Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 05, 2020 | |
Document Information [Line Items] | ||
Document Transition Report | false | |
Document Quarterly Report | true | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Entity Incorporation, State or Country Code | DE | |
Entity Registrant Name | Radian Group Inc | |
City Area Code | 215 | |
Local Phone Number | 231-1000 | |
Entity Central Index Key | 0000890926 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 1-11356 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 191,556,568 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Tax Identification Number | 23-2691170 | |
Entity Address, Address Line One | 1500 Market Street | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19102 | |
Trading Symbol | RDN | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) Statement - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Fixed-maturities available for sale—at fair value, net of allowance for credit losses of $2,290 as of September 30, 2020 (amortized cost of $5,338,536 and $4,549,534) | $ 5,628,992 | $ 4,688,911 |
Trading securities—at fair value (amortized cost of $262,131 and $297,505) | 291,650 | 317,150 |
Equity securities—at fair value (cost of $92,638 and $125,311) | 91,317 | 130,221 |
Short-term investments—at fair value (includes $33,121 and $25,561 of reinvested cash collateral held under securities lending agreements) | 567,146 | 518,393 |
Other invested assets—at fair value | 5,472 | 4,072 |
Investments, Total | 6,584,577 | 5,658,747 |
Cash | 82,020 | 92,729 |
Restricted cash | 4,424 | 3,545 |
Accounts and notes receivable | 145,164 | 93,630 |
Goodwill and other acquired intangible assets, net (Note 7) | 25,268 | 28,187 |
Prepaid reinsurance premium | 295,062 | 363,856 |
Other assets (Note 9) | 640,830 | 567,619 |
Assets, Total | 7,777,345 | 6,808,313 |
Liabilities and Stockholders’ Equity | ||
Unearned premiums | 501,787 | 626,822 |
Reserve for losses and loss adjustment expense (Note 11) | 825,792 | 404,765 |
Senior notes (Note 12) | 1,404,759 | 887,110 |
FHLB advances (Note 12) | 141,058 | 134,875 |
Reinsurance funds withheld | 318,773 | 291,829 |
Other Liabilities | 462,797 | 414,189 |
Total liabilities | 3,654,966 | 2,759,590 |
Stockholders’ equity | ||
Common stock: par value $0.001 per share; 485,000 shares authorized at September 30, 2020 and December 31, 2019; 210,061 and 219,123 shares issued at September 30, 2020 and December 31, 2019, respectively; 191,556 and 201,164 shares outstanding at September 30, 2020 and December 31, 2019, respectively | 210 | 219 |
Treasury stock, at cost: 18,505 and 17,959 shares at September 30, 2020 and December 31, 2019, respectively | (909,745) | (901,657) |
Additional paid-in capital | 2,238,869 | 2,449,884 |
Retained earnings | 2,561,076 | 2,389,789 |
Accumulated other comprehensive income (loss) (Note 15) | 231,969 | 110,488 |
Total stockholders’ equity | 4,122,379 | 4,048,723 |
Total liabilities and stockholders’ equity | 7,777,345 | 6,808,313 |
Equity Securities, FV-NI, Cost | 92,638 | 125,311 |
Debt Securities, Trading, Amortized Cost | 262,131 | 297,505 |
Fixed-maturities available for sale—at amortized cost | 5,338,536 | $ 4,549,534 |
Ending balance | $ (2,290) | |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 485,000 | 485,000 |
Common Stock, Shares, Issued | 210,061 | 219,123 |
Common Stock, Shares, Outstanding | 191,556 | 201,164 |
Treasury Stock, Shares | 18,505 | 17,959 |
Reinvested Cash Collateral Held Under Securities Lending Agreements | $ 33,121 | $ 25,561 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Net premiums earned (Note 8) | $ 286,471 | $ 281,185 | $ 813,181 | $ 843,863 |
Services revenue (Note 4) | 33,943 | 42,509 | 93,945 | 114,565 |
Net investment income | 36,255 | 42,756 | 115,922 | 130,364 |
Net gains (losses) on investments and other financial instruments | 17,652 | 13,009 | 42,901 | 47,462 |
Other income | 913 | 879 | 2,807 | 2,677 |
Total revenues | 375,234 | 380,338 | 1,068,756 | 1,138,931 |
Expenses: | ||||
Provision for losses | 88,084 | 29,231 | 428,453 | 97,412 |
Policy acquisition costs | 10,166 | 6,435 | 23,594 | 18,531 |
Cost of services | 24,353 | 29,044 | 64,466 | 81,046 |
Other operating expenses | 69,377 | 76,384 | 199,069 | 225,235 |
Interest expense | 21,088 | 13,492 | 49,981 | 44,150 |
Loss on extinguishment of debt | 0 | 5,940 | 0 | 22,738 |
Amortization and impairment of other acquired intangible assets | 961 | 2,139 | 2,919 | 6,465 |
Total expenses | 214,029 | 162,665 | 768,482 | 495,577 |
Consolidated pretax income (loss) | 161,205 | 217,673 | 300,274 | 643,354 |
Income tax provision | 26,102 | 44,235 | 54,661 | 132,229 |
Net income | $ 135,103 | $ 173,438 | $ 245,613 | $ 511,125 |
Earnings Per Share, Basic [Abstract] | ||||
Basic net income (loss) per share | $ 0.70 | $ 0.85 | $ 1.25 | $ 2.45 |
Earnings Per Share, Diluted [Abstract] | ||||
Diluted net income (loss) per share | $ 0.70 | $ 0.83 | $ 1.25 | $ 2.39 |
Weighted-average number of common shares outstanding—basic | 193,176 | 203,107 | 196,120 | 208,561 |
Weighted-average number of common and common equivalent shares outstanding—diluted | 194,156 | 208,691 | 197,247 | 213,963 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income | $ 135,103 | $ 173,438 | $ 245,613 | $ 511,125 |
Unrealized gains (losses) on investments: | ||||
Unrealized holding gains (losses) arising during the period for which an allowance for expected losses has not been recognized | 30,839 | 40,654 | 143,602 | 190,677 |
Net decrease (increase) in expected credit losses | 147 | 0 | (2,051) | 0 |
Net unrealized gains (losses) on investments | 19,808 | 37,177 | 121,481 | 186,562 |
Other comprehensive income (loss), net of tax | 19,808 | 37,177 | 121,481 | 186,559 |
Comprehensive income | 154,911 | 210,615 | 367,094 | 697,684 |
Net foreign currency translation adjustments | 0 | 0 | 0 | (3) |
Net realized gains (losses) on disposals and non-credit related impairment losses | $ 10,884 | $ 3,477 | $ 24,172 | $ 4,115 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Common Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Parent | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning of period at Dec. 31, 2018 | $ 231 | $ (894,870) | $ 2,724,733 | $ 1,719,541 | $ (60,920) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under incentive and benefit plans | 1 | ||||||
Shares repurchased under share repurchase program (Note 14) | (12) | (275,173) | |||||
Repurchases of common stock under incentive plans | (6,686) | ||||||
Issuance of common stock under incentive and benefit plans | 4,418 | ||||||
Share-based compensation | 15,119 | ||||||
Net income | $ 511,125 | 511,125 | |||||
Dividends and dividend equivalents declared | (1,559) | ||||||
Net unrealized gains (losses) on investments, net of tax | 186,562 | 186,562 | |||||
Net foreign currency translation adjustment, net of tax | (3) | (3) | |||||
Balance, end of period at Sep. 30, 2019 | $ 3,922,507 | 220 | (901,556) | 2,469,097 | 2,229,107 | 125,639 | |
Balance, beginning of period at Jun. 30, 2019 | 223 | (901,419) | 2,539,803 | 2,056,175 | 88,462 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under incentive and benefit plans | 0 | ||||||
Shares repurchased under share repurchase program (Note 14) | (3) | (77,535) | |||||
Repurchases of common stock under incentive plans | (137) | ||||||
Issuance of common stock under incentive and benefit plans | 1,660 | ||||||
Share-based compensation | 5,169 | ||||||
Net income | 173,438 | 173,438 | |||||
Dividends and dividend equivalents declared | (506) | ||||||
Net unrealized gains (losses) on investments, net of tax | 37,177 | 37,177 | |||||
Net foreign currency translation adjustment, net of tax | 0 | 0 | |||||
Balance, end of period at Sep. 30, 2019 | 3,922,507 | 220 | (901,556) | 2,469,097 | 2,229,107 | 125,639 | |
Balance, beginning of period at Dec. 31, 2019 | 4,048,723 | 219 | (901,657) | 2,449,884 | 2,389,789 | 110,488 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under incentive and benefit plans | 2 | ||||||
Shares repurchased under share repurchase program (Note 14) | (11) | (226,294) | |||||
Repurchases of common stock under incentive plans | (8,088) | ||||||
Issuance of common stock under incentive and benefit plans | 3,096 | ||||||
Share-based compensation | 12,183 | ||||||
Net income | 245,613 | 245,613 | |||||
Dividends and dividend equivalents declared | (74,326) | ||||||
Net unrealized gains (losses) on investments, net of tax | 121,481 | 121,481 | |||||
Net foreign currency translation adjustment, net of tax | 0 | 0 | |||||
Balance, end of period at Sep. 30, 2020 | 4,122,379 | 4,122,379 | 210 | (909,745) | 2,238,869 | 2,561,076 | 231,969 |
Balance, beginning of period at Jun. 30, 2020 | 210 | (909,738) | 2,232,949 | 2,450,423 | 212,161 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under incentive and benefit plans | 0 | ||||||
Shares repurchased under share repurchase program (Note 14) | 0 | 0 | |||||
Repurchases of common stock under incentive plans | (7) | ||||||
Issuance of common stock under incentive and benefit plans | 825 | ||||||
Share-based compensation | 5,095 | ||||||
Net income | 135,103 | 135,103 | |||||
Dividends and dividend equivalents declared | (24,450) | ||||||
Net unrealized gains (losses) on investments, net of tax | 19,808 | 19,808 | |||||
Net foreign currency translation adjustment, net of tax | 0 | 0 | |||||
Balance, end of period at Sep. 30, 2020 | $ 4,122,379 | $ 4,122,379 | $ 210 | $ (909,745) | $ 2,238,869 | $ 2,561,076 | $ 231,969 |
Note 15 - Accumulated Other Com
Note 15 - Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) The following table shows the rollforward of accumulated other comprehensive income (loss) as of the periods indicated: Three Months Ended Nine Months Ended (In thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Balance at beginning of period $ 268,558 $ 56,397 $ 212,161 $ 139,858 $ 29,370 $ 110,488 Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period for which an allowance for expected credit losses has not been recognized 39,037 8,198 30,839 181,775 38,173 143,602 Less: Reclassification adjustment for net gains (losses) included in net income (loss): (1) Net realized gains (losses) on disposals and non-credit related impairment losses 13,777 2,893 10,884 30,597 6,425 24,172 Net decrease (increase) in expected credit losses 186 39 147 (2,596) (545) (2,051) Net unrealized gains (losses) on investments 25,074 5,266 19,808 153,774 32,293 121,481 Other comprehensive income (loss) 25,074 5,266 19,808 153,774 32,293 121,481 Balance at end of period $ 293,632 $ 61,663 $ 231,969 $ 293,632 $ 61,663 $ 231,969 Three Months Ended Nine Months Ended (In thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Balance at beginning of period $ 111,977 $ 23,515 $ 88,462 $ (77,114) $ (16,194) $ (60,920) Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 51,460 10,806 40,654 241,363 50,686 190,677 Less: Reclassification adjustment for net gains (losses) included in net income (loss) (1) 4,401 924 3,477 5,209 1,094 4,115 Net unrealized gains (losses) on investments 47,059 9,882 37,177 236,154 49,592 186,562 Unrealized foreign currency translation adjustments — — — (4) (1) (3) Other comprehensive income (loss) 47,059 9,882 37,177 236,150 49,591 186,559 Balance at end of period $ 159,036 $ 33,397 $ 125,639 $ 159,036 $ 33,397 $ 125,639 ______________________ (1) Included in net gains (losses) on investments and other financial instruments on our condensed consolidated statements of operations. |
Note 15 - Accumulated Other C_2
Note 15 - Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
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 accumulated other comprehensive income (loss) as of the periods indicated: Three Months Ended Nine Months Ended (In thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Balance at beginning of period $ 268,558 $ 56,397 $ 212,161 $ 139,858 $ 29,370 $ 110,488 Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period for which an allowance for expected credit losses has not been recognized 39,037 8,198 30,839 181,775 38,173 143,602 Less: Reclassification adjustment for net gains (losses) included in net income (loss): (1) Net realized gains (losses) on disposals and non-credit related impairment losses 13,777 2,893 10,884 30,597 6,425 24,172 Net decrease (increase) in expected credit losses 186 39 147 (2,596) (545) (2,051) Net unrealized gains (losses) on investments 25,074 5,266 19,808 153,774 32,293 121,481 Other comprehensive income (loss) 25,074 5,266 19,808 153,774 32,293 121,481 Balance at end of period $ 293,632 $ 61,663 $ 231,969 $ 293,632 $ 61,663 $ 231,969 Three Months Ended Nine Months Ended (In thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Balance at beginning of period $ 111,977 $ 23,515 $ 88,462 $ (77,114) $ (16,194) $ (60,920) Other comprehensive income (loss): Unrealized gains (losses) on investments: Unrealized holding gains (losses) arising during the period 51,460 10,806 40,654 241,363 50,686 190,677 Less: Reclassification adjustment for net gains (losses) included in net income (loss) (1) 4,401 924 3,477 5,209 1,094 4,115 Net unrealized gains (losses) on investments 47,059 9,882 37,177 236,154 49,592 186,562 Unrealized foreign currency translation adjustments — — — (4) (1) (3) Other comprehensive income (loss) 47,059 9,882 37,177 236,150 49,591 186,559 Balance at end of period $ 159,036 $ 33,397 $ 125,639 $ 159,036 $ 33,397 $ 125,639 ______________________ (1) Included in net gains (losses) on investments and other financial instruments on our condensed consolidated statements of operations. |
Note 11 - Losses and Loss Adjus
Note 11 - Losses and Loss Adjustment Expense - Reserve for Losses and LAE by Segment - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Reserve for losses and loss adjustment expense | $ 825,792 | $ 404,765 |
Mortgage insurance loss reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Reserve for losses and loss adjustment expense | 821,708 | 401,273 |
Title insurance loss reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Reserve for losses and loss adjustment expense | 4,084 | 3,492 |
First Lien Mortgage Insurance Products | Primary Case Reserves | Mortgage insurance loss reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Reserve for losses and loss adjustment expense | $ 744,600 | $ 339,800 |
Note 15 - Accumulated Other C_3
Note 15 - Accumulated Other Comprehensive Income (Loss) - Rollforward of Accumulated Other Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Comprehensive Income, before Tax [Abstract] | ||||
Unrealized foreign currency translation adjustments | $ 0 | $ (4) | ||
Other Comprehensive Income, Tax [Abstract] | ||||
Unrealized foreign currency translation adjustments | 0 | (1) | ||
Other Comprehensive Income, Net of Tax [Abstract] | ||||
AOCI, Net of Tax, Balance at beginning of period | $ 110,488 | |||
Unrealized holding gains (losses) arising during the period for which an allowance for expected credit losses has not been recognized | $ 30,839 | 40,654 | 143,602 | 190,677 |
Net realized gains (losses) on disposals and non-credit related impairment losses | 10,884 | 3,477 | 24,172 | 4,115 |
Net decrease (increase) in expected credit losses | 147 | 0 | (2,051) | 0 |
Unrealized foreign currency translation adjustments | 0 | 0 | 0 | (3) |
Other comprehensive income (loss), net of tax | 19,808 | 37,177 | 121,481 | 186,559 |
AOCI, Net of Tax, Balance at end of period | 231,969 | 231,969 | ||
Other Comprehensive Income | ||||
Other Comprehensive Income, before Tax [Abstract] | ||||
AOCI before Tax, Balance at beginning of period | 268,558 | 111,977 | 139,858 | (77,114) |
Unrealized holding gains (losses) arising during the period for which an allowance for expected credit losses has not been recognized | 39,037 | 51,460 | 181,775 | 241,363 |
Net realized gains (losses) on disposals and non-credit related impairment losses | 13,777 | 30,597 | ||
Net decrease (increase) in expected credit losses | 186 | 4,401 | (2,596) | 5,209 |
Net unrealized gains (losses) on investments | 25,074 | 47,059 | 153,774 | 236,154 |
Other comprehensive income (loss) | 25,074 | 47,059 | 153,774 | 236,150 |
AOCI before Tax, Balance at end of period | 293,632 | 159,036 | 293,632 | 159,036 |
Other Comprehensive Income, Tax [Abstract] | ||||
AOCI, Tax, Balance at beginning of period | 56,397 | 23,515 | 29,370 | (16,194) |
Unrealized holding gains (losses) arising during the period for which an allowance for expected credit losses has not been recognized | 8,198 | 10,806 | 38,173 | 50,686 |
Net realized gains (losses) on disposals and non-credit related impairment losses | 2,893 | 6,425 | ||
Net decrease (increase) in expected credit losses | 39 | 924 | (545) | 1,094 |
Net unrealized gains (losses) on investments | 5,266 | 9,882 | 32,293 | 49,592 |
Other comprehensive income (loss) | 5,266 | 9,882 | 32,293 | 49,591 |
AOCI Tax, Balance at end of period | 61,663 | 33,397 | 61,663 | 33,397 |
Other Comprehensive Income, Net of Tax [Abstract] | ||||
AOCI, Net of Tax, Balance at beginning of period | 212,161 | 88,462 | 110,488 | (60,920) |
Unrealized holding gains (losses) arising during the period for which an allowance for expected credit losses has not been recognized | 30,839 | 40,654 | 143,602 | 190,677 |
Net realized gains (losses) on disposals and non-credit related impairment losses | 10,884 | 24,172 | ||
Net decrease (increase) in expected credit losses | 147 | 3,477 | (2,051) | 4,115 |
Net unrealized gains (losses) on investments | 19,808 | 37,177 | 121,481 | 186,562 |
Other comprehensive income (loss), net of tax | 19,808 | 37,177 | 121,481 | 186,559 |
AOCI, Net of Tax, Balance at end of period | $ 231,969 | $ 125,639 | $ 231,969 | $ 125,639 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Cash Provided by (Used in) Operating Activities | $ 498,756 | $ 506,805 |
Cash Flows from Investing Activities: | ||
Proceeds from Sales of Fixed-Maturity Investments Available for sale | 894,998 | 770,393 |
Proceeds from Sales of Trading Securities | 11,602 | 120,875 |
Proceeds from Sales of Equity Securities | 77,445 | 52,295 |
Proceeds from Redemption of Fixed-Maturity Investments Available for sale | 443,723 | 287,557 |
Proceeds from Redemptions of Trading securities | 22,112 | 36,827 |
Purchases of Fixed-Maturity Investments Available for sale | (2,099,281) | (1,352,883) |
Purchases of Equity Securities | (69,206) | (45,748) |
Sales, Redemptions and (Purchases) of Short-term Investments, Net | (21,797) | (12,199) |
Sales, Redemptions and (Purchases) of Other assets and other invested assets, net | 989 | 687 |
Proceeds from sale of a subsidiary, net of cash sold | 16,481 | 0 |
Purchases of property and equipment, net | (14,723) | (20,707) |
Net cash provided by (used in) investing activities | (737,657) | (162,903) |
Cash Flows from Financing Activities: | ||
Dividends and dividend equivalents paid | (73,365) | (1,559) |
Issuance of senior notes, net | 515,567 | 442,498 |
Repayments and repurchases of senior notes | 0 | (610,739) |
Issuance of common stock | 1,505 | 2,126 |
Repurchases of common shares | (226,305) | (275,185) |
Credit facility commitment fees paid | (1,993) | (710) |
Change in secured borrowings, net (with terms three months or less) | (19,191) | 9,568 |
Proceeds from secured borrowings (with terms greater than 3 months) | 138,909 | 73,011 |
Payments of secured borrowings (with terms greater than 3 months) | (105,977) | (37,550) |
Repayments of other borrowings | (79) | (114) |
Net cash provided by (used in) financing activities | 229,071 | (398,654) |
Effect of exchange rate changes on cash and restricted cash | 0 | (4) |
Increase (decrease) in cash and restricted cash | (9,830) | (54,756) |
Cash and restricted cash, beginning of period | 96,274 | 107,002 |
Cash and restricted cash, end of period | $ 86,444 | $ 52,246 |
Note 1 - Business Overview and
Note 1 - Business Overview and Recent Developments | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Business Overview and Recent Developments Business Overview We are a diversified mortgage and real estate business, providing both credit-related mortgage insurance coverage and a broad array of other mortgage, risk, title, valuation, asset management and other real estate services. We have two reportable business segments—Mortgage and Real Estate. Mortgage Our Mortgage segment provides credit-related insurance coverage, principally through private mortgage insurance on residential first-lien mortgage loans, as well as other credit risk management and contract underwriting solutions, to mortgage lending institutions and mortgage credit investors. We provide our mortgage insurance products and services mainly through our wholly-owned subsidiary, Radian Guaranty. Private mortgage insurance plays an important role in the U.S. housing finance system because it promotes affordable home ownership and helps protect mortgage lenders, investors and other beneficiaries by mitigating default-related losses on residential mortgage loans. Generally, these loans are made to homebuyers who make down payments of less than 20% of the purchase price for their home or, in the case of refinancings, have less than 20% equity in their home. Private mortgage insurance also facilitates the sale of these low down payment loans in the secondary mortgage market, most of which are currently sold to the GSEs. Our total direct primary mortgage IIF and RIF were $245.5 billion and $61.0 billion, respectively, as of September 30, 2020, compared to $240.6 billion and $60.9 billion, respectively, as of December 31, 2019. In addition to providing private mortgage insurance, we participate in credit risk transfer programs developed by the GSEs as part of their initiative to distribute mortgage credit risk and increase the role of private capital in the mortgage market. Our additional RIF under credit risk transfer transactions, resulting from our participation in these programs with the GSEs, totaled $389.1 million as of September 30, 2020 compared to $275.2 million as of December 31, 2019. The GSEs and state insurance regulators impose various capital and financial requirements on our insurance subsidiaries. These include Risk-to-capital, other risk-based capital measures and surplus requirements, as well as the PMIERs financial requirements. Failure to comply with these capital and financial requirements may limit the amount of insurance that our mortgage insurance subsidiaries write or may prohibit them from writing insurance altogether. The GSEs and state insurance regulators possess significant discretion with respect to our mortgage insurance subsidiaries and all aspects of their business. See Note 16 for additional information on PMIERs and other regulatory information, and “—Recent Developments” below for a discussion of the elevated risks posed by the COVID-19 pandemic, which has led to an increase in mortgage defaults in our insured portfolio and a resulting increase in our Minimum Required Assets during 2020. Real Estate Our Real Estate segment is primarily a fee-for-service business that offers a broad array of services to market participants across the real estate value chain. Our Real Estate services include title, valuation, asset management and other real estate services offered primarily to financial institutions, investors, GSEs, real estate brokers and agents. Our Real Estate services help lenders, investors, consumers and real estate agents evaluate, manage, monitor, acquire and sell properties. These services include software as a service solutions and platforms, as well as managed services, such as real estate owned asset management, single family rental services, real estate valuation services and real estate brokerage services. In addition, we provide title insurance and non-insurance title, closing and settlement services to mortgage lenders as well as directly to consumers for residential mortgage loans. See Note 4 for additional information about our reportable segments and All Other business activities, including the sale of Clayton and the impact of organizational changes in the first quarter of 2020. Recent Developments As a seller of mortgage credit protection, our results are subject to macroeconomic conditions and specific events that impact the housing finance and real estate markets, including events that impact mortgage originations and the credit performance of our RIF. Many of these conditions are beyond our control, including housing prices, unemployment levels, interest rate changes, the availability of credit and other factors that may be derived from national and regional economic conditions. In general, a deterioration in economic conditions increases the likelihood that borrowers will be unable to satisfy their mortgage obligations. A deteriorating economy can adversely affect housing values, which in turn can influence the willingness of borrowers to continue to make mortgage payments regardless of whether they have the financial resources to do so. Mortgage defaults can also occur due to a variety of specific events affecting borrowers, including death or illness, divorce or other family problems, unemployment, or other events. In addition, factors impacting regional economic conditions, acts of terrorism, war or other severe conflicts, event-specific economic depressions or other catastrophic events such as natural disasters and pandemics could result in increased defaults due to the impact of such events on the ability of borrowers to satisfy their mortgage obligations and on the value of affected homes. Beginning in March 2020, the unprecedented and continually evolving social and economic impacts associated with the COVID-19 pandemic on the U.S. and global economies generally, and in particular on the U.S. housing, real estate and housing finance markets had a negative effect on our business and our financial results for the second quarter of 2020, and to a lesser extent the third quarter of 2020, and are expected to adversely impact our business and results of operations in future periods. Specifically, and primarily as a result of an increase in the number of new defaults for the nine months ended September 30, 2020, our financial results include: (i) an increase in provision for losses and (ii) an increase in our Minimum Required Assets required under the PMIERs. The number of new defaults increased significantly during the second quarter of 2020, and while the new defaults during the third quarter remain elevated compared to levels before the pandemic, they decreased by 67.5% from the prior quarter. See Note 11 for additional information on our reserve for losses. In response to the uncertainties associated with COVID-19, during the second quarter of 2020 we strengthened our capital and liquidity positions by extending our existing credit facility and issuing $525 million aggregate principal amount of Senior Notes due 2025. See Note 12 for additional information on our borrowings and financing activities. The ultimate significance of the COVID-19 pandemic on our businesses will depend on, among other things: the extent and duration of the pandemic, the severity of and number of people infected with the virus and whether an effective anti-viral treatment or vaccine is developed and made widely available; the wider economic effects of the pandemic and the scope and duration of governmental and other third party measures restricting day-to-day life and business operations; the impact of economic stimulus efforts to support the economy through the pandemic; and governmental and GSE programs implemented to assist borrowers experiencing a COVID-19-related hardship, including forbearance programs and suspensions of foreclosures and evictions. Although we are uncertain of the potential magnitude or duration of the business and economic impacts of the COVID-19 pandemic, these and other factors, including those discussed in our 2019 Form 10-K, could have a material negative effect on the Company’s business, liquidity, results of operations and financial condition. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation Our condensed consolidated financial statements are prepared in accordance with GAAP and include the accounts of Radian Group Inc. and its subsidiaries. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. We have condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP pursuant to the instructions set forth in Article 10 of Regulation S-X of the SEC. We refer to Radian Group Inc. together with its consolidated subsidiaries as “Radian,” the “Company,” “we,” “us” or “our,” unless the context requires otherwise. We generally refer to Radian Group Inc. alone, without its consolidated subsidiaries, as “Radian Group.” Unless otherwise defined in this report, certain terms and acronyms used throughout this report are defined in the Glossary of Abbreviations and Acronyms included as part of this report. The financial information presented for interim periods is unaudited; however, such information reflects all adjustments that are, in the opinion of management, necessary for the fair statement of the financial position, results of operations, comprehensive income (loss) and cash flows for the interim periods presented. Such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. To fully understand the basis of presentation, these interim financial statements and related notes contained herein should be read in conjunction with the audited financial statements and notes thereto included in our 2019 Form 10-K. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or for any other period. See Note 1 for discussion of the elevated risks to our future business, liquidity, results of operations and financial condition due to the COVID-19 pandemic. Certain prior period amounts have been reclassified to conform to current period presentation. See Note 4 for additional information on our segment reporting reclassifications. 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, as well as the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our condensed consolidated financial statements include our best estimates and assumptions, actual results may vary materially. Other Significant Accounting Policies See Note 2 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for information regarding other significant accounting policies. There have been no significant changes in our significant accounting policies from those discussed in our 2019 Form 10-K, other than described below in “—Investments” and “—Recent Accounting Pronouncements—Accounting Standards Adopted During 2020.” Investments Investments in fixed-maturity 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 accumulated other comprehensive income (loss), unless: (i) we intend to sell the impaired security; (ii) 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 (iii) the present value of cash flows we expect to collect is less than the amortized cost basis of a security. In those instances, we record an impairment loss through earnings that varies depending on specific circumstances, as described below. If a sale is likely, the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, unrealized losses on securities are separated into: (i) the portion of loss that represents the credit loss and (ii) the portion that is due to other factors. As a result of the adoption, effective January 2020, of ASU 2016-13, Financial Instruments—Credit Losses (“ASU 2016-13”), described below, in evaluating whether a decline in value for other securities relates to an existing credit loss, we consider several factors, including, but not limited to, the following: ■ the extent to which the amortized cost basis is greater than fair value; ■ reasons for the decline in value (e.g., adverse conditions related to industry or geographic area, changes in financial condition to the issuers or underlying loan obligors); ■ any changes to the rating of the security by a rating agency; ■ the failure of the issuer to make a scheduled payment; ■ the financial position, access to capital and near-term prospects of the issuer, including the current and future impact of any specific events; and ■ our best estimate of the present value of cash flows expected to be collected. In addition, we no longer consider the duration of the decline in value in assessing whether our fixed income securities available for sale have a credit loss impairment. On initial recognition and at each reporting date after a credit loss is identified, we recognize an allowance for remaining lifetime expected credit losses. This amount is calculated as the difference between the amortized cost and the present value of future expected cash flows, limited to the difference between the carrying amount (i.e., fair value) and amortized cost. If a credit loss is determined to exist, the credit loss impairment is included in net gains (losses) on investments and other financial instruments in the statement of operations, with an offset to an allowance for credit losses. Subsequent changes (favorable and unfavorable) in expected credit losses are recognized immediately in net income (loss) as a credit loss impairment or a reversal of credit loss impairment. Recent Accounting Pronouncements Accounting Standards Adopted During 2020 We adopted ASU 2016-13 on January 1, 2020 using the modified retrospective adoption approach. This ASU and the associated subsequent amendments require that financial assets measured at their amortized cost basis be presented at the net amount expected to be collected. Credit losses relating to our available-for-sale debt securities are recorded through an allowance for credit losses, rather than a write-down of the asset, with the amount of the allowance limited to the amount by which fair value is less than amortized cost. This allowance method will allow reversals of credit losses if the estimate of credit losses declines. This ASU affected certain of our accounts and notes receivable, including premiums receivable, and certain of our other assets, including reinsurance recoverables; however, the update did not have a material effect on our financial statements and disclosures. See Note 6 for additional information. We adopted ASU 2019-04, Codification Improvements related to Financial Instruments—Credit Losses, Derivatives and Hedging, and Financial Instruments on January 1, 2020. This update to the accounting standards regarding financial instruments and derivatives and hedging clarifies the accounting treatment for the measurement of credit losses and provides further clarification on previously issued updates. The adoption of this update did not have a material effect on our financial statements and disclosures. Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services—Insurance. The new standard: (i) requires that assumptions used to measure the liability for future policy benefits be reviewed at least annually; (ii) defines and simplifies the measurement of market risk benefits; (iii) simplifies the amortization of deferred acquisition costs; and (iv) enhances the required disclosures about long-duration contracts. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact on our financial statements and future disclosures as a result of this update. In December 2019, the FASB issued ASU 2019-12, Income Taxes—Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes by removing certain exceptions to the general principals of ASC Topic 740 in GAAP. This update is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact on our financial statements and future disclosures as a result of this update. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform—Facilitation of the Effects of Reference Reform on Financial Reporting. This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this update are optional and may be elected from the date of issuance through December 31, 2022, as reference rate reform activities occur. We are currently evaluating the impact of the guidance and our options related to the practical expedients. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs. This update clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. This update is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is not permitted. Entities are required to apply ASU 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. We are currently evaluating the impact on our financial statements and future disclosures as a result of this update. |
Note 3 - Net Income Per Share
Note 3 - Net Income Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common stockholders by the sum of the weighted-average number of common shares outstanding and the weighted-average number of dilutive potential common shares. Dilutive potential common shares relate to our share-based compensation arrangements. The calculation of basic and diluted net income per share is as follows: Three Months Ended Nine Months Ended (In thousands, except per-share amounts) 2020 2019 2020 2019 Net income —basic and diluted $ 135,103 $ 173,438 $ 245,613 $ 511,125 Average common shares outstanding—basic (1) 193,176 203,107 196,120 208,561 Dilutive effect of share-based compensation arrangements (2) 980 5,584 1,127 5,402 Adjusted average common shares outstanding—diluted 194,156 208,691 197,247 213,963 Net income per share: Basic $ 0.70 $ 0.85 $ 1.25 $ 2.45 Diluted $ 0.70 $ 0.83 $ 1.25 $ 2.39 ______________________ (1) Includes the impact of fully vested shares under our share-based compensation programs. (2) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements are not included in the calculation of diluted net income per share because they are anti-dilutive: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Shares of common stock equivalents 710 — 1,046 160 |
Note 4 - Segment Reporting (Not
Note 4 - Segment Reporting (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We have two strategic business units that we manage separately—Mortgage and Real Estate. Our Mortgage segment derives its revenue from mortgage insurance and other mortgage and risk services, including contract underwriting services provided to lenders. Our Real Estate segment offers a broad array of title, valuation, asset management and other real estate services to market participants across the real estate value chain. In addition, we report as All Other activities that include income (losses) from assets held by our holding company, related general corporate operating expenses not attributable or allocated to our reportable segments and, for all periods through the first quarter of 2020, income and expenses related to Clayton prior to its sale in January 2020. Subsequent to the sale of Clayton, our Chief Executive Officer (Radian’s chief operating decision maker) implemented certain organizational changes that caused the composition of our reportable segments to change. As revised, the Company’s Mortgage and Real Estate segments are managed by our President of Mortgage and Co-Heads of Real Estate, respectively, who are responsible for the overall profitability of their respective segments and who are directly accountable to our chief operating decision maker. The differences in the basis of segmentation compared to our 2019 Form 10-K are as follows: Business Activity Current Segmentation Prior Segmentation Mortgage insurance and risk services Mortgage Mortgage Insurance Contract underwriting services Mortgage Services Title and real estate services (1) Real Estate Services Clayton All Other Services Income (loss) from holding company assets (and related corporate expenses) All Other Mortgage Insurance ______________________ (1) Includes single family rental services. These segment reporting changes align with the changes in personnel reporting lines, management oversight and branding following the sale of Clayton, and are consistent with the way our chief operating decision maker began assessing the performance of our reportable segments and other business activities effective in the first quarter of 2020. These changes to our reportable segments have been reflected in our segment operating results for all periods presented. See Note 1 for additional details about our Mortgage and Real Estate businesses. We allocate corporate operating expenses to both reportable segments based on each segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of management time spent on each segment. In addition, we allocate all corporate interest expense to our Mortgage segment, due to the capital-intensive nature of our mortgage insurance business. With the exception of goodwill and other acquired intangible assets that relate to our Real Estate segment, which are reviewed as part of our annual goodwill impairment assessment, we do not manage assets by segment. Adjusted Pretax Operating Income (Loss) Our senior management, including 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) excluding the effects of: (i) net gains (losses) on investments and other financial instruments; (ii) loss on extinguishment of debt; (iii) amortization and impairment of goodwill and other acquired intangible assets; and (iv) impairment of other long-lived assets and other non-operating items, such as gains (losses) from the sale of lines of business and acquisition-related income and expenses. See Note 4 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for detailed information regarding items excluded from adjusted pretax operating income (loss), including the reasons for their treatment. 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: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income (loss). Adjusted pretax operating income (loss) 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. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation. The reconciliation of adjusted pretax operating income (loss) for our reportable segments to consolidated pretax income is as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Adjusted pretax operating income (loss): Mortgage (1) $ 145,836 $ 209,601 $ 263,182 $ 627,942 (2) Real Estate (3) (5,941) (2,541) (15,625) (10,238) Total adjusted pretax operating income (loss) for reportable segments 139,895 207,060 247,557 617,704 All Other adjusted pretax operating income (loss) 5,085 5,683 13,523 12,948 Net gains (losses) on investments and other financial instruments 17,652 13,009 42,901 47,462 Loss on extinguishment of debt — (5,940) — (22,738) Amortization and impairment of other acquired intangible assets (961) (2,139) (2,919) (6,465) Impairment of other long-lived assets and other non-operating items (466) — (788) (5,557) Consolidated pretax income $ 161,205 $ 217,673 $ 300,274 $ 643,354 ______________________ (1) Includes allocated corporate operating expenses and depreciation expense as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Allocated corporate operating expenses $ 29,435 $ 26,671 $ 83,700 $ 76,684 Depreciation expense 2,895 3,817 9,719 11,528 (2) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019, as further described below. (3) Includes allocated corporate operating expenses and depreciation expense as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Allocated corporate operating expenses $ 3,818 $ 2,910 $ 10,993 $ 8,364 Depreciation expense 683 561 2,125 1,769 Our results for the nine months ended September 30, 2019 include a $32.9 million increase in net premiums earned and a $0.12 increase in net income per share due to a reduction in our unearned premiums, resulting from a cumulative adjustment in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies. See Note 2 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for additional information regarding this adjustment and our accounting policies for insurance premiums revenue recognition. Revenue The reconciliation of revenue for our reportable segments to consolidated revenues is as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Revenues: Mortgage (1) $ 320,013 $ 317,646 $ 922,040 $ 956,660 (2) Real Estate (1) 33,328 30,139 88,003 80,789 Total revenues for reportable segments 353,341 347,785 1,010,043 1,037,449 All Other revenues (3) 5,858 19,812 19,984 55,170 Net gains (losses) on investments and other financial instruments 17,652 13,009 42,901 47,462 Other non-operating revenue — — 247 — Elimination of inter-segment revenues (3) (1,617) (268) (4,419) (1,150) Total revenues $ 375,234 $ 380,338 $ 1,068,756 $ 1,138,931 ______________________ (1) Includes immaterial inter-segment revenues for the three and nine months ended September 30, 2020 and 2019. (2) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 as further described above. (3) Includes $1.5 million and $4.0 million for the three and nine months ended September 30, 2020, respectively, related to the $200 million 3% intercompany surplus note issued by Radian Guaranty to Radian Group in January 2020. The accounting standard on revenue from contracts with customers is primarily applicable to our services revenue and is not applicable to our investments and insurance products, which represent the majority of our revenue. See Note 2 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for additional information regarding our accounting policies and the services we offer. The table below, which represents total services revenue on our condensed consolidated statements of operations for the periods indicated, represents the disaggregation of services revenues from external customers, by type: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Services revenue Real Estate services: Valuation services $ 11,881 $ 14,772 $ 31,519 $ 40,836 Title services 9,081 4,590 25,445 11,189 Asset management services 8,453 6,567 21,791 19,300 Other real estate services 614 335 1,364 407 Mortgage services 3,914 2,340 10,965 4,856 All Other services (1) — 13,905 2,861 37,977 Total services revenue $ 33,943 $ 42,509 $ 93,945 $ 114,565 ______________________ (1) Includes services revenue from Clayton prior to its sale in January 2020. Our services revenues are recognized over time and measured each period based on the progress to date as services are performed and made available to customers. Our contracts with customers, including payment terms, are generally short-term in nature; therefore, any impact related to timing is immaterial. Revenue expected to be recognized in any future period related to remaining performance obligations, such as contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. Revenue recognized related to services made available to customers and billed is reflected in accounts and notes receivable. Accounts and notes receivable includes $28.9 million and $10.8 million as of September 30, 2020 and December 31, 2019, respectively, related to services revenue contracts. Revenue recognized related to services performed and not yet billed is recorded in unbilled receivables and reflected in other assets. See Note 9 for additional information. Deferred revenue, which |
Note 5 - Fair Value of Financia
Note 5 - Fair Value of Financial Instruments (Note) | 3 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For discussion of our valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 of Notes to Consolidated Financial Statements in our 2019 Form 10-K. The following is a list of assets that are measured at fair value by hierarchy level as of September 30, 2020: (In thousands) Level I Level II Total Assets at fair value Investments: Fixed-maturities available for sale: U.S. government and agency securities $ 157,407 $ 29,494 $ 186,901 State and municipal obligations — 159,975 159,975 Corporate bonds and notes — 2,898,357 2,898,357 RMBS — 850,113 850,113 CMBS — 718,962 718,962 Other ABS — 809,388 809,388 Foreign government and agency securities — 5,296 5,296 Total fixed-maturities available for sale 157,407 5,471,585 5,628,992 Trading securities: State and municipal obligations — 120,547 120,547 Corporate bonds and notes — 122,858 122,858 RMBS — 13,930 13,930 CMBS — 34,315 34,315 Total trading securities — 291,650 291,650 Equity securities 84,255 7,062 91,317 Short-term investments: U.S. government and agency securities 29,716 — 29,716 State and municipal obligations — 26,973 26,973 Money market instruments 232,105 — 232,105 Corporate bonds and notes — 106,013 106,013 Other investments (1) — 172,339 172,339 Total short-term investments 261,821 305,325 567,146 Total investments at fair value (2) 503,483 6,075,622 6,579,105 Other: Loaned securities: (3) Corporate bonds and notes — 13,932 13,932 Equity securities 43,990 — 43,990 Total assets at fair value (2) $ 547,473 $ 6,089,554 $ 6,637,027 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include other invested assets of $2.5 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient and $3.0 million invested in a private convertible promissory note. (3) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 6 for more information. The following is a list of assets that are measured at fair value by hierarchy level as of December 31, 2019: (In thousands) Level I Level II Total Assets at fair value Investments: Fixed-maturities available for sale: U.S. government and agency securities $ 143,884 $ 35,700 $ 179,584 State and municipal obligations — 119,994 119,994 Corporate bonds and notes — 2,237,611 2,237,611 RMBS — 779,354 779,354 CMBS — 608,015 608,015 Other ABS — 759,129 759,129 Foreign government and agency securities — 5,224 5,224 Total fixed-maturities available for sale 143,884 4,545,027 4,688,911 Trading securities: State and municipal obligations — 118,949 118,949 Corporate bonds and notes — 147,232 147,232 RMBS — 16,180 16,180 CMBS — 34,789 34,789 Total trading securities — 317,150 317,150 Equity securities 124,009 6,212 130,221 Short-term investments: U.S. government and agency securities 127,152 — 127,152 State and municipal obligations — 21,475 21,475 Money market instruments 202,461 — 202,461 Corporate bonds and notes — 20,298 20,298 Other investments (1) — 147,007 147,007 Total short-term investments 329,613 188,780 518,393 Total investments at fair value (2) 597,506 5,057,169 5,654,675 Other: Loaned securities: (3) U.S. government and agency securities 35,309 — 35,309 Corporate bonds and notes — 3,669 3,669 Equity securities 27,464 — 27,464 Total assets at fair value (2) $ 660,279 $ 5,060,838 $ 5,721,117 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include other invested assets of $2.6 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient and $1.5 million invested in a private convertible promissory note. (3) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 6 for more information. At September 30, 2020 and December 31, 2019, we had a Level III asset of $5.5 million and $0.4 million, respectively, measured at fair value, included in other assets in our condensed consolidated balance sheets. The Level III asset represents the embedded derivatives associated with mortgage insurance-linked notes transactions in connection with our Excess-of-Loss Program, as described in Note 8. The total fair value of the embedded derivatives at September 30, 2020 and December 31, 2019 consists of impacts related to the fair value accounting for derivatives associated with our reinsurance contracts and the related fluctuations from period to period. The estimated fair value related to our embedded derivatives reflects the present value impact of the future variation in premiums we will pay, and includes significant unobservable inputs associated with LIBOR rates and the yield on investments held by trust. There were no investment transfers to or from Level III for the three and nine months ended September 30, 2020 or the year ended December 31, 2019. Except for the activity related to the embedded derivatives described above, activity related to Level III assets and liabilities (including realized and unrealized gains and losses, purchases, sales, issuances, settlements and transfers) was immaterial for the three and nine months ended September 30, 2020 and the year ended December 31, 2019. Other Fair Value Disclosure The carrying value and estimated fair value of other selected liabilities not carried at fair value in our condensed consolidated balance sheets were as follows as of the dates indicated: September 30, 2020 December 31, 2019 (In thousands) Carrying Estimated Carrying Estimated Liabilities: Senior notes $ 1,404,759 $ 1,450,590 $ 887,110 $ 949,500 FHLB advances 141,058 144,280 134,875 135,997 The fair value of our senior notes is estimated based on their quoted market prices. The fair value of our FHLB advances is estimated based on expected cash flows for similar borrowings. These liabilities are categorized in Level II of the fair value hierarchy. See Note 12 for further information on our senior notes and FHLB advances. |
Note 6 - Investments (Note)
Note 6 - Investments (Note) | 9 Months Ended |
Sep. 30, 2020 | |
Investments [Abstract] | |
Investments | Investments Available for Sale Securities Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated: September 30, 2020 (In thousands) Amortized Allowance for Credit Losses Gross Gross Fair Value Fixed-maturities available for sale: U.S. government and agency securities $ 186,457 $ — $ 2,105 $ (1,661) $ 186,901 State and municipal obligations 145,318 — 14,850 (193) 159,975 Corporate bonds and notes 2,703,446 (2,290) 218,127 (7,471) 2,911,812 RMBS 813,006 — 37,137 (30) 850,113 CMBS 686,414 — 37,339 (4,791) 718,962 Other ABS 811,687 — 4,051 (6,350) 809,388 Foreign government and agency securities 5,098 — 198 — 5,296 Total securities available for sale, including loaned securities 5,351,426 $ (2,290) $ 313,807 $ (20,496) 5,642,447 Less: loaned securities 12,890 13,455 Total fixed-maturities available for sale $ 5,338,536 $ 5,628,992 December 31, 2019 (In thousands) Amortized Gross Gross Fair Value Fixed-maturities available for sale: U.S. government and agency securities $ 198,613 $ 2,048 $ (733) $ 199,928 State and municipal obligations 112,003 8,032 (41) 119,994 Corporate bonds and notes 2,136,819 106,189 (1,728) 2,241,280 RMBS 766,429 14,452 (1,527) 779,354 CMBS 593,647 14,993 (625) 608,015 Other ABS 760,785 2,018 (3,674) 759,129 Foreign government and agency securities 5,091 133 — 5,224 Total securities available for sale, including loaned securities 4,573,387 $ 147,865 $ (8,328) 4,712,924 Less: loaned securities 23,853 24,013 Total fixed-maturities available for sale $ 4,549,534 $ 4,688,911 The following table provides a rollforward of the allowance for credit losses on fixed-maturities available for sale, which relates entirely to corporate bonds and notes for the periods indicated: (In thousands) Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Beginning balance $ 2,476 $ — Current provision for securities without prior allowance — 2,596 Net increases (decreases) in allowance on previously impaired securities (186) — Reduction for securities sold — (306) Ending balance $ 2,290 $ 2,290 Gross Unrealized Losses and Fair Value of Available for Sale Securities For our available for sale securities in an unrealized loss position, the following tables show the gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated. Included in the amounts as of September 30, 2020 and December 31, 2019 are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below. September 30, 2020 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of Fair Value Unrealized # of Fair Value Unrealized # of Fair Value Unrealized U.S. government and agency securities 4 $ 99,250 $ (1,661) — $ — $ — 4 $ 99,250 $ (1,661) State and municipal obligations 10 27,543 (193) — — — 10 27,543 (193) Corporate bonds and notes 130 306,915 (7,471) — — — 130 306,915 (7,471) RMBS 4 11,723 (19) 2 956 (11) 6 12,679 (30) CMBS 60 176,482 (4,537) 6 7,146 (254) 66 183,628 (4,791) Other ABS 101 308,637 (3,025) 29 152,098 (3,325) 130 460,735 (6,350) Total 309 $ 930,550 $ (16,906) 37 $ 160,200 $ (3,590) 346 $ 1,090,750 $ (20,496) December 31, 2019 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of Fair Value Unrealized # of Fair Value Unrealized # of Fair Value Unrealized U.S. government and agency securities 2 $ 26,142 $ (731) 2 $ 2,529 $ (2) 4 $ 28,671 $ (733) State and municipal obligations 1 3,959 (41) — — — 1 3,959 (41) Corporate bonds and notes 25 110,871 (1,728) — — — 25 110,871 (1,728) RMBS 27 184,378 (535) 16 36,192 (992) 43 220,570 (1,527) CMBS 36 109,589 (478) 8 6,346 (147) 44 115,935 (625) Other ABS 63 225,944 (670) 44 209,661 (3,004) 107 435,605 (3,674) Total 154 $ 660,883 $ (4,183) 70 $ 254,728 $ (4,145) 224 $ 915,611 $ (8,328) See below for additional details on our net gains (losses) on investments, including the changes in the allowance for credit losses on fixed maturities available for sale and other impairments due to our intent to sell securities in an unrealized loss position. See Note 2 for a discussion of our accounting policy for impairments, including our adoption of ASU 2016-13 effective January 2020. Securities Lending Agreements We participate in a securities lending program whereby we loan certain securities in our investment portfolio to third-party borrowers for short periods of time. Although we report such securities at fair value within other assets in our condensed consolidated balance sheets, rather than within investments, the detailed information we provide in this Note 6 includes these securities. See Note 5 for additional detail on the loaned securities, and see Note 6 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for additional information about our accounting policies with respect to our securities lending agreements and the collateral requirements thereunder. All of our securities lending agreements are classified as overnight and revolving. Securities collateral on deposit with us from third-party borrowers totaling $26.3 million and $42.4 million as of September 30, 2020 and December 31, 2019, respectively, may not be transferred or re-pledged unless the third-party borrower is in default, and is therefore not reflected in our condensed consolidated financial statements. Net Gains (Losses) on Investments Net gains (losses) on investments consisted of: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Net realized gains (losses): Fixed-maturities available for sale (1) $ 13,777 $ 4,401 $ 31,998 $ 5,209 Trading securities — 19 4 (391) Equity securities — (28) 361 (708) Other investments 196 205 273 521 Net realized gains (losses) on investments 13,973 4,597 32,636 4,631 Impairment losses due to intent to sell — — (1,401) — Net decrease (increase) in expected credit losses 186 — (2,596) — Net unrealized gains (losses) on investments 2,813 4,419 916 33,005 Total net gains (losses) on investments $ 16,972 $ 9,016 $ 29,555 $ 37,636 ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Gross investment gains from sales and redemptions $ 14,219 $ 4,697 $ 34,422 $ 10,926 Gross investment losses from sales and redemptions (442) (296) (2,424) (5,717) The net changes in unrealized gains (losses) recognized in earnings on investments that were still held at each period-end were as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Net unrealized gains (losses) on investments still held: Trading securities $ (1,150) $ 4,132 $ 9,990 $ 18,962 Equity securities 4,455 563 (8,158) 9,170 Other investments (173) 47 152 (64) Net unrealized gains (losses) on investments still held $ 3,132 $ 4,742 $ 1,984 $ 28,068 Contractual Maturities The contractual maturities of fixed-maturities available for sale were as follows: September 30, 2020 Available for Sale (In thousands) Amortized Fair Due in one year or less (1) $ 94,375 $ 94,832 Due after one year through five years (1) 984,406 1,034,592 Due after five years through 10 years (1) 1,246,319 1,351,007 Due after 10 years (1) 715,219 783,553 Asset-backed and other mortgage-backed securities (2) 2,311,107 2,378,463 Total 5,351,426 5,642,447 Less: loaned securities 12,890 13,455 Total fixed-maturities available for sale $ 5,338,536 $ 5,628,992 ______________________ (1) Actual maturities may differ as a result of calls before scheduled maturity. (2) Includes RMBS, CMBS and Other ABS, which are not due at a single maturity date. Other For the nine months ended September 30, 2020, we did not transfer any securities to or from the available for sale or trading categories. Our fixed-maturities available for sale include securities totaling $17.0 million and $16.8 million at September 30, 2020 and December 31, 2019, respectively, on deposit and serving as collateral with various state regulatory authorities. Our fixed-maturities available for sale also include securities serving as collateral for our FHLB advances. See Note 12 for additional information about our FHLB advances. |
Note 7 - Goodwill and Other Acq
Note 7 - Goodwill and Other Acquired Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Acquired Intangible Assets, Net All of our goodwill and other acquired intangible assets relate to our Real Estate segment. The following table shows the changes in the carrying amount of goodwill for the year-to-date periods ended December 31, 2019 and September 30, 2020: (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2018 $ 200,561 $ (186,469) $ 14,092 Goodwill acquired 538 — 538 Impairment losses — (4,828) (4,828) Balance at December 31, 2019 201,099 (191,297) 9,802 Goodwill disposed (1) (191,297) 191,297 — Balance at September 30, 2020 $ 9,802 $ — $ 9,802 ______________________ (1) Related to the sale of Clayton in January 2020. See Note 7 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for additional information on the sale of Clayton. The following is a summary of the gross and net carrying amounts and accumulated amortization (including impairment) of our other acquired intangible assets as of the periods indicated: September 30, 2020 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 43,550 $ (29,748) $ 13,802 Technology 8,285 (6,988) 1,297 Trade name and trademarks 480 (461) 19 Licenses 463 (115) 348 Total $ 52,778 $ (37,312) $ 15,466 December 31, 2019 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 43,550 $ (27,269) $ 16,281 Technology 8,435 (6,789) 1,646 Trade name and trademarks 480 (404) 76 Licenses 463 (81) 382 Total $ 52,928 $ (34,543) $ 18,385 Interim Impairment Analysis Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, if certain events and circumstances indicate potential impairment. We generally perform our annual goodwill impairment test during the fourth quarter of each year, using balances as of the prior quarter. Events and circumstances that could result in an interim assessment of goodwill and other acquired intangible assets and/or a potential impairment loss include, but are not limited to: (i) significant under-performance of the Real Estate segment relative to historical or projected future operating results; (ii) significant changes in the strategy for the Real Estate segment; (iii) significant negative industry or economic trends; and (iv) a decline in market capitalization below the book value attributable to the Real Estate segment. Due to the rapidly changing social and economic impacts associated with the COVID-19 pandemic on the U.S. and global economies generally, and in particular on the U.S. housing, real estate and housing finance markets during the first quarter of 2020, we opted to perform an interim quantitative impairment assessment of our goodwill and other acquired intangible assets for the first quarter of 2020. In connection with that assessment, we first evaluated the recoverability of our other acquired intangible assets, as factors affecting the estimated fair value of our goodwill also affect the estimated recoverability of our other acquired intangible assets. Based on our quantitative goodwill impairment assessment as of March 31, 2020, no impairment was indicated for other acquired intangible assets, as the remaining carrying amounts were estimated to be recoverable despite the recent market disruptions associated with the COVID-19 pandemic. Based on our analysis in the first quarter of 2020, and the evaluation of factors that affect our estimated fair value as of September 30, 2020, we concluded that there were no events or circumstances that would more likely than not reduce the fair value of our reporting unit, including acquired intangible assets. Our assumptions related to projected cash flows did not significantly change as a result of the observed market conditions during the first three quarters of 2020. The value of our goodwill and other acquired intangible assets is supported by cash flow projections, which are primarily driven by projected transaction volume and margins. Given that the value of our goodwill and other acquired intangible assets continues to rely on achieving our projected future cash flows, failure to meet those projections and lower earnings over sustained periods may result in impairment in a future period, which could result in a charge to earnings. For additional information on our accounting policies for goodwill and other acquired intangible assets, see Notes 2 and 7 of Notes to Consolidated Financial Statements in our 2019 Form 10-K. |
Note 8 - Reinsurance
Note 8 - Reinsurance | 9 Months Ended |
Sep. 30, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance In our mortgage insurance and title insurance businesses, we use reinsurance as part of our risk distribution strategy, including to manage our capital position and risk profile. The reinsurance arrangements for our mortgage insurance business include p remiums ceded under the QSR Program, the Single Premium QSR Program and the Excess-of-Loss Program. The amount of credit that we receive under the PMIERs financial requirements for our third-party reinsurance transactions is subject to ongoing review and approval by the GSEs. The effect of all of our reinsurance programs on our net income is as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Net premiums written: Direct $ 269,240 $ 287,000 $ 820,267 $ 828,022 Assumed (1) 2,942 2,608 9,585 7,528 Ceded (2) (9,789) (15,455) (72,912) (39,900) Net premiums written $ 262,393 $ 274,153 $ 756,940 $ 795,650 Net premiums earned: Direct $ 328,728 $ 305,493 $ 945,287 $ 919,507 (3) Assumed (1) 2,946 2,614 9,599 7,545 Ceded (2) (45,203) (26,922) (141,705) (83,189) (3) Net premiums earned $ 286,471 $ 281,185 $ 813,181 $ 843,863 (3) Ceding commissions earned (4) $ 17,038 $ 12,153 $ 40,457 $ 37,191 (3) Ceded losses 10,189 771 51,786 4,326 ______________________ (1) Includes premiums earned from our participation in certain credit risk transfer programs. (2) Net of profit commission, which is impacted by the level of ceded losses recoverable, if any, on reinsurance transactions. See Note 11 for additional information on our reserve for losses and reinsurance recoverables. (3) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies. See Note 4 for further information. (4) Deferred ceding commissions of $59.2 million and $77.8 million are included in other liabilities on our condensed consolidated balance sheets at September 30, 2020 and 2019, respectively. Single Premium QSR Program Radian Guaranty entered into each of the 2016 Single Premium QSR Agreement, 2018 Single Premium QSR Agreement and 2020 Single Premium QSR Agreement with panels of third-party reinsurers to cede a contractual quota share percent of our Single Premium NIW as of the effective date of each agreement (as set forth in the table below), subject to certain conditions. Radian Guaranty receives a ceding commission for ceded premiums written pursuant to these transactions. Radian Guaranty also receives a profit commission, provided that the loss ratio on the loans covered under the agreement generally remains below the applicable prescribed thresholds. Losses on the ceded risk up to this level reduce Radian Guaranty’s profit commission on a dollar-for-dollar basis. Each of the agreements is subject to a scheduled termination date as set forth in the table below; however, Radian Guaranty has the option, based on certain conditions and subject to a termination fee, to terminate any of the agreements at the end of any calendar quarter on or after the applicable optional termination date. If Radian Guaranty exercises this option in the future, it would result in Radian Guaranty reassuming the related RIF in exchange for a net payment to the reinsurer calculated in accordance with the terms of the applicable agreement. Radian Guaranty also may terminate any of the agreements prior to the applicable scheduled termination date under certain circumstances/conditions, including if one or both of the GSEs no longer grant full PMIERs credit for the reinsurance. The 2020 Single Premium QSR Agreement is the only QSR agreement under which Radian Guaranty is currently ceding NIW. Under the 2020 Single Premium QSR Agreement, NIW for policies issued between January 1, 2020 and December 31, 2021 is being ceded, subject to certain conditions and a limitation on ceded premiums written of $250 million. The parties may mutually agree to increase the amount of ceded risk above this level. The following table sets forth additional details regarding the Single Premium QSR Program: (In millions) 2020 Single Premium 2018 Single Premium 2016 Single Premium NIW Policy Dates Jan 1, 2020-Dec 31, 2021 Jan 1, 2018-Dec 31, 2019 Jan 1, 2012-Dec 31, 2017 Effective Date January 1, 2020 January 1, 2018 January 1, 2016 Scheduled Termination Date December 31, 2031 December 31, 2029 December 31, 2027 Optional Termination Date January 1, 2024 January 1, 2022 January 1, 2020 Quota Share % 65% 65% 20% - 65% (1) Ceding Commission % 25% 25% 25% Profit Commission % Up to 56% Up to 56% Up to 55% As of September 30, 2020 RIF Ceded $ 1,331 $ 2,352 $ 3,676 As of December 31, 2019 RIF Ceded $ — $ 3,231 $ 5,351 ______________________ (1) Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk on performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages. Loans included in the 2012 through 2014 vintages, and any other loans subject to the agreement that were delinquent at the time of the amendment, were unaffected by the change and therefore the amount of ceded risk for those loans continues to range from 20% to 35%. Excess-of-Loss Program As of September 30, 2020, Radian Guaranty has entered into three fully collateralized reinsurance arrangements with the Eagle Re Issuers. For the respective coverage periods, Radian Guaranty retains the first-loss layer of aggregate losses, as well as any losses in excess of the outstanding reinsurance coverage amounts. The Eagle Re Issuers provide second layer coverage up to the outstanding coverage amounts. For each of these three reinsurance arrangements, the Eagle Re Issuers financed their coverage by issuing mortgage insurance-linked notes to eligible third-party capital markets investors in unregistered private offerings. The aggregate excess-of-loss reinsurance coverage for these transactions begins amortizing after an initial period in which a target level of credit enhancement is obtained, decreasing over a 10-year period as the principal balances of the underlying covered mortgages decrease and as any claims are paid by the applicable Eagle Re Issuer or the mortgage insurance is canceled. Radian Guaranty has rights to terminate the reinsurance agreements upon the occurrence of certain events. In each of the insurance-linked notes transactions, the outstanding reinsurance coverage amount will stop amortizing if certain thresholds, or triggers, are reached, including a trigger based on an elevated level of delinquencies as defined in the insurance-linked notes transaction agreements. Based on the current level of defaults reported to us, the insurance-linked notes issued by the Eagle Re Issuers in connection with our Excess-of-Loss Program are currently subject to a delinquency trigger event, which was reported to the insurance-linked note investors on June 25, 2020. Both the amortization of the outstanding reinsurance coverage amount pursuant to our reinsurance arrangements with the Eagle Re Issuers and the amortization of the principal amount of the related insurance-linked notes issued by the Eagle Re Issuers have been suspended and will continue to be suspended during the pendency of the trigger event. The following table sets forth additional details regarding the Excess-of-Loss Program as of September 30, 2020: (In millions) Eagle Re 2020-1 Ltd. Eagle Re 2019-1 Ltd. Eagle Re 2018-1 Ltd. Issued February 2020 April 2019 November 2018 NIW Policy Dates Jan 1, 2019-Sep 30, 2019 Jan 1, 2018-Dec 31, 2018 Jan 1, 2017-Dec 31, 2017 Initial RIF $ 9,866 $ 10,705 $ 9,109 Initial Coverage 488 562 434 (1) Initial First Layer Retention 202 268 205 As of September 30, 2020 RIF $ 7,155 $ 5,514 $ 4,742 Remaining Coverage 488 385 276 (1) First Layer Retention 202 266 202 ______________________ (1) Excludes a separate excess-of-loss reinsurance agreement entered into by Radian Guaranty that initially provided up to $21.4 million of coverage. The Eagle Re Issuers are not subsidiaries or affiliates of Radian Guaranty. Based on the accounting guidance that addresses VIEs, we have not consolidated any of the Eagle Re Issuers in our consolidated financial statements, because Radian does not have: (i) the power to direct the activities that most significantly affect the Eagle Re Issuers’ economic performances or (ii) the obligation to absorb losses or the right to receive benefits from the Eagle Re Issuers that potentially could be significant to the Eagle Re Issuers. See Note 2 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for more information on our accounting treatment of VIEs. The reinsurance premium due to the Eagle Re Issuers is calculated by multiplying the outstanding reinsurance coverage amount at the beginning of a period by a coupon rate, which is the sum of one-month LIBOR plus a contractual risk margin, and then subtracting actual investment income collected on the assets in the reinsurance trust during the preceding month. As a result, the premiums we pay will vary based on: (i) the spread between LIBOR and the rates on the investments held by the reinsurance trust and (ii) the outstanding amount of reinsurance coverage. As the reinsurance premium will vary based on changes in these rates, we concluded that the reinsurance agreements contain embedded derivatives, which we have accounted for separately as freestanding derivatives and recorded in other assets or other liabilities on our condensed consolidated balance sheets. See Note 5 for additional information on our embedded derivatives. In the event an Eagle Re Issuer is unable to meet its future obligations to us, if any, our insurance subsidiaries would be liable to make claims payments to our policyholders. In the event that all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) have become worthless and the Eagle Re Issuer is unable to make its payments to us, our maximum potential loss would be the amount of mortgage insurance claim payments for losses on the insured policies, net of the aggregate reinsurance payments already received, up to the full aggregate excess-of-loss reinsurance coverage amount. In the same scenario, the related embedded derivative would no longer have value. See Note 2 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for more information on our fair value measurements of financial instruments. The Eagle Re Issuers represent our only VIEs as of September 30, 2020 and December 31, 2019. The following table presents the total assets and liabilities of the Eagle Re Issuers as of the dates indicated. Total VIE Assets and Liabilities (1) (In thousands) September 30, December 31, Eagle Re 2020-1 Ltd. $ 488,385 $ — Eagle Re 2019-1 Ltd. 384,602 508,449 Eagle Re 2018-1 Ltd. 275,718 357,005 Total $ 1,148,705 $ 865,454 ______________________ (1) Assets held by the Eagle Re Issuers are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Liabilities of the Eagle Re Issuers consist of their mortgage insurance-linked notes, described above. In October 2020, Radian Guaranty entered into a fourth fully collateralized reinsurance agreement, with Eagle Re 2020-2 Ltd. Eagle Re 2020-2 Ltd. is a VIE and is not a subsidiary or affiliate of Radian Guaranty. This reinsurance agreement provides for up to $390.3 million of aggregate excess-of-loss reinsurance coverage for the mortgage insurance losses on new defaults on an existing portfolio of eligible Recurring Premium Policies with initial RIF of $13.0 billion that were issued between October 1, 2019 and July 31, 2020. Eagle Re 2020-2 Ltd. financed its coverage by issuing mortgage insurance-linked notes in an aggregate amount of $390.3 million to eligible third-party capital markets investors in an unregistered private offering . Other Collateral Although we use reinsurance as one of our risk management tools, reinsurance does not relieve us of our obligations to our policyholders. In the event the reinsurers are unable to meet their obligations to us, our insurance subsidiaries would be liable for any defaulted amounts. However, consistent with the PMIERs reinsurer counterparty collateral requirements, Radian Guaranty’s reinsurers have established trusts to help secure our potential cash recoveries. In addition to the total VIE assets of the Eagle Re Issuers discussed above, the amount held in other reinsurance trusts was $256.2 million as of September 30, 2020, compared to $203.2 million as of December 31, 2019. In addition, for the Single Premium QSR Program, Radian Guaranty holds amounts related to ceded premiums written to collateralize the reinsurers’ obligations, which is reported in reinsurance funds withheld on our condensed consolidated balance sheets. Any loss recoveries and profit commissions paid to Radian Guaranty related to the Single Premium QSR Program are expected to be realized from this account. See Note 8 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for more information about our reinsurance transactions. |
Note 9 - Other Assets
Note 9 - Other Assets | 9 Months Ended |
Sep. 30, 2020 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table shows the components of other assets as of the dates indicated: (In thousands) September 30, December 31, Prepaid federal income taxes (Note 10) $ 191,889 $ 134,800 Company-owned life insurance 112,311 105,721 Reinsurance recoverables 66,515 16,976 Internal-use software (net of accumulated amortization of $80,060 and $73,498) 61,549 58,356 Loaned securities (Note 5) 57,922 66,442 Accrued investment income 36,093 32,333 Right-of-use assets 34,662 37,866 Property and equipment (net of accumulated depreciation of $70,519 and $68,436) 27,168 29,523 Deferred policy acquisition costs 17,926 20,759 Unbilled receivables 8,581 13,772 Assets held for sale (1) — 24,908 Other 26,214 26,163 Total other assets $ 640,830 $ 567,619 ______________________ (1) Related to the sale of Clayton. See Note 4 and 7 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for additional information on assets held for sale. Liabilities held for sale at December 31, 2019 are included in other liabilities on our condensed consolidated balance sheets. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As of September 30, 2020 and December 31, 2019, our current income tax liability was $26.6 million and $39.1 million, respectively, and is included as a component of other liabilities in our condensed consolidated balance sheets. As of September 30, 2020 and December 31, 2019 our deferred tax liability was $166.1 million and $71.1 million, respectively, and is included in other liabilities in our condensed consolidated balance sheets. Certain entities within our consolidated group have generated deferred tax assets relating primarily to state and local NOL carryforwards, which, if unutilized, will expire during various future tax periods. We are required to establish a valuation allowance against our deferred tax assets when it is more likely than not that all or some portion of our deferred tax assets will not be realized. At each balance sheet date, we assess our need for a valuation allowance and this assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our deferred tax assets will be realized in future periods. We have determined that certain entities within Radian Group may continue to generate taxable losses on a separate company basis in the near term and may not be able to fully utilize certain of their state and local NOLs on their state and local tax returns. Therefore, with respect to deferred tax assets relating to these state and local NOLs and other state timing adjustments, we retained a valuation allowance of $67.9 million at September 30, 2020. As a mortgage guaranty insurer, we are eligible for a tax deduction, subject to certain limitations, under Internal Revenue Code Section 832(e) for amounts required by state law or regulation to be set aside in statutory contingency reserves. The deduction is allowed only to the extent that, in conjunction with quarterly federal tax payment due dates, we purchase non-interest bearing U.S. Mortgage Guaranty Tax and Loss Bonds issued by the U.S. Department of the Treasury in an amount equal to the tax benefit derived from deducting any portion of our statutory contingency reserves. As of September 30, 2020 and December 31, 2019, we held $191.9 million and $134.8 million of these bonds, respectively, which are included as prepaid federal income taxes within other assets in our condensed consolidated balance sheets. The corresponding deduction of our statutory contingency reserves resulted in the recognition of a deferred tax liability, which is included in other liabilities in our condensed consolidated balance sheets. In late July 2020, the IRS notified us that it had completed its examination of our 2015 and 2017 tax years. This examination resulted in no adjustments to the tax returns filed for those years. For additional information on our income taxes, including our accounting policies, see Notes 2 and 10 of Notes to Consolidated Financial Statements in our 2019 Form 10-K. |
Note 11 - Losses and Loss Adj_2
Note 11 - Losses and Loss Adjustment Expense (Note) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance Loss Reserves [Abstract] | |
Losses and Loss Adjustment Expense | Losses and Loss Adjustment Expense Our reserve for losses and LAE, at the end of each period indicated, consisted of: (In thousands) September 30, December 31, Mortgage insurance loss reserves (1) $ 821,708 $ 401,273 Title insurance loss reserves 4,084 3,492 Total reserve for losses and LAE $ 825,792 $ 404,765 ______________________ (1) Primarily comprises first lien primary case reserves of $744.6 million and $339.8 million at September 30, 2020 and December 31, 2019, respectively. The following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan premium deficiency reserve, for the periods indicated: Nine Months Ended (In thousands) 2020 2019 Balance at beginning of period $ 401,273 $ 397,891 Less: Reinsurance recoverables (1) 14,594 11,009 Balance at beginning of period, net of reinsurance recoverables 386,679 386,882 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 448,584 107,866 Prior years (21,494) (10,579) Total incurred 427,090 97,287 Deduct: Paid claims and LAE related to: Current year (2) 2,841 1,784 Prior years 54,167 101,927 Total paid 57,008 103,711 Balance at end of period, net of reinsurance recoverables 756,761 380,458 Add: Reinsurance recoverables (1) 64,947 13,629 Balance at end of period $ 821,708 $ 394,087 ______________________ (1) Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 8 for additional information. (2) Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. Reserve Activity Incurred Losses Case reserves established for new default notices were the primary driver of our total incurred losses for the nine months ended September 30, 2020, and 2019, and they were primarily impacted by the number of new primary default notices received in the period and our related gross Default to Claim Rate assumption applied to those new defaults. For the nine months ended September 30, 2020, we experienced a significant increase in the number of new primary default notices, substantially all related to defaults of loans subject to forbearance programs implemented in response to the COVID-19 pandemic. Our gross Default to Claim Rate assumption applied to new defaults was 8.5% as of September 30, 2020, compared to 7.5% as of December 31, 2019. This increase reflects the estimated impact of a worsening macroeconomic environment, partially offset by the expected beneficial effects of mortgage relief options and other protections, including forbearance programs under the CARES Act. While our other Default to Claim Rate assumptions for prior year defaults were not materially changed as of September 30, 2020 compared to December 31, 2019, our provision for losses during the first nine months of 2020 was positively impacted by favorable reserve development on prior year defaults, primarily due to higher Cures than previously estimated. See Note 1 for additional information on the elevated risks and uncertainties resulting from the COVID-19 pandemic to our business and Note 2 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for discussion of the reserving methodology for the mortgage insurance industry, which requires that reserves for losses are generally not established until receipt of notification from servicers that a borrower has missed two payments. Ou r gross Default to Claim Rate assumption applied to new defaults wa s 7.5% as of September 30, 2019 . Our provision for losses during the first nine months of 2019 was positively impacted by favorable reserve development on prior year defaults. This favorable development was primarily driven by a reduction during the periods in certain Default to Claim Rate assumptions for these prior year defaults based on observed trends, primarily higher Cures than previously estimated. Claims Paid Total claims paid decreased for the nine months ended September 30, 2020, compared to the same period in 2019. The decrease in claims paid is primarily attributable to COVID-19-related hardship forbearance plans and suspensions of foreclosure and evictions. For additional information about our Reserve for Losses and LAE, including our accounting policies, see Notes 2 and 11 of Notes to Consolidated Financial Statements in our 2019 Form 10-K. |
Note 12 - Borrowings and Financ
Note 12 - Borrowings and Financing Activities (Note) | 9 Months Ended |
Sep. 30, 2020 | |
Senior Notes [Abstract] | |
Borrowings and Financing Activities | Borrowings and Financing Activities The carrying value of our debt at September 30, 2020 and December 31, 2019 was as follows: (In thousands) September 30, December 31, Senior notes: Senior Notes due 2024 $ 445,241 $ 444,445 Senior Notes due 2025 516,210 — Senior Notes due 2027 443,308 442,665 Total senior notes $ 1,404,759 $ 887,110 FHLB advances: FHLB advances due 2020 $ 52,200 $ 79,002 FHLB advances due 2021 30,000 19,000 FHLB advances due 2022 16,925 11,925 FHLB advances due 2023 21,995 14,994 FHLB advances due 2024 9,954 9,954 FHLB advances due 2025 9,984 — Total FHLB advances $ 141,058 $ 134,875 Senior Notes due 2025 In May 2020, we issued $525 million aggregate principal amount of Senior Notes due 2025 and received net proceeds of $515.6 million. These notes mature on March 15, 2025 and bear interest at a rate of 6.625% per annum, payable semi-annually on March 15 and September 15 of each year, which interest payments commenced on September 15, 2020. We have the option to redeem these notes, in whole or in part, at any time, or from time to time, prior to September 15, 2024 (the date that is six months prior to the maturity date of the notes) (the “Par Call Date”), 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 sum of the present values of the remaining scheduled payments of principal and interest in respect of the notes to be redeemed from the redemption date to the Par Call Date discounted to the redemption date at the applicable treasury rate plus 50 basis points, plus, in each case, accrued and unpaid interest thereon to, but excluding, the redemption date. At any time on or after the Par Call Date, we may, at our option, redeem the notes in whole or in part, at a redemption price equal to 100% of the aggregate principal amount of the notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the redemption date. The indenture governing the Senior Notes due 2025 contains covenants customary for securities of this nature, including covenants related to the payments of the notes, reports to be provided, compliance certificates to be issued and the ability to modify the covenants. Additionally, the indenture includes covenants restricting us from encumbering the capital stock of a designated subsidiary (as defined in the indenture 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. FHLB Advances As of September 30, 2020, we had $141.1 million of fixed-rate advances outstanding with a weighted average interest rate of 1.35%. Interest on the FHLB advances is payable quarterly, or at maturity if the term of the advance is less than 90 days. Principal is due at maturity. For obligations with maturities greater than or equal to 90 days, we may prepay the debt at any time, subject to a prepayment fee calculation. The principal balance of the FHLB advances are required to be collateralized by eligible assets with a market value that must be maintained generally within a range of 103% to 111% of market value, depending on the type of collateral pledged. Our fixed-maturities available for sale include securities totaling $158.9 million and $143.1 million at September 30, 2020 and December 31, 2019, respectively, which serve as collateral for our FHLB advances to satisfy this requirement. See Note 12 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for additional information about our FHLB advances. Revolving Credit Facility Radian Group has in place a $267.5 million unsecured revolving credit facility with a syndicate of bank lenders, which has a maturity date of January 18, 2022. At September 30, 2020, Radian Group was in compliance with all of the credit facility covenants, and there were no amounts outstanding. For more information regarding our revolving credit facility, including certain of its terms and covenants, see Note 12 of Notes to Consolidated Financial Statements in our 2019 Form 10-K. |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies (Note) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are routinely involved in a number of legal actions and proceedings, including litigation and other disputes arising in the ordinary course of our business. The legal and regulatory matters discussed below and in our 2019 Form 10-K could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. Management believes, based on current knowledge and after consultation with counsel, that the outcome of such actions will not have a material adverse effect on our consolidated financial condition. The outcome of litigation and other legal and regulatory matters and proceedings is inherently uncertain, and it is possible that one or more of the matters currently pending or threatened could have an adverse effect on our liquidity, financial condition or results of operations for any particular period. On December 22, 2016, Ocwen Loan Servicing, LLC and Homeward Residential, Inc. (collectively, “Ocwen”) filed a complaint in the U.S. District Court for the Eastern District of Pennsylvania against Radian Guaranty alleging breach of contract and bad faith claims and seeking monetary damages and declaratory relief (the “Litigation”). Ocwen has also initiated similar legal proceedings against several other mortgage insurers. On December 17, 2016, Ocwen separately filed a parallel arbitration petition against Radian Guaranty before the American Arbitration Association (“AAA”) asserting substantially the same allegations (the “Arbitration”). Ocwen’s filings together listed 9,420 mortgage insurance certificates issued under multiple insurance policies, including Pool Insurance policies, as subject to the dispute. On June 5, 2017, Ocwen filed an amended complaint and an amended petition (collectively, the “Amended Filings”) with the court and the AAA, respectively, together listing 8,870 certificates as subject to the dispute. On April 11, 2018, the parties entered into a confidential agreement with respect to all certificates subject to the dispute. The confidential agreement resolved certain categories of claims involved in the dispute and, on April 12, 2018, the parties filed a stipulation of voluntary dismissal of the Litigation and the trial judge issued an order dismissing all claims and counterclaims in the Litigation. Radian Guaranty was not required to make any payment in connection with this confidential agreement. Pursuant to the confidential agreement, the parties: (i) dismissed the Litigation; (ii) narrowed the scope of the Arbitration to Ocwen’s breach of contract claims seeking payment of insurance benefits on approximately 2,500 certificates that Ocwen was previously pursuing through the Amended Filings; and (iii) agreed to resolve the Arbitration through an alternative dispute resolution process administered by the AAA (the “ADR Process”). Effective June 30, 2020, Radian Guaranty, PHH Mortgage Corporation, on behalf of itself, and as successor by merger to Ocwen (collectively, “PHH”), and Ocwen Financial Corporation entered into a Confidential Settlement Agreement and Release (the “Ocwen Settlement”) to fully resolve, among other things, all claims subject to the ADR Process. Pursuant to the Ocwen Settlement, among other things: (i) Radian agreed to make a cash settlement payment following the implementation of the Ocwen Settlement and (ii) each party agreed to release the other with respect to all known or unknown claims with respect to the certificates subject to the ADR Process as well as with respect to all other certificates issued on loans serviced by PHH for which Radian decided claims prior to January 1, 2019. On July 2, 2020, the ADR Process panel ordered that all proceedings in the ADR Process are stayed pending final dismissal after receipt of the required consents. Implementation of the Ocwen Settlement, which was subject to the condition precedent that the GSEs consent to the settlement agreement, became effective on November 1, 2020 upon finalization of the consents. On August 31, 2018, Nationstar Mortgage LLC d/b/a Mr. Cooper (“Nationstar”) filed a complaint in the U.S. District Court for the Eastern District of Pennsylvania against Radian Guaranty (the “Complaint”) alleging breach of contract, bad faith, equitable indemnification, unjust enrichment, and conversion claims and seeking monetary damages and declaratory relief. Exhibit 1 to the Complaint lists 3,014 mortgage insurance certificates issued under multiple insurance policies as subject to disputes involving insurance coverage decisions (the “Coverage Disputed Loans”). Exhibit 2 to the Complaint further lists 2,231 mortgage insurance certificates issued under multiple insurance policies as subject to disputes involving premium refund requests. In December 2018, Radian Guaranty filed a motion to dismiss the Complaint. In March 2019, the trial judge issued an order granting in part, and denying in part, our motion to dismiss, and dismissed Nationstar’s unjust enrichment and conversion claims. In May 2019, Radian Guaranty filed an answer to the Complaint, with affirmative defenses and counterclaims. On September 23, 2019, the trial judge entered as an order a joint stipulation submitted by Nationstar and Radian Guaranty that narrowed the scope of the dispute involving Coverage Disputed Loans to claims relating to 1,704 mortgage insurance certificates. Effective June 26, 2020, Radian Guaranty and Nationstar entered into a Confidential Settlement Agreement and Release (the “Nationstar Settlement”) to fully resolve, among other things, all claims and counterclaims in this litigation. Pursuant to the Nationstar Settlement, among other things: (i) Radian agreed to make a cash settlement payment following the implementation of the Nationstar Settlement and (ii) each party agreed to release the other with respect to all known or unknown claims with respect to the certificates subject to this litigation as well as with respect to all other certificates issued under certain policies on loans serviced by Nationstar for which Radian decided claims prior to January 1, 2019. Implementation of the Nationstar Settlement remains subject to the condition precedent that the GSEs consent to the settlement agreement. On July 9, 2020, the trial judge granted the parties’ joint motion requesting to stay this litigation pending receipt of required consents. On October 7, 2020, counsel for Radian and Nationstar submitted a joint status report to the trial judge reporting that the parties are continuing to diligently work on obtaining the required GSE consents, and they will provide the trial judge with another joint status report by January 7, 2021, should the case not be dismissed before then. As previously disclosed, based on developments in the Ocwen and Nationstar legal proceedings discussed above, the Company’s IBNR reserve was increased in 2019 to reflect our best estimate of our probable loss in connection with these legal proceedings. The settlement agreements are materially consistent with these estimates, and as a result, the implementation of the Ocwen Settlement, which became effective as of November 1, 2020, and the execution and expected implementation of the Nationstar Settlement, do not have a material impact on our mortgage insurance reserves for these legal proceedings. A failure to receive the required consents of the GSEs to the Nationstar Settlement could restart the applicable legal proceeding, the outcome of which could have an adverse effect on our future results of operations, liquidity or financial condition. We also are periodically subject to reviews and audits, as well as inquiries, information-gathering requests and investigations. In connection with these matters, from time to time we receive requests and subpoenas seeking information and documents related to aspects of our business. 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, from time to time we face challenges from certain lender and servicer customers regarding our Loss Mitigation Activities. These challenges could result in additional arbitration or judicial proceedings and we may need to reassume the risk on, and increase loss reserves for, the associated policies or pay additional claims. The legal and regulatory matters discussed above 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 excess of amounts we have established as reserves for such matters. Lease Liability Our lease liability represents the present value of future lease payments over the lease term. The following table provides additional information related to our leases: ($ in thousands) September 30, 2020 Operating leases: Operating lease right-of-use assets (1) $ 34,662 Operating lease liabilities (2) 55,334 Weighted-average remaining lease term - operating leases (in years) 9.5 Weighted-average discount rate - operating leases 6.71% ______________________ (1) Classified in other assets in our condensed consolidated balance sheets. See Note 9. (2) Classified in other liabilities in our condensed consolidated balance sheets. |
Note 14 - Capital Stock (Note)
Note 14 - Capital Stock (Note) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Capital Stock Share Repurchase Program On August 14, 2019, Radian Group’s board of directors approved a share repurchase program that authorizes the Company to spend up to $200 million, excluding commissions, to repurchase Radian Group common stock in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors. Radian operated this program pursuant to a trading plan under Rule 10b5-1 of the Exchange Act, which permits the Company to purchase shares, at pre-determined price targets, when it may otherwise be precluded from doing so. On February 13, 2020, Radian Group’s board of directors authorized a $275 million increase in this program, bringing the total authorization to repurchase shares up to $475 million, excluding commissions, and extended the expiration of this program from July 31, 2020 to August 31, 2021. During the nine months ended September 30, 2020, the Company purchased 11,036,248 shares at an average price of $20.51, including commissions. As of September 30, 2020, purchase authority of up to $198.9 million remained available under this program. Effective March 19, 2020, the Company suspended its share repurchase program and canceled the 10b5-1 plan that had been in effect. Radian may initiate a new 10b5-1 plan at its discretion in the future. The expiration date of the current share repurchase authorization remains August 31, 2021. Other Purchases We may purchase shares on the open market to settle stock options exercised by employees and purchases under the Amended and Restated Radian Group Inc. Employee Stock Purchase Plan. 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. Dividends and Dividend Equivalents In each of the quarters during 2019 we declared quarterly cash dividends on our common stock equal to $0.0025 per share. On February 13, 2020, Radian Group’s board of directors authorized an increase to the Company’s quarterly cash dividend from $0.0025 to $0.125 per share, which was declared and paid in each of the first three quarters of 2020. In February 2020, the Compensation and Human Capital Management Committee of Radian Group’s board of directors approved the amendment of outstanding performance-based restricted stock unit (“RSU”) awards and time-based RSU awards held by eligible employees (including former employees) and directors of the Company to add certain dividend equivalent rights to such equity awards. Therefore, beginning in the first quarter of 2020, dividend equivalents are accrued on these awards when dividends are declared on the Company’s common stock. Share-Based and Other Compensation Programs We have granted performance-based or time-based awards in the form of non-qualified stock options, restricted stock, RSUs, phantom stock, or stock appreciation rights. See Note 15 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for additional information regarding the Company’s share-based and other compensation programs. During the second quarter of 2020, executive and non-executive officers were granted time-vested and performance-based RSUs to be settled in common stock. The maximum payout of performance-based RSUs at the end of the three three one Information with regard to RSUs to be settled in stock for periods indicated is as follows: Performance-Based Time-Vested Number of Shares Weighted-Average Grant Date Number of Shares Weighted-Average Grant Date Unvested, December 31, 2019 (1) 2,448,347 $ 17.03 697,576 $ 19.72 Granted (2) 1,175,062 $ 12.02 709,598 $ 13.72 Performance adjustment (3) (788,256) $ — — $ — Vested (4) (591,118) $ 17.59 (446,966) $ 17.17 Forfeited (25,701) $ 17.90 (7,255) $ 19.12 Unvested, September 30, 2020 (1) 2,218,334 $ 14.68 952,953 $ 16.45 ______________________ (1) The final number of RSUs distributed depends on the level of performance achieved along with each employee’s continued service through the vest date, which could result in changes in vested RSUs. (2) For performance-based RSUs, amount represents the probable outcome at grant date. (3) Represents an adjustment to the number of unvested performance-based RSUs due to changes during the period in our estimated payouts, which can range from 0 to 200% of target depending on results over the applicable performance periods. (4) Represents amounts vested during the year, which can include both original shares granted and the impact of performance adjustments. |
Note 16 - Statutory Information
Note 16 - Statutory Information (Note) | 9 Months Ended |
Sep. 30, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Statutory Information | Statutory Information 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. As of September 30, 2020, the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $4.0 billion of our consolidated net assets. Under state insurance regulations, our mortgage insurance subsidiaries are required to maintain minimum surplus levels. In certain RBC States, mortgage insurers licensed in those states must also satisfy a Statutory RBC Requirement that is a minimum ratio of statutory capital relative to the level of net RIF, or Risk-to-capital. Other RBC States require mortgage insurers licensed in those states to satisfy a MPP Requirement that is calculated on both risk and surplus levels. Our mortgage insurance subsidiaries were in compliance with the Statutory RBC Requirements or MPP Requirements, to the extent applicable, in each of the RBC States as of September 30, 2020. In addition, 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. At September 30, 2020, Radian Guaranty is an approved mortgage insurer under the PMIERs and is in compliance with the current PMIERs financial requirements. Under the PMIERs there are increased financial requirements for loans in default, including as a result of natural disasters and pandemics. As a result, increases in defaults related to the COVID-19 pandemic have subjected Radian Guaranty to an increase in Minimum Required Assets under the PMIERs, and therefore, could impact our compliance with the PMIERs or continue to negatively impact our results of operations. However, as further described below, the PMIERs apply a multiplier that reduces the Minimum Required Asset factor for loans that have become non-performing as a result of a “FEMA Declared Major Disaster” event, including as a result of participation in a forbearance program, because those loans generally have a higher likelihood of curing following the conclusion of the event. For these defaults, the PMIERs apply the Disaster Related Capital Charge, which is a 0.30 multiplier to the factor that normally would be applied to such default, effectively reducing the required asset amount by 70%, unless the resulting Minimum Required Asset amount after applying the Disaster Related Capital Charge would be less than the Minimum Required Asset amount for the loan if it was performing, in which case the Minimum Required Asset amount would equal the performing level amount. Pursuant to the COVID-19 Amendment that temporarily amends the PMIERs effective June 30, 2020, the COVID-19 pandemic is recognized as a nationwide FEMA Declared Major Disaster, and therefore, the Disaster Related Capital Charge is now applied nationwide to all COVID-19 Defaulted Loans for no longer than three 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 plus statutory contingency reserves. September 30, December 31, ($ in millions) RIF, net (1) $ 48,914.0 $ 44,076.7 Common stock and paid-in capital $ 1,041.0 $ 1,041.0 Surplus Note 300.0 100.0 Unassigned earnings (deficit) (857.6) (503.3) Statutory policyholders’ surplus 483.4 637.7 Contingency reserve 3,212.1 2,607.8 Statutory capital $ 3,695.5 $ 3,245.5 Risk-to-capital 13.2:1 13.6:1 ______________________ (1) Excludes risk ceded through all reinsurance programs (including with affiliates, if any) and RIF on defaulted loans. Radian Guaranty’s statutory capital increased by $450.0 million in the first nine months of 2020, primarily due to Radian Guaranty’s statutory net income of $260.2 million during this period and the impact of the additional surplus note issued in January 2020, as described below. The net decrease in Radian Guaranty’s Risk-to-capital in the first nine months of 2020 was primarily due to an increase in overall statutory capital, partially offset by a net increase in RIF. Radian Guaranty’s net RIF increased during the first nine months of the year primarily due to the termination of the intercompany reinsurance agreement, as described below, and strong NIW, offset by a reduction in the Persistency Rate on prior vintages due to the high level of refinancing activity in the first nine months of 2020. Due to Radian Guaranty’s negative unassigned surplus position, no dividends or other ordinary distributions can be paid in 202 0. In January 2020, in connection with the termination of an intercompany reinsurance agreement between Radian Reinsurance and Radian Guaranty, Radian Reinsurance transferred $6.0 billion in RIF to Radian Guaranty and released substantially all of its contingency reserves to unassigned surplus. In turn, Radian Guaranty established equivalent contingency reserves with a corresponding decrease to its unassigned surplus. As part of these actions, the Pennsylvania Insurance Department approved a $465 million return of capital from Radian Reinsurance to Radian Group as well as the transfer of $200 million of cash and marketable securities from Radian Group to Radian Guaranty in exchange for a surplus note. This intercompany surplus note has a 3% interest rate and a stated maturity of January 31, 2030. The surplus note may be redeemed at any time upon 30 days prior notice, subject to a request by Radian Guaranty for the approval of the Pennsylvania Insurance Department. For a description of our compliance with statutory and other regulations for our mortgage insurance and title insurance businesses, including statutory capital requirements and divided restrictions, see Note 18 of Notes to Consolidated Financial Statements in our 2019 Form 10-K. |
Note 2 - Significant Accounti_2
Note 2 - Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Basis of PresentationOur condensed consolidated financial statements are prepared in accordance with GAAP and include the accounts of Radian Group Inc. and its subsidiaries. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. We have condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP pursuant to the instructions set forth in Article 10 of Regulation S-X of the SEC. |
Reclassification, Policy | Certain prior period amounts have been reclassified to conform to current period presentation. |
Use of Estimates, Policy | 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, as well as the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our condensed consolidated financial statements include our best estimates and assumptions, actual results may vary materially. |
Investment, Policy | Investments Investments in fixed-maturity 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 accumulated other comprehensive income (loss), unless: (i) we intend to sell the impaired security; (ii) 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 (iii) the present value of cash flows we expect to collect is less than the amortized cost basis of a security. In those instances, we record an impairment loss through earnings that varies depending on specific circumstances, as described below. If a sale is likely, the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, unrealized losses on securities are separated into: (i) the portion of loss that represents the credit loss and (ii) the portion that is due to other factors. As a result of the adoption, effective January 2020, of ASU 2016-13, Financial Instruments—Credit Losses (“ASU 2016-13”), described below, in evaluating whether a decline in value for other securities relates to an existing credit loss, we consider several factors, including, but not limited to, the following: ■ the extent to which the amortized cost basis is greater than fair value; ■ reasons for the decline in value (e.g., adverse conditions related to industry or geographic area, changes in financial condition to the issuers or underlying loan obligors); ■ any changes to the rating of the security by a rating agency; ■ the failure of the issuer to make a scheduled payment; ■ the financial position, access to capital and near-term prospects of the issuer, including the current and future impact of any specific events; and ■ our best estimate of the present value of cash flows expected to be collected. In addition, we no longer consider the duration of the decline in value in assessing whether our fixed income securities available for sale have a credit loss impairment. On initial recognition and at each reporting date after a credit loss is identified, we recognize an allowance for remaining lifetime expected credit losses. This amount is calculated as the difference between the amortized cost and the present value of future expected cash flows, limited to the difference between the carrying amount (i.e., fair value) and amortized cost. If a credit loss is determined to exist, the credit loss impairment is included in net gains (losses) on investments and other financial instruments in the statement of operations, with an offset to an allowance for credit losses. Subsequent changes (favorable and unfavorable) in expected credit losses are recognized immediately in net income (loss) as a credit loss impairment or a reversal of credit loss impairment. |
New Accounting Pronouncements and Changes in Accounting Principles | Accounting Standards Adopted During 2020 We adopted ASU 2016-13 on January 1, 2020 using the modified retrospective adoption approach. This ASU and the associated subsequent amendments require that financial assets measured at their amortized cost basis be presented at the net amount expected to be collected. Credit losses relating to our available-for-sale debt securities are recorded through an allowance for credit losses, rather than a write-down of the asset, with the amount of the allowance limited to the amount by which fair value is less than amortized cost. This allowance method will allow reversals of credit losses if the estimate of credit losses declines. This ASU affected certain of our accounts and notes receivable, including premiums receivable, and certain of our other assets, including reinsurance recoverables; however, the update did not have a material effect on our financial statements and disclosures. See Note 6 for additional information. |
New Accounting Pronouncements Not Yet Adopted, Policy | Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services—Insurance. The new standard: (i) requires that assumptions used to measure the liability for future policy benefits be reviewed at least annually; (ii) defines and simplifies the measurement of market risk benefits; (iii) simplifies the amortization of deferred acquisition costs; and (iv) enhances the required disclosures about long-duration contracts. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact on our financial statements and future disclosures as a result of this update. In December 2019, the FASB issued ASU 2019-12, Income Taxes—Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes by removing certain exceptions to the general principals of ASC Topic 740 in GAAP. This update is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact on our financial statements and future disclosures as a result of this update. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform—Facilitation of the Effects of Reference Reform on Financial Reporting. This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this update are optional and may be elected from the date of issuance through December 31, 2022, as reference rate reform activities occur. We are currently evaluating the impact of the guidance and our options related to the practical expedients. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs. This update clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. This update is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is not permitted. Entities are required to apply ASU 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. We are currently evaluating the impact on our financial statements and future disclosures as a result of this update. |
Segment Reporting, Policy | We have two strategic business units that we manage separately—Mortgage and Real Estate. Our Mortgage segment derives its revenue from mortgage insurance and other mortgage and risk services, including contract underwriting services provided to lenders. Our Real Estate segment offers a broad array of title, valuation, asset management and other real estate services to market participants across the real estate value chain. In addition, we report as All Other activities that include income (losses) from assets held by our holding company, related general corporate operating expenses not attributable or allocated to our reportable segments and, for all periods through the first quarter of 2020, income and expenses related to Clayton prior to its sale in January 2020. Subsequent to the sale of Clayton, our Chief Executive Officer (Radian’s chief operating decision maker) implemented certain organizational changes that caused the composition of our reportable segments to change. As revised, the Company’s Mortgage and Real Estate segments are managed by our President of Mortgage and Co-Heads of Real Estate, respectively, who are responsible for the overall profitability of their respective segments and who are directly accountable to our chief operating decision maker. The differences in the basis of segmentation compared to our 2019 Form 10-K are as follows: Business Activity Current Segmentation Prior Segmentation Mortgage insurance and risk services Mortgage Mortgage Insurance Contract underwriting services Mortgage Services Title and real estate services (1) Real Estate Services Clayton All Other Services Income (loss) from holding company assets (and related corporate expenses) All Other Mortgage Insurance ______________________ (1) Includes single family rental services. These segment reporting changes align with the changes in personnel reporting lines, management oversight and branding following the sale of Clayton, and are consistent with the way our chief operating decision maker began assessing the performance of our reportable segments and other business activities effective in the first quarter of 2020. These changes to our reportable segments have been reflected in our segment operating results for all periods presented. See Note 1 for additional details about our Mortgage and Real Estate businesses. |
Income Tax, Policy | We are required to establish a valuation allowance against our deferred tax assets when it is more likely than not that all or some portion of our deferred tax assets will not be realized. At each balance sheet date, we assess our need for a valuation allowance and this assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our deferred tax assets will be realized in future periods. |
Note 4 - Segment Reporting (Pol
Note 4 - Segment Reporting (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy | We have two strategic business units that we manage separately—Mortgage and Real Estate. Our Mortgage segment derives its revenue from mortgage insurance and other mortgage and risk services, including contract underwriting services provided to lenders. Our Real Estate segment offers a broad array of title, valuation, asset management and other real estate services to market participants across the real estate value chain. In addition, we report as All Other activities that include income (losses) from assets held by our holding company, related general corporate operating expenses not attributable or allocated to our reportable segments and, for all periods through the first quarter of 2020, income and expenses related to Clayton prior to its sale in January 2020. Subsequent to the sale of Clayton, our Chief Executive Officer (Radian’s chief operating decision maker) implemented certain organizational changes that caused the composition of our reportable segments to change. As revised, the Company’s Mortgage and Real Estate segments are managed by our President of Mortgage and Co-Heads of Real Estate, respectively, who are responsible for the overall profitability of their respective segments and who are directly accountable to our chief operating decision maker. The differences in the basis of segmentation compared to our 2019 Form 10-K are as follows: Business Activity Current Segmentation Prior Segmentation Mortgage insurance and risk services Mortgage Mortgage Insurance Contract underwriting services Mortgage Services Title and real estate services (1) Real Estate Services Clayton All Other Services Income (loss) from holding company assets (and related corporate expenses) All Other Mortgage Insurance ______________________ (1) Includes single family rental services. These segment reporting changes align with the changes in personnel reporting lines, management oversight and branding following the sale of Clayton, and are consistent with the way our chief operating decision maker began assessing the performance of our reportable segments and other business activities effective in the first quarter of 2020. These changes to our reportable segments have been reflected in our segment operating results for all periods presented. See Note 1 for additional details about our Mortgage and Real Estate businesses. |
Note 10 - Income Taxes (Policie
Note 10 - Income Taxes (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy | We are required to establish a valuation allowance against our deferred tax assets when it is more likely than not that all or some portion of our deferred tax assets will not be realized. At each balance sheet date, we assess our need for a valuation allowance and this assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our deferred tax assets will be realized in future periods. |
Note 3 - Net Income Per Share (
Note 3 - Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation of basic and diluted net income per share is as follows: Three Months Ended Nine Months Ended (In thousands, except per-share amounts) 2020 2019 2020 2019 Net income —basic and diluted $ 135,103 $ 173,438 $ 245,613 $ 511,125 Average common shares outstanding—basic (1) 193,176 203,107 196,120 208,561 Dilutive effect of share-based compensation arrangements (2) 980 5,584 1,127 5,402 Adjusted average common shares outstanding—diluted 194,156 208,691 197,247 213,963 Net income per share: Basic $ 0.70 $ 0.85 $ 1.25 $ 2.45 Diluted $ 0.70 $ 0.83 $ 1.25 $ 2.39 ______________________ (1) Includes the impact of fully vested shares under our share-based compensation programs. (2) The following number of shares of our common stock equivalents issued under our share-based compensation arrangements are not included in the calculation of diluted net income per share because they are anti-dilutive: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Shares of common stock equivalents 710 — 1,046 160 |
Note 4 - Segment Reporting (Tab
Note 4 - Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The reconciliation of adjusted pretax operating income (loss) for our reportable segments to consolidated pretax income is as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Adjusted pretax operating income (loss): Mortgage (1) $ 145,836 $ 209,601 $ 263,182 $ 627,942 (2) Real Estate (3) (5,941) (2,541) (15,625) (10,238) Total adjusted pretax operating income (loss) for reportable segments 139,895 207,060 247,557 617,704 All Other adjusted pretax operating income (loss) 5,085 5,683 13,523 12,948 Net gains (losses) on investments and other financial instruments 17,652 13,009 42,901 47,462 Loss on extinguishment of debt — (5,940) — (22,738) Amortization and impairment of other acquired intangible assets (961) (2,139) (2,919) (6,465) Impairment of other long-lived assets and other non-operating items (466) — (788) (5,557) Consolidated pretax income $ 161,205 $ 217,673 $ 300,274 $ 643,354 ______________________ (1) Includes allocated corporate operating expenses and depreciation expense as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Allocated corporate operating expenses $ 29,435 $ 26,671 $ 83,700 $ 76,684 Depreciation expense 2,895 3,817 9,719 11,528 (2) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019, as further described below. (3) Includes allocated corporate operating expenses and depreciation expense as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Allocated corporate operating expenses $ 3,818 $ 2,910 $ 10,993 $ 8,364 Depreciation expense 683 561 2,125 1,769 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The reconciliation of revenue for our reportable segments to consolidated revenues is as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Revenues: Mortgage (1) $ 320,013 $ 317,646 $ 922,040 $ 956,660 (2) Real Estate (1) 33,328 30,139 88,003 80,789 Total revenues for reportable segments 353,341 347,785 1,010,043 1,037,449 All Other revenues (3) 5,858 19,812 19,984 55,170 Net gains (losses) on investments and other financial instruments 17,652 13,009 42,901 47,462 Other non-operating revenue — — 247 — Elimination of inter-segment revenues (3) (1,617) (268) (4,419) (1,150) Total revenues $ 375,234 $ 380,338 $ 1,068,756 $ 1,138,931 ______________________ (1) Includes immaterial inter-segment revenues for the three and nine months ended September 30, 2020 and 2019. (2) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 as further described above. |
Services Revenue [Table Text Block] | The table below, which represents total services revenue on our condensed consolidated statements of operations for the periods indicated, represents the disaggregation of services revenues from external customers, by type: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Services revenue Real Estate services: Valuation services $ 11,881 $ 14,772 $ 31,519 $ 40,836 Title services 9,081 4,590 25,445 11,189 Asset management services 8,453 6,567 21,791 19,300 Other real estate services 614 335 1,364 407 Mortgage services 3,914 2,340 10,965 4,856 All Other services (1) — 13,905 2,861 37,977 Total services revenue $ 33,943 $ 42,509 $ 93,945 $ 114,565 ______________________ (1) Includes services revenue from Clayton prior to its sale in January 2020. |
Note 5 - Fair Value of Financ_2
Note 5 - Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following is a list of assets that are measured at fair value by hierarchy level as of September 30, 2020: (In thousands) Level I Level II Total Assets at fair value Investments: Fixed-maturities available for sale: U.S. government and agency securities $ 157,407 $ 29,494 $ 186,901 State and municipal obligations — 159,975 159,975 Corporate bonds and notes — 2,898,357 2,898,357 RMBS — 850,113 850,113 CMBS — 718,962 718,962 Other ABS — 809,388 809,388 Foreign government and agency securities — 5,296 5,296 Total fixed-maturities available for sale 157,407 5,471,585 5,628,992 Trading securities: State and municipal obligations — 120,547 120,547 Corporate bonds and notes — 122,858 122,858 RMBS — 13,930 13,930 CMBS — 34,315 34,315 Total trading securities — 291,650 291,650 Equity securities 84,255 7,062 91,317 Short-term investments: U.S. government and agency securities 29,716 — 29,716 State and municipal obligations — 26,973 26,973 Money market instruments 232,105 — 232,105 Corporate bonds and notes — 106,013 106,013 Other investments (1) — 172,339 172,339 Total short-term investments 261,821 305,325 567,146 Total investments at fair value (2) 503,483 6,075,622 6,579,105 Other: Loaned securities: (3) Corporate bonds and notes — 13,932 13,932 Equity securities 43,990 — 43,990 Total assets at fair value (2) $ 547,473 $ 6,089,554 $ 6,637,027 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include other invested assets of $2.5 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient and $3.0 million invested in a private convertible promissory note. (3) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 6 for more information. The following is a list of assets that are measured at fair value by hierarchy level as of December 31, 2019: (In thousands) Level I Level II Total Assets at fair value Investments: Fixed-maturities available for sale: U.S. government and agency securities $ 143,884 $ 35,700 $ 179,584 State and municipal obligations — 119,994 119,994 Corporate bonds and notes — 2,237,611 2,237,611 RMBS — 779,354 779,354 CMBS — 608,015 608,015 Other ABS — 759,129 759,129 Foreign government and agency securities — 5,224 5,224 Total fixed-maturities available for sale 143,884 4,545,027 4,688,911 Trading securities: State and municipal obligations — 118,949 118,949 Corporate bonds and notes — 147,232 147,232 RMBS — 16,180 16,180 CMBS — 34,789 34,789 Total trading securities — 317,150 317,150 Equity securities 124,009 6,212 130,221 Short-term investments: U.S. government and agency securities 127,152 — 127,152 State and municipal obligations — 21,475 21,475 Money market instruments 202,461 — 202,461 Corporate bonds and notes — 20,298 20,298 Other investments (1) — 147,007 147,007 Total short-term investments 329,613 188,780 518,393 Total investments at fair value (2) 597,506 5,057,169 5,654,675 Other: Loaned securities: (3) U.S. government and agency securities 35,309 — 35,309 Corporate bonds and notes — 3,669 3,669 Equity securities 27,464 — 27,464 Total assets at fair value (2) $ 660,279 $ 5,060,838 $ 5,721,117 ______________________ (1) Comprising short-term certificates of deposit and commercial paper. (2) Does not include other invested assets of $2.6 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient and $1.5 million invested in a private convertible promissory note. (3) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 6 for more information. |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and estimated fair value of other selected liabilities not carried at fair value in our condensed consolidated balance sheets were as follows as of the dates indicated: September 30, 2020 December 31, 2019 (In thousands) Carrying Estimated Carrying Estimated Liabilities: Senior notes $ 1,404,759 $ 1,450,590 $ 887,110 $ 949,500 FHLB advances 141,058 144,280 134,875 135,997 |
Note 6 - Investments (Tables)
Note 6 - Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments [Abstract] | |
Available for Sale Securities [Table Text Block] | Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated: September 30, 2020 (In thousands) Amortized Allowance for Credit Losses Gross Gross Fair Value Fixed-maturities available for sale: U.S. government and agency securities $ 186,457 $ — $ 2,105 $ (1,661) $ 186,901 State and municipal obligations 145,318 — 14,850 (193) 159,975 Corporate bonds and notes 2,703,446 (2,290) 218,127 (7,471) 2,911,812 RMBS 813,006 — 37,137 (30) 850,113 CMBS 686,414 — 37,339 (4,791) 718,962 Other ABS 811,687 — 4,051 (6,350) 809,388 Foreign government and agency securities 5,098 — 198 — 5,296 Total securities available for sale, including loaned securities 5,351,426 $ (2,290) $ 313,807 $ (20,496) 5,642,447 Less: loaned securities 12,890 13,455 Total fixed-maturities available for sale $ 5,338,536 $ 5,628,992 December 31, 2019 (In thousands) Amortized Gross Gross Fair Value Fixed-maturities available for sale: U.S. government and agency securities $ 198,613 $ 2,048 $ (733) $ 199,928 State and municipal obligations 112,003 8,032 (41) 119,994 Corporate bonds and notes 2,136,819 106,189 (1,728) 2,241,280 RMBS 766,429 14,452 (1,527) 779,354 CMBS 593,647 14,993 (625) 608,015 Other ABS 760,785 2,018 (3,674) 759,129 Foreign government and agency securities 5,091 133 — 5,224 Total securities available for sale, including loaned securities 4,573,387 $ 147,865 $ (8,328) 4,712,924 Less: loaned securities 23,853 24,013 Total fixed-maturities available for sale $ 4,549,534 $ 4,688,911 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table provides a rollforward of the allowance for credit losses on fixed-maturities available for sale, which relates entirely to corporate bonds and notes for the periods indicated: (In thousands) Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Beginning balance $ 2,476 $ — Current provision for securities without prior allowance — 2,596 Net increases (decreases) in allowance on previously impaired securities (186) — Reduction for securities sold — (306) Ending balance $ 2,290 $ 2,290 |
Gross Unrealized Losses and Fair Value of Available for Sale Securities [Table Text Block] | the following tables show the gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated. Included in the amounts as of September 30, 2020 and December 31, 2019 are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below. September 30, 2020 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of Fair Value Unrealized # of Fair Value Unrealized # of Fair Value Unrealized U.S. government and agency securities 4 $ 99,250 $ (1,661) — $ — $ — 4 $ 99,250 $ (1,661) State and municipal obligations 10 27,543 (193) — — — 10 27,543 (193) Corporate bonds and notes 130 306,915 (7,471) — — — 130 306,915 (7,471) RMBS 4 11,723 (19) 2 956 (11) 6 12,679 (30) CMBS 60 176,482 (4,537) 6 7,146 (254) 66 183,628 (4,791) Other ABS 101 308,637 (3,025) 29 152,098 (3,325) 130 460,735 (6,350) Total 309 $ 930,550 $ (16,906) 37 $ 160,200 $ (3,590) 346 $ 1,090,750 $ (20,496) December 31, 2019 ($ in thousands) Description of Securities Less Than 12 Months 12 Months or Greater Total # of Fair Value Unrealized # of Fair Value Unrealized # of Fair Value Unrealized U.S. government and agency securities 2 $ 26,142 $ (731) 2 $ 2,529 $ (2) 4 $ 28,671 $ (733) State and municipal obligations 1 3,959 (41) — — — 1 3,959 (41) Corporate bonds and notes 25 110,871 (1,728) — — — 25 110,871 (1,728) RMBS 27 184,378 (535) 16 36,192 (992) 43 220,570 (1,527) CMBS 36 109,589 (478) 8 6,346 (147) 44 115,935 (625) Other ABS 63 225,944 (670) 44 209,661 (3,004) 107 435,605 (3,674) Total 154 $ 660,883 $ (4,183) 70 $ 254,728 $ (4,145) 224 $ 915,611 $ (8,328) |
Net Gains (Losses) on Investments and Other Financial Instruments [Table Text Block] | Net gains (losses) on investments consisted of: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Net realized gains (losses): Fixed-maturities available for sale (1) $ 13,777 $ 4,401 $ 31,998 $ 5,209 Trading securities — 19 4 (391) Equity securities — (28) 361 (708) Other investments 196 205 273 521 Net realized gains (losses) on investments 13,973 4,597 32,636 4,631 Impairment losses due to intent to sell — — (1,401) — Net decrease (increase) in expected credit losses 186 — (2,596) — Net unrealized gains (losses) on investments 2,813 4,419 916 33,005 Total net gains (losses) on investments $ 16,972 $ 9,016 $ 29,555 $ 37,636 ______________________ (1) Components of net realized gains (losses) on fixed-maturities available for sale include: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Gross investment gains from sales and redemptions $ 14,219 $ 4,697 $ 34,422 $ 10,926 Gross investment losses from sales and redemptions (442) (296) (2,424) (5,717) |
Net Changes in Unrealized Gains (Losses) Recognized in Earnings [Table Text Block] | The net changes in unrealized gains (losses) recognized in earnings on investments that were still held at each period-end were as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Net unrealized gains (losses) on investments still held: Trading securities $ (1,150) $ 4,132 $ 9,990 $ 18,962 Equity securities 4,455 563 (8,158) 9,170 Other investments (173) 47 152 (64) Net unrealized gains (losses) on investments still held $ 3,132 $ 4,742 $ 1,984 $ 28,068 |
Contractual Maturities [Table Text Block] | The contractual maturities of fixed-maturities available for sale were as follows: September 30, 2020 Available for Sale (In thousands) Amortized Fair Due in one year or less (1) $ 94,375 $ 94,832 Due after one year through five years (1) 984,406 1,034,592 Due after five years through 10 years (1) 1,246,319 1,351,007 Due after 10 years (1) 715,219 783,553 Asset-backed and other mortgage-backed securities (2) 2,311,107 2,378,463 Total 5,351,426 5,642,447 Less: loaned securities 12,890 13,455 Total fixed-maturities available for sale $ 5,338,536 $ 5,628,992 ______________________ (1) Actual maturities may differ as a result of calls before scheduled maturity. |
Note 7 - Goodwill and Other A_2
Note 7 - Goodwill and Other Acquired Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 year-to-date periods ended December 31, 2019 and September 30, 2020: (In thousands) Goodwill Accumulated Impairment Losses Net Balance at December 31, 2018 $ 200,561 $ (186,469) $ 14,092 Goodwill acquired 538 — 538 Impairment losses — (4,828) (4,828) Balance at December 31, 2019 201,099 (191,297) 9,802 Goodwill disposed (1) (191,297) 191,297 — Balance at September 30, 2020 $ 9,802 $ — $ 9,802 ______________________ |
Schedule of Other Intangible Assets [Table Text Block] | The following is a summary of the gross and net carrying amounts and accumulated amortization (including impairment) of our other acquired intangible assets as of the periods indicated: September 30, 2020 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 43,550 $ (29,748) $ 13,802 Technology 8,285 (6,988) 1,297 Trade name and trademarks 480 (461) 19 Licenses 463 (115) 348 Total $ 52,778 $ (37,312) $ 15,466 December 31, 2019 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 43,550 $ (27,269) $ 16,281 Technology 8,435 (6,789) 1,646 Trade name and trademarks 480 (404) 76 Licenses 463 (81) 382 Total $ 52,928 $ (34,543) $ 18,385 |
Note 8 - Reinsurance (Tables)
Note 8 - Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance, Net Premiums Written and Earned [Table Text Block] | The effect of all of our reinsurance programs on our net income is as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Net premiums written: Direct $ 269,240 $ 287,000 $ 820,267 $ 828,022 Assumed (1) 2,942 2,608 9,585 7,528 Ceded (2) (9,789) (15,455) (72,912) (39,900) Net premiums written $ 262,393 $ 274,153 $ 756,940 $ 795,650 Net premiums earned: Direct $ 328,728 $ 305,493 $ 945,287 $ 919,507 (3) Assumed (1) 2,946 2,614 9,599 7,545 Ceded (2) (45,203) (26,922) (141,705) (83,189) (3) Net premiums earned $ 286,471 $ 281,185 $ 813,181 $ 843,863 (3) Ceding commissions earned (4) $ 17,038 $ 12,153 $ 40,457 $ 37,191 (3) Ceded losses 10,189 771 51,786 4,326 ______________________ (1) Includes premiums earned from our participation in certain credit risk transfer programs. (2) Net of profit commission, which is impacted by the level of ceded losses recoverable, if any, on reinsurance transactions. See Note 11 for additional information on our reserve for losses and reinsurance recoverables. (3) Includes a cumulative adjustment to unearned premiums recorded in the second quarter of 2019 related to an update to the amortization rates used to recognize revenue for Single Premium Policies. See Note 4 for further information. (4) Deferred ceding commissions of $59.2 million and $77.8 million are included in other liabilities on our condensed consolidated balance sheets at September 30, 2020 and 2019, respectively. |
Schedule of Single Premium Quota Share Reinsurance Program Details [Table Text Block] | The following table sets forth additional details regarding the Single Premium QSR Program: (In millions) 2020 Single Premium 2018 Single Premium 2016 Single Premium NIW Policy Dates Jan 1, 2020-Dec 31, 2021 Jan 1, 2018-Dec 31, 2019 Jan 1, 2012-Dec 31, 2017 Effective Date January 1, 2020 January 1, 2018 January 1, 2016 Scheduled Termination Date December 31, 2031 December 31, 2029 December 31, 2027 Optional Termination Date January 1, 2024 January 1, 2022 January 1, 2020 Quota Share % 65% 65% 20% - 65% (1) Ceding Commission % 25% 25% 25% Profit Commission % Up to 56% Up to 56% Up to 55% As of September 30, 2020 RIF Ceded $ 1,331 $ 2,352 $ 3,676 As of December 31, 2019 RIF Ceded $ — $ 3,231 $ 5,351 ______________________ (1) Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk on performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages. Loans included in the 2012 through 2014 vintages, and any other loans subject to the agreement that were delinquent at the time of the amendment, were unaffected by the change and therefore the amount of ceded risk for those loans continues to range from 20% to 35%. |
Schedule of Collateralized Reinsurance Agreements [Table Text Block] | The following table sets forth additional details regarding the Excess-of-Loss Program as of September 30, 2020: (In millions) Eagle Re 2020-1 Ltd. Eagle Re 2019-1 Ltd. Eagle Re 2018-1 Ltd. Issued February 2020 April 2019 November 2018 NIW Policy Dates Jan 1, 2019-Sep 30, 2019 Jan 1, 2018-Dec 31, 2018 Jan 1, 2017-Dec 31, 2017 Initial RIF $ 9,866 $ 10,705 $ 9,109 Initial Coverage 488 562 434 (1) Initial First Layer Retention 202 268 205 As of September 30, 2020 RIF $ 7,155 $ 5,514 $ 4,742 Remaining Coverage 488 385 276 (1) First Layer Retention 202 266 202 ______________________ |
Schedule of VIE Assets [Table Text Block] | The following table presents the total assets and liabilities of the Eagle Re Issuers as of the dates indicated. Total VIE Assets and Liabilities (1) (In thousands) September 30, December 31, Eagle Re 2020-1 Ltd. $ 488,385 $ — Eagle Re 2019-1 Ltd. 384,602 508,449 Eagle Re 2018-1 Ltd. 275,718 357,005 Total $ 1,148,705 $ 865,454 ______________________ |
Note 9 - Other Assets (Tables)
Note 9 - Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | The following table shows the components of other assets as of the dates indicated: (In thousands) September 30, December 31, Prepaid federal income taxes (Note 10) $ 191,889 $ 134,800 Company-owned life insurance 112,311 105,721 Reinsurance recoverables 66,515 16,976 Internal-use software (net of accumulated amortization of $80,060 and $73,498) 61,549 58,356 Loaned securities (Note 5) 57,922 66,442 Accrued investment income 36,093 32,333 Right-of-use assets 34,662 37,866 Property and equipment (net of accumulated depreciation of $70,519 and $68,436) 27,168 29,523 Deferred policy acquisition costs 17,926 20,759 Unbilled receivables 8,581 13,772 Assets held for sale (1) — 24,908 Other 26,214 26,163 Total other assets $ 640,830 $ 567,619 ______________________ (1) Related to the sale of Clayton. See Note 4 and 7 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for additional information on assets held for sale. Liabilities held for sale at December 31, 2019 are included in other liabilities on our condensed consolidated balance sheets. |
Note 11 - Losses and Loss Adj_3
Note 11 - Losses and Loss Adjustment Expense (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Losses and LAE by Segment | Our reserve for losses and LAE, at the end of each period indicated, consisted of: (In thousands) September 30, December 31, Mortgage insurance loss reserves (1) $ 821,708 $ 401,273 Title insurance loss reserves 4,084 3,492 Total reserve for losses and LAE $ 825,792 $ 404,765 ______________________ (1) Primarily comprises first lien primary case reserves of $744.6 million and $339.8 million at September 30, 2020 and December 31, 2019, respectively. |
Mortgage Insurance Reserve for Losses and LAE Rollforward | The following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan premium deficiency reserve, for the periods indicated: Nine Months Ended (In thousands) 2020 2019 Balance at beginning of period $ 401,273 $ 397,891 Less: Reinsurance recoverables (1) 14,594 11,009 Balance at beginning of period, net of reinsurance recoverables 386,679 386,882 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 448,584 107,866 Prior years (21,494) (10,579) Total incurred 427,090 97,287 Deduct: Paid claims and LAE related to: Current year (2) 2,841 1,784 Prior years 54,167 101,927 Total paid 57,008 103,711 Balance at end of period, net of reinsurance recoverables 756,761 380,458 Add: Reinsurance recoverables (1) 64,947 13,629 Balance at end of period $ 821,708 $ 394,087 ______________________ (1) Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 8 for additional information. (2) Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. |
Note 12 - Borrowings and Fina_2
Note 12 - Borrowings and Financing Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Senior Notes [Abstract] | |
Schedule of Debt [Table Text Block] | The carrying value of our debt at September 30, 2020 and December 31, 2019 was as follows: (In thousands) September 30, December 31, Senior notes: Senior Notes due 2024 $ 445,241 $ 444,445 Senior Notes due 2025 516,210 — Senior Notes due 2027 443,308 442,665 Total senior notes $ 1,404,759 $ 887,110 FHLB advances: FHLB advances due 2020 $ 52,200 $ 79,002 FHLB advances due 2021 30,000 19,000 FHLB advances due 2022 16,925 11,925 FHLB advances due 2023 21,995 14,994 FHLB advances due 2024 9,954 9,954 FHLB advances due 2025 9,984 — Total FHLB advances $ 141,058 $ 134,875 |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Disclosure | The following table provides additional information related to our leases: ($ in thousands) September 30, 2020 Operating leases: Operating lease right-of-use assets (1) $ 34,662 Operating lease liabilities (2) 55,334 Weighted-average remaining lease term - operating leases (in years) 9.5 Weighted-average discount rate - operating leases 6.71% ______________________ (1) Classified in other assets in our condensed consolidated balance sheets. See Note 9. (2) Classified in other liabilities in our condensed consolidated balance sheets. |
Note 14 - Capital Stock (Tables
Note 14 - Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | Information with regard to RSUs to be settled in stock for periods indicated is as follows: Performance-Based Time-Vested Number of Shares Weighted-Average Grant Date Number of Shares Weighted-Average Grant Date Unvested, December 31, 2019 (1) 2,448,347 $ 17.03 697,576 $ 19.72 Granted (2) 1,175,062 $ 12.02 709,598 $ 13.72 Performance adjustment (3) (788,256) $ — — $ — Vested (4) (591,118) $ 17.59 (446,966) $ 17.17 Forfeited (25,701) $ 17.90 (7,255) $ 19.12 Unvested, September 30, 2020 (1) 2,218,334 $ 14.68 952,953 $ 16.45 ______________________ (1) The final number of RSUs distributed depends on the level of performance achieved along with each employee’s continued service through the vest date, which could result in changes in vested RSUs. (2) For performance-based RSUs, amount represents the probable outcome at grant date. (3) Represents an adjustment to the number of unvested performance-based RSUs due to changes during the period in our estimated payouts, which can range from 0 to 200% of target depending on results over the applicable performance periods. (4) Represents amounts vested during the year, which can include both original shares granted and the impact of performance adjustments. |
Note 16 - Statutory Informati_2
Note 16 - Statutory Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
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 plus statutory contingency reserves. September 30, December 31, ($ in millions) RIF, net (1) $ 48,914.0 $ 44,076.7 Common stock and paid-in capital $ 1,041.0 $ 1,041.0 Surplus Note 300.0 100.0 Unassigned earnings (deficit) (857.6) (503.3) Statutory policyholders’ surplus 483.4 637.7 Contingency reserve 3,212.1 2,607.8 Statutory capital $ 3,695.5 $ 3,245.5 Risk-to-capital 13.2:1 13.6:1 ______________________ (1) Excludes risk ceded through all reinsurance programs (including with affiliates, if any) and RIF on defaulted loans. |
Note 1 - Business Overview an_2
Note 1 - Business Overview and Recent Developments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($)segment | May 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Business Overview [Abstract] | ||||
Number of Reportable Business Segments | segment | 2 | |||
Mortgage Insurance [Abstract] | ||||
Reduction in Number of New Defaults from the Prior Quarter | (0.675) | |||
Senior Notes Due 2025 | Senior Notes | ||||
Mortgage Insurance [Abstract] | ||||
Debt Instrument, Face Amount | $ 525,000 | |||
Mortgage segment | ||||
Mortgage Insurance [Abstract] | ||||
Private Mortgage Insurance Protects Lenders For Loans Made With Less Than This Maximum Down Payment Percentage | 20.00% | 20.00% | ||
Private Mortgage Insurance Protects Lenders For Refinancings Made to Home Buyers With Less Than This Maximum Equity-Ownership Percentage | 20.00% | 20.00% | ||
Direct Primary Mortgage Insurance in Force | $ 245,500,000 | $ 245,500,000 | $ 240,600,000 | |
Direct Primary Mortgage Insurance RIF | 61,000,000 | 61,000,000 | 60,900,000 | |
Credit Risk Transfer Transactions | Mortgage segment | ||||
Mortgage Insurance [Abstract] | ||||
Direct Primary Mortgage Insurance RIF | $ 389,100 | $ 389,100 | $ 275,200 |
Note 3 - Net Income Per Share_2
Note 3 - Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) - basic | $ 135,103 | $ 173,438 | $ 245,613 | $ 511,125 |
Average common shares outstanding - basic | 193,176 | 203,107 | 196,120 | 208,561 |
Net income (loss) per share - basic | $ 0.70 | $ 0.85 | $ 1.25 | $ 2.45 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss)—diluted | $ 135,103 | $ 173,438 | $ 245,613 | $ 511,125 |
Dilutive effect of share-based compensation arrangements | 980 | 5,584 | 1,127 | 5,402 |
Adjusted average common shares outstanding—diluted | 194,156 | 208,691 | 197,247 | 213,963 |
Net income (loss) per share—diluted | $ 0.70 | $ 0.83 | $ 1.25 | $ 2.39 |
Stock Compensation Plan | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Shares of common stock equivalents | 710 | 0 | 1,046 | 160 |
Note 4 - Segment Reporting - Se
Note 4 - Segment Reporting - Segments (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 2 |
Note 4 - Segment Reporting - Ad
Note 4 - Segment Reporting - Adjusted Pretax Operating Income (Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted pretax operating income (loss) | $ 139,895 | $ 207,060 | $ 247,557 | $ 617,704 |
Net gains (losses) on investments and other financial instruments | 17,652 | 13,009 | 42,901 | 47,462 |
Gain (Loss) on Extinguishment of Debt | 0 | (5,940) | 0 | (22,738) |
Amortization and impairment of other acquired intangible assets | (961) | (2,139) | (2,919) | (6,465) |
Impairment of other long-lived assets and other-non-operating items | (466) | 0 | (788) | (5,557) |
Consolidated pretax income (loss) | 161,205 | 217,673 | 300,274 | 643,354 |
Increase in Net Premiums Earned | $ 32,900 | |||
Increase in Net Premiums Earned Per Share | $ 0.12 | |||
Mortgage segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted pretax operating income (loss) | 145,836 | 209,601 | 263,182 | $ 627,942 |
Total Operating Expenses Allocated to Subsidiaries From Parent Company | 29,435 | 26,671 | 83,700 | 76,684 |
Depreciation | 2,895 | 3,817 | 9,719 | 11,528 |
Real Estate segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted pretax operating income (loss) | (5,941) | (2,541) | (15,625) | (10,238) |
Total Operating Expenses Allocated to Subsidiaries From Parent Company | 3,818 | 2,910 | 10,993 | 8,364 |
Depreciation | 683 | 561 | 2,125 | 1,769 |
All Other activities segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Adjusted pretax operating income (loss) | $ 5,085 | $ 5,683 | $ 13,523 | $ 12,948 |
Note 4 - Segment Reporting - Re
Note 4 - Segment Reporting - Revenue (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenues | $ 375,234,000 | $ 380,338,000 | $ 1,068,756,000 | $ 1,138,931,000 | ||
Net gains (losses) on investments and other financial instruments | 17,652,000 | 13,009,000 | 42,901,000 | 47,462,000 | ||
Other Nonoperating Income | 0 | 0 | 247,000 | 0 | ||
Interest Income, Related Party | (1,500,000) | (4,000,000) | ||||
Services Revenue, Net | 33,943,000 | 42,509,000 | 93,945,000 | 114,565,000 | ||
Radian Group Inc. | ||||||
Marketable Securities | $ 200,000,000 | |||||
Radian Guaranty | ||||||
Surplus Note | $ 200,000,000 | 300,000,000 | 300,000,000 | $ 100,000,000 | ||
Related Party Transaction, Rate | 3.00% | |||||
Mortgage segment | ||||||
Revenues | 320,013,000 | 317,646,000 | 922,040,000 | 956,660,000 | ||
Real Estate segment | ||||||
Revenues | 33,328,000 | 30,139,000 | 88,003,000 | 80,789,000 | ||
Accounts and notes receivable related to revenue service contracts | 28,900,000 | 28,900,000 | $ 10,800,000 | |||
Bad debt expense | 0 | 0 | 0 | 0 | ||
All Other activities segment | ||||||
Revenues | 5,858,000 | 19,812,000 | 19,984,000 | 55,170,000 | ||
Valuation services | ||||||
Services Revenue, Net | 11,881,000 | 14,772,000 | 31,519,000 | 40,836,000 | ||
Title services | ||||||
Services Revenue, Net | 9,081,000 | 4,590,000 | 25,445,000 | 11,189,000 | ||
Asset management services | ||||||
Services Revenue, Net | 8,453,000 | 6,567,000 | 21,791,000 | 19,300,000 | ||
Real estate agent services | ||||||
Services Revenue, Net | 614,000 | 335,000 | 1,364,000 | 407,000 | ||
Mortgage services | ||||||
Services Revenue, Net | 3,914,000 | 2,340,000 | 10,965,000 | 4,856,000 | ||
All Other services | ||||||
Services Revenue, Net | 0 | 13,905,000 | 2,861,000 | 37,977,000 | ||
Operating Segments | ||||||
Revenues | 353,341,000 | 347,785,000 | 1,010,043,000 | 1,037,449,000 | ||
Intersegment Eliminations | ||||||
Revenues | $ (1,617,000) | $ (268,000) | $ (4,419,000) | $ (1,150,000) |
Note 5 - Fair Value of Financ_3
Note 5 - Fair Value of Financial Instruments - Assets Measured at Fair Value by Hierarchy Level (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value by Hierarchy Level [Line Items] | |||
Other Investments | $ 5,472,000 | $ 5,472,000 | $ 4,072,000 |
Less: loaned securities | 57,922,000 | 57,922,000 | 66,442,000 |
Investments Measured at NAV | |||
Fair Value by Hierarchy Level [Line Items] | |||
Other Investments | 2,500,000 | 2,500,000 | |
Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 6,579,105,000 | 6,579,105,000 | 5,654,675,000 |
Assets, Fair Value Disclosure | 6,637,027,000 | 6,637,027,000 | 5,721,117,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | 0 | 0 |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 503,483,000 | 503,483,000 | 597,506,000 |
Assets, Fair Value Disclosure | 547,473,000 | 547,473,000 | 660,279,000 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 6,075,622,000 | 6,075,622,000 | 5,057,169,000 |
Assets, Fair Value Disclosure | 6,089,554,000 | 6,089,554,000 | 5,060,838,000 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Assets, Fair Value Disclosure | 5,500,000 | 5,500,000 | 400,000 |
Securities Financing Transaction, Fair Value | Fair Value, Measurements, Recurring | U.S. government and agencies securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 35,309,000 | ||
Securities Financing Transaction, Fair Value | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 13,932,000 | 13,932,000 | 3,669,000 |
Securities Financing Transaction, Fair Value | Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 43,990,000 | 43,990,000 | 27,464,000 |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | U.S. government and agencies securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 35,309,000 | ||
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 0 | 0 | 0 |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 43,990,000 | 43,990,000 | 27,464,000 |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | U.S. government and agencies securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 0 | ||
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 13,932,000 | 13,932,000 | 3,669,000 |
Securities Financing Transaction, Fair Value | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 0 | 0 | 0 |
Fixed-maturities available for sale | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 5,628,992,000 | 5,628,992,000 | 4,688,911,000 |
Fixed-maturities available for sale | Fair Value, Measurements, Recurring | U.S. government and agencies securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 186,901,000 | 186,901,000 | 179,584,000 |
Fixed-maturities available for sale | Fair Value, Measurements, Recurring | State and municipal obligations | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 159,975,000 | 159,975,000 | 119,994,000 |
Fixed-maturities available for sale | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 2,898,357,000 | 2,898,357,000 | 2,237,611,000 |
Fixed-maturities available for sale | Fair Value, Measurements, Recurring | RMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 850,113,000 | 850,113,000 | 779,354,000 |
Fixed-maturities available for sale | Fair Value, Measurements, Recurring | CMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 718,962,000 | 718,962,000 | 608,015,000 |
Fixed-maturities available for sale | Fair Value, Measurements, Recurring | Other ABS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 809,388,000 | 809,388,000 | 759,129,000 |
Fixed-maturities available for sale | Fair Value, Measurements, Recurring | Foreign government and agency securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 5,296,000 | 5,296,000 | 5,224,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 157,407,000 | 157,407,000 | 143,884,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | U.S. government and agencies securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 157,407,000 | 157,407,000 | 143,884,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | State and municipal obligations | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | RMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | CMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Other ABS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Foreign government and agency securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 5,471,585,000 | 5,471,585,000 | 4,545,027,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | U.S. government and agencies securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 29,494,000 | 29,494,000 | 35,700,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | State and municipal obligations | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 159,975,000 | 159,975,000 | 119,994,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 2,898,357,000 | 2,898,357,000 | 2,237,611,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | RMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 850,113,000 | 850,113,000 | 779,354,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | CMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 718,962,000 | 718,962,000 | 608,015,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Other ABS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 809,388,000 | 809,388,000 | 759,129,000 |
Fixed-maturities available for sale | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign government and agency securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 5,296,000 | 5,296,000 | 5,224,000 |
Fixed-maturities available for sale | Securities Financing Transaction, Fair Value | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Less: loaned securities | 13,455,000 | 13,455,000 | 24,013,000 |
Trading Securities | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 291,650,000 | 291,650,000 | 317,150,000 |
Trading Securities | Fair Value, Measurements, Recurring | State and municipal obligations | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 120,547,000 | 120,547,000 | 118,949,000 |
Trading Securities | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 122,858,000 | 122,858,000 | 147,232,000 |
Trading Securities | Fair Value, Measurements, Recurring | RMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 13,930,000 | 13,930,000 | 16,180,000 |
Trading Securities | Fair Value, Measurements, Recurring | CMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 34,315,000 | 34,315,000 | 34,789,000 |
Trading Securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Trading Securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | State and municipal obligations | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Trading Securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Trading Securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | RMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Trading Securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | CMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Trading Securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 291,650,000 | 291,650,000 | 317,150,000 |
Trading Securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | State and municipal obligations | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 120,547,000 | 120,547,000 | 118,949,000 |
Trading Securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 122,858,000 | 122,858,000 | 147,232,000 |
Trading Securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | RMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 13,930,000 | 13,930,000 | 16,180,000 |
Trading Securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | CMBS | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 34,315,000 | 34,315,000 | 34,789,000 |
Equity securities | Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 91,317,000 | 91,317,000 | 130,221,000 |
Equity securities | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 84,255,000 | 84,255,000 | 124,009,000 |
Equity securities | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 7,062,000 | 7,062,000 | 6,212,000 |
Short-term investments | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 567,146,000 | 567,146,000 | 518,393,000 |
Short-term investments | Fair Value, Measurements, Recurring | U.S. government and agencies securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 29,716,000 | 29,716,000 | 127,152,000 |
Short-term investments | Fair Value, Measurements, Recurring | State and municipal obligations | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 26,973,000 | 26,973,000 | 21,475,000 |
Short-term investments | Fair Value, Measurements, Recurring | Money market instruments | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 232,105,000 | 232,105,000 | 202,461,000 |
Short-term investments | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 106,013,000 | 106,013,000 | 20,298,000 |
Short-term investments | Fair Value, Measurements, Recurring | Other investments | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 172,339,000 | 172,339,000 | 147,007,000 |
Short-term investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 261,821,000 | 261,821,000 | 329,613,000 |
Short-term investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | U.S. government and agencies securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 29,716,000 | 29,716,000 | 127,152,000 |
Short-term investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | State and municipal obligations | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Short-term investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Money market instruments | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 232,105,000 | 232,105,000 | 202,461,000 |
Short-term investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Short-term investments | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Other investments | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Short-term investments | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 305,325,000 | 305,325,000 | 188,780,000 |
Short-term investments | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | U.S. government and agencies securities | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Short-term investments | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | State and municipal obligations | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 26,973,000 | 26,973,000 | 21,475,000 |
Short-term investments | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Money market instruments | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 0 | 0 | 0 |
Short-term investments | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate bonds and notes | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 106,013,000 | 106,013,000 | 20,298,000 |
Short-term investments | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Other investments | |||
Fair Value by Hierarchy Level [Line Items] | |||
Total Investments at Fair Value | 172,339,000 | 172,339,000 | 147,007,000 |
Partnership investment | |||
Fair Value by Hierarchy Level [Line Items] | |||
Other Investments | 2,600,000 | ||
Convertible promissory note | |||
Fair Value by Hierarchy Level [Line Items] | |||
Other Investments | $ 3,000,000 | $ 3,000,000 | $ 1,500,000 |
Note 5 - Fair Value of Financ_4
Note 5 - Fair Value of Financial Instruments - Other Fair Value Disclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 1,404,759 | $ 887,110 |
FHLB advances | 141,058 | 134,875 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 1,404,759 | 887,110 |
FHLB advances | 141,058 | 134,875 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Fair Value | 1,450,590 | 949,500 |
FHLB advances, Fair Value | $ 144,280 | $ 135,997 |
Note 6 - Investments - Availabl
Note 6 - Investments - Available for Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | $ 5,338,536 | $ 4,549,534 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 2,290 | ||
Less: loaned securities | 57,922 | 66,442 | |
Fixed-maturity investments available for sale, Total, Fair Value | 5,628,992 | 4,688,911 | |
Total fixed-maturities available for sale | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 5,351,426 | ||
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 5,642,447 | ||
Securities Financing Transaction, Cost | Corporate bonds and notes | Fair Value, Measurements, Recurring | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less: loaned securities | 12,890 | 23,853 | |
Securities Financing Transaction, Fair Value | U.S. government and agencies securities | Fair Value, Measurements, Recurring | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less: loaned securities | 35,309 | ||
Securities Financing Transaction, Fair Value | Corporate bonds and notes | Fair Value, Measurements, Recurring | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less: loaned securities | 13,932 | 3,669 | |
Fixed-maturities available for sale | U.S. government and agencies securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 186,457 | 198,613 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,105 | 2,048 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1,661) | (733) | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 186,901 | 199,928 | |
Fixed-maturities available for sale | State and municipal obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 145,318 | 112,003 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 14,850 | 8,032 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (193) | (41) | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 159,975 | 119,994 | |
Fixed-maturities available for sale | Corporate bonds and notes | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 2,703,446 | 2,136,819 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | (2,290) | $ (2,476) | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 218,127 | 106,189 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (7,471) | (1,728) | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 2,911,812 | 2,241,280 | |
Fixed-maturities available for sale | RMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 813,006 | 766,429 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 37,137 | 14,452 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (30) | (1,527) | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 850,113 | 779,354 | |
Fixed-maturities available for sale | CMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 686,414 | 593,647 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 37,339 | 14,993 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (4,791) | (625) | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 718,962 | 608,015 | |
Fixed-maturities available for sale | Other ABS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 811,687 | 760,785 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 4,051 | 2,018 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (6,350) | (3,674) | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 809,388 | 759,129 | |
Fixed-maturities available for sale | Foreign government and agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 5,098 | 5,091 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 198 | 133 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 5,296 | 5,224 | |
Fixed-maturities available for sale | Total fixed-maturities available for sale | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 5,351,426 | 4,573,387 | |
Debt Securities, Available-for-sale, Amortized Cost | 5,338,536 | 4,549,534 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | (2,290) | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 313,807 | 147,865 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (20,496) | (8,328) | |
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 5,642,447 | 4,712,924 | |
Fixed-maturity investments available for sale, Total, Fair Value | 5,628,992 | 4,688,911 | |
Fixed-maturities available for sale | Securities Financing Transaction, Cost | Corporate bonds and notes | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less: loaned securities | 12,890 | ||
Fixed-maturities available for sale | Securities Financing Transaction, Fair Value | Corporate bonds and notes | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less: loaned securities | $ 13,455 | $ 24,013 |
Note 6 - Investments - Rollforw
Note 6 - Investments - Rollforward of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss {Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | $ (2,290) | $ (2,290) |
Corporate bonds and notes | Fixed-maturities available for sale | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss {Roll Forward] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 2,476 | 0 |
Current provision for securities without prior allowance | 0 | 2,596 |
Net increases (decreases) in allowance on previously impaired securities | (186) | 0 |
Reduction for securities sold | 0 | (306) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | $ 2,290 | $ 2,290 |
Note 6 - Investments - Gross Un
Note 6 - Investments - Gross Unrealized Losses and Fair Value of Available for Sale Securities (Details) $ in Thousands | Sep. 30, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Continuous Loss Position Less Than Twelve Months [Abstract] | ||
Number of Securities, Less than 12 Months | security | 309 | 154 |
Fair Value, Less Than 12 Months | $ 930,550 | $ 660,883 |
Unrealized Losses, Less Than 12 Months | $ (16,906) | $ (4,183) |
Continuous Unrealized Loss Position, Twelve Months Or Greater | ||
Number of Securities, 12 Months or Greater | security | 37 | 70 |
Fair Value, 12 Months or Greater | $ 160,200 | $ 254,728 |
Unrealized Losses, 12 Months or Greater | $ (3,590) | $ (4,145) |
Continuous Loss Position, Total | ||
Number of Securities, Total | security | 346 | 224 |
Fair Value, Total | $ 1,090,750 | $ 915,611 |
Unrealized Losses, Total | $ (20,496) | $ (8,328) |
U.S. government and agencies securities | ||
Continuous Loss Position Less Than Twelve Months [Abstract] | ||
Number of Securities, Less than 12 Months | security | 4 | 2 |
Fair Value, Less Than 12 Months | $ 99,250 | $ 26,142 |
Unrealized Losses, Less Than 12 Months | $ (1,661) | $ (731) |
Continuous Unrealized Loss Position, Twelve Months Or Greater | ||
Number of Securities, 12 Months or Greater | security | 0 | 2 |
Fair Value, 12 Months or Greater | $ 0 | $ 2,529 |
Unrealized Losses, 12 Months or Greater | $ 0 | $ (2) |
Continuous Loss Position, Total | ||
Number of Securities, Total | security | 4 | 4 |
Fair Value, Total | $ 99,250 | $ 28,671 |
Unrealized Losses, Total | $ (1,661) | $ (733) |
State and municipal obligations | ||
Continuous Loss Position Less Than Twelve Months [Abstract] | ||
Number of Securities, Less than 12 Months | security | 10 | 1 |
Fair Value, Less Than 12 Months | $ 27,543 | $ 3,959 |
Unrealized Losses, Less Than 12 Months | $ (193) | $ (41) |
Continuous Unrealized Loss Position, Twelve Months Or Greater | ||
Number of Securities, 12 Months or Greater | security | 0 | 0 |
Fair Value, 12 Months or Greater | $ 0 | $ 0 |
Unrealized Losses, 12 Months or Greater | $ 0 | $ 0 |
Continuous Loss Position, Total | ||
Number of Securities, Total | security | 10 | 1 |
Fair Value, Total | $ 27,543 | $ 3,959 |
Unrealized Losses, Total | $ (193) | $ (41) |
Corporate bonds and notes | ||
Continuous Loss Position Less Than Twelve Months [Abstract] | ||
Number of Securities, Less than 12 Months | security | 130 | 25 |
Fair Value, Less Than 12 Months | $ 306,915 | $ 110,871 |
Unrealized Losses, Less Than 12 Months | $ (7,471) | $ (1,728) |
Continuous Unrealized Loss Position, Twelve Months Or Greater | ||
Number of Securities, 12 Months or Greater | security | 0 | 0 |
Fair Value, 12 Months or Greater | $ 0 | $ 0 |
Unrealized Losses, 12 Months or Greater | $ 0 | $ 0 |
Continuous Loss Position, Total | ||
Number of Securities, Total | security | 130 | 25 |
Fair Value, Total | $ 306,915 | $ 110,871 |
Unrealized Losses, Total | $ (7,471) | $ (1,728) |
RMBS | ||
Continuous Loss Position Less Than Twelve Months [Abstract] | ||
Number of Securities, Less than 12 Months | security | 4 | 27 |
Fair Value, Less Than 12 Months | $ 11,723 | $ 184,378 |
Unrealized Losses, Less Than 12 Months | $ (19) | $ (535) |
Continuous Unrealized Loss Position, Twelve Months Or Greater | ||
Number of Securities, 12 Months or Greater | security | 2 | 16 |
Fair Value, 12 Months or Greater | $ 956 | $ 36,192 |
Unrealized Losses, 12 Months or Greater | $ (11) | $ (992) |
Continuous Loss Position, Total | ||
Number of Securities, Total | security | 6 | 43 |
Fair Value, Total | $ 12,679 | $ 220,570 |
Unrealized Losses, Total | $ (30) | $ (1,527) |
CMBS | ||
Continuous Loss Position Less Than Twelve Months [Abstract] | ||
Number of Securities, Less than 12 Months | security | 60 | 36 |
Fair Value, Less Than 12 Months | $ 176,482 | $ 109,589 |
Unrealized Losses, Less Than 12 Months | $ (4,537) | $ (478) |
Continuous Unrealized Loss Position, Twelve Months Or Greater | ||
Number of Securities, 12 Months or Greater | security | 6 | 8 |
Fair Value, 12 Months or Greater | $ 7,146 | $ 6,346 |
Unrealized Losses, 12 Months or Greater | $ (254) | $ (147) |
Continuous Loss Position, Total | ||
Number of Securities, Total | security | 66 | 44 |
Fair Value, Total | $ 183,628 | $ 115,935 |
Unrealized Losses, Total | $ (4,791) | $ (625) |
Other ABS | ||
Continuous Loss Position Less Than Twelve Months [Abstract] | ||
Number of Securities, Less than 12 Months | security | 101 | 63 |
Fair Value, Less Than 12 Months | $ 308,637 | $ 225,944 |
Unrealized Losses, Less Than 12 Months | $ (3,025) | $ (670) |
Continuous Unrealized Loss Position, Twelve Months Or Greater | ||
Number of Securities, 12 Months or Greater | security | 29 | 44 |
Fair Value, 12 Months or Greater | $ 152,098 | $ 209,661 |
Unrealized Losses, 12 Months or Greater | $ (3,325) | $ (3,004) |
Continuous Loss Position, Total | ||
Number of Securities, Total | security | 130 | 107 |
Fair Value, Total | $ 460,735 | $ 435,605 |
Unrealized Losses, Total | $ (6,350) | $ (3,674) |
Note 6 - Investments - Securiti
Note 6 - Investments - Securities Lending Agreements (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Securities Financing Transaction, Fair Value | ||
Securities Financing Transaction [Line Items] | ||
Securities Received as Collateral | $ 26.3 | $ 42.4 |
Note 6 - Investments - Net Gain
Note 6 - Investments - Net Gains (Losses) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) on investments | $ 13,973 | $ 4,597 | $ 32,636 | $ 4,631 |
Impairment losses due to intent to sell | 0 | 0 | (1,401) | 0 |
Net decrease (increase) in expected credit losses | 186 | 0 | (2,596) | 0 |
Net unrealized gain (losses) on investments | 2,813 | 4,419 | 916 | 33,005 |
Total net gains (losses) on investments | 16,972 | 9,016 | 29,555 | 37,636 |
Fixed-maturities available for sale | ||||
Gain (Loss) on Securities [Line Items] | ||||
Fixed maturities available for sale, net realized gain (loss) | 13,777 | 4,401 | 31,998 | 5,209 |
Gross investment gains from sales and redemptions | 14,219 | 4,697 | 34,422 | 10,926 |
Gross investment losses from sales and redemptions | (442) | (296) | (2,424) | (5,717) |
Trading Securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Trading securities, net realized gain (loss) | 0 | 19 | 4 | (391) |
Equity securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Equity securities, net realized gain (loss) | 0 | (28) | 361 | (708) |
Other investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Other investments, net realized gain (loss) | $ 196 | $ 205 | $ 273 | $ 521 |
Note 6 - Investments - Net Chan
Note 6 - Investments - Net Changes in Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Net changes in unrealized gains (losses) on investments | $ 3,132 | $ 4,742 | $ 1,984 | $ 28,068 |
Trading Securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Trading Securities, Change in Unrealized Holding Gain (Loss) | (1,150) | 4,132 | 9,990 | 18,962 |
Equity securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Equity Securities, Change in Unrealized Holding Gain (Loss) | 4,455 | 563 | (8,158) | 9,170 |
Other investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Other Investments, Change in Unrealized Holding Gain (Loss) | $ (173) | $ 47 | $ 152 | $ (64) |
Note 6 - Investments - Contract
Note 6 - Investments - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Amortized Cost | ||
Fixed-maturities available for sale—at amortized cost | $ 5,338,536 | $ 4,549,534 |
Available-for-sale Securities, Fair Value | ||
Less: loaned securities | 57,922 | 66,442 |
Fixed-maturity investments available for sale, Total, Fair Value | 5,628,992 | 4,688,911 |
Non asset-backed securities | ||
Available-for-sale Securities, Amortized Cost | ||
Due in one year or less | 94,375 | |
Due after one year through five years | 984,406 | |
Due after five years through ten years | 1,246,319 | |
Due after ten years | 715,219 | |
Available-for-sale Securities, Fair Value | ||
Due in one year or less | 94,832 | |
Due after one year through five years | 1,034,592 | |
Due after five years through ten years | 1,351,007 | |
Due after ten years | 783,553 | |
Asset-backed and other Mortgage Backed securities | ||
Available-for-sale Securities, Amortized Cost | ||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Amortized Cost | 2,311,107 | |
Available-for-sale Securities, Fair Value | ||
Fixed-maturity investments available for sale, Maturity, without Single Maturity Date, Fair Value | 2,378,463 | |
Total fixed-maturities available for sale | ||
Available-for-sale Securities, Amortized Cost | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 5,351,426 | |
Available-for-sale Securities, Fair Value | ||
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 5,642,447 | |
Fixed-maturities available for sale | Total fixed-maturities available for sale | ||
Available-for-sale Securities, Amortized Cost | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 5,351,426 | 4,573,387 |
Fixed-maturities available for sale—at amortized cost | 5,338,536 | 4,549,534 |
Available-for-sale Securities, Fair Value | ||
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 5,642,447 | 4,712,924 |
Fixed-maturity investments available for sale, Total, Fair Value | 5,628,992 | 4,688,911 |
Fixed-maturities available for sale | Corporate bonds and notes | ||
Available-for-sale Securities, Amortized Cost | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Including Loaned Securities | 2,703,446 | 2,136,819 |
Available-for-sale Securities, Fair Value | ||
Available-for-sale Securities, Debt Securities, Including Loaned Securities | 2,911,812 | 2,241,280 |
Fixed-maturities available for sale | Securities Financing Transaction, Cost | Corporate bonds and notes | ||
Available-for-sale Securities, Amortized Cost | ||
Less: loaned securities | 12,890 | |
Fixed-maturities available for sale | Securities Financing Transaction, Fair Value | Corporate bonds and notes | ||
Available-for-sale Securities, Fair Value | ||
Less: loaned securities | $ 13,455 | $ 24,013 |
Note 6 - Investments - Other (D
Note 6 - Investments - Other (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fixed-maturities available for sale | Debt securities | ||
Assets Held by Insurance Regulators | $ 17 | $ 16.8 |
Note 7 - Goodwill and Other A_3
Note 7 - Goodwill and Other Acquired Intangible Assets, Net - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill, Dispositions | $ (191,297) | ||
Accumulated Amortization, Goodwill, Dispositions | 191,297 | ||
Goodwill, Dispositions, Net | 0 | ||
Real Estate segment | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross, Beginning of Period | 201,099 | $ 200,561 | |
Goodwill, Acquired During Period | 538 | ||
Goodwill, Gross, End of Period | 9,802 | 201,099 | |
Goodwill, Impaired, Accumulated Impairment Loss, Beginning of Period | (191,297) | (186,469) | |
Goodwill, Impairment Loss | (4,828) | ||
Goodwill, Impaired, Accumulated Impairment Loss, End of Period | 0 | (191,297) | |
Goodwill, Net | $ 9,802 | $ 9,802 | $ 14,092 |
Note 7 - Goodwill and Other A_4
Note 7 - Goodwill and Other Acquired Intangible Assets, Net - Schedule of Other Intangible Assets (Details) - Real Estate segment - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Original Acquired Amount | $ 52,778 | $ 52,928 |
Other Intangible Assets, Accumulated Amortization and Impairment | (37,312) | (34,543) |
Other Intangible Assets, Net Carrying Amount | 15,466 | 18,385 |
Client relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Original Acquired Amount | 43,550 | 43,550 |
Other Intangible Assets, Accumulated Amortization and Impairment | (29,748) | (27,269) |
Other Intangible Assets, Net Carrying Amount | 13,802 | 16,281 |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Original Acquired Amount | 8,285 | 8,435 |
Other Intangible Assets, Accumulated Amortization and Impairment | (6,988) | (6,789) |
Other Intangible Assets, Net Carrying Amount | 1,297 | 1,646 |
Trade name and trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Original Acquired Amount | 480 | 480 |
Other Intangible Assets, Accumulated Amortization and Impairment | (461) | (404) |
Other Intangible Assets, Net Carrying Amount | 19 | 76 |
Licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other Intangible Assets, Original Acquired Amount | 463 | 463 |
Other Intangible Assets, Accumulated Amortization and Impairment | (115) | (81) |
Other Intangible Assets, Net Carrying Amount | $ 348 | $ 382 |
Note 7 - Goodwill and Other A_5
Note 7 - Goodwill and Other Acquired Intangible Assets, Net - Interim Impairment Analysis (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Real Estate segment | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Goodwill and Intangible Asset Impairment | $ 0 |
Note 8 - Reinsurance - Net Prem
Note 8 - Reinsurance - Net Premiums Written and Earned, Insurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Premiums Written, Net [Abstract] | ||||
Direct premiums written | $ 269,240 | $ 287,000 | $ 820,267 | $ 828,022 |
Assumed premiums written | 2,942 | 2,608 | 9,585 | 7,528 |
Ceded premiums written | (9,789) | (15,455) | (72,912) | (39,900) |
Net premiums written | 262,393 | 274,153 | 756,940 | 795,650 |
Premiums Earned, Net [Abstract] | ||||
Direct premiums earned | 328,728 | 305,493 | 945,287 | 919,507 |
Assumed premiums earned | 2,946 | 2,614 | 9,599 | 7,545 |
Ceded premiums earned | (45,203) | (26,922) | (141,705) | (83,189) |
Net premiums earned | 286,471 | 281,185 | 813,181 | 843,863 |
Ceded Credit Risk [Line Items] | ||||
Ceding commissions earned | 17,038 | 12,153 | 40,457 | 37,191 |
Ceded losses | 10,189 | 771 | 51,786 | 4,326 |
Deferred ceding commissions | $ 59,200 | $ 77,800 | $ 59,200 | $ 77,800 |
Note 8 - Reinsurance - Single P
Note 8 - Reinsurance - Single Premium QSR Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 36 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2019 | |
Ceded premiums written | $ 9,789 | $ 15,455 | $ 72,912 | $ 39,900 | |||
2016 Single Premium QSR | Radian Guaranty | |||||||
Ceded Insurance Commission Percentage | 25.00% | ||||||
2016 Single Premium QSR | Radian Guaranty | Reinsurer Concentration Risk | |||||||
Concentration Risk, Percentage | 35.00% | ||||||
Risk In Force | 3,676,000 | $ 3,676,000 | $ 5,351,000 | ||||
2018 Single Premium QSR | Radian Guaranty | |||||||
Ceded Insurance Commission Percentage | 25.00% | ||||||
2018 Single Premium QSR | Radian Guaranty | Reinsurer Concentration Risk | |||||||
Concentration Risk, Percentage | 65.00% | ||||||
Risk In Force | 2,352,000 | $ 2,352,000 | 3,231,000 | ||||
2020 Single Premium QSR | Radian Guaranty | |||||||
Ceded premiums written | $ 250,000 | ||||||
Ceded Insurance Commission Percentage | 25.00% | ||||||
2020 Single Premium QSR | Radian Guaranty | Reinsurer Concentration Risk | |||||||
Concentration Risk, Percentage | 65.00% | ||||||
Risk In Force | $ 1,331,000 | $ 1,331,000 | $ 0 | ||||
Minimum | 2016 Single Premium QSR | Radian Guaranty | Reinsurer Concentration Risk | |||||||
Concentration Risk, Percentage | 20.00% | ||||||
Maximum | 2016 Single Premium QSR | Radian Guaranty | |||||||
Loss Ratio | 55.00% | ||||||
Maximum | 2016 Single Premium QSR | Radian Guaranty | Reinsurer Concentration Risk | |||||||
Concentration Risk, Percentage | 65.00% | 35.00% | |||||
Maximum | 2018 Single Premium QSR | Radian Guaranty | |||||||
Loss Ratio | 56.00% | ||||||
Maximum | 2020 Single Premium QSR | Radian Guaranty | |||||||
Loss Ratio | 56.00% |
Note 8 - Reinsurance - Excess-o
Note 8 - Reinsurance - Excess-of-Loss Program (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Oct. 31, 2020USD ($) | Feb. 29, 2020USD ($) | Apr. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Sep. 30, 2020USD ($)arrangements | Dec. 31, 2019USD ($) | |
Mortgage segment | ||||||
Risk In Force | $ 61,000,000 | $ 60,900,000 | ||||
Radian Guaranty | Mortgage segment | ||||||
Reinsurance Retention Policy, Term of Coverage, Period | 10 years | |||||
Excess-of-Loss Program | Radian Guaranty | Mortgage segment | ||||||
VIE, Non-consolidated, Carrying Amount, Assets | $ 1,148,705 | 865,454 | ||||
VIE, Non-consolidated, Carrying Amount, Liabilities | 1,148,705 | 865,454 | ||||
Excess-of-Loss Program | Radian Guaranty | Mortgage segment | Eagle Re 2020-1 (Primary) | ||||||
VIE, Non-consolidated, Carrying Amount, Assets | 488,385 | 0 | ||||
VIE, Non-consolidated, Carrying Amount, Liabilities | 488,385 | 0 | ||||
Excess-of-Loss Program | Radian Guaranty | Mortgage segment | Eagle Re 2019-1 (Primary) | ||||||
VIE, Non-consolidated, Carrying Amount, Assets | 384,602 | 508,449 | ||||
VIE, Non-consolidated, Carrying Amount, Liabilities | 384,602 | 508,449 | ||||
Excess-of-Loss Program | Radian Guaranty | Mortgage segment | Eagle Re 2018-1 (Primary) | ||||||
VIE, Non-consolidated, Carrying Amount, Assets | 275,718 | 357,005 | ||||
VIE, Non-consolidated, Carrying Amount, Liabilities | $ 275,718 | $ 357,005 | ||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | ||||||
Number of Fully Collateralized Reinsurance Arrangements with the Eagle Re Issuers | arrangements | 3 | |||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage segment | Eagle Re 2020-1 (Primary) | ||||||
Risk In Force | $ 9,866,000 | $ 7,155,000 | ||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 488,000 | 488,000 | ||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage segment | Eagle Re 2020-1 (Primary) | XOL First Layer | ||||||
Reinsurance Retention Policy, Amount Retained | $ 202,000 | 202,000 | ||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage segment | Eagle Re 2019-1 (Primary) | ||||||
Risk In Force | $ 10,705,000 | 5,514,000 | ||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 562,000 | 385,000 | ||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage segment | Eagle Re 2019-1 (Primary) | XOL First Layer | ||||||
Reinsurance Retention Policy, Amount Retained | $ 268,000 | 266,000 | ||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage segment | Eagle Re 2018-1 (Primary) | ||||||
Risk In Force | $ 9,109,000 | 4,742,000 | ||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 434,000 | 276,000 | ||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage segment | Eagle Re 2018-1 (Primary) | XOL First Layer | ||||||
Reinsurance Retention Policy, Amount Retained | 205,000 | $ 202,000 | ||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage segment | Separate Third-Party Reinsurer | ||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 21,400 | |||||
Excess-of-Loss Program | Radian Guaranty | Reinsurer Concentration Risk | Mortgage segment | Eagle Re 2020-2 (Primary) | Subsequent Event | ||||||
Risk In Force | $ 13,000,000 | |||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 390,300 | |||||
Proceeds from Issuance of Debt | $ 390,300 |
Note 8 - Reinsurance - Other Co
Note 8 - Reinsurance - Other Collateral (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Funds Held under Reinsurance Agreements, Asset | $ 256.2 | $ 203.2 |
Note 9 - Other Assets - Compone
Note 9 - Other Assets - Components of Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Prepaid federal income taxes (Note 10) | $ 191,889 | $ 134,800 |
Company-owned life insurance | 112,311 | 105,721 |
Reinsurance recoverables | 66,515 | 16,976 |
Internal-use software (net of accumulated amortization of $80,060 and $73,498) | 61,549 | 58,356 |
Loaned securities (Note 5) | 57,922 | 66,442 |
Accrued investment income | 36,093 | 32,333 |
Right-of-use assets | 34,662 | 37,866 |
Property and equipment (net of accumulated depreciation of $70,519 and $68,436) | 27,168 | 29,523 |
Deferred policy acquisition costs | 17,926 | 20,759 |
Unbilled receivables | 8,581 | 13,772 |
Assets held for sale | 0 | 24,908 |
Other Assets, Miscellaneous | 26,214 | 26,163 |
Other Assets | 640,830 | 567,619 |
Accumulated amortization | 80,060 | 73,498 |
Accumulated depreciation | $ 70,519 | $ 68,436 |
Note 10 - Income Taxes - Income
Note 10 - Income Taxes - Income Tax (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Jul. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Liabilities, Net | $ 166,100 | $ 71,100 | |
2015 and 2017 Tax Years [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Credits and Adjustments | $ 0 | ||
US Treasury Securities | |||
Operating Loss Carryforwards [Line Items] | |||
Debt Securities | 191,900 | 134,800 | |
Internal Revenue Service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Income Taxes Payable, Federal, Current | 26,600 | $ 39,100 | |
State and Local NOL Carryforwards | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation Allowance, Amount | $ 67,900 |
Note 11 - Losses and Loss Adj_4
Note 11 - Losses and Loss Adjustment Expense - Mortgage Insurance Reserve for Losses and LAE Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Loss reserve [Roll Forward] | ||
Balance at beginning of period | $ 404,765 | |
Deduct paid claims and LAE related to [Abstract] | ||
Balance at end of period | 825,792 | |
Mortgage segment | ||
Loss reserve [Roll Forward] | ||
Balance at beginning of period | 401,273 | $ 397,891 |
Less: Reinsurance recoverables | 14,594 | 11,009 |
Balance at beginning of period, net of reinsurance recoverables | 386,679 | 386,882 |
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract] | ||
Incurred Losses and LAE Current year | 448,584 | 107,866 |
Incurred Losses and LAE Prior years | (21,494) | (10,579) |
Total incurred losses and LAE | 427,090 | 97,287 |
Deduct paid claims and LAE related to [Abstract] | ||
Paid Losses and LAE Current year | 2,841 | 1,784 |
Paid losses and LAE Prior years | 54,167 | 101,927 |
Total paid losses and LAE | 57,008 | 103,711 |
Balance at end of period, net of reinsurance recoverables | 756,761 | 380,458 |
Add: Reinsurance recoverables | 64,947 | 13,629 |
Balance at end of period | $ 821,708 | $ 394,087 |
Note 11 - Losses and Loss Adj_5
Note 11 - Losses and Loss Adjustment Expense - Reserve Activity (Details) - Mortgage segment - payment | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Minimum | |||
Number of missed payments | 2 | ||
Primary Mortgage Product | |||
Default To Claim Rate Estimate, Gross, For New Defaults | 8.50% | 7.50% | 7.50% |
Note 12 - Borrowings and Fina_3
Note 12 - Borrowings and Financing Activities - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Banks | $ 141,058 | $ 134,875 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 1,404,759 | 887,110 |
Senior Notes | Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Senior Notes | 445,241 | 444,445 |
Senior Notes | Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Senior Notes | 516,210 | 0 |
Senior Notes | Senior Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Senior Notes | 443,308 | 442,665 |
FHLB Advances | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 52,200 | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 30,000 | 79,002 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 16,925 | 19,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 21,995 | 11,925 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 9,954 | 14,994 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 9,984 | 9,954 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 0 | |
Advances from Federal Home Loan Banks | $ 141,058 | $ 134,875 |
Note 12 - Borrowings and Fina_4
Note 12 - Borrowings and Financing Activities - Senior Notes due 2025 (Details) - Senior Notes - Senior Notes Due 2025 $ in Thousands | 1 Months Ended |
May 31, 2020USD ($) | |
Debt Instrument, Face Amount | $ 525,000 |
Proceeds from Issuance of Long-term Debt | $ 515,600 |
Debt Instrument, Interest Rate, Stated Percentage | 6.625% |
Debt Instrument, Redemption Price, Percentage | 100.00% |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Percent of Stock With Ordinary Voting Rights That Company Must Retain In Order To Make Any Capital Stock Transactions | 80.00% |
Note 12 - Borrowings and Fina_5
Note 12 - Borrowings and Financing Activities - FHLB Advances (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
FHLB advances | $ 141,058 | $ 134,875 |
Federal Home Loan Bank, Advances, Maturity Period, Fixed Rate | 90 days | |
FHLB Advances | ||
FHLB advances | $ 141,058 | 134,875 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 1.35% | |
Minimum | FHLB Advances | ||
Federal Home Loan Bank, Ratio of Market Value of Collateral to Advances | 1.03 | |
Maximum | FHLB Advances | ||
Federal Home Loan Bank, Ratio of Market Value of Collateral to Advances | 1.11 | |
Fixed-maturities available for sale | Debt securities | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 158,900 | $ 143,100 |
Note 12 - Borrowings and Fina_6
Note 12 - Borrowings and Financing Activities - Revolving Credit Facility (Details) - Revolving Credit Facility $ in Millions | Sep. 30, 2020USD ($) |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 267.5 |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Note 13 - Commitments and Con_3
Note 13 - Commitments and Contingencies - Legal Proceedings (Details) | 9 Months Ended | |||||
Sep. 30, 2020matter | Sep. 23, 2019Certificates | Aug. 31, 2018Certificates | Apr. 12, 2018Certificates | Jun. 05, 2017Certificates | Dec. 17, 2016Certificates | |
Unasserted Claim | Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Minimum Number of Pending or Threatened Matters That Could Affect Our Results | matter | 1 | |||||
Insurance Claims | Total primary reserves | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Legal Actions Commencement, Period | 2 years | |||||
Insurance Claims | Pool Insurance Mortgage Insurance Product | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Legal Actions Commencement, Period | 3 years | |||||
Ocwen | Ocwen filings, Initial | ||||||
Loss Contingencies [Line Items] | ||||||
Insurance Certificates Issued Under Multiple Insurance Policies | 9,420 | |||||
Ocwen | Ocwen filings, Amended | ||||||
Loss Contingencies [Line Items] | ||||||
Insurance Certificates Issued Under Multiple Insurance Policies | 8,870 | |||||
Ocwen | Ocwen filings, Narrowed Scope | ||||||
Loss Contingencies [Line Items] | ||||||
Insurance Certificates Whose Scopes Were Narrowed as a Result of the Confidential Agreement | 2,500 | |||||
Nationstar | Insurance coverage decisions | ||||||
Loss Contingencies [Line Items] | ||||||
Insurance Certificates Issued Under Multiple Insurance Policies | 1,704 | 3,014 | ||||
Nationstar | Insurance premium refunds | ||||||
Loss Contingencies [Line Items] | ||||||
Insurance Certificates Issued Under Multiple Insurance Policies | 2,231 |
Note 13 - Commitments and Con_4
Note 13 - Commitments and Contingencies - Lease Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
Right-of-use assets | $ 34,662 | $ 37,866 |
Operating Lease, Liability | $ 55,334 | |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 6 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 6.71% |
Note 14 - Capital Stock - Share
Note 14 - Capital Stock - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Feb. 13, 2020 | Aug. 14, 2019 | |
3Q19 Repurchase Program | |||
Capital Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 200 | ||
1Q20 Repurchase Program | |||
Capital Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 275 | ||
Total of 3Q19 and 1Q20 Repurchase Programs | |||
Capital Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 475 | ||
Stock Repurchased During Period, Shares | 11,036,248 | ||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 20.51 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 198.9 |
Note 14 - Capital Stock - Divid
Note 14 - Capital Stock - Dividends Paid (Details) - $ / shares | Feb. 13, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Equity [Abstract] | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 | |
Common Stock, Dividends, Per Share, Announced | $ 0.125 | |||||||
Capital Stock [Line Items] | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.0025 | $ 0.0025 | $ 0.0025 | $ 0.0025 |
Note 14 - Capital Stock - Sha_2
Note 14 - Capital Stock - Share-based Compensation (Details) | 9 Months Ended | |
Sep. 30, 2020anniversary$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Performance Based RSUs Equity Settled | ||
Number of Shares, Unvested | shares | 2,218,334 | 2,448,347 |
Number of Shares, Granted | shares | 1,175,062 | |
Number of Shares, Performance adjustment | shares | (788,256) | |
Number of Shares, Vested in Period | shares | (591,118) | |
Number of Shares, Forfeited | shares | (25,701) | |
Weighted Average Grant Date Fair Value, Unvested | $ / shares | $ 14.68 | $ 17.03 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 12.02 | |
Weighted Average Grant Date Fair Value, Performance Adjustment | $ / shares | 0 | |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 17.59 | |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | $ 17.90 | |
Performance Based RSUs Equity Settled | 2020 Award Year | ||
Performance Period, Performance-based RSUs | 3 years | |
Performance Based RSUs Equity Settled | 2020 Award Year | Maximum | ||
Payout Percentage of Target Award | 200.00% | |
Performance Based RSUs Equity Settled | 2020 Award Year | Minimum | ||
Payout Percentage of Target Award | 0.00% | |
Time Vested RSUs Equity Settled | ||
Number of Shares, Unvested | shares | 952,953 | 697,576 |
Number of Shares, Granted | shares | 709,598 | |
Number of Shares, Performance adjustment | shares | 0 | |
Number of Shares, Vested in Period | shares | (446,966) | |
Number of Shares, Forfeited | shares | (7,255) | |
Weighted Average Grant Date Fair Value, Unvested | $ / shares | $ 16.45 | $ 19.72 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 13.72 | |
Weighted Average Grant Date Fair Value, Performance Adjustment | $ / shares | 0 | |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 17.17 | |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | $ 19.12 | |
Time Vested RSUs Equity Settled | 2020 Award Year | ||
Number of Anniversaries of the Grant Date | anniversary | 3 | |
Time Vested RSUs Equity Settled | 2020 Award Year | Minimum | ||
Cliff-Vesting Period | 1 year |
Note 16 - Statutory Informati_3
Note 16 - Statutory Information - Statutory Information (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | |||
PMIERS Disaster Related Capital Charge | 30.00% | ||
Reduction in Capital Charges | 70.00% | ||
Maximum | |||
Statutory Accounting Practices [Line Items] | |||
Number of Months that Disaster Related Capital Charge is Applied. | 3 months | ||
Radian Guaranty | |||
Statutory Accounting Practices [Line Items] | |||
Surplus Note | $ 200 | $ 300 | $ 100 |
Related Party Transaction, Rate | 3.00% | ||
Surplus Note, Notice of Redemption Period | 30 days | ||
Radian Reinsurance | |||
Statutory Accounting Practices [Line Items] | |||
Risk In Force | $ 6,000 | ||
Return of capital | 465 | ||
Radian Group Inc. | |||
Statutory Accounting Practices [Line Items] | |||
Marketable Securities | $ 200 | ||
Consolidated insurance subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Restricted Net Assets Held by Consolidated Subsidiaries | $ 4,000 |
Note 16 - Statutory Informati_4
Note 16 - Statutory Information - Risk To Capital Calculation (Details) - Radian Guaranty $ in Millions | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Risk to Capital Line Items [Line Items] | |||
RIF, net | $ 48,914 | $ 44,076.7 | |
Common stock and paid-in capital | 1,041 | 1,041 | |
Surplus Note | 300 | $ 200 | 100 |
Unassigned earnings (deficit) | (857.6) | (503.3) | |
Statutory policyholders’ surplus | 483.4 | 637.7 | |
Contingency reserve | 3,212.1 | 2,607.8 | |
Statutory capital | $ 3,695.5 | $ 3,245.5 | |
Risk-to-capital | 13.2 | 13.6 | |
Increase (decrease) in Statutory Capital and Surplus | $ 450 | ||
Statutory Net Income (Loss) | 260.2 | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | $ 0 |