent Company | 4,823 | 1,144 | [10] | ||||||||||||||||||||
Total Interest Expense Allocated to Subsidiaries From Parent Company | 17,700 | 8,864 | [10] | ||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [8] | (2,233) | 5,446 | [10] | $ 0 | ||||||||||||||||||
Total assets | $ 360,503 | $ 336,878 | [10] | 360,503 | 336,878 | [10] | |||||||||||||||||
Revenue from Related Parties | 3,601 | 782 | |||||||||||||||||||||
Costs and Expenses, Related Party | 0 | 0 | |||||||||||||||||||||
Mortgage Insurance and Mortgage and Real Estate Services Segments [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net premiums written—insurance | 968,505 | 925,181 | |||||||||||||||||||||
(Increase) decrease in unearned premiums | (52,597) | (80,653) | |||||||||||||||||||||
Net premiums earned—insurance | 915,908 | 844,528 | |||||||||||||||||||||
Services revenue | 157,416 | 76,709 | |||||||||||||||||||||
Net investment income | 81,537 | 65,655 | |||||||||||||||||||||
Other Income | 6,300 | 6,586 | |||||||||||||||||||||
Revenue Non GAAP Basis | 1,161,161 | [11] | 993,478 | [12] | |||||||||||||||||||
Provision for losses | 198,433 | 246,865 | |||||||||||||||||||||
Change In Present Value of Estimated Credit Loss Payments | 113 | ||||||||||||||||||||||
Policy acquisition costs | 22,424 | 24,446 | |||||||||||||||||||||
Direct cost of services | 93,504 | 43,605 | |||||||||||||||||||||
Other operating expenses | 193,563 | 189,305 | |||||||||||||||||||||
Total Expenses Non-GAAP | 507,924 | 504,334 | |||||||||||||||||||||
Operating Income (Loss) Pretax Non GAAP Before Corporate Allocations | 653,237 | 489,144 | |||||||||||||||||||||
Total Operating Expenses Allocated to Subsidiaries From Parent Company | 51,241 | 56,298 | |||||||||||||||||||||
Total Interest Expense Allocated to Subsidiaries From Parent Company | 91,102 | 90,464 | |||||||||||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | $ 510,894 | $ 342,382 | |||||||||||||||||||||
[1] | Services revenue for the first quarter includes $101 thousand that had previously been included in other income. | ||||||||||||||||||||||
[2] | Assets held for sale are not part of the Mortgage Insurance or Services segments. | ||||||||||||||||||||||
[3] | The 2015 and 2014 amounts reflect primarily unrealized (losses) gains, respectively, on our trading securities. | ||||||||||||||||||||||
[4] | The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains (losses) on investments and other financial instruments has been adjusted by income of $0.1 million and $0.6 million for the years ended December 31, 2014 and 2013, respectively, to reverse this item. | ||||||||||||||||||||||
[5] | Excludes the following revenue items not included in adjusted pretax operating loss: (i) net losses on investments and other financial instruments of $106.5 million; (ii) change in fair value of derivative instruments of $0.6 million. | ||||||||||||||||||||||
[6] | Includes inter-segment expenses and revenues as follows: December 31, 2015(In thousands)Mortgage Insurance ServicesInter-segment revenues$— $3,601Inter-segment expenses3,601 — | ||||||||||||||||||||||
[7] | Includes inter-segment expenses and revenues as follows: December 31, 2014(In thousands)Mortgage Insurance ServicesInter-segment revenues$— $782Inter-segment expenses782 — | ||||||||||||||||||||||
[8] | Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. | ||||||||||||||||||||||
[9] | Does not include assets held for sale of $1.8 billion which are not a part of the Mortgage Insurance segment. | ||||||||||||||||||||||
[10] | Includes the acquisition of Clayton, effective June 30, 2014. | ||||||||||||||||||||||
[11] | Excludes net gains on investments and other financial instruments of $35.7 million, not included in adjusted pretax operating income. | ||||||||||||||||||||||
[12] | Excludes net gains on investments and other financial instruments of $80.0 million, not included in adjusted pretax operating income. |
Note 4 - Segment Reporting Reco
Note 4 - Segment Reporting Reconciliation of Segment to Consolidated Results Pretax (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015USD ($)customer | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)customer | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($)customer | Dec. 31, 2013USD ($)customer | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | $ 510,894 | $ 342,382 | $ (67,435) | ||||||||||
Net Gains (Losses) on Investments and Other Financial Instruments | [1] | 35,693 | 80,102 | (105,911) | |||||||||
Loss on Induced Conversion and Extinguishment of Debt | $ (2,320) | $ (11) | $ (91,876) | $ 0 | (94,207) | 0 | 0 | ||||||
Business Combination, Acquisition Related Costs | (1,565) | (6,680) | 0 | ||||||||||
Increase (Decrease) in Goodwill and Intangible Assets | $ (3,409) | $ (3,273) | $ (3,281) | $ (3,023) | $ (5,354) | $ (3,294) | $ 0 | $ 0 | (12,986) | (8,648) | 0 | ||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | 437,829 | 407,156 | (173,346) | ||||||||||
Change in Fair Value of Derivative Instruments Expected to Reverse Over Time | 100 | 600 | |||||||||||
Mortgage Insurance Segment | |||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||
Operating Income (Loss) Pre-Tax Non-GAAP | [2] | 513,127 | $ 336,936 | $ (67,435) | |||||||||
Entity Wide Revenue, Major Customer, Number of Customers | customer | 1 | 1 | 1 | ||||||||||
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 | [2] | $ (2,233) | $ 5,446 | [3] | $ 0 | ||||||||
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 | 12.80% | 13.70% | |||||||||||
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 | 15.20% | 17.20% | 18.40% | ||||||||||
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 | 4.60% | 4.00% | 5.80% | ||||||||||
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 | customer | 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 | 16.00% | 19.00% | 21.00% | ||||||||||
[1] | The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains (losses) on investments and other financial instruments has been adjusted by income of $0.1 million and $0.6 million for the years ended December 31, 2014 and 2013, respectively, to reverse this item. | ||||||||||||
[2] | Includes inter-segment expenses and revenues as listed in the notes to the preceding tables. | ||||||||||||
[3] | Includes the acquisition of Clayton, effective June 30, 2014. |
Note 5 - Fair Value of Financ56
Note 5 - Fair Value of Financial Instruments Fair Value Assets Liabilities by Hierarchy Level (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total liabilities | $ 3,145,169,000 | $ 4,670,586,000 | |||
Reported Value Measurement [Member] | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Cost Method Investments | 1,700,000 | 14,600,000 | |||
Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 4,297,000,000 | [1] | 3,614,700,000 | [2] | |
Total Assets at Fair Value | 4,297,000,000 | 3,614,700,000 | |||
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, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | ||||
US government and agency securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 678,300,000 | 839,900,000 | |||
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 | 341,900,000 | 362,800,000 | |||
Money market instruments | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 443,300,000 | 600,300,000 | |||
Corporate bonds and notes | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 1,383,200,000 | 992,800,000 | |||
RMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 297,100,000 | 132,300,000 | |||
CMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 544,600,000 | 246,800,000 | |||
Other ABS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 371,600,000 | 185,500,000 | |||
Foreign government securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 37,600,000 | 37,700,000 | |||
Equity securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 100,400,000 | 215,600,000 | [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 | 99,000,000 | [4] | 1,000,000 | [5] | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 1,188,500,000 | [1] | 1,601,200,000 | [2] | |
Total Assets at Fair Value | 1,188,500,000 | 1,601,200,000 | |||
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 | 670,300,000 | 836,900,000 | |||
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 | 443,300,000 | 600,300,000 | |||
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 | 74,900,000 | 164,000,000 | [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 | [5] | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 3,108,000,000 | [1] | 2,013,500,000 | [2] | |
Total Assets at Fair Value | 3,108,000,000 | 2,013,500,000 | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 839,200,000 | ||||
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 | 8,000,000 | 3,000,000 | |||
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 | 341,900,000 | 362,800,000 | |||
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 | 1,383,200,000 | 992,800,000 | |||
Fair Value, Inputs, Level 2 | RMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 297,100,000 | 132,300,000 | |||
Fair Value, Inputs, Level 2 | CMBS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 544,600,000 | 246,800,000 | |||
Fair Value, Inputs, Level 2 | Other ABS | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 371,600,000 | 185,500,000 | |||
Fair Value, Inputs, Level 2 | Foreign government securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 37,600,000 | 37,700,000 | |||
Fair Value, Inputs, Level 2 | Equity securities | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 25,000,000 | 51,600,000 | [3] | ||
Fair Value, Inputs, Level 2 | Other investments | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | 99,000,000 | [4] | 1,000,000 | [5] | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | [1] | 500,000 | |||
Total Assets at Fair Value | 500,000 | ||||
Total liabilities | 0 | ||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 102,600,000 | ||||
VIE debt - at fair value | $ 3,800,000 | ||||
Total Level III Liabilities as a Percentage of Total Liabilities Measured at Fair Value | 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 | 0 | ||||
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 | 500,000 | ||||
Total Assets at Fair Value | 500,000 | $ 0 | |||
Net gains (losses) on investments and other financial instruments | 0 | ||||
Fair Value, Inputs, Level 3 | Other investments | Fair Value, Measurements, Recurring | |||||
Fair Value by Hierarchy Level [Line Items] | |||||
Total Investments at Fair Value | [4] | $ 0 | |||
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 | 0.10% | ||||
[1] | Does not include certain other invested assets ($1.7 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. | ||||
[2] | 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 $102.6 million, with fair values categorized in Level I, Level II and Level III, respectively. | ||||
[3] | Comprising broadly diversified domestic equity mutual funds and certain common stocks included within Level I and various preferred stocks invested across numerous companies and industries included within Level II. | ||||
[4] | Comprising short-term certificates of deposit and commercial paper. | ||||
[5] | Comprising short-term certificates of deposit. |
Note 5 - Fair Value of Financ57
Note 5 - Fair Value of Financial Instruments Other Fair Value Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt (Note 11) | $ 1,219,454 | $ 1,192,299 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other Invested Assets, Carrying Amount | 1,700 | 14,600 | |
Long-term debt (Note 11) | 1,219,500 | 1,192,300 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other invested assets fair value disclosure | 4,900 | 20,500 | [1] |
Long-term Debt, Fair Value | $ 1,414,900 | $ 1,859,300 | [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 ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |||
Fixed maturities available for sale securities | |||||
Amortized cost | $ 1,893,356 | $ 528,660 | |||
Fair value | 1,940,891 | 680,258 | |||
Gross unrealized gains | 6,297 | 77,231 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 34,300 | 2,533 | |||
Equity securities available for sale | |||||
Available-for-sale Equity Securities, Amortized Cost Basis | 75,538 | 76,900 | |||
Equity securities available for sale—at fair value | 75,430 | 143,368 | |||
Amortized Cost | 1,968,894 | 605,560 | |||
Equity securities | |||||
Fixed maturities available for sale securities | |||||
Gross unrealized gains | [1] | 0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | [1] | 108 | |||
Equity securities available for sale | |||||
Available-for-sale Equity Securities, Amortized Cost Basis | 75,538 | [1] | 76,900 | [2] | |
Equity securities available for sale—at fair value | 75,430 | [1] | 143,368 | [2] | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | [2] | 66,468 | |||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | [2] | 0 | |||
Debt Securities | |||||
Fixed maturities available for sale securities | |||||
Amortized cost | 1,893,356 | 528,660 | |||
Fair value | 1,865,461 | 536,890 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 10,763 | ||||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 2,533 | ||||
Gross unrealized gains | 6,297 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 34,192 | ||||
Foreign government securities | |||||
Fixed maturities available for sale securities | |||||
Amortized cost | 25,663 | 19,301 | |||
Fair value | 24,307 | 19,366 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 307 | ||||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 242 | ||||
Gross unrealized gains | 27 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,383 | ||||
Asset-backed Securities [Member] | |||||
Fixed maturities available for sale securities | |||||
Amortized cost | 359,452 | 109,420 | |||
Fair value | 355,494 | 107,701 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 8 | ||||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 1,727 | ||||
Gross unrealized gains | 16 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 3,974 | ||||
CMBS | |||||
Fixed maturities available for sale securities | |||||
Amortized cost | 415,780 | 57,358 | |||
Fair value | 406,910 | 58,234 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 876 | ||||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||||
Gross unrealized gains | 69 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 8,939 | ||||
RMBS | |||||
Fixed maturities available for sale securities | |||||
Amortized cost | 226,744 | 41,467 | |||
Fair value | 224,905 | 42,520 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1,053 | ||||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||||
Gross unrealized gains | 625 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 2,464 | ||||
Corporate bonds and notes | |||||
Fixed maturities available for sale securities | |||||
Amortized cost | 815,024 | 277,678 | |||
Fair value | 802,193 | 284,408 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 7,288 | ||||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 558 | ||||
Gross unrealized gains | 4,460 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 17,291 | ||||
US States and Political Subdivisions Debt Securities [Member] | |||||
Fixed maturities available for sale securities | |||||
Amortized cost | 36,920 | 17,727 | |||
Fair value | 37,900 | 18,910 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1,183 | ||||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||||
Gross unrealized gains | 1,100 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 120 | ||||
US government and agency securities | |||||
Fixed maturities available for sale securities | |||||
Amortized cost | 13,773 | 5,709 | |||
Fair value | 13,752 | 5,751 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 48 | ||||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | $ 6 | ||||
Gross unrealized gains | 0 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 21 | ||||
[1] | Comprising primarily a multi-sector exchange-traded fund. | ||||
[2] | Comprising primarily broadly diversified domestic equity mutual funds. |
Note 6 - Investments Investment
Note 6 - Investments Investments Trading Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | $ 1,279,137,000 | $ 1,633,584,000 | |
Trading Securities, Change in Unrealized Holding Gain (Loss) | (27,015,000) | 92,226,000 | $ (117,198,000) |
Investments | 4,298,686,000 | 3,629,299,000 | |
Securities (Assets) | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities, Change in Unrealized Holding Gain (Loss) | 25,200,000 | 65,700,000 | |
US government and agency securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 129,913,000 | 134,530,000 | |
State and municipal obligations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 303,946,000 | 343,926,000 | |
Corporate bonds and notes | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 580,993,000 | 708,361,000 | |
RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 72,192,000 | 89,810,000 | |
CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 137,678,000 | 188,615,000 | |
Other ABS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 16,131,000 | 77,755,000 | |
Foreign government securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 13,268,000 | 18,331,000 | |
Equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading Securities | 25,016,000 | 72,256,000 | |
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 |
Note 6 - Investments Investme60
Note 6 - Investments Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Investment Income [Line Items] | |||
Investment Income, Gross | $ 87,011 | $ 70,733 | $ 74,948 |
Investment Income, Investment Expense | (5,474) | (5,078) | (6,827) |
Investment Income, Net | 81,537 | 65,655 | 68,121 |
Fixed Maturities [Member] | |||
Net Investment Income [Line Items] | |||
Investment Income, Gross | 81,127 | 62,352 | 66,131 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Investment Income, Gross | 4,539 | 6,287 | 6,592 |
Short-term Investments [Member] | |||
Net Investment Income [Line Items] | |||
Investment Income, Gross | 745 | 246 | 255 |
Other Security Investments [Member] | |||
Net Investment Income [Line Items] | |||
Investment Income, Gross | $ 600 | $ 1,848 | $ 1,970 |
Note 6 - Investments Gain (Loss
Note 6 - Investments Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Investments [Line Items] | |||
Fixed-maturities held to maturity | $ 0 | $ (9) | $ 2 |
Fixed-maturities available for sale | (1,176) | (1,599) | 937 |
Equities available for sale | 69,150 | 0 | 349 |
Trading securities | (9,231) | (6,996) | 7,997 |
Short-term investments | (24) | 1 | 1 |
Other invested assets | 3,267 | 0 | 8,841 |
Gain (Loss) on Disposition of Other Assets | 110 | 246 | 126 |
Net realized gains (losses) on investments | 62,096 | (8,357) | 18,253 |
Unrealized gains (losses) on trading securities | (27,015) | 92,226 | (117,198) |
Net gains (losses) on investments | 35,081 | 83,869 | (98,945) |
Net gains (losses) on other financial instruments | 612 | (3,880) | (7,580) |
Net Gains/Losses on All Financial Instruments | $ 35,693 | $ 79,989 | $ (106,525) |
Note 6 - Investments Available
Note 6 - Investments Available For Sale Securities, Proceeds and Gains (Losses) (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Proceeds received from redemptions | $ 103,595 | $ 4,985 | $ 538 | ||
Proceeds from sales of fixed-maturity investments available for sale | $ 3,621 | $ 16,208 | 20,100 | 19,672 | 17,185 |
Proceeds received from sales | 146,049 | 0 | 0 | ||
Fixed Maturities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Proceeds received from redemptions | 103,595 | 4,985 | 538 | ||
Proceeds from sales of fixed-maturity investments available for sale | 20,100 | 19,672 | 17,185 | ||
Gross investment gains from sales and redemptions | 64 | 99 | 1,078 | ||
Gross investment losses from sales and redemptions | (1,240) | (1,698) | (141) | ||
Equity securities | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Gross investment gains from sales and redemptions | 69,150 | 0 | 349 | ||
Proceeds received from sales | $ 146,049 | $ 0 | $ 10,503 |
Note 6 - Investments Change in
Note 6 - Investments Change in Unrealized Gains (Losses) Recorded in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | |||
Unrealized holding gains (losses) arising during the period, net of tax | $ (22,573) | $ 13,650 | $ 19,149 |
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | 44,183 | (1,039) | 656 |
Net unrealized gains on investments | (66,756) | 14,689 | 18,493 |
Fixed Maturities [Member] | |||
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | |||
Unrealized holding gains (losses) arising during the period, net of tax | (24,246) | 4,531 | (240) |
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | (764) | (1,039) | 929 |
Net unrealized gains on investments | (23,482) | 5,570 | (1,169) |
Equity securities | |||
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items] | |||
Unrealized holding gains (losses) arising during the period, net of tax | 1,673 | 9,119 | 19,389 |
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax | 44,947 | 0 | (273) |
Net unrealized gains on investments | $ (43,274) | $ 9,119 | $ 19,662 |
Note 6 - Investments Schedule o
Note 6 - Investments Schedule of Unrealized Losses (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | Dec. 31, 2013USD ($) | |
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 305 | 62 | |
Fair value available-for-sale securities | $ 1,462,577,000 | $ 144,626,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 32,079,000 | $ 2,379,000 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 23 | 2 | |
Fair value available-for-sale securities | $ 54,203,000 | $ 4,482,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 2,221,000 | $ 154,000 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 328 | 64 | |
Fair value available-for-sale securities | $ 1,516,780,000 | $ 149,108,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 34,300,000 | 2,533,000 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses | $ 0 | $ 0 | $ 0 |
US government and agency securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 1 | 0 | |
Fair value available-for-sale securities | $ 5,752,000 | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 21,000 | $ 0 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 1 | ||
Fair value available-for-sale securities | $ 0 | $ 3,455,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | $ 6,000 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 1 | 1 | |
Fair value available-for-sale securities | $ 5,752,000 | $ 3,455,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 21,000 | $ 6,000 | |
State and municipal obligations | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 2 | ||
Fair value available-for-sale securities | $ 11,674,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 120,000 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 0 | ||
Fair value available-for-sale securities | $ 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 2 | ||
Fair value available-for-sale securities | $ 11,674,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 120,000 | ||
Corporate bonds and notes | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 117 | 24 | |
Fair value available-for-sale securities | $ 510,807,000 | $ 40,917,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 16,773,000 | $ 410,000 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 6 | 1 | |
Fair value available-for-sale securities | $ 8,700,000 | $ 1,027,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 518,000 | $ 148,000 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 123 | 25 | |
Fair value available-for-sale securities | $ 519,507,000 | $ 41,944,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 17,291,000 | $ 558,000 | |
Residential Mortgage Backed Securities [Member] | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 12 | ||
Fair value available-for-sale securities | $ 168,415,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 2,464,000 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 0 | ||
Fair value available-for-sale securities | $ 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 12 | ||
Fair value available-for-sale securities | $ 168,415,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 2,464,000 | ||
CMBS | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 58 | ||
Fair value available-for-sale securities | $ 387,268,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 8,939,000 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 0 | ||
Fair value available-for-sale securities | $ 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 58 | ||
Fair value available-for-sale securities | $ 387,268,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 8,939,000 | ||
Other ABS | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 96 | 34 | |
Fair value available-for-sale securities | $ 284,998,000 | $ 97,356,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 2,559,000 | $ 1,727,000 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 14 | 0 | |
Fair value available-for-sale securities | $ 43,225,000 | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 1,415,000 | $ 0 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 110 | 34 | |
Fair value available-for-sale securities | $ 328,223,000 | $ 97,356,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 3,974,000 | $ 1,727,000 | |
Foreign government securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 18 | 4 | |
Fair value available-for-sale securities | $ 18,733,000 | $ 6,353,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 1,095,000 | $ 242,000 | |
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 3 | 0 | |
Fair value available-for-sale securities | $ 2,278,000 | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 288,000 | $ 0 | |
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 21 | 4 | |
Fair value available-for-sale securities | $ 21,011,000 | $ 6,353,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 1,383,000 | $ 242,000 | |
Equity securities | |||
Continuous Loss Position Less Than Twelve Months | |||
Number of Securities | security | 1 | ||
Fair value available-for-sale securities | $ 74,930,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | $ 108,000 | ||
Continuous Unrealized Loss Position, Twelve Months Or Greater | |||
Number of securities | security | 0 | ||
Fair value available-for-sale securities | $ 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $ 0 | ||
Continuous Loss Position, Total | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 1 | ||
Fair value available-for-sale securities | $ 74,930,000 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 108,000 |
Note 6 - Investments Schedule65
Note 6 - Investments Schedule of Contractual Maturities (Details) - USD ($) $ in Thousands | 1 Months Ended | 4 Months Ended | 48 Months Ended | |||
Oct. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Aug. 29, 2017 | Dec. 31, 2014 | ||
Available-for-sale Securities, Amortized Cost | ||||||
Amortized cost | $ 1,893,356 | $ 1,893,356 | $ 528,660 | |||
Available-for-sale Securities, Fair Value | ||||||
Fixed-maturities available for sale—at fair value | 1,865,461 | 1,865,461 | $ 536,890 | |||
Debt Securities | ||||||
Available-for-sale Securities, Amortized Cost | ||||||
Amortized cost | 1,893,356 | 1,893,356 | ||||
Available-for-sale Securities, Fair Value | ||||||
Fixed-maturities available for sale—at fair value | 1,865,461 | 1,865,461 | ||||
Non Asset Backed Security Investments, Contractual Maturities | ||||||
Available-for-sale Securities, Amortized Cost | ||||||
Due in one year or less | [1] | 0 | 0 | |||
Due after one year through five years | [1] | 173,191 | 173,191 | |||
Due after five years through ten years | [1] | 437,248 | 437,248 | |||
Due after ten years | [1] | 280,941 | 280,941 | |||
Available-for-sale Securities, Fair Value | ||||||
Due in one year or less | [1] | 0 | 0 | |||
Due after one year through five years | [1] | 172,705 | 172,705 | |||
Due after five years through ten years | [1] | 430,476 | 430,476 | |||
Due after ten years | [1] | 274,971 | 274,971 | |||
RMBS | ||||||
Available-for-sale Securities, Amortized Cost | ||||||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | [2] | 226,744 | 226,744 | |||
Available-for-sale Securities, Fair Value | ||||||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | [2] | 224,905 | 224,905 | |||
CMBS | ||||||
Available-for-sale Securities, Amortized Cost | ||||||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | [2] | 415,780 | 415,780 | |||
Available-for-sale Securities, Fair Value | ||||||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | [2] | 406,910 | 406,910 | |||
Other ABS | ||||||
Available-for-sale Securities, Amortized Cost | ||||||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | [2] | 359,452 | 359,452 | |||
Available-for-sale Securities, Fair Value | ||||||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | [2] | 355,494 | 355,494 | |||
2013 Freddie Mac Agreement [Member] | Mortgage Insurance Segment | ||||||
Total Debt Securities [Line Items] | ||||||
Final Loss Mitigation Activity | $ 135,900 | $ 4,400 | ||||
Not Final Loss Mitigation Activity | $ 8,900 | |||||
Maximum [Member] | 2013 Freddie Mac Agreement [Member] | Scenario, Forecast [Member] | Mortgage Insurance Segment | ||||||
Total Debt Securities [Line Items] | ||||||
Restricted Investments Held as Collateral for Master Transaction Agreement, Net | $ 74,000 | |||||
[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 Investme66
Note 6 - Investments Investments In Any Person And Its Affiliates That Exceed 10% of Total Stockholders' Equity (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Securities | ||
Investment Holdings [Line Items] | ||
Assets Held by Insurance Regulators | $ 10.4 | $ 12.1 |
Radian Guaranty Inc [Member] | 2013 Freddie Mac Agreement [Member] | ||
Investment Holdings [Line Items] | ||
Restricted Investments Held as Collateral for Master Transaction Agreement, Net | $ 74.7 | $ 209.3 |
Minimum [Member] | ||
Investment Holdings [Line Items] | ||
Investment as a Percentage of Total Stockholder's Equity | 10.00% |
Note 7 - Goodwill and Other I67
Note 7 - Goodwill and Other Intangible Assets, Net Schedule of Goodwill (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | |
Mortgage and Real Estate Services Segment [Member] | |||||
Goodwill [Line Items] | |||||
Beginning Balance, Goodwill, Gross | $ 194,027 | $ 194,027 | $ 2,095 | ||
Beginning Balance, Accumulated Impairment Loss | (2,095) | (2,095) | 0 | ||
Goodwill, Net | 191,932 | 191,932 | 2,095 | ||
Goodwill, Acquired During Period | 3,238 | 191,932 | |||
Goodwill, Impairment Loss | $ (2,100) | $ 0 | (2,095) | ||
Number of Reporting Units | segment | 1 | ||||
Ending Balance, Goodwill, Gross | 197,265 | $ 197,265 | 194,027 | ||
Ending Balance, Accumulated Impairment Loss | (2,095) | (2,095) | (2,095) | ||
Goodwill, Net | $ 195,170 | $ 195,170 | $ 191,932 | ||
Clayton Holdings, LLC [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, Acquired During Period | $ 800 | $ 2,400 |
Note 7 - Goodwill and Other I68
Note 7 - Goodwill and Other Intangible Assets, Net Schedule of Acquired Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 113,776 | $ 102,858 |
Finite-Lived Intangible Assets, Accumulated Amortization | (19,529) | (6,550) |
Finite-Lived Intangible Assets, Net | $ 94,247 | 96,308 |
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 | $ 83,471 | 79,203 |
Finite-Lived Intangible Assets, Accumulated Amortization | (11,038) | (2,917) |
Finite-Lived Intangible Assets, Net | $ 72,433 | 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 | $ 15,100 | 8,970 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,949) | (797) |
Finite-Lived Intangible Assets, Net | $ 12,151 | 8,173 |
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 | 8 years | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 8,340 | 7,860 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,243) | (393) |
Finite-Lived Intangible Assets, Net | $ 7,097 | 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 | 6,680 |
Finite-Lived Intangible Assets, Accumulated Amortization | (4,184) | (2,406) |
Finite-Lived Intangible Assets, Net | $ 2,496 | 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 | $ 185 | 145 |
Finite-Lived Intangible Assets, Accumulated Amortization | (115) | (37) |
Finite-Lived Intangible Assets, Net | $ 70 | $ 108 |
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 I69
Note 7 - Goodwill and Other Intangible Assets, Net Schedule of Finite Lived Assets Future Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 13,000 | $ 8,600 | $ 0 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 13,138 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 12,492 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 11,845 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 10,609 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 9,058 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 37,105 | ||
Finite-Lived Intangible Assets, Net | $ 94,247 | $ 96,308 |
Note 8 - Reinsurance Reinsuranc
Note 8 - Reinsurance Reinsurance Premiums (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Prepaid Reinsurance Premiums | $ 40,491 | $ 57,291 | $ 40,491 | $ 57,291 | |||||||
Premiums Earned, Net [Abstract] | |||||||||||
Direct Premiums Earned | 973,645 | 905,502 | $ 848,655 | ||||||||
Assumed Premiums Earned | 43 | 43 | 56 | ||||||||
Ceded Premiums Earned | (57,780) | (61,017) | (67,291) | ||||||||
Net premiums earned—insurance | 226,443 | $ 227,433 | $ 237,437 | $ 224,595 | 224,293 | $ 217,827 | $ 203,646 | $ 198,762 | 915,908 | 844,528 | 781,420 |
Mortgage Insurance and Financial Guarantee Contracts [Member] | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Prepaid Reinsurance Premiums | $ 40,500 | $ 57,300 | 40,500 | 57,300 | |||||||
Mortgage Insurance Segment | |||||||||||
Premiums Written, Net [Abstract] | |||||||||||
Direct Premiums Written | 1,009,409 | 982,976 | 1,033,323 | ||||||||
Assumed Premiums Written | 104 | (882) | (904) | ||||||||
Ceded Premiums Written | (41,008) | (56,913) | (81,421) | ||||||||
Net premiums written—insurance | 968,505 | 925,181 | 950,998 | ||||||||
Premiums Earned, Net [Abstract] | |||||||||||
Direct Premiums Earned | 973,645 | 905,502 | 848,655 | ||||||||
Assumed Premiums Earned | 43 | 43 | 56 | ||||||||
Ceded Premiums Earned | (57,780) | (61,017) | (67,291) | ||||||||
Net premiums earned—insurance | $ 915,908 | $ 844,528 | $ 781,420 |
Note 8 - Reinsurance Reinsura71
Note 8 - Reinsurance Reinsurance Transaction Details (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 02, 2013 | Jun. 30, 2012 |
Ceded Credit Risk [Line Items] | |||||||
Ceded Premiums Earned | $ 57,780 | $ 61,017 | $ 67,291 | ||||
Prepaid Reinsurance Premiums | 40,491 | 57,291 | |||||
Initial Quota Share Reinsurance Transaction [Member] | Reinsurer Concentration Risk [Member] | Radian Guaranty [Member] | |||||||
Ceded Credit Risk [Line Items] | |||||||
Ceded Premiums Written | 14,471 | 10,217 | 23,047 | ||||
Ceded Premiums Earned | 22,157 | 17,319 | 29,746 | ||||
Fees and Commissions | 3,134 | 4,862 | 5,762 | ||||
Percentage of New Insurance Written To Be Ceded | 20.00% | ||||||
First Lien Primary Mortgage Insurance Risk In Force Ceded | 800,000 | ||||||
Ceded Premiums Earned | 9,200 | ||||||
Unearned Ceding Commissions | $ 15,000 | ||||||
Prepaid Reinsurance Commissions, Amortization Period | 5 years | ||||||
Ceded Commission Percentage | 20.00% | 25.00% | |||||
Percentage of Ceded Insurance Subjected to Change in Commission Percentage | 66.70% | ||||||
Initial Quota Share Reinsurance Transaction [Member] | Reinsurer Concentration Risk [Member] | Maximum [Member] | Radian Guaranty [Member] | |||||||
Ceded Credit Risk [Line Items] | |||||||
First Lien Primary Mortgage Insurance Risk In Force Ceded | $ 1,600,000 | ||||||
Percentage of Reinsurance Able To Be Commuted | 66.70% | ||||||
Second Quota Share Reinsurance Transaction [Member] | Reinsurer Concentration Risk [Member] | Radian Guaranty [Member] | |||||||
Ceded Credit Risk [Line Items] | |||||||
Ceded Premiums Written | $ 15,742 | 33,751 | 40,225 | ||||
Ceded Premiums Earned | 24,818 | 29,820 | 18,356 | ||||
Fees and Commissions | 8,309 | $ 11,813 | $ 14,079 | ||||
First Lien Primary Mortgage Insurance Risk In Force Ceded | 1,300,000 | ||||||
Ceded Premiums Earned | 8,000 | ||||||
Unearned Ceding Commissions | $ 8,500 | ||||||
Prepaid Reinsurance Commissions, Amortization Period | 5 years | ||||||
Ceded Commission Percentage | 30.00% | 35.00% | |||||
Second Quota Share Reinsurance Transaction [Member] | Reinsurer Concentration Risk [Member] | Maximum [Member] | Radian Guaranty [Member] | |||||||
Ceded Credit Risk [Line Items] | |||||||
First Lien Primary Mortgage Insurance Risk In Force Ceded | $ 1,600,000 | ||||||
Second Quota Share Reinsurance Transaction [Member] | Reinsurer Concentration Risk [Member] | Conventional Mortgage Loan [Member] | Radian Guaranty [Member] | |||||||
Ceded Credit Risk [Line Items] | |||||||
Percentage of New Insurance Written To Be Ceded | 20.00% | 5.00% | |||||
Second Quota Share Reinsurance Transaction [Member] | Reinsurer Concentration Risk [Member] | Conventional Mortgage Loan [Member] | Maximum [Member] | |||||||
Ceded Credit Risk [Line Items] | |||||||
Percentage of Reinsurance Able To Be Commuted | 50.00% |
Note 8 - Reinsurance Captive an
Note 8 - Reinsurance Captive and Smart Home Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Ceded Credit Risk [Line Items] | |||
Ceded Premiums Earned | $ 57,780 | $ 61,017 | $ 67,291 |
Radian Guaranty [Member] | |||
Ceded Credit Risk [Line Items] | |||
Policyholder Benefits and Claims Incurred, Assumed and Ceded | $ 20,950 | 21,213 | 47,151 |
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 | 71,359 | 129,795 | |
Reinsurance Recoverables on Unpaid Losses | 7,293 | 24,711 | |
Ceded Premiums Written | 9,950 | 12,948 | 17,812 |
Ceded Premiums Earned | $ 9,959 | $ 12,958 | $ 17,853 |
Note 9 - Other Assets Schedule
Note 9 - Other Assets Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Deposit with the IRS (Note 14) | $ 88,557 | $ 88,557 | |
Life Insurance, Corporate or Bank Owned, Amount | 82,543 | 80,755 | |
Property and Equipment, Owned, Net | [1] | 46,802 | 27,248 |
Prepaid Reinsurance Premiums | 40,491 | 57,291 | |
Accrued investment income | 25,620 | 20,022 | |
Deferred policy acquisition costs | 14,267 | 12,003 | |
Reinsurance recoverables | 11,044 | 28,119 | |
Other Assets, Miscellaneous | 45,096 | 43,869 | |
Other assets | 354,420 | 357,864 | |
Property and Equipment, Owned, Accumulated Depreciation | $ 106,900 | $ 100,200 | |
[1] | Property and equipment, at cost less accumulated depreciation of $106.9 million and $100.2 million at December 31, 2015 and 2014, respectively. |
Note 10 - Losses and Loss Adj74
Note 10 - Losses and Loss Adjustment Expenses Mortgage Insurance Reserves by Product (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Reinsurance recoverables | $ 11,044 | $ 28,119 | ||||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 10) | 976,399 | 1,560,032 | ||||
Mortgage Insurance Segment | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Reinsurance recoverables | [1] | 8,286 | 26,665 | $ 38,363 | $ 83,238 | |
Reserve for losses and loss adjustment expenses (“LAE”) (Note 10) | 976,399 | 1,560,032 | $ 2,164,353 | $ 3,083,608 | ||
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 (“LAE”) (Note 10) | 975,536 | 1,558,615 | ||||
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 (“LAE”) (Note 10) | 930,999 | 1,477,513 | ||||
Mortgage Insurance Segment | Prime Mortgage Insurance Product [Member] | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Liability for Unpaid Claims | 480,481 | 700,174 | ||||
Mortgage Insurance Segment | Alt A Mortgage Insurance Product [Member] | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Liability for Unpaid Claims | 203,706 | 292,293 | ||||
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 | 129,352 | 179,103 | ||||
Mortgage Insurance Segment | Primary Mortgage Product [Member] | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Liability for Incurred but Not Reported Claims | 83,066 | [2] | 223,114 | |||
Liability for Claims Adjustment Expense | 26,108 | 56,164 | ||||
Reinsurance recoverables | [3] | 8,286 | 26,665 | |||
Mortgage Insurance Segment | Pool Insurance Mortgage Insurance Product [Member] | ||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||
Liability for Unpaid Claims | 42,084 | 75,785 | ||||
Liability for Incurred but Not Reported Claims | 1,118 | 1,775 | ||||
Liability for Claims Adjustment Expense | 1,335 | 3,542 | ||||
Reserve for losses and loss adjustment expenses (“LAE”) (Note 10) | 44,537 | 81,102 | ||||
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 (“LAE”) (Note 10) | [4] | $ 863 | $ 1,417 | |||
[1] | Related to ceded losses on captive reinsurance transactions and the QSR Transactions. See Note 8 for additional information. | |||||
[2] | Primarily related to expected payments under the Freddie Mac Agreement. | |||||
[3] | Primarily represents ceded losses on captive transactions and the QSR Transactions. | |||||
[4] | Does not include our Second-lien PDR that is included in other liabilities. |
Note 10 - Losses and Loss Adj75
Note 10 - Losses and Loss Adjustment Expenses Mortgage Insurance Loss Reserves Rollforward (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015USD ($)percentagepoint | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||||
Loss reserve [Roll Forward] | ||||||
Balance at January 1 | $ 1,560,032 | |||||
Less reinsurance recoverables | 28,119 | |||||
Deduct paid claims and LAE related to [Abstract] | ||||||
Add reinsurance recoverables | 11,044 | $ 28,119 | ||||
Balance at December 31 | 976,399 | 1,560,032 | ||||
Mortgage Insurance Segment | ||||||
Loss reserve [Roll Forward] | ||||||
Balance at January 1 | 1,560,032 | 2,164,353 | $ 3,083,608 | |||
Less reinsurance recoverables | [1] | 26,665 | 38,363 | 83,238 | ||
Balance at beginning of period, net of reinsurance recoverables | 1,533,367 | 2,125,990 | 3,000,370 | |||
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract] | ||||||
Current year | [2] | 229,061 | 351,184 | [3] | 519,188 | [3] |
Prior years | (29,647) | (105,545) | 45,460 | |||
Total incurred losses and LAE | 199,414 | 245,639 | 564,648 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Increase (Decrease) in Incurred Claim Expense | [2] | 46,200 | ||||
Deduct paid claims and LAE related to [Abstract] | ||||||
Paid Losses and LAE Current year | [2] | 10,837 | 13,562 | 35,108 | ||
Paid losses and LAE Prior years | 753,831 | 824,700 | 1,403,920 | |||
Total paid losses and LAE | 764,668 | 838,262 | 1,439,028 | |||
Balance at end of period, net of reinsurance recoverables | 968,113 | 1,533,367 | 2,125,990 | |||
Add reinsurance recoverables | [1] | 8,286 | 26,665 | 38,363 | ||
Balance at December 31 | $ 976,399 | 1,560,032 | 2,164,353 | |||
Default To Claim Rate Detail [Abstract] | ||||||
Percentage Point Change In Severity Used In Assumption Shift Analysis | percentagepoint | 1 | |||||
2013 Freddie Mac Agreement [Member] | Mortgage Insurance Segment | ||||||
Deduct paid claims and LAE related to [Abstract] | ||||||
Total paid losses and LAE | 255,000 | |||||
Provision for Loan Losses Expensed | $ 22,000 | |||||
Primary Mortgage Product [Member] | Mortgage Insurance Segment | ||||||
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract] | ||||||
Default To Claim Rate Estimate, Gross, For New Defaults | 13.00% | 16.00% | ||||
Deduct paid claims and LAE related to [Abstract] | ||||||
Default To Claim Rate Estimate, Gross, For Pre-Foreclosure Stage Defaults | 65.00% | |||||
Default To Claim Rate Detail [Abstract] | ||||||
Weighted Average Default To Claim Rate Assumption Net Of Denials Rescissions and Reinstatements | 46.00% | 52.00% | ||||
Weighted Average Default To Claim Rate Assumption Excluding Pending Claims Net Of Denials And Rescissions | 42.00% | 47.00% | ||||
Default To Claim Estimate, Gross, For Foreclosure Stage Defaults | 81.00% | |||||
Classification Error [Member] | Mortgage Insurance Segment | ||||||
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract] | ||||||
Current year | $ (71,800) | $ (65,000) | ||||
[1] | Related to ceded losses on captive reinsurance transactions and the QSR 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. | |||||
[3] | Amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year and prior years have been reclassified to correct an error. There was no net change to total incurred losses in any period as a result of these reclassifications. For the years ended December 31, 2014 and 2013, the amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year have been revised downward by approximately $71.8 million and $65.0 million, respectively, with equal and offsetting adjustments to the amount previously reported for default notices reported and unreported in prior years. |
Note 10 - Losses and Loss Adj76
Note 10 - Losses and Loss Adjustment Expenses Rescissions And Denials (Details) $ in Millions | Aug. 30, 2017USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2015USD ($)percentagepoint | Dec. 31, 2015USD ($)percentagepoint | Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)percentagepoint | Aug. 29, 2017USD ($) |
Mortgage Insurance Segment | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Claim Rescissions And Denials, Net of Reinstatements | $ 64.5 | $ 144.7 | ||||||
Decrease To Our Loss Reserves Due To Estimated Rescissions And Denials | $ 69 | 69 | 125 | $ 125 | $ 69 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 26.6 | 26.6 | 163.6 | 163.6 | 26.6 | |||
Accrued Liability For Premiums Expected To Be Refunded From Rescissions | $ 2.3 | $ 2.3 | 9 | 9 | $ 2.3 | |||
Percentage Point Change In Severity Used In Assumption Shift Analysis | percentagepoint | 1 | 1 | 1 | |||||
First Lien Primary Claim Severity | 101.40% | |||||||
Impact To Loss Reserves Based On One Percentage Change In Primary Claim Severity | $ 8.2 | $ 8.2 | $ 8.2 | |||||
Impact To Loss Reserves Based On One Percentage Change in Default To Claim Rate | 17.4 | 17.4 | 17.4 | |||||
Mortgage Insurance Segment | Denials [Member] | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 13.3 | 13.3 | 13.3 | |||||
Mortgage Insurance Segment | Rescissions [Member] | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 0.6 | 0.6 | 0.6 | |||||
Mortgage Insurance Segment | Claim Curtailments [Member] | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 2.1 | 2.1 | 2.1 | |||||
Mortgage Insurance Segment | Claims Denied in the Last Twelve Months [Member] | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Gross Exposure Related to Denied Claims From Previous Twelve Months | 41.9 | |||||||
Mortgage Insurance Segment | Policies Rescinded in the Last Twenty Four Months [Member] | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Gross Exposure Related to Rescinded Policies Within Twenty Four Months | 42.8 | |||||||
Mortgage Insurance Segment | Claim Curtailments [Member] | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Claim Curtailments, Gross | 22.7 | |||||||
Bank of America Settlement Agreement [Member] | Mortgage Insurance Segment | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | $ 3 | $ 3 | $ 133 | 133 | $ 3 | |||
Loss Contingency, Settlement Agreement, Percentage of Subject Loans Not Held by Insureds or Are Non-GSE Investors | 12.00% | 12.00% | 12.00% | |||||
Primary Mortgage Product [Member] | Mortgage Insurance Segment | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Weighted Average Default To Claim Rate Assumption Net Of Denials And Rescissions | 46.00% | 52.00% | ||||||
Maximum [Member] | Bank of America Settlement Agreement [Member] | Mortgage Insurance Segment | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Number of Days Delinquent for a Loan to be Considered for Curtailment | 90 days | |||||||
2013 Freddie Mac Agreement [Member] | Mortgage Insurance Segment | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Final Loss Mitigation Activity | $ 135.9 | $ 4.4 | ||||||
Not Final Loss Mitigation Activity | $ 8.9 | |||||||
2013 Freddie Mac Agreement [Member] | Scenario, Forecast [Member] | Mortgage Insurance Segment | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Loss Mitigation Shortfall | $ 57.5 | |||||||
2013 Freddie Mac Agreement [Member] | Maximum [Member] | Scenario, Forecast [Member] | Mortgage Insurance Segment | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Restricted Investments Held as Collateral for Master Transaction Agreement, Net | $ 74 | |||||||
Radian Guaranty Inc [Member] | 2013 Freddie Mac Agreement [Member] | ||||||||
Rescissions And Denials [Line Items] | ||||||||
Restricted Investments Held as Collateral for Master Transaction Agreement, Net | $ 74.7 | $ 74.7 | $ 209.3 | $ 209.3 | $ 74.7 |
Note 11 - Long-Term Debt Schedu
Note 11 - Long-Term Debt Schedule of Long Term Debt (Details) | 1 Months Ended | 2 Months Ended | 7 Months Ended | 8 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2015USD ($)shares | May. 31, 2014USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2015USD ($)basispoint$ / sharesshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)daysdbasispoint$ / sharesshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Mar. 31, 2013USD ($) | Nov. 30, 2010 | Nov. 15, 2010USD ($) | Jun. 01, 2005USD ($) | ||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (Note 11) | $ 1,219,454,000 | $ 1,192,299,000 | $ 1,219,454,000 | $ 1,192,299,000 | ||||||||||
Repayments of Long-term Debt | $ 156,172,000 | 57,223,000 | $ 79,372,000 | |||||||||||
Senior Notes Due 2015 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
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 (Note 11) | $ 192,261,000 | 190,245,000 | $ 192,261,000 | 190,245,000 | ||||||||||
Convertible Senior Notes Due 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | ||||||||||||
Long-term debt (Note 11) | $ 46,115,000 | 371,336,000 | $ 46,115,000 | 371,336,000 | ||||||||||
Extinguishment of Debt, Amount | $ 389,100,000 | 389,100,000 | ||||||||||||
Gains (Losses) on Extinguishment of Debt | (52,300,000) | |||||||||||||
Repayments of Convertible Debt | $ 126,800,000 | |||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 28,400,000 | |||||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ (91,900,000) | $ (91,900,000) | ||||||||||||
Induced Conversion of Convertible Debt Expense | 35,500,000 | |||||||||||||
Write off of Deferred Debt Issuance Cost | 4,100,000 | |||||||||||||
Convertible Debt, Termination of Capped Call Transaction, Total Consideration | $ 54,900,000 | |||||||||||||
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received | shares | 2,300,000 | |||||||||||||
Convertible Debt, Termination of Capped Call Transaction, Total Cash Received | $ 13,200,000 | |||||||||||||
Convertible Senior Notes Due 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | ||||||||||||
Long-term debt (Note 11) | $ 341,214,000 | 336,133,000 | $ 341,214,000 | 336,133,000 | ||||||||||
Senior Notes Due 2019 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | 5.50% | |||||||||||
Long-term debt (Note 11) | $ 295,751,000 | 294,585,000 | $ 295,751,000 | 294,585,000 | ||||||||||
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 | basispoint | 50 | 50 | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||||
Senior Notes Due 2020 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | ||||||||||||
Long-term debt (Note 11) | $ 344,113,000 | $ 0 | $ 344,113,000 | 0 | ||||||||||
Debt Instrument, Face Amount | $ 350,000,000 | |||||||||||||
Proceeds from Issuance of Long-term Debt | 343,300,000 | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||||
Total Long Term Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (Note 11) | $ 1,219,454,000 | 1,192,299,000 | $ 1,219,454,000 | 1,192,299,000 | ||||||||||
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 (Note 11) | $ 46,115,000 | 371,336,000 | $ 46,115,000 | 371,336,000 | ||||||||||
Unamortized Debt Issuance Expense | [1] | $ (314,000) | (3,974,000) | $ (314,000) | (3,974,000) | |||||||||
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 | $ / shares | $ 11.69 | $ 11.69 | ||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | shares | 23,000,000 | 23,000,000 | ||||||||||||
Maximum Stock Price Per Share Included In Capped Call Transaction | $ / shares | $ 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 (Note 11) | $ 341,214,000 | 336,133,000 | $ 341,214,000 | 336,133,000 | ||||||||||
Unamortized Debt Issuance Expense | [1] | $ (4,465,000) | $ (5,878,000) | $ (4,465,000) | $ (5,878,000) | |||||||||
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 | $ / shares | $ 10.60 | $ 10.60 | ||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | shares | 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 | d | 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 | d | 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 | d | 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 | 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 | 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 | ||||||||||||||
Gains (Losses) on Extinguishment of Debt | $ (4,000,000) | |||||||||||||
Scenario, Previously Reported [Member] | Senior Notes Due 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (Note 11) | $ 192,605,000 | $ 192,605,000 | ||||||||||||
Scenario, Previously Reported [Member] | Convertible Senior Notes Due 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (Note 11) | 375,310,000 | 375,310,000 | ||||||||||||
Scenario, Previously Reported [Member] | Convertible Senior Notes Due 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (Note 11) | 342,011,000 | 342,011,000 | ||||||||||||
Scenario, Previously Reported [Member] | Senior Notes Due 2019 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (Note 11) | 300,000,000 | 300,000,000 | ||||||||||||
Scenario, Previously Reported [Member] | Total Long Term Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (Note 11) | 1,209,926,000 | 1,209,926,000 | ||||||||||||
Accounting Standards Update 2015-03 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Issuance Cost | $ 17,600,000 | |||||||||||||
Unamortized Debt Issuance Expense | $ (17,600,000) | $ (17,600,000) | ||||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Senior Notes Due 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unamortized Debt Issuance Expense | (2,360,000) | (2,360,000) | ||||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Convertible Senior Notes Due 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unamortized Debt Issuance Expense | (3,974,000) | (3,974,000) | ||||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Convertible Senior Notes Due 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unamortized Debt Issuance Expense | (5,878,000) | (5,878,000) | ||||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Senior Notes Due 2019 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unamortized Debt Issuance Expense | (5,415,000) | (5,415,000) | ||||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Total Long Term Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unamortized Debt Issuance Expense | $ (17,627,000) | $ (17,627,000) | ||||||||||||
[1] | Included within long-term debt and is being amortized over the life of the convertible notes. |
Note 11 - Long-Term Debt Sche78
Note 11 - Long-Term Debt Schedule of Liability and Equity Components of Convertible Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2015 | Mar. 31, 2013 | Nov. 30, 2010 | ||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,192,299 | $ 1,219,454 | |||
Senior Notes Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 294,585 | 295,751 | |||
Senior Notes Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of convertible debt in liabilities | 350,000 | ||||
Long-term debt | 0 | 344,113 | |||
Convertible Senior Notes Due 2017 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 371,336 | 46,115 | |||
Convertible Senior Notes Due 2017 | Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of convertible debt in liabilities | 450,000 | 52,370 | |||
Less: debt discount, net (1) | [1] | (74,690) | (5,941) | ||
Unamortized Debt Issuance Expense | [1] | (3,974) | (314) | ||
Long-term debt | 371,336 | 46,115 | |||
Equity component (net of tax impact) (2) | 101,000 | 11,300 | $ 101,000 | ||
Convertible Senior Notes Due 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 336,133 | 341,214 | |||
Convertible Senior Notes Due 2019 | Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of convertible debt in liabilities | 400,000 | 389,992 | |||
Less: debt discount, net (1) | [1] | (57,989) | (44,313) | ||
Unamortized Debt Issuance Expense | [1] | (5,878) | (4,465) | ||
Long-term debt | 336,133 | 341,214 | |||
Equity component (net of tax impact) (2) | 77,000 | $ 75,100 | $ 77,000 | ||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | $ 0 | ||||
[1] | Included within long-term debt and is being amortized over the life of the convertible notes. |
Note 11 - Long-Term Debt Intere
Note 11 - Long-Term Debt Interest Expense Recognized Related to Convertible Debt (Details) - Convertible Debt [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Convertible Senior Notes Due 2017 | ||
Debt Instrument [Line Items] | ||
Contractual interest expense of convertible debt | $ 7,359 | $ 13,500 |
Amortization of debt issuance costs | 696 | 1,226 |
Amortization of debt discount | 12,621 | 21,512 |
Total interest expense for convertible debt | 20,676 | 36,238 |
Convertible Senior Notes Due 2019 | ||
Debt Instrument [Line Items] | ||
Contractual interest expense of convertible debt | 8,925 | 9,000 |
Amortization of debt issuance costs | 1,292 | 1,282 |
Amortization of debt discount | 12,487 | 11,829 |
Total interest expense for convertible debt | $ 22,704 | $ 22,111 |
Note 12 - Accumulated Other C80
Note 12 - Accumulated Other Comprehensive Income Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | $ 69,150 | $ 0 | $ 349 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 51,485 | ||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||
Net foreign currency translation adjustments | (217) | (226) | 0 | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (22,573) | 13,650 | 19,149 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 44,183 | (1,039) | 656 | ||||
Net unrealized gains on investments | (66,756) | 14,689 | 18,493 | ||||
Other comprehensive income (loss), net of tax | (70,227) | 14,161 | 21,090 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (18,477) | 51,485 | |||||
Other Comprehensive Income (Loss) [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | 69,200 | ||||||
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 | ||||
Other Comprehensive Income (Loss), before Tax [Abstract] | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (333) | (326) | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | (34,728) | 21,204 | 29,460 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | [1] | 67,974 | (1,599) | 1,285 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | (102,702) | 22,803 | 28,175 | ||||
Other Comprehensive Income (Loss), Before Tax, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | (5,006) | [2] | (329) | [3] | 3,961 | [3] | |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (108,041) | 22,148 | 32,136 | ||||
Net actuarial gain (loss), before Tax | 408 | (285) | 305 | ||||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (116) | (100) | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (12,155) | 7,554 | 10,311 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | [1] | 23,791 | (560) | 629 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | (35,946) | 8,114 | 9,682 | ||||
Other Comprehensive Income (Loss), Tax Effect, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | (1,752) | [2] | (27) | [3] | 1,364 | [3] | |
Other Comprehensive Income (Loss), Tax | (37,814) | 7,987 | 11,046 | ||||
Net actuarial gain (loss), Tax | 143 | (226) | 107 | ||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||
Net foreign currency translation adjustments | (217) | (226) | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (22,573) | 13,650 | 19,149 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | [1] | 44,183 | (1,039) | 656 | |||
Net unrealized gains on investments | (66,756) | 14,689 | 18,493 | ||||
Other Comprehensive Income (Loss), Net of Tax, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale | (3,254) | [2] | (302) | [3] | 2,597 | [3] | |
Other comprehensive income (loss), net of tax | (70,227) | 14,161 | 21,090 | ||||
Net actuarial gain (loss) | 265 | (59) | 198 | ||||
Accumulated Other Comprehensive Income (Loss), before Tax | (28,425) | 79,208 | 57,345 | ||||
Accumulated Other Comprehensive Income, Tax (Benefit) | (9,948) | 27,723 | 19,962 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (18,477) | $ 51,485 | $ 37,383 | ||||
[1] | Included in net gains (losses) on investments on our consolidated statements of operations. | ||||||
[2] | For 2015, this amount represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in AOCI. | ||||||
[3] | Represents the unrealized holding gains (losses) arising during the period on investments recorded as assets held for sale, net of reclassification adjustments for net gains (losses) included in net income from discontinued operations. |
Note 13 - Income Taxes Schedule
Note 13 - Income Taxes Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Components of Income Tax Provision [Line Items] | |||
Foreign tax credit carryforward | $ 900 | ||
Alternative minimum tax credit carryforward | 5,923 | $ 2,286 | |
Current (benefit) provision | 120 | (26,575) | $ 352 |
Deferred income tax (benefit) expense | 156,170 | (825,843) | (31,847) |
Income tax (benefit) provision | $ 156,290 | $ (852,418) | $ (31,495) |
Note 13 - Income Taxes Reconcil
Note 13 - Income Taxes Reconciliation of Taxes from Statutory Rate to Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 153,240 | $ 142,504 | $ (60,671) |
Tax-exempt municipal bond interest and dividends received deduction (net of proration) | (1,085) | (1,286) | (1,494) |
Deferred inventory adjustment related to fair value of derivatives and other financial instruments | (6,674) | 0 | 0 |
Foreign tax (benefit) expense | 357 | 270 | (1) |
State tax expense (benefit) | (7,619) | (451) | 949 |
Unrecognized tax expense (benefit) | 5,233 | 407 | 1,696 |
Valuation allowance | 11,931 | (995,008) | 24,546 |
Other, net | 907 | 1,146 | 3,480 |
Income tax (benefit) provision | $ 156,290 | $ (852,418) | $ (31,495) |
Note 13 - Income Taxes Schedu83
Note 13 - Income Taxes Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Deferred Tax Assets and Liabilities [Line Items] | ||
Operating Loss Carryforwards | $ 1,100,000 | |
Foreign tax credit carryforward | 900 | |
Components of Deferred Tax Assets [Abstract] | ||
Accrued expenses | 38,456 | $ 60,858 |
Unearned premiums | 87,609 | 82,800 |
NOL | 342,002 | 475,095 |
Differences in fair value of derivative and other financial instruments | 7,767 | 0 |
Deferred Tax Assets, Unrealized Losses on Trading Securities | 9,801 | 0 |
State and Local NOL Carryforwards | 46,914 | 34,851 |
Partnership Investments | 74,309 | 74,179 |
Loss reserves | 4,720 | 6,362 |
Outside basis difference of investment in subsidiary | 0 | 14,084 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 5,923 | 2,286 |
Other | 34,241 | 47,991 |
Total deferred tax assets | 651,742 | 798,506 |
Components of Deferred Tax Liabilities [Abstract] | ||
Convertible and other long-term debt | 16,654 | 38,750 |
Net unrealized gain on investments | 0 | 26,145 |
Deferred Tax Liabilities, Property, Plant and Equipment | 6,397 | 0 |
Other | 14,516 | 15,536 |
Total deferred tax liabilities | 37,567 | 80,431 |
Valuation Allowance, Amount | 36,230 | 17,874 |
Deferred Tax Assets, Net | $ 577,945 | $ 700,201 |
Note 13 - Income Taxes Income T
Note 13 - Income Taxes Income Tax Details (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)percentagepoint | Dec. 31, 2014USD ($) | |
Operating Loss Carryforwards [Line Items] | ||
Accrued Income Taxes, Current | $ 124,000 | |
Income Taxes Receivable, Current | 9,700 | |
Operating Loss Carryforwards | 1,100,000 | |
Foreign tax credit carryforward | 900 | |
Alternative minimum tax credit carryforward | 5,923 | $ 2,286 |
State net operating loss carryforward | 46,914 | 34,851 |
Valuation Allowance, Amount | $ 36,230 | $ 17,874 |
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 | percentagepoint | 50 | |
Number of Years (Rolling) Used for Calculating Percentage Change in Ownership for Change in Control | 3 years |
Note 13 - Income Taxes Summary
Note 13 - Income Taxes Summary of Income Tax Examinations (Details) - Internal Revenue Service (IRS) [Member] - USD ($) $ in Millions | Dec. 31, 2015 | May. 03, 2010 | Jun. 30, 2008 |
Income Tax Examination [Line Items] | |||
Income Tax Examination, Amount of Claimed Income Tax Refund Being Disallowed for Tax Years 2006 and 2007 | $ 105 | ||
REMIC Residual [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 | ||
Income Tax Examination, Notice of Deficiency, Amounts Related to Unpaid Taxes and Penalties | 157 | ||
Income Tax Examination, Estimated Interest on Notice of Deficiency Amounts | 125 | ||
Income Tax Examination, Proposed State Liabilities Resulting from IRS Examination of Tax Years 2000 Through 2007 | $ 32 |
Note 13 - Income Taxes Effect o
Note 13 - Income Taxes Effect of Unrecognized Tax Benefits on Consolidated Balance Sheets and Results of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effect of Unrecognized Tax Benefits on Balance Sheets and Results of Operations [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | $ 336 | $ 0 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 66,300 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 61,700 | ||
Unrecognized Tax Benefits, Interest and Penalties Charged to Income | $ 800 | $ 2,500 | $ 5,400 |
Note 13 - Income Taxes Summar87
Note 13 - Income Taxes Summary of Income Tax Contingencies Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 120,223 | $ 119,236 | |
Tax positions related to the current year [Abstract] | |||
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 6,461 | 2,352 | |
Tax positions related to prior years [Abstract] | |||
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 22,734 | 24,361 | |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | (2,102) | (1,546) | |
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (22,734) | (24,180) | |
Balance at end of period | 124,246 | $ 120,223 | |
Unrecognized Tax Benefits, Net Amount Related to Prior Period Tax Positions | 20,600 | ||
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 | $ (22,700) | ||
Scenario, Forecast [Member] | |||
Tax positions related to prior years [Abstract] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 73,500 |
Note 14 - Statutory Informati88
Note 14 - Statutory Information Statutory Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)years | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2016USD ($) | Jul. 31, 2014USD ($) | |
Statutory Accounting Practices [Line Items] | ||||||
Restricted Cash and Cash Equivalents | $ 2,900,000 | $ 2,900,000 | ||||
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 | years | 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% | |||||
Radian Guaranty [Member] | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Surplus Notes | 325,000 | $ 325,000 | ||||
Statutory Unassigned Negative Surplus | 679,900 | 679,900 | $ 715,700 | |||
Statutory contingency reserve | 860,900 | 860,900 | 389,400 | $ 23,000 | ||
STAT Accounting Information [Abstract] | ||||||
Statutory Accounting Practices, Statutory Net Income Amount | 754,800 | 273,700 | (23,800) | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 1,686,500 | 1,686,500 | 1,325,200 | 1,317,800 | ||
Proceeds from Contributions from Parent | 100,000 | 100,000 | 230,400 | |||
Radian Guaranty [Member] | Scenario, Forecast [Member] | ||||||
STAT Accounting Information [Abstract] | ||||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | $ 0 | |||||
Radian Reinsurance [Member] | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Statutory Unassigned Negative Surplus | 127,300 | 127,300 | ||||
Statutory contingency reserve | 128,800 | 128,800 | ||||
STAT Accounting Information [Abstract] | ||||||
Statutory Accounting Practices, Statutory Net Income Amount | (1,000) | |||||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 138,700 | 138,700 | ||||
Proceeds from Contributions from Parent | 50,000 | |||||
Radian Reinsurance [Member] | Scenario, Forecast [Member] | ||||||
STAT Accounting Information [Abstract] | ||||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | $ 0 | |||||
Radian Mortgage Guaranty Inc. [Member] | ||||||
Additional Risk And Capital Information | ||||||
Required statutory surplus | 20,000 | 20,000 | ||||
Other MI Companies [Member] | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Statutory contingency reserve | 1,100 | 1,100 | 140,700 | 80,900 | ||
STAT Accounting Information [Abstract] | ||||||
Statutory Accounting Practices, Statutory Net Income Amount | 92,900 | 112,900 | 99,600 | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 55,000 | 55,000 | $ 473,700 | $ 406,100 | ||
Radian Guaranty Reinsurance Inc [Member] | ||||||
Additional Risk And Capital Information | ||||||
Required statutory surplus | 20,000 | 20,000 | ||||
Radian Insurance [Member] | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Risk In Force | 48,500 | 48,500 | ||||
Radian Investor Surety Inc. [Member] | ||||||
Statutory Accounting Practices [Line Items] | ||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 20,000 | |||||
Cash Dividends Paid to Parent Company | 15,000 | |||||
Risk In Force | 0 | 0 | ||||
STAT Accounting Information [Abstract] | ||||||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 5,000 | $ 5,000 |
Note 14 - Statutory Informati89
Note 14 - Statutory Information Risk To Capital Calculation (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)state | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Risk to Capital Line Items [Line Items] | ||||
Risk To Capital Ratio, Regulatory Maximum | 25 | |||
Risk-to-capital | 14.6 | 20.3 | ||
Surplus Note, Redemption Percentage | 50.00% | |||
Surplus Note, Amount Used in Calculation of Additional Redemption Allowed | $ 150 | |||
Radian Insurance [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Risk In Force | 48.5 | |||
Radian Guaranty [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Proceeds from Contributions from Parent | 100 | $ 100 | $ 230.4 | |
Surplus Notes | 325 | |||
Risk In Force | [1] | 36,396.1 | 30,615.7 | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 1,686.5 | 1,325.2 | 1,317.8 | |
Contingency reserve | 860.9 | 389.4 | $ 23 | |
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | $ 2,547.4 | $ 1,714.6 | ||
Risk-to-capital | 14.3 | 17.9 | ||
Parent Company | ||||
Risk to Capital Line Items [Line Items] | ||||
Related Party Transaction, Rate | 0.00% | |||
State Insurance Regulations [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement | state | 16 | |||
Minimum [Member] | Non RBC States [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Capital Required for Capital Adequacy | $ 1 | |||
Maximum [Member] | Non RBC States [Member] | ||||
Risk to Capital Line Items [Line Items] | ||||
Capital Required for Capital Adequacy | $ 5 | |||
[1] | Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans. |
Note 15 - Share-Based and Oth90
Note 15 - Share-Based and Other Compensation Plans (Awards Summary - Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares remaining available for grant (shares reserve) | 2,803,988 | ||
Restricted Stock [Member] | Equity Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 0 | 0 | |
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) | 2,803,988 | ||
Share-based Compensation Arrangement By Share-based Payment Award Number of Shares Available for Grant Excluding Adjustments | 4,694,662 | ||
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 | $ 17.5 | $ 31.9 | |
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 | ||
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] | Equity Compensation Plan, 2008 [Member] | Performance Based RSUs [Member] | Cash Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 0 | 0 |
Note 15 - Share-Based and Oth91
Note 15 - Share-Based and Other Compensation Plans (Awards Summary - Tables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 23,028 | $ 43,011 | $ 94,981 |
Less: Costs deferred as acquisition costs | 500 | 1,047 | 1,769 | |
Stock-based compensation expense impact on net loss before income taxes - increase | $ 22,528 | $ 41,964 | 93,212 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Options, Equity Instruments Outstanding | 2,692,457 | 3,029,348 | ||
Cash Settled [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Liability Recorded | $ 3,595 | $ 65,752 | 112,309 | |
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 10,403 | 32,749 | 87,866 |
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 | 3,595 | 65,157 | 104,114 | |
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 10,244 | 31,834 | 79,322 |
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 | 0 | 595 | 8,195 | |
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 159 | 915 | 8,544 |
Equity Settled [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | 12,625 | 10,262 | 7,115 |
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 | [1] | 396 | 267 | 267 |
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 | [1] | $ 9,243 | $ 7,461 | $ 4,336 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,472,861 | 2,056,596 | 1,273,556 | |
Equity Settled [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 2,984 | $ 2,531 | $ 2,488 |
Share-based Compensation Programs, Options, Equity Instruments Outstanding | 2,692,457 | 3,029,348 | 3,989,641 | |
Equity Settled [Member] | Phantom Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 2 | $ 3 | $ 3 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 230,196 | 284,645 | 284,645 | |
Equity Settled [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Programs, Compensation Cost Recognized | [1] | $ 0 | $ 0 | $ 21 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 0 | 0 | 0 | |
[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 2015, 2014, and 2013, 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 2015, 2014, and 2013 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 - Share-Based and Oth92
Note 15 - Share-Based and Other Compensation Plans (RSUs - Cash Settled) (Details) | 12 Months Ended | |||
Dec. 31, 2015shares | Dec. 31, 2014shares | Dec. 31, 2013shares | Dec. 31, 2012shares | |
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 | |||
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] | 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 | 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 | 0 | 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 | |||
Award Requisite Service Period | 3 years | |||
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 | 7,670 | |||
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 - Share-Based and Oth93
Note 15 - Share-Based and Other Compensation Plans (SARs - Cash Settled) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 |
Note 15 - Share-Based and Oth94
Note 15 - Share-Based and Other Compensation Plans (Non-Qualified Stock Options) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)days$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | ||
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 | shares | 1,435,232 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, Beginning of Period, Number of Shares | shares | 3,029,348 | |||
Outstanding, Beginning of Period, Weighted Average Exercise Price Per Share | $ 5.46 | |||
Granted, Number of Shares | shares | 212,230 | 289,500 | 279,650 | |
Granted, Weighted Average Exercise Price Per Share | $ 18.42 | |||
Exercised, Number of Shares | shares | (496,496) | |||
Exercised, Weighted Average Exercise Price Per Share | $ 2.59 | |||
Forfeited, Number of Shares | shares | (52,625) | |||
Forfeited, Weighted Average Exercise Price Per Share | $ 8.89 | |||
Expired, Number of Shares | shares | 0 | |||
Expired, Weighted Average Exercise Price Per Share | $ 0 | |||
Outstanding, End of Period, Number of Shares | shares | 2,692,457 | 3,029,348 | ||
Outstanding, End of Period, Weighted Average Exercise Price Per Share | $ 6.94 | $ 5.46 | ||
Exercisable, Number of Shares | shares | 1,435,232 | |||
Exercisable, Weighted Average Exercise Price Per Share | $ 4.44 | |||
Available for grant | shares | 2,803,988 | |||
Weighted average fair value per share of stock options granted | $ 14.68 | $ 12.18 | $ 10.95 | |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | $ | $ 1,280 | $ 260 | $ 60 | |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ | 2,500 | 70 | 60 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | 7,150 | 190 | 170 | |
Total intrinsic value of options outstanding | $ | 19,100 | $ 34,100 | $ 27,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||
Fair value of options vested during the year | $ | 3,400 | |||
Aggregate intrinsic value (excess market price over exercise price) | $ | $ 12,900 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 4 years 1 month 21 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free interest rate | [1] | 2.32% | 2.57% | 1.96% |
Volatility | [2] | 93.70% | 94.26% | 94.63% |
Dividend yield | 0.05% | 0.07% | 0.07% | |
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement | days | 10 | |||
Share-based Compensation Arrangements, Windfall Tax Benefit, Threshold Amount | $ | $ 20,200 | |||
Equity Compensation Plan, 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Available for grant | shares | 2,803,988 | |||
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) | 3 years 350 days | 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) | 4 years | |||
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) | 2 years 360 days | 3 years 9 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) | 3 years 9 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 | $ 23.03 | |||
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 | $ 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% | |||
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 | $ 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% | |||
[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 - Share-Based and Oth95
Note 15 - Share-Based and Other Compensation Plans (Non-Qualified Stock Options - Range of Exercise Prices) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | 2,692,457 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 3 months 1 day | ||
Options Exercisable, Number Exercisable | 1,435,232 | ||
$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 | 1,718,010 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 2 months 6 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 2.8 | ||
Options Exercisable, Number Exercisable | 1,153,515 | ||
Options Exercisable, Weighted Average Exercise Price | $ 2.98 | ||
$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 | 47,967 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 2 months 6 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 6.92 | ||
Options Exercisable, Number Exercisable | 47,967 | ||
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 | 718,790 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 1 month 10 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 13.53 | ||
Options Exercisable, Number Exercisable | 225,580 | ||
Options Exercisable, Weighted Average Exercise Price | $ 10.91 | ||
Equity Compensation Plan, 1995 and 2008 [Member] | Exercise Price Range, Four [Member] | Stock Options [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number Outstanding | 207,690 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 7 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 18.42 | ||
Options Exercisable, Number Exercisable | 8,170 | ||
Options Exercisable, Weighted Average Exercise Price | $ 18.42 | ||
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 | 125.00% |
Note 15 - Share-Based and Oth96
Note 15 - Share-Based and Other Compensation Plans (RSUs - Equity Settled) (Details) | 12 Months Ended | |||
Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013shares | Dec. 31, 2012shares | |
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 | 612,881 | |||
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 | 2,056,596 | |||
Unvested, Beginning of Period, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 10.65 | |||
Granted, Number of Shares | 612,881 | |||
Granted, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 18.26 | |||
Vested, Number of Shares | (121,989) | |||
Vested, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 5.83 | |||
Forfeited, Number of Shares | (74,627) | |||
Forfeited, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 15.55 | |||
Unvested, End of Period, Number of Shares | 2,472,861 | 2,056,596 | ||
Unvested, End of Period, Weighted Average Grant-Date Fair Value Per Share | $ / shares | $ 12.62 | $ 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 | |||
2015 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 | 499,740 | |||
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 | 40.60% | |||
Dividend yield | 0.05% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, Number of Shares | 499,740 | |||
2015 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 | 113,141 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, Number of Shares | 113,141 | |||
2015 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 | 56,970 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, Number of Shares | 56,970 | |||
2015 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 | 56,171 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, Number of Shares | 56,171 | |||
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 | |||
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 | 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 | 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 | 0 | 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 | 0 | 1,470 | ||
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] | 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 | |||
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 | 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 |
Note 15 - Share-Based and Oth97
Note 15 - Share-Based and Other Compensation Plans (Restricted Stock) (Details) - shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | Equity Settled [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Number of Shares | 0 | 0 |
Note 15 - Share-Based and Oth98
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] - shares | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 94,676 | 67,743 | 95,287 | ||
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 | 0.44% | 0.36% | |||
Volatility | 26.83% | 35.03% | |||
Dividend yield | 0.03% | 0.03% |
Note 15 - Share-Based and Oth99
Note 15 - Share-Based and Other Compensation Plans (Unrecognized Compensation Expense) (Details) - Equity Compensation Plans [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to unvested portion of all stock-based awards | $ 17.5 | $ 31.9 | |
Unrecognized compensation expense weighted average recognition period (in years) | 2 years 5 months 3 days | ||
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 | $ 11.7 |
Note 16 - Benefit Plans (Detail
Note 16 - Benefit Plans (Details) - Other Postretirement Benefit Plan [Member] - USD ($) | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan Maximum Percentage Of Base Earnings Qualifying For Pre-Tax Contributions | 100.00% | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount | $ 18,000 | |||
Defined Benefit Plan, Employee Discretionary Contribution Maximum Amount | $ 6,000 | |||
Defined Contribution Plan Parent Company Matching Contribution Percentage | 100.00% | 100.00% | ||
Defined Contribution Plan Percentage Of Base Earnings Qualifying For Parent Company Matching Contribution | 4.50% | 6.00% | ||
Defined Contribution Plan, Cost Recognized | $ 3,100,000 | $ 3,100,000 | $ 2,700,000 | |
Defined Contribution Plan, Employer Matching Contribution, Arrangement with Individual Requisite Service Period | 3 years | |||
Clayton Holdings, LLC [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan Parent Company Matching Contribution Percentage | 25.00% |
Note 17 - Commitments and Co101
Note 17 - Commitments and Contingencies Legal Proceedings (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2015USD ($)plaintiffmattersloan | |
Loss Reserve Information [Abstract] | ||
Minimum Number of Pending or Threatened Matters That Could Effect Our Results | matters | 1 | |
Settlement Agreement, Number of Years Entity Has Agreed Not to Enter Into Captive Insurance Arrangements | 10 years | |
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 | loan | 1 | |
Loss Reserve Information [Abstract] | ||
Loss Contingency, Number of Plaintiffs | plaintiff | 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 | 125 | |
Income Tax Examination, Proposed State Liabilities Resulting from IRS Examination of Tax Years 2000 Through 2007 | $ 32 | |
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 Co102
Note 17 - Commitments and Contingencies Guarantor Obligations (Details) $ in Millions | Dec. 31, 2015USD ($)transaction |
Guaranteed Structure Transactions [Abstract] | |
Number of Guaranteed Structured Transactions For Radian Guaranty | 2 |
Guaranteed Structured Transactions [Member] | |
Guaranteed Structure Transactions [Abstract] | |
Number of Guaranteed Structured Transactions For Radian Guaranty | 2 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ | $ 119.2 |
Note 17 - Commitments and Co103
Note 17 - Commitments and Contingencies Contract Underwriting (Details) - Mortgage Insurance Segment $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Contract Underwriting [Line Items] | |
Losses Paid For Contract Underwriting Remedies | $ 0 |
Provision For Contract underwriting Expense | 0.6 |
Reserve For Contract Underwriting Obligations | $ 0.3 |
Note 17 - Commitments and Co104
Note 17 - Commitments and Contingencies Commitment for Non Cancelable Operating Leases in Future Years (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | $ 5,000 | $ 3,900 | $ 3,100 |
Operating Leases, Future Minimum Payments Due, Current | 8,646 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 5,922 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 2,416 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 5,698 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 5,663 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 56,309 | ||
Operating Leases, Future Minimum Payments Due | 84,654 | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 0 |
Note 18 - Capital Stock (Detail
Note 18 - Capital Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Aug. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Aug. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Jun. 18, 2015 | |
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 202 | $ 202 | $ 202 | ||||
Stock Repurchased During Period, Shares | 1.8 | 9.2 | |||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 18.32 | ||||||
Convertible Senior Notes Due 2017 | |||||||
Class of Stock [Line Items] | |||||||
Extinguishment of Debt, Amount | $ 389.1 | $ 389.1 | |||||
Repayments of Convertible Debt | $ 126.8 | ||||||
Debt Conversion, Converted Instrument, Shares Issued | 28.4 | ||||||
Convertible Debt, Termination of Capped Call Transaction, Total Consideration | $ 54.9 | ||||||
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received | 2.3 | ||||||
Convertible Debt, Termination of Capped Call Transaction, Total Cash Received | $ 13.2 |
Note 19 - Net Income (Loss) 106
Note 19 - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | $ 74,528 | $ 70,091 | $ 45,193 | $ 91,727 | $ 878,026 | [1] | $ 132,031 | [1] | $ 103,537 | [1] | $ 145,980 | [1] | $ 281,539 | $ 1,259,574 | [1] | $ (141,851) | ||||||
Loss from discontinued operations, net of tax | $ 0 | [2] | $ 0 | [2] | $ 4,855 | [2] | $ 530 | [2] | $ (449,691) | [2],[3] | $ 21,559 | [2],[3] | $ 71,296 | [2],[3] | $ 56,779 | [2],[3] | 5,385 | [2] | (300,057) | [2],[3] | (55,134) | |
Net Income (Loss) Available to Common Stockholders, Basic | 286,924 | 959,517 | (196,985) | |||||||||||||||||||
Income (Loss) From Continuing Operations, Diluted, Amount | 296,297 | 1,273,946 | (141,851) | |||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 301,682 | $ 973,889 | $ (196,985) | |||||||||||||||||||
Average common shares outstanding | 199,910 | 184,551 | 166,366 | |||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | [4] | 2,393 | 3,150 | 0 | ||||||||||||||||||
Adjusted shares outstanding-diluted | 247,981 | [5] | 250,795 | [5] | 246,650 | [5] | 243,048 | [5] | 242,801 | [5] | 238,067 | [5] | 230,779 | [5] | 222,668 | [5] | 246,332 | [5] | 233,902 | [5] | 166,366 | |
Net income (loss) from continuing operations, per basic share | $ 1.41 | $ 6.83 | $ (0.85) | |||||||||||||||||||
Net (loss) income per share—basic | 1.44 | 5.20 | (1.18) | |||||||||||||||||||
Net income (loss) from continuing operations, per diluted share | 1.20 | 5.44 | (0.85) | |||||||||||||||||||
Net income (loss) from discontinued operations and disposal of discontinued operations, net of tax, per diluted share | 0.02 | (1.28) | (0.33) | |||||||||||||||||||
Net (loss) income per share—diluted | $ 0.32 | [5],[6] | $ 0.29 | [5],[6] | $ 0.22 | [5],[6] | $ 0.39 | [5],[6] | $ 1.78 | [5],[6] | $ 0.67 | [5],[6] | $ 0.78 | [5],[6] | $ 0.94 | [5],[6] | $ 1.22 | [5],[6] | $ 4.16 | [5],[6] | $ (1.18) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 728 | 542 | 43,288 | |||||||||||||||||||
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 | 6,293 | 8,465 | 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 | [7] | $ 14,758 | $ 14,372 | $ 0 | ||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 37,736 | 37,736 | 0 | |||||||||||||||||||
[1] | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter of 2014. | |||||||||||||||||||||
[2] | Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. | |||||||||||||||||||||
[3] | Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014. | |||||||||||||||||||||
[4] | The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of net income (loss) per share because they were anti-dilutive: Year Ended December 31,(in thousands)2015 2014 2013Shares of common stock equivalents728 542 43,288 | |||||||||||||||||||||
[5] | Diluted net income per share and average shares outstanding per the accounting standard regarding earnings per share. | |||||||||||||||||||||
[6] | Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income per share for the year. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income from continuing operations. | |||||||||||||||||||||
[7] | As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. |
Note 20 - Subsequent Events (De
Note 20 - Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 2 Months Ended | |
Feb. 26, 2016 | Jan. 15, 2016 | |
Subsequent Event [Line Items] | ||
Stock Repurchased During Period, Value | $ 100.2 | |
Stock Repurchase Program, Weighted Average Price Per Share Including Commissions | $ 10.62 | |
Stock Repurchase Program, Authorized Amount | $ 100 | |
Stock Repurchased During Period, Shares | 9.4 |
Note 21 - Quarterly Financia108
Note 21 - Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Net premiums earned—insurance | $ 226,443 | $ 227,433 | $ 237,437 | $ 224,595 | $ 224,293 | $ 217,827 | $ 203,646 | $ 198,762 | $ 915,908 | $ 844,528 | $ 781,420 | ||||||||||||
Services revenue | 37,493 | 42,189 | 43,503 | 30,630 | [1] | 34,450 | 42,243 | 0 | 153,815 | 76,693 | 0 | ||||||||||||
Net investment income | 22,833 | 22,091 | 19,285 | 17,328 | 16,531 | 17,143 | 16,663 | 15,318 | 81,537 | 65,655 | 68,121 | ||||||||||||
Net gains (losses) on other financial instruments | 612 | (3,880) | (7,580) | ||||||||||||||||||||
Provision for losses | 56,805 | 64,192 | 32,560 | 45,028 | 82,867 | 48,942 | 64,648 | 49,626 | 198,585 | 246,083 | 562,747 | ||||||||||||
Policy acquisition costs | 4,831 | 2,880 | 6,963 | 7,750 | 6,443 | 4,240 | 6,746 | 7,017 | 22,424 | 24,446 | 28,485 | ||||||||||||
Policy Acquisition Amortization Expense And Other Operating Expenses | 59,570 | 65,082 | 67,731 | 53,774 | 85,800 | 51,225 | 60,751 | 54,507 | 246,157 | 252,283 | |||||||||||||
Loss on induced conversion and debt extinguishment | 2,320 | 11 | 91,876 | 0 | 94,207 | 0 | 0 | ||||||||||||||||
Direct cost of services | 22,241 | 24,949 | 23,520 | 19,253 | 19,709 | 23,896 | 0 | 0 | 89,963 | 43,605 | 0 | ||||||||||||
Increase (Decrease) in Goodwill and Intangible Assets | 3,409 | 3,273 | 3,281 | 3,023 | 5,354 | 3,294 | 0 | 0 | 12,986 | 8,648 | 0 | ||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 74,528 | 70,091 | 45,193 | 91,727 | 878,026 | [2] | 132,031 | [2] | 103,537 | [2] | 145,980 | [2] | 281,539 | 1,259,574 | [2] | (141,851) | |||||||
Loss from discontinued operations, net of tax | 0 | [3] | 0 | [3] | 4,855 | [3] | 530 | [3] | (449,691) | [3],[4] | 21,559 | [3],[4] | 71,296 | [3],[4] | 56,779 | [3],[4] | 5,385 | [3] | (300,057) | [3],[4] | (55,134) | ||
Net income (loss) | $ 74,528 | $ 70,091 | $ 50,048 | $ 92,257 | $ 428,335 | $ 153,590 | $ 174,833 | $ 202,759 | $ 286,924 | $ 959,517 | $ (196,985) | ||||||||||||
Net (loss) income per share—diluted | $ 0.32 | [5],[6] | $ 0.29 | [5],[6] | $ 0.22 | [5],[6] | $ 0.39 | [5],[6] | $ 1.78 | [5],[6] | $ 0.67 | [5],[6] | $ 0.78 | [5],[6] | $ 0.94 | [5],[6] | $ 1.22 | [5],[6] | $ 4.16 | [5],[6] | $ (1.18) | ||
Weighted-average number of common and common equivalent shares outstanding—diluted | 247,981 | [5] | 250,795 | [5] | 246,650 | [5] | 243,048 | [5] | 242,801 | [5] | 238,067 | [5] | 230,779 | [5] | 222,668 | [5] | 246,332 | [5] | 233,902 | [5] | 166,366 | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | $ 666 | $ 15,514 | $ (153,245) | $ (619,040) | |||||||||||||||||||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | (1,759) | (1,759) | 17,071 | (45,897) | |||||||||||||||||||
Cash Provided by (Used in) Investing Activities, Discontinued Operations | (4,999) | 4,999 | 156,839 | 107,790 | |||||||||||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) Including Discontinued Operations | 29,979 | (16,012) | (8,142) | 7,697 | |||||||||||||||||||
Net Cash Provided by (Used in) Discontinued Operations | 3,240 | (421) | 557 | (1,169) | |||||||||||||||||||
Proceeds from sales of fixed-maturity investments available for sale | $ 3,621 | $ 16,208 | 20,100 | 19,672 | 17,185 | ||||||||||||||||||
Payments to Acquire Available-for-sale Securities | (671,952) | 1,006,985 | 1,486,318 | 519,166 | 21,432 | ||||||||||||||||||
Net gains (losses) on investments and other financial instruments | $ (13,402) | [7] | $ 3,868 | [7] | $ 28,448 | [7] | 16,779 | [7] | $ 17,983 | [7] | $ (6,294) | [7] | $ 25,332 | [7] | $ 42,968 | [7] | 35,693 | [7],[8] | 79,989 | [7],[8] | (106,525) | ||
Scenario, Previously Reported [Member] | |||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 80 | ||||||||||||||||||||||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | (12,168) | ||||||||||||||||||||||
Cash Provided by (Used in) Investing Activities, Discontinued Operations | (9,514) | ||||||||||||||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) Including Discontinued Operations | 23,499 | ||||||||||||||||||||||
Net Cash Provided by (Used in) Discontinued Operations | (3,240) | ||||||||||||||||||||||
Proceeds from sales of fixed-maturity investments available for sale | 57,309 | 96,684 | |||||||||||||||||||||
Payments to Acquire Available-for-sale Securities | $ (725,640) | $ 1,087,461 | |||||||||||||||||||||
Parent Company | |||||||||||||||||||||||
Net investment income | 17,917 | 9,515 | 4,300 | ||||||||||||||||||||
Loss on induced conversion and debt extinguishment | 94,207 | 0 | 0 | ||||||||||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 286,720 | 977,544 | (196,985) | ||||||||||||||||||||
Loss from discontinued operations, net of tax | 204 | (18,027) | 0 | ||||||||||||||||||||
Net income (loss) | 286,924 | 959,517 | (196,985) | ||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (128,879) | (27,153) | 105,681 | ||||||||||||||||||||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 0 | (18,027) | 0 | ||||||||||||||||||||
Payments to Acquire Available-for-sale Securities | $ 39,667 | $ 0 | $ 0 | ||||||||||||||||||||
Adjustments for Error Correction [Domain] | |||||||||||||||||||||||
Services revenue | $ 101 | ||||||||||||||||||||||
[1] | Services revenue for the first quarter includes $101 thousand that had previously been included in other income. | ||||||||||||||||||||||
[2] | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter of 2014. | ||||||||||||||||||||||
[3] | Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. | ||||||||||||||||||||||
[4] | Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014. | ||||||||||||||||||||||
[5] | Diluted net income per share and average shares outstanding per the accounting standard regarding earnings per share. | ||||||||||||||||||||||
[6] | Diluted net income per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income 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 from continuing operations. | ||||||||||||||||||||||
[7] | The 2015 and 2014 amounts reflect primarily unrealized (losses) gains, respectively, on our trading securities. | ||||||||||||||||||||||
[8] | The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains (losses) on investments and other financial instruments has been adjusted by income of $0.1 million and $0.6 million for the years ended December 31, 2014 and 2013, respectively, to reverse this item. |
Schedule I Summary Of Invest109
Schedule I Summary Of Investments (Details) $ in Thousands | Dec. 31, 2015USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | $ 4,348,882 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 4,301,872 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 4,298,686 | |
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 | 13,773 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 13,752 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 13,752 | |
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 | 36,920 | [1] |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 37,900 | [1] |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 37,900 | [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 | 815,024 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 802,193 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 802,193 | |
RMBS | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 226,744 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 224,905 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 224,905 | |
CMBS | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 415,780 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 406,910 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 406,910 | |
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 | 359,452 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 355,494 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 355,494 | |
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 | 25,663 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 24,307 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 24,307 | |
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 | 1,893,356 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,865,461 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 1,865,461 | |
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 | 1,301,187 | [2] |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,279,137 | [2] |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 1,279,137 | [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 | 75,038 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 74,930 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 74,930 | |
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 | 500 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 500 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 500 | |
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 | 75,538 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 75,430 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 75,430 | |
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 | 1,077,087 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,076,944 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 1,076,944 | |
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 | 1,714 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 4,900 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | $ 1,714 | |
[1] | Available for sale. | |
[2] | Includes foreign government and agency securities. |
Schedule II Financial Inform110
Schedule II Financial Information of Registrant Parent Company Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Assets | ||||||
Fixed-maturities available for sale—at fair value (amortized cost $1,893,356 and $528,660) | $ 1,865,461 | $ 536,890 | ||||
Equity securities available for sale—at fair value (cost $75,538 and $76,900) | 75,430 | 143,368 | ||||
Trading securities—at fair value | 1,279,137 | 1,633,584 | ||||
Other short-term investments | 1,076,944 | 1,300,872 | ||||
Cash | 46,898 | 30,465 | $ 22,880 | $ 29,408 | ||
Restricted cash | 13,000 | 14,031 | ||||
Investment in subsidiaries, at equity in net assets | 2,900,000 | |||||
Property and equipment, at cost (less accumulated depreciation of $51,567 and $50,648) | [1] | 46,802 | 27,248 | |||
Other assets (Note H) | 354,420 | 357,864 | ||||
Assets held for sale | 0 | 1,736,444 | [2] | |||
Total assets | 5,642,100 | 6,842,336 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Long-term debt (Note 11) | 1,219,454 | 1,192,299 | ||||
Other liabilities | 269,016 | 326,743 | ||||
Liabilities held for sale | 0 | 947,008 | ||||
Total liabilities | 3,145,169 | 4,670,586 | ||||
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2015 and 2014; 224,432,465 and 208,601,020 shares issued at December 31, 2015 and 2014, respectively; 206,871,768 and 191,053,530 shares outstanding at December 31, 2015 and 2014, respectively | 224 | 209 | ||||
Treasury stock, at cost: 17,560,697 and 17,547,490 shares at December 31, 2015 and 2014, respectively | (893,176) | (892,961) | ||||
Additional paid-in capital | 2,716,618 | 2,531,513 | ||||
Retained earnings | 691,742 | 406,814 | ||||
Accumulated other comprehensive (loss) income (“AOCI”) (Note 12) | (18,477) | 51,485 | ||||
Total common stockholders’ equity | 2,496,931 | 2,097,060 | ||||
Balance Sheet Parentheticals [Abstract] | ||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 106,900 | $ 100,200 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 | ||||
Common Stock, Shares, Issued | 224,432,465 | 208,601,020 | ||||
Common Stock, Shares, Outstanding | 206,871,768 | 191,053,530 | ||||
Treasury Stock, Shares | 17,560,697 | 17,547,490 | ||||
Investments | $ 4,298,686 | $ 3,629,299 | ||||
Parent Company | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Notes Receivable, Related Parties | 300,000 | 300,000 | ||||
Assets | ||||||
Fixed-maturities available for sale—at fair value (amortized cost $1,893,356 and $528,660) | 41,176 | 0 | ||||
Equity securities available for sale—at fair value (cost $75,538 and $76,900) | 25,510 | 0 | ||||
Trading securities—at fair value | 5,482 | 5,447 | ||||
Other short-term investments | 158,658 | 631,934 | ||||
Cash | 3,301 | 1,951 | $ 4,304 | $ 2,978 | ||
Restricted cash | 124 | 124 | ||||
Investment in subsidiaries, at equity in net assets | 3,001,846 | 2,746,915 | ||||
Accounts and Notes Receivable, Net | 631,636 | 305,856 | ||||
Other assets (Note H) | 124,983 | 31,394 | ||||
Assets held for sale | 0 | 18,027 | ||||
Total assets | 3,992,716 | 3,741,648 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Long-term debt (Note 11) | 1,219,454 | 1,192,299 | ||||
Federal income taxes—current and deferred | 229,939 | 262,583 | ||||
Other liabilities | 46,392 | 96,989 | ||||
Liabilities held for sale | 0 | 18,027 | ||||
Total liabilities | 1,495,785 | 1,569,898 | ||||
Equity component of currently redeemable convertible senior notes (Note 11) | 0 | 74,690 | ||||
Common stock: par value $.001 per share; 485,000,000 shares authorized at December 31, 2015 and 2014; 224,432,465 and 208,601,020 shares issued at December 31, 2015 and 2014, respectively; 206,871,768 and 191,053,530 shares outstanding at December 31, 2015 and 2014, respectively | 224 | 209 | ||||
Treasury stock, at cost: 17,560,697 and 17,547,490 shares at December 31, 2015 and 2014, respectively | (893,176) | (892,961) | ||||
Additional paid-in capital | 2,716,618 | 2,531,513 | ||||
Retained earnings | 691,742 | 406,814 | ||||
Accumulated other comprehensive (loss) income (“AOCI”) (Note 12) | (18,477) | 51,485 | ||||
Total common stockholders’ equity | 2,496,931 | 2,097,060 | ||||
Total liabilities and stockholders’ equity | 3,992,716 | 3,741,648 | ||||
Balance Sheet Parentheticals [Abstract] | ||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 0 | $ 50,648 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||
Common Stock, Shares Authorized | 485,000,000 | 485,000,000 | ||||
Common Stock, Shares, Issued | 0 | 208,601,020 | ||||
Common Stock, Shares, Outstanding | 0 | 191,053,530 | ||||
Treasury Stock, Shares | 0 | 17,547,490 | ||||
Investments | $ 230,826 | $ 637,381 | ||||
[1] | Property and equipment, at cost less accumulated depreciation of $106.9 million and $100.2 million at December 31, 2015 and 2014, respectively. | |||||
[2] | Assets held for sale are not part of the Mortgage Insurance or Services segments. |
Schedule II Financial Inform111
Schedule II Financial Information of Registrant Parent Company Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Revenues: | |||||||||||||||||||||
Net investment income | $ 22,833 | $ 22,091 | $ 19,285 | $ 17,328 | $ 16,531 | $ 17,143 | $ 16,663 | $ 15,318 | $ 81,537 | $ 65,655 | $ 68,121 | ||||||||||
Net gains (losses) on other financial instruments | 612 | (3,880) | (7,580) | ||||||||||||||||||
Other income | 6,300 | 5,820 | 6,890 | ||||||||||||||||||
Total revenues | 1,193,253 | 1,072,685 | 749,906 | ||||||||||||||||||
Loss on induced conversion and debt extinguishment | 2,320 | 11 | 91,876 | 0 | 94,207 | 0 | 0 | ||||||||||||||
Expenses: | |||||||||||||||||||||
Other operating expenses | 246,157 | 252,283 | 257,402 | ||||||||||||||||||
Interest expense | 91,102 | 90,464 | 74,618 | ||||||||||||||||||
Total expenses | 755,424 | 665,529 | 923,252 | ||||||||||||||||||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | 437,829 | 407,156 | (173,346) | ||||||||||||||||||
Income tax (benefit) provision | 156,290 | (852,418) | (31,495) | ||||||||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 74,528 | 70,091 | 45,193 | 91,727 | 878,026 | [1] | 132,031 | [1] | 103,537 | [1] | 145,980 | [1] | 281,539 | 1,259,574 | [1] | (141,851) | |||||
Loss from discontinued operations, net of tax | 0 | [2] | 0 | [2] | 4,855 | [2] | 530 | [2] | (449,691) | [2],[3] | 21,559 | [2],[3] | 71,296 | [2],[3] | 56,779 | [2],[3] | 5,385 | [2] | (300,057) | [2],[3] | (55,134) |
Net income (loss) | $ 74,528 | $ 70,091 | $ 50,048 | $ 92,257 | $ 428,335 | $ 153,590 | $ 174,833 | $ 202,759 | 286,924 | 959,517 | (196,985) | ||||||||||
Other comprehensive income (loss), net of tax | (70,227) | 14,161 | 21,090 | ||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 216,697 | 973,678 | (175,895) | ||||||||||||||||||
Parent Company | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Net investment income | 17,917 | 9,515 | 4,300 | ||||||||||||||||||
Net gains (losses) on investments and other financial instruments | 2,975 | (2,732) | (6,956) | ||||||||||||||||||
Other income | 0 | 7 | 0 | ||||||||||||||||||
Total revenues | 20,892 | 6,790 | (2,656) | ||||||||||||||||||
Loss on induced conversion and debt extinguishment | 94,207 | 0 | 0 | ||||||||||||||||||
Expenses: | |||||||||||||||||||||
Interest expense | 55,768 | 57,366 | 37,087 | ||||||||||||||||||
Total expenses | 149,975 | 57,366 | 37,087 | ||||||||||||||||||
Pretax Income (Loss) from Continuing Operations Attributable to Parent | (129,083) | (50,576) | (39,743) | ||||||||||||||||||
Income tax (benefit) provision | (43,854) | 143,912 | 9,234 | ||||||||||||||||||
Equity in net income (loss) of affiliates | 371,949 | 1,172,032 | (148,008) | ||||||||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 286,720 | 977,544 | (196,985) | ||||||||||||||||||
Loss from discontinued operations, net of tax | 204 | (18,027) | 0 | ||||||||||||||||||
Net income (loss) | 286,924 | 959,517 | (196,985) | ||||||||||||||||||
Other comprehensive income (loss), net of tax | (70,227) | 14,161 | 21,090 | ||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 216,697 | $ 973,678 | $ (175,895) | ||||||||||||||||||
[1] | This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter of 2014. | ||||||||||||||||||||
[2] | Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. | ||||||||||||||||||||
[3] | Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014. |
Schedule II Financial Inform112
Schedule II Financial Information of Registrant Parent Company Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income (loss) | $ 74,528 | $ 70,091 | $ 50,048 | $ 92,257 | $ 428,335 | $ 153,590 | $ 174,833 | $ 202,759 | $ 286,924 | $ 959,517 | $ (196,985) | ||||||||||||
Loss from discontinued operations, net of tax | 0 | [1] | 0 | [1] | 4,855 | [1] | 530 | [1] | (449,691) | [1],[2] | $ 21,559 | [1],[2] | $ 71,296 | [1],[2] | 56,779 | [1],[2] | 5,385 | [1] | (300,057) | [1],[2] | (55,134) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Net (gains) losses on investments and other financial instruments recognized in earnings | (35,693) | (79,989) | 105,890 | ||||||||||||||||||||
Loss on induced conversion and debt extinguishment | 2,320 | $ 11 | $ 91,876 | 0 | 94,207 | 0 | 0 | ||||||||||||||||
Deferred income tax provision (benefit) | 156,170 | (825,843) | (31,847) | ||||||||||||||||||||
Change in other assets | 21,620 | 37,460 | 61,302 | ||||||||||||||||||||
Change in other liabilities | (58,562) | (55,592) | 54,354 | ||||||||||||||||||||
Net cash provided by (used in) operating activities, continuing operations | 666 | 15,514 | (153,245) | (619,040) | |||||||||||||||||||
Net cash used in operating activities, discontinued operations | (1,759) | (1,759) | 17,071 | (45,897) | |||||||||||||||||||
Net cash (used in) provided by operating activities | 13,755 | (136,174) | (664,937) | ||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Proceeds from sales of fixed-maturity investments available for sale | $ 3,621 | $ 16,208 | 20,100 | 19,672 | 17,185 | ||||||||||||||||||
Purchases of fixed-maturity investments available for sale | 671,952 | (1,006,985) | (1,486,318) | (519,166) | (21,432) | ||||||||||||||||||
Purchases of trading securities | 0 | 0 | (259,897) | ||||||||||||||||||||
Purchases of equity securities available for sale | (75,538) | 0 | 0 | ||||||||||||||||||||
Sales, redemptions (purchases) of short-term investments, net | 222,882 | (364,855) | (363,446) | ||||||||||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 16,717 | 7,836 | 41,397 | ||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (10,837) | (295,977) | 0 | ||||||||||||||||||||
Net cash provided by (used in) investing activities | 1,789 | (337,632) | 60,299 | ||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Dividends paid | (1,996) | (1,865) | (1,632) | ||||||||||||||||||||
Issuance of long-term debt, net | 343,334 | 293,809 | 377,783 | ||||||||||||||||||||
Purchases and redemptions of long-term debt | (156,172) | (57,223) | (79,372) | ||||||||||||||||||||
Proceeds from Hedge, Financing Activities | 13,150 | 0 | 0 | ||||||||||||||||||||
Issuance of common stock | 1,285 | 247,188 | 299,410 | ||||||||||||||||||||
Payments for Repurchase of Common Stock | (202,000) | 0 | 0 | ||||||||||||||||||||
Excess tax benefits from stock-based awards | 3,000 | 107 | 752 | ||||||||||||||||||||
Net cash (used in) provided by financing activities | 601 | 482,016 | 596,941 | ||||||||||||||||||||
Cash, beginning of period | 30,465 | 22,880 | 30,465 | 30,465 | 30,465 | 22,880 | 29,408 | ||||||||||||||||
Cash, end of period | 46,898 | 30,465 | 46,898 | 30,465 | 22,880 | ||||||||||||||||||
Parent Company | |||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income (loss) | 286,924 | 959,517 | (196,985) | ||||||||||||||||||||
Loss from discontinued operations, net of tax | 204 | (18,027) | 0 | ||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Loss on induced conversion and debt extinguishment | 94,207 | 0 | 0 | ||||||||||||||||||||
Net cash provided by (used in) operating activities, continuing operations | (128,879) | (27,153) | 105,681 | ||||||||||||||||||||
Net cash used in operating activities, discontinued operations | 0 | (18,027) | 0 | ||||||||||||||||||||
Net cash (used in) provided by operating activities | (128,879) | (45,180) | 105,681 | ||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of fixed-maturity investments available for sale | (39,667) | 0 | 0 | ||||||||||||||||||||
Sales/redemptions of trading securities | 0 | 0 | 9,000 | ||||||||||||||||||||
Purchases of equity securities available for sale | (25,545) | 0 | 0 | ||||||||||||||||||||
Sales, redemptions (purchases) of short-term investments, net | 473,350 | 1,372 | (496,979) | ||||||||||||||||||||
Proceeds from Sale of Other Assets, Investing Activities | 0 | 0 | (21,473) | ||||||||||||||||||||
Payments for (Proceeds from) Productive Assets | (688) | (1,351) | (647) | ||||||||||||||||||||
Proceeds from Contributions from Affiliates | 113,784 | 0 | 0 | ||||||||||||||||||||
Capital contributions to subsidiaries and affiliates | (182,307) | (139,103) | (233,391) | ||||||||||||||||||||
Issuance of notes receivable from affiliates | (208,527) | (300,000) | 0 | ||||||||||||||||||||
Net cash provided by (used in) investing activities | 130,400 | (439,082) | (700,544) | ||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Dividends paid | (1,996) | (1,865) | (1,632) | ||||||||||||||||||||
Issuance of long-term debt, net | 343,334 | 293,809 | 377,783 | ||||||||||||||||||||
Purchases and redemptions of long-term debt | (156,172) | (57,223) | (79,372) | ||||||||||||||||||||
Proceeds from Hedge, Financing Activities | 13,150 | 0 | 0 | ||||||||||||||||||||
Issuance of common stock | 1,285 | 247,188 | 299,410 | ||||||||||||||||||||
Payments for Repurchase of Common Stock | (202,000) | 0 | 0 | ||||||||||||||||||||
Excess tax benefits from stock-based awards | 2,228 | 0 | 0 | ||||||||||||||||||||
Net cash (used in) provided by financing activities | (171) | 481,909 | 596,189 | ||||||||||||||||||||
(Decrease) increase in cash | 1,350 | (2,353) | 1,326 | ||||||||||||||||||||
Cash, beginning of period | $ 1,951 | $ 4,304 | $ 1,951 | $ 1,951 | 1,951 | 4,304 | 2,978 | ||||||||||||||||
Cash, end of period | $ 3,301 | $ 1,951 | $ 3,301 | $ 1,951 | $ 4,304 | ||||||||||||||||||
[1] | Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. Until the April 1, 2015 sale date, the operating results of Radian Asset Assurance were classified as discontinued operations for all periods presented in our consolidated statements of operations. See Note 3 for additional information. | ||||||||||||||||||||||
[2] | Reflects a $468 million loss on reclassification of Radian Asset Assurance as assets held for sale in the fourth quarter of 2014. |
Schedule II Financial Inform113
Schedule II Financial Information of Registrant Parent Company Only Financial Information (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 7 Months Ended | 8 Months Ended | 10 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2015USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2015USD ($)transactionbasispoint | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)transactionbasispoint | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 31, 2014USD ($) | Mar. 31, 2013USD ($) | Nov. 30, 2010 | Nov. 15, 2010USD ($) | Jun. 01, 2005USD ($) | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Investments | $ 4,298,686 | $ 3,629,299 | $ 4,298,686 | $ 3,629,299 | |||||||||
Fixed-maturities available for sale—at fair value (amortized cost $1,893,356 and $528,660) | 1,865,461 | 536,890 | 1,865,461 | 536,890 | |||||||||
Short-term investments—at fair value | $ 1,076,944 | 1,300,872 | 1,076,944 | 1,300,872 | |||||||||
Supplemental Notes [Abstract] | |||||||||||||
Repayments of Long-term Debt | 156,172 | 57,223 | $ 79,372 | ||||||||||
Issuance of common stock | 1,285 | 247,188 | 299,410 | ||||||||||
Payments to Acquire Notes Receivable | $ 208,500 | ||||||||||||
Surplus Note, Redemption Percentage | 50.00% | 50.00% | |||||||||||
Surplus Note, Amount Used in Calculation of Additional Redemption Allowed | $ 150,000 | $ 150,000 | |||||||||||
Available-for-sale Securities, Equity Securities | $ 75,430 | 143,368 | $ 75,430 | 143,368 | |||||||||
Number of Guaranteed Structured Transactions For Radian Guaranty | transaction | 2 | 2 | |||||||||||
Senior Notes Due 2020 [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Debt Instrument, Face Amount | $ 350,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | |||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||
Proceeds/payments related to issuance or exchange of debt, net | $ 343,300 | ||||||||||||
Long-term Debt, Gross | $ 350,000 | $ 350,000 | |||||||||||
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 | ||||||||||||
Gains (Losses) on Extinguishment of Debt | (2,800) | ||||||||||||
Repayments of Long-term Debt | 57,200 | ||||||||||||
Convertible Senior Notes Due 2017 | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Redemption of long-term debt | 389,100 | $ 389,100 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | |||||||||||
Gains (Losses) on Extinguishment of Debt | $ (52,300) | ||||||||||||
Convertible Senior Notes Due 2017 | Convertible Debt [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Debt Instrument, Face Amount | $ 450,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||||||||||||
Proceeds/payments related to issuance or exchange of debt, net | $ 391,300 | ||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.75% | ||||||||||||
Long-term Debt, Gross | $ 52,370 | 450,000 | $ 52,370 | 450,000 | |||||||||
Convertible Senior Notes Due 2019 | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | |||||||||||
Convertible Senior Notes Due 2019 | Convertible Debt [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Debt Instrument, Face Amount | $ 400,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | ||||||||||||
Proceeds/payments related to issuance or exchange of debt, net | $ 389,800 | ||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.25% | ||||||||||||
Long-term Debt, Gross | $ 389,992 | $ 400,000 | $ 389,992 | 400,000 | |||||||||
Senior Notes Due 2019 [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Debt Instrument, Face Amount | $ 300,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | 5.50% | ||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||
Number of Basis Points Added to Treasury Rate Used in Calculating Redemption Price of Debt | basispoint | 50 | 50 | |||||||||||
Proceeds/payments related to issuance or exchange of debt, net | $ 293,800 | ||||||||||||
Parent Company | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Investments | $ 230,826 | 637,381 | $ 230,826 | 637,381 | |||||||||
Fixed-maturities available for sale—at fair value (amortized cost $1,893,356 and $528,660) | 41,176 | 0 | 41,176 | 0 | |||||||||
Short-term investments—at fair value | 158,658 | 631,934 | 158,658 | 631,934 | |||||||||
Interest Income, Related Party | 17,700 | 8,900 | |||||||||||
Notes Receivable, Related Parties | 300,000 | 300,000 | 300,000 | 300,000 | |||||||||
Supplemental Notes [Abstract] | |||||||||||||
Restricted Funds Included In Short Term Investments | 45,100 | 45,100 | |||||||||||
Restricted Cash Held As Collateral For Insurance Trust Agreement | 100 | 100 | 100 | 100 | |||||||||
Total Operating Expenses and Interest Expense Allocated to Subsidiaries From Parent Company | 84,700 | 92,500 | 140,000 | ||||||||||
Dividends Received From Consolidated Subsidiaries | 446,200 | 7,600 | |||||||||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | 398,300 | 139,100 | 313,900 | ||||||||||
Proceeds from Contributions from Affiliates | 113,784 | 0 | 0 | ||||||||||
Tax Payments to Parent from Subsidiaries | 16,000 | 8,800 | 500 | ||||||||||
Repayments of Long-term Debt | 156,172 | 57,223 | 79,372 | ||||||||||
Issuance of common stock | 1,285 | 247,188 | 299,410 | ||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 247,871 | 247,871 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 350,000 | 350,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 689,992 | 689,992 | |||||||||||
Long-term Debt, Gross | 1,287,863 | $ 1,287,863 | |||||||||||
Related Party Transaction, Rate | 0.00% | ||||||||||||
Available-for-sale Securities, Equity Securities | 25,510 | 0 | $ 25,510 | 0 | |||||||||
Qualified Deposit With The U.S. Department Of Treasury Relating To Prior Examinations | 89,000 | 89,000 | |||||||||||
Radian Guaranty [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Transfer from Investments | 116,500 | ||||||||||||
Surplus Notes | 325,000 | 325,000 | |||||||||||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | 1,686,500 | $ 1,325,200 | $ 1,317,800 | 1,686,500 | $ 1,325,200 | 1,317,800 | |||||||
Radian Reinsurance [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | 138,700 | 138,700 | |||||||||||
Radian Mortgage Guaranty Inc. [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 20,000 | 20,000 | |||||||||||
Radian Mortgage Assurance [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 5,000 | 5,000 | |||||||||||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | 8,100 | 8,100 | |||||||||||
Risk In Force | 0 | 0 | |||||||||||
Radian Mortgage Insurance Inc [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Statutory Accounting Practices, Statutory Policyholders' Surplus, Balance | $ 2,800 | $ 2,800 | |||||||||||
Debt Due 2015 Exchange | Senior Notes Due 2017 | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Debt Instrument, Face Amount | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | |||||||||||
Gains (Losses) on Extinguishment of Debt | (4,000) | ||||||||||||
Debt Due 2015 Exchange | Senior Notes Due 2015 | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Redemption of long-term debt | 195,500 | ||||||||||||
Guaranteed Structured Transactions [Member] | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Number of Guaranteed Structured Transactions For Radian Guaranty | transaction | 2 | 2 | |||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 119,200 | $ 119,200 | |||||||||||
Enhance Financial Services Group, Inc. [Member] | Parent Company | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Transfer to Investments | 216,000 | ||||||||||||
Radian MI Services Inc. [Member] | Parent Company | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | $ 20,000 | 2,900 | |||||||||||
Proceeds from Contributions from Affiliates | 15,000 | ||||||||||||
Radian Mortgage Reinsurance [Member] | Parent Company | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 200 | 100 | 100 | ||||||||||
Radian Clayton Holdings Inc. [Member] | Parent Company | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 12,100 | 19,000 | |||||||||||
Radian Mortgage Guaranty Inc. [Member] | Parent Company | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 20,000 | ||||||||||||
Radian Reinsurance [Member] | Parent Company | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Investments in and Advances to Affiliates, at Fair Value, Period Increase (Decrease) | 266,000 | ||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 50,000 | ||||||||||||
Transfer from Investments | 216,000 | ||||||||||||
Radian Guaranty [Member] | Parent Company | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Payments for Capital Contributions to Wholly-Owned Subsidiaries | 100,000 | $ 100,000 | 230,400 | ||||||||||
Cash Distributed From Parent to Consolidated Subsidiary | 400 | ||||||||||||
RDN Investments [Member] | Parent Company | |||||||||||||
Supplemental Notes [Abstract] | |||||||||||||
Dividends Received From Consolidated Subsidiaries | 215,200 | ||||||||||||
Transfer from Investments | $ 80,500 | ||||||||||||
Transfer to Investments | 116,500 | ||||||||||||
Proceeds from Contributions from Affiliates | $ 98,700 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct Premiums Earned | $ 973,645 | $ 905,502 | $ 848,655 | ||||||||
Ceded Premiums Earned | 57,780 | 61,017 | 67,291 | ||||||||
Assumed Premiums Earned | 43 | 43 | 56 | ||||||||
Net premiums earned—insurance | $ 226,443 | $ 227,433 | $ 237,437 | $ 224,595 | $ 224,293 | $ 217,827 | $ 203,646 | $ 198,762 | $ 915,908 | $ 844,528 | $ 781,420 |
Premiums, Percentage Assumed to Net | 0.00% | 0.01% | 0.01% |