Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 22, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Quarterly Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-11356 | ||
Entity Registrant Name | RADIAN GROUP INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 23-2691170 | ||
Entity Address, Address Line One | 550 East Swedesford Road | ||
Entity Address, Address Line Two | Suite 350 | ||
Entity Address, City or Town | Wayne | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19087 | ||
City Area Code | 215 | ||
Local Phone Number | 231-1000 | ||
Title of 12(b) Security | Common Stock, $.001 par value per share | ||
Trading Symbol | RDN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,243,257,456 | ||
Entity Common Stock, Shares Outstanding | 157,192,928 | ||
Documents Incorporated by Reference | Form 10-K Reference Document Definitive Proxy Statement for the Registrant’s 2023 Annual Meeting of Stockholders Part III (Items 10 through 14) | ||
Entity Central Index Key | 0000890926 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Philadelphia, Pennsylvania |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Fixed-maturities available for sale—at fair value (amortized cost of $5,587,261 and $5,367,729) | $ 5,017,711 | $ 5,517,078 |
Trading securities—at fair value (amortized cost of $122,472 and $234,382) | 115,665 | 256,546 |
Equity securities—at fair value (cost of $162,899 and $176,229) | 148,965 | 184,245 |
Mortgage loans held for sale—at fair value | 3,549 | 0 |
Other invested assets—at fair value | 5,511 | 4,165 |
Short-term investments—at fair value (includes $99,735 and $48,652 of reinvested cash collateral held under securities lending agreements) | 402,090 | 551,508 |
Total investments | 5,693,491 | 6,513,542 |
Cash | 56,183 | 151,145 |
Restricted cash | 377 | 1,475 |
Accrued investment income | 40,093 | 32,812 |
Accounts and notes receivable | 119,834 | 124,016 |
Reinsurance recoverable (includes $18 and $51 for paid losses) | 25,633 | 67,896 |
Deferred policy acquisition costs | 18,460 | 16,317 |
Property and equipment, net (Note 2) | 70,981 | 75,086 |
Goodwill and other acquired intangible assets, net (Note 7) | 15,285 | 19,593 |
Prepaid federal income taxes (Note 10) | 596,368 | 354,123 |
Other assets (Note 9) | 427,024 | 483,180 |
Total assets | 7,063,729 | 7,839,185 |
Liabilities | ||
Unearned premiums | 271,479 | 329,090 |
Reserve for losses and LAE (Note 11) | 426,843 | 828,642 |
Senior notes (Note 12) | 1,413,504 | 1,409,473 |
Other borrowings (Note 12) | 155,822 | 150,983 |
Reinsurance funds withheld | 152,067 | 228,078 |
Net deferred tax liability (Note 10) | 391,083 | 337,509 |
Other liabilities | 333,604 | 296,614 |
Total liabilities | 3,144,402 | 3,580,389 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Common stock ($0.001 par value; 485,000 shares authorized; 2022: 176,509 and 157,056 shares issued and outstanding, respectively; 2021: 194,408 and 175,421 shares issued and outstanding, respectively) | 176 | 194 |
Treasury stock, at cost (2022: 19,453 shares; 2021: 18,987 shares) | (930,643) | (920,798) |
Additional paid-in capital | 1,519,641 | 1,878,372 |
Retained earnings | 3,786,952 | 3,180,935 |
Accumulated other comprehensive income (loss) (Note 15) | (456,799) | 120,093 |
Total stockholders’ equity | 3,919,327 | 4,258,796 |
Total liabilities and stockholders’ equity | $ 7,063,729 | $ 7,839,185 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed-maturities available for sale, amortized cost | $ 5,587,261 | $ 5,367,729 |
Trading securities, amortized cost | 122,472 | 234,382 |
Equity securities, amortized cost | 162,899 | 176,229 |
Reinvested cash collateral held under securities lending agreements | 99,735 | 48,652 |
Reinsurance recoverables, paid losses | $ 18 | $ 51 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 485,000 | 485,000 |
Common stock, shares, issued (in shares) | 176,509 | 194,408 |
Common stock, shares, outstanding (in shares) | 157,056 | 175,421 |
Treasury stock (in shares) | 19,453 | 18,987 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Net premiums earned (Note 8) | $ 981,131 | $ 1,037,183 | $ 1,115,321 |
Services revenue (Note 4) | 92,216 | 125,825 | 105,385 |
Net investment income (Note 6) | 195,658 | 147,909 | 154,037 |
Net gains (losses) on investments and other financial instruments (includes net realized gains (losses) on investments of $(8,278), $20,842 and $35,826) (Note 6) | (80,733) | 15,603 | 60,277 |
Other income | 2,454 | 3,412 | 3,597 |
Total revenues | 1,190,726 | 1,329,932 | 1,438,617 |
Expenses | |||
Provision for losses | (338,239) | 20,877 | 485,117 |
Policy acquisition costs | 23,918 | 29,029 | 30,989 |
Cost of services | 82,358 | 103,714 | 86,066 |
Other operating expenses | 381,148 | 323,686 | 280,710 |
Interest expense | 84,454 | 84,344 | 71,150 |
Amortization of other acquired intangible assets | 4,308 | 3,450 | 5,144 |
Total expenses | 237,947 | 565,100 | 959,176 |
Pretax income | 952,779 | 764,832 | 479,441 |
Income tax provision (Note 10) | 209,845 | 164,161 | 85,815 |
Net income | $ 742,934 | $ 600,671 | $ 393,626 |
Net income per share | |||
Net income per share, basic (in usd per share) | $ 4.42 | $ 3.19 | $ 2.01 |
Net income per share, diluted (in usd per share) | $ 4.35 | $ 3.16 | $ 2 |
Weighted-average number of common shares outstanding—basic (in shares) | 167,930 | 188,370 | 195,443 |
Weighted-average number of common and common equivalent shares outstanding—diluted (in shares) | 170,664 | 190,263 | 196,642 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Insured derivative recoveries, insurance claims, and VIEs | $ (8,278) | $ 20,842 | $ 35,826 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 742,934 | $ 600,671 | $ 393,626 |
Other comprehensive income (loss), net of tax (Note 15) | |||
Unrealized holding gains (losses) on investments arising during the period for which an allowance for expected losses has not been recognized | (584,856) | (138,435) | 178,761 |
Less: Reclassification adjustment for net gains (losses) on investments included in net income | |||
Net realized gains (losses) on disposals and non-credit related impairment losses | (7,880) | 4,472 | 26,440 |
Net decrease (increase) in expected credit losses | 0 | 725 | (991) |
Net unrealized gains (losses) on investments | (576,976) | (143,632) | 153,312 |
Other adjustments to comprehensive income (loss), net | 84 | 0 | (75) |
Other comprehensive income (loss), net of tax | (576,892) | (143,632) | 153,237 |
Comprehensive income | $ 166,042 | $ 457,039 | $ 546,863 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Common Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Treasury stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) |
Total stockholders’ equity | $ 219 | $ (901,657) | $ 2,449,884 | $ 2,389,789 | $ 110,488 | |
Balance, beginning of period at Dec. 31, 2019 | 219 | (901,657) | 2,449,884 | 2,389,789 | 110,488 | |
Issuance of common stock under incentive and benefit plans | 2 | 3,143 | ||||
Share-based compensation | 19,164 | |||||
Shares repurchased under share repurchase programs (Note 14) | (11) | (226,294) | ||||
Repurchases of common stock under incentive plans | (8,458) | |||||
Net income | $ 393,626 | 393,626 | ||||
Dividends and dividend equivalents declared | (98,779) | |||||
Net unrealized gains (losses) on investments, net of tax | 153,312 | 153,312 | ||||
Other adjustments to other comprehensive income (loss) | (75) | |||||
Balance, end of period at Dec. 31, 2020 | 4,284,353 | 210 | (910,115) | 2,245,897 | 2,684,636 | 263,725 |
Total stockholders’ equity | 4,284,353 | 210 | (910,115) | 2,245,897 | 2,684,636 | 263,725 |
Issuance of common stock under incentive and benefit plans | 2 | 3,114 | ||||
Share-based compensation | 28,443 | |||||
Shares repurchased under share repurchase programs (Note 14) | (18) | (399,082) | ||||
Repurchases of common stock under incentive plans | (10,683) | |||||
Net income | 600,671 | 600,671 | ||||
Dividends and dividend equivalents declared | (104,372) | |||||
Net unrealized gains (losses) on investments, net of tax | (143,632) | (143,632) | ||||
Other adjustments to other comprehensive income (loss) | 0 | |||||
Balance, end of period at Dec. 31, 2021 | 4,258,796 | 194 | (920,798) | 1,878,372 | 3,180,935 | 120,093 |
Total stockholders’ equity | 4,258,796 | 194 | (920,798) | 1,878,372 | 3,180,935 | 120,093 |
Issuance of common stock under incentive and benefit plans | 2 | 3,386 | ||||
Share-based compensation | 38,058 | |||||
Shares repurchased under share repurchase programs (Note 14) | (20) | (400,175) | ||||
Repurchases of common stock under incentive plans | (9,845) | |||||
Net income | 742,934 | 742,934 | ||||
Dividends and dividend equivalents declared | (136,917) | |||||
Net unrealized gains (losses) on investments, net of tax | (576,976) | (576,976) | ||||
Other adjustments to other comprehensive income (loss) | 84 | |||||
Balance, end of period at Dec. 31, 2022 | 3,919,327 | 176 | (930,643) | 1,519,641 | 3,786,952 | (456,799) |
Total stockholders’ equity | $ 3,919,327 | $ 176 | $ (930,643) | $ 1,519,641 | $ 3,786,952 | $ (456,799) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 09, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||||
Net income | $ 742,934 | $ 600,671 | $ 393,626 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Net (gains) losses on investments and other financial instruments | 80,733 | (15,603) | (60,277) | |
Purchases of mortgage loans held for sale | (3,890) | 0 | 0 | |
Proceeds from repayments of mortgage loans held for sale | 393 | 0 | 0 | |
Amortization of other acquired intangible assets | 4,308 | 3,450 | 5,144 | |
Depreciation, other amortization, and other impairments, net | 72,267 | 72,020 | 66,585 | |
Deferred income tax provision | 206,925 | 161,793 | 102,079 | |
Change in: | ||||
Accrued investment income | (7,281) | 1,235 | (1,714) | |
Accounts and notes receivable | 4,210 | (2,722) | (29,280) | |
Reinsurance recoverable | 42,263 | 5,306 | (56,226) | |
Deferred policy acquisition costs | (2,143) | 1,988 | 2,454 | |
Prepaid federal income tax | (242,245) | (143,234) | (76,089) | |
Other assets | 65,744 | 65,071 | 114,769 | |
Unearned premiums | (57,611) | (119,701) | (178,031) | |
Reserve for losses and LAE | (401,799) | (19,771) | 443,648 | |
Reinsurance funds withheld | (76,011) | (50,477) | (13,274) | |
Other liabilities | (40,499) | (2,914) | (54,980) | |
Net cash provided by (used in) operating activities | 388,298 | 557,112 | 658,434 | |
Proceeds from sales of: | ||||
Fixed-maturities available for sale | 399,371 | 735,340 | 963,589 | |
Trading securities | 8,868 | 7,952 | 11,602 | |
Equity securities | 8,004 | 36,748 | 90,450 | |
Proceeds from redemptions of: | ||||
Fixed-maturities available for sale | 789,929 | 1,225,626 | 645,068 | |
Trading securities | 102,121 | 16,668 | 22,913 | |
Purchases of: | ||||
Fixed-maturities available for sale | (1,414,966) | (1,980,155) | (2,449,762) | |
Equity securities | (24,637) | (105,649) | (85,014) | |
Sales, redemptions and (purchases) of: | ||||
Short-term investments, net | 150,694 | 68,083 | (82,925) | |
Other assets and other invested assets, net | (6,887) | 6,126 | 1,434 | |
Proceeds from sale of subsidiary, net of cash sold | 0 | 0 | 16,481 | |
Additions to property and equipment | (17,672) | (12,601) | (17,016) | |
Net cash provided by (used in) investing activities | (5,175) | (1,862) | (883,180) | |
Cash flows from financing activities | ||||
Dividends and dividend equivalents paid | (135,437) | (103,298) | (97,458) | |
Issuance of common stock | 1,341 | 1,382 | 1,553 | |
Repurchases of common stock | $ (400,000) | (400,195) | (399,100) | (226,305) |
Issuance of senior notes, net | 0 | 0 | 515,567 | |
Credit facility commitment fees paid | (814) | (3,325) | (2,292) | |
Change in secured borrowings, net (with terms three months or less) | 102,983 | 13,565 | (37,475) | |
Proceeds from secured borrowings (with terms greater than three months) | 28,704 | 42,000 | 207,034 | |
Repayments of secured borrowings (with terms greater than three months) | (75,765) | (48,000) | (138,006) | |
Net cash provided by (used in) financing activities | (479,183) | (496,776) | 222,618 | |
Increase (decrease) in cash and restricted cash | (96,060) | 58,474 | (2,128) | |
Cash and restricted cash, beginning of period | 152,620 | 94,146 | 96,274 | |
Cash and restricted cash, end of period | 56,560 | 152,620 | 94,146 | |
Supplemental disclosures of cash flow information | ||||
Income taxes paid (Note 10) | 243,500 | 143,973 | 81,404 | |
Interest paid | $ 79,062 | $ 78,704 | $ 60,564 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business We are a diversified mortgage and real estate business, providing both credit-related mortgage insurance coverage and an array of other mortgage, risk, title, real estate and technology products and services. We have two reportable business segments—Mortgage and homegenius. Mortgage Our Mortgage segment provides credit-related insurance coverage, principally through private mortgage insurance on residential first-lien mortgage loans, as well as contract underwriting and other credit risk management 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 and mortgage investors, as well as other beneficiaries such as the GSEs, by mitigating default-related losses on residential mortgage loans. Generally, these loans are made to home buyers 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, almost all of which are currently sold to the GSEs. Our total direct primary mortgage IIF and RIF were $261.0 billion and $66.1 billion, respectively, as of December 31, 2022, compared to $246.0 billion and $60.9 billion, respectively, as of December 31, 2021. In addition to providing private mortgage insurance, in the past we have participated 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. In December 2022, we novated the insurance policies for all outstanding RIF resulting from our past participation in these programs to an unrelated third-party reinsurer. See Note 16 for additional information about this novation. The GSEs and state insurance regulators impose various capital and financial requirements on our mortgage insurance subsidiaries. These include the PMIERs financial requirements, as well as Risk-to-capital and other risk-based capital measures and surplus 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. homegenius Our homegenius segment is primarily a fee-for-service business that offers an array of products and services to market participants across the real estate value chain. Our homegenius products and services include title, real estate and technology products and services offered primarily to consumers, mortgage lenders, mortgage and real estate investors, GSEs, real estate brokers and agents. These products and services help lenders, investors, consumers and real estate agents evaluate, manage, monitor, acquire and sell properties. They include SaaS solutions and platforms, as well as managed services, such as real estate owned asset management, single-family rental services and real estate valuation services. In addition, we provide title insurance and non-insurance title, closing and settlement services to mortgage lenders, GSEs and mortgage investors, 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. Risks and Uncertainties In assessing the Company’s current financial condition and developing forecasts of future operations, management has made significant judgments and estimates with respect to potential factors impacting our financial and liquidity position. These judgments and estimates are subject to risks and uncertainties that could affect amounts reported in our financial statements in future periods and that could cause actual results to be materially different from our estimates, including as a result of macroeconomic stresses such as inflation, slower economic growth and higher levels of unemployment. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation Our 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. Certain prior period amounts have been reclassified to conform to the current period presentation. 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. 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 consolidated financial statements include our best estimates and assumptions, actual results may vary materially. Investments We group fixed-maturity securities in our investment portfolio into trading or available for sale securities. Trading securities are reported at fair value, with unrealized gains and losses reported as a separate component of income. Investments in fixed-maturity securities classified as available for sale 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). We also invest in several other types of investments including equity securities, which primarily consist of our interests in a variety of broadly diversified exchange traded funds and are recorded at fair value with unrealized gains and losses reported in income. Mortgage loans held for sale consist of residential mortgage loans, which we purchase with the intention of reselling and have elected to measure at fair value with unrealized gains and losses reported in income. Short-term investments are also carried at fair value and consist of money market instruments, certificates of deposit and highly liquid, interest-bearing instruments with an original maturity of 12 months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Notes 5 and 6 for further discussion on investments. We recognize an impairment as a loss for fixed-maturities available for sale on the consolidated statements of operations if: (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. If a sale is likely, the full amount of the impairment is recognized as a loss in the consolidated statements 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. 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. If a credit loss is determined to exist, the impairment 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. This credit loss impairment is included in net gains (losses) on investments and other financial instruments in the consolidated statements 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 as a credit loss impairment or a reversal of credit loss impairment. Fair Value of Financial Instruments Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and changes in the value of underlying collateral, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with GAAP, which establishes a three-level valuation hierarchy, we disclose fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below: Level I — Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level II — Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and Level III — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available. For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment necessary, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy. Available for sale securities, trading securities, equity securities, mortgage loans held for sale and certain other assets and liabilities are recorded at fair value as described in Note 5. All changes in fair value of trading securities, equity securities, mortgage loans held for sale and certain other assets and liabilities are included in our consolidated statements of operations. Restricted Cash Included in our restricted cash balances as of December 31, 2022 and 2021, were cash funds held in trusts for the benefit of certain lenders or policyholders. Accounts and Notes Receivable Accounts and notes receivable primarily consist of accrued premiums receivable, amounts billed and due from our customers for services performed, and certain receivables related to our reinsurance transactions. Accounts and notes receivable are carried at their estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability based on past payment history and current economic conditions. See “—Revenue Recognition—Mortgage Insurance” below for information on our deferred premiums and Note 8 for details on our reinsurance agreements. Income Taxes We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our deferred tax assets and deferred tax liabilities are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. Deferred tax assets and deferred tax liabilities are measured using the enacted tax rates that are expected to apply to taxable income in the periods in which the deferred tax asset or deferred tax liability is expected to be realized or settled. In regard to accumulated other comprehensive income, the Company’s policy for releasing disproportionate income tax effects is to release the effects as individual items are sold. 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. Our 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. See Note 10 for further discussion on income taxes. Reserve for Losses and LAE Mortgage Insurance We establish reserves to provide for losses and LAE on our mortgage insurance policies, which include the estimated costs of settling claims, in accordance with the accounting standard regarding accounting and reporting by insurance enterprises (ASC 944). Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, because there is no specific guidance for mortgage insurance, we establish reserves for mortgage insurance as described below, using the guidance contained in this standard supplemented with other accounting guidance. In our mortgage insurance business, the default and claim cycle begins with the receipt of a default notice from the loan servicer. Case reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default. We generally do not establish loss reserves for expected future claims on insured mortgages that are not in default. See “—Reserve for Premium Deficiency” below for an exception to these general principles. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. We use an actuarial projection methodology referred to as a “roll rate” analysis that uses historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default and Time in Default as well as the date that a loan goes into default. The Default to Claim Rate also includes our estimates with respect to expected Loss Mitigation Activities, which have the effect of reducing our Default to Claim Rates. After estimating the Default to Claim Rate, we estimate Claim Severity based on observed severity rates within product type, type of insurance and Time in Default cohorts. These severity estimates are then applied to individual loan coverage amounts to determine reserves. Rescissions, Claim Denials and Claim Curtailments may occur for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties and inadequate documentation, primarily related to our insurance written in years prior to and including 2008. For our Loss Mitigation Activities, we incorporate a process referred to as a claims rebuttal process by which the insured or servicer of loans may challenge our decisions. Our estimate of future Loss Mitigation Activities incorporates our estimates of the likely outcomes of our claims rebuttal process based on historical practices. Estimating our case reserve for losses involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss. The models, assumptions and estimates we use to establish loss reserves may not prove to be accurate, especially in the event of an extended economic downturn or a period of market volatility and economic uncertainty. These assumptions require management to use considerable judgment in estimating the rate at which these loans will result in claims and the amount of claims we expect to pay. As such, there is uncertainty around our reserve estimate. Title Insurance We establish reserves for estimated future claims payments on our title insurance policies at the time the related policy revenue is recorded. Our title insurance reserve for losses and LAE comprises estimates of both known claims and incurred but unreported claims expected to be paid in the future for policies issued as of the balance sheet date. We provide for losses associated with these policies based upon our historical experience and other factors. However, by their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability. Reserve for Premium Deficiency Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product line. We reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and update our premium deficiency analyses accordingly. For our mortgage insurance business, we group our mortgage insurance products into two categories: first-lien and second-lien mortgage loans. We did not require a first-lien or second-lien PDR as of December 31, 2022 or 2021. Revenue Recognition Mortgage Insurance Premiums on mortgage insurance products are written on a recurring basis, either as monthly or annual premiums, or on a multi-year basis as a single premium. Monthly premiums written are earned as coverage is provided each month. For certain monthly policies where the billing is deferred for the first month’s coverage period, currently to the end of the policy, we record a net premium receivable representing the present value of such deferred premiums that we estimate will be collected at that future date. As of December 31, 2022 and 2021, this net premium receivable was $32.0 million and $30.3 million, respectively, representing the present values of $77.1 million and $74.0 million, respectively, in contractual deferred monthly premiums, after adjustments for the estimated collectability and timing of future billing. We recognize changes in this receivable based on changes in the estimated amount and timing of such collections, including as a result of changes in observed trends as well as our periodic review of our servicing guide and our operations and collections practices. Given the difference between the present value of the net premium receivable recorded and the contractual premiums due, such changes to the preceding factors could have a material effect on our results of operations in future periods if any changes are implemented. Annual premiums written are initially recorded as unearned premiums and amortized on a monthly, straight-line basis. Single premiums written are initially recorded as unearned premiums and earned over time based on the anticipated claim payment pattern, which includes historical industry experience and is updated periodically. When we rescind insurance coverage on a loan, we refund all premiums received in connection with such coverage. When insurance coverage on a loan is canceled due to claim payment, we refund all premiums received since the date of delinquency. When insurance coverage is cancelled for a reason other than Rescission or claim payment, all premium that is nonrefundable is immediately earned. Premium revenue is recognized net of our accrual for estimated premium refunds due to Rescissions or other factors. With respect to our reinsurance transactions, ceded premiums written on an annual or multi-year basis are initially set up as prepaid reinsurance and are amortized in a manner consistent with the recognition of income on direct premiums. Title Insurance and Related Services Title insurance premiums are recognized as revenue upon closing and completion of the real estate transaction. Premiums generally are calculated with reference to the policy amount. Premiums are charged to customers based on rates predetermined in coordination with each state’s respective Department of Insurance. Such regulations vary from state to state. Premium revenues from agency title operations are primarily comprised of premiums recognized upon title order and completion of real estate transaction closing. Other title-related fees and income are closely related to title insurance premiums and are primarily associated with managing the closing of real estate transactions. As such, revenue is primarily recognized upon closing of the real estate transaction or completion and billing of services. We offer title services that include tax and title data services; centralized recording services; document retrieval; default curative title services; deed reports; property reports and other real estate or title-related activities. Expenses typically associated with premiums include third-party agent commissions and premium taxes. Other Services We recognize revenue representing the transfer of services to customers in an amount that reflects the consideration that we expect to be entitled to receive in exchange for those services, which are recognized as the performance obligations are satisfied. Due to the transactional nature of our business, our services revenue may fluctuate from period to period as transactions are commenced or completed. Our services and related revenue recognition considerations are primarily as follows: Real Estate Services. We provide real estate services, including asset management and valuation services. Asset management services include management of the entire REO disposition process and services such as diligence and underwriting that serve the single-family rental asset class. Revenue attributable to REO services provided is based on a percentage of the sale and recognized over time, measured based on the progress to date and typically coincides with the client’s successful closing on the property. In certain instances, fees are received at the time that an asset is assigned to Radian for management. These fees are recorded as deferred revenue and are recognized over time based on progress to date and the availability to customers. For valuation services, we leverage technology and a quality control process to deliver real estate valuation products and services to our customers, which include: appraisal review products; hybrid/ancillary appraisal products; automated valuation products; interactive valuation products; and broker price opinions. Each service qualifies as a separate performance obligation for which revenue is recognized as the service is performed and made available to the client. Technology Services. We are developing a growing suite of real estate technology products and services that are designed to facilitate real estate transactions and are provided as proprietary SaaS solutions. In addition, we offer a web-based asset management workflow solution to assist in managing REO assets, rental properties, due diligence for bulk acquisitions of multiple properties, loss mitigation efforts and short sales. Revenue for these services are recognized over time as the service is provided and made available to the customer. Mortgage Services. We provide third-party contract underwriting solutions to our mortgage customers. Generally, revenue is recognized when contract underwriting results are made available to the customer or when other related services are completed. Cost of Services Cost of services consists primarily of costs paid for employee compensation and related payroll benefits, as well as corresponding travel and related expenses, incurred in providing such services to clients. Leases We determine if an arrangement includes a lease at inception, and if it does, we recognize a right-of-use asset and lease liability. Right-of-use assets represent our right to use an underlying asset for the lease term and are recognized net of any payments made or received from the lessor. Lease liabilities represent our obligation to make lease payments and are based on the present value of lease payments over the lease term. In determining the net present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date. Lease expense is recognized on a straight-line basis over the expected lease term. Lease and non-lease components are generally not accounted for separately. We have elected the short-term exemption for contracts with lease terms of 12 months or less. Our lease agreements primarily relate to operating leases for office space we use in our operations. Certain of our leases include renewal options and/or termination options that we did not consider in the determination of the right-of-use asset or the lease liability as we did not believe it was reasonably certain that we would exercise such options. We assess our various asset groups, which include right-of-use assets, for changes in grouping and for potential impairment when certain events occur or when there are changes in circumstances, including potential alternative uses. If circumstances require a change in asset groupings or a right-of-use asset to be tested for possible impairment, and the carrying value of the right-of-use asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. See Notes 9 and 13 for additional information on our right-of-use assets and lease liabilities, respectively. Reinsurance We cede insurance risk through the use of reinsurance contracts and follow reinsurance accounting for those transactions where significant risk is transferred. Loss reserves and unearned premiums are established before consideration is given to amounts related to our reinsurance agreements. In accordance with the terms of the QSR Program, rather than making a cash payment or transferring investments for ceded premiums written, Radian Guaranty holds the related amounts to collateralize the reinsurers’ obligations and has established a corresponding funds withheld liability. Any loss recoveries and any potential profit commission to Radian Guaranty will be realized from this account. The reinsurers’ share of earned premiums is paid from this account on a quarterly basis. For our Single Premium QSR Program, this liability also includes an interest credit on funds withheld, which is recorded as ceded premiums at a rate specified in the agreement and, depending on experience under the contract, may be paid to either Radian Guaranty or the reinsurers. The ceding commission earned for premiums ceded pursuant to this transaction is attributable to other underwriting costs (including any related deferred policy acquisition costs). The unamortized portion of the ceding commission in excess of our related acquisition cost is reflected in other liabilities. Ceded premiums written are recorded on the balance sheet as prepaid reinsurance premiums and amortized to ceded premiums earned in a manner consistent with the recognition of income on direct premiums. See Note 8 for further discussion of our reinsurance transactions. Variable Interest Entities In connection with our reinsurance programs for our mortgage insurance business, we may enter into contracts with VIEs. VIEs include corporations, trusts or partnerships in which: (i) the entity has insufficient equity at risk to allow it to finance its activities without additional subordinated financial support or (ii) at-risk equity holders, as a group, do not have the characteristics of a controlling financial interest. We perform an evaluation to determine whether we are required to consolidate the VIE’s assets and liabilities in our consolidated financial statements, based on whether we are deemed to be the primary beneficiary. The primary beneficiary of a VIE is the variable interest holder that is determined to have the controlling financial interest as a result of having both: (i) the power to direct the activities of a VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or right to receive benefits from the VIE that potentially could be significant to the VIE. See Note 8 for additional information. Goodwill and Other Acquired Intangible Assets, Net Goodwill is an asset representing the estimated future economic benefits arising from the assets we have acquired that were not individually identified and separately recognized. We generally perform our annual goodwill impairment test during the fourth quarter of each year, using balances as of the prior quarter. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently whenever circumstances indicate potential impairment at the reporting unit level. A reporting unit represents a business for which discrete financial information is available. We have concluded that we have one reporting unit, the homegenius segment, for purposes of our goodwill impairment assessment. Acquired intangible assets, other than goodwill, primarily consist of customer relationships and represent the value of the specifically acquired customer relationships. For financial reporting purposes, intangible assets with finite lives are amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset. The calculation of the estimated fair value of goodwill and other acquired intangibles is performed primarily using an income approach and requires the use of significant estimates and assumptions that are highly subjective in nature, such as future expected cash flows, discount rates, attrition rates and market conditions. For more information on our accounting for goodwill and other acquired intangibles, see Note 7. Property and Equipment We capitalize certain costs associated with the development of internal-use software and the purchase of property and equipment. Software, property and equipment are carried at cost, net of accumulated depreciation and amortization. Amortization and depreciation are calculated on a straight-line basis over the estimated useful life of the respective assets and commence during the month of our placement of the assets into use. The estimated useful life used to calculate the amortization of internal-use software is generally seven years. Leasehold improvements are depreciated over the lesser of the estimated useful life of the asset improved or the remaining term of the lease. The estimated useful life used to calculate the depreciation of furniture and equipment is generally three years. Depreciation and amortization expense associated with property and equipment for the years ended December 31, 2022, 2021 and 2020, was $15.2 million, $15.9 million and $18.3 million, respectively. The following is a summary of the gross and net carrying amounts and accumulated amortization / depreciation (including impairment) of our property and equipment as of the periods indicated. See Note 9 for more information about impairments. Property and equipment December 31, 2022 December 31, 2021 (In thousands) Gross Carrying Amount Accumulated Amortization / Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Net Carrying Amount Internal-use software $ 155,984 $ (100,734) $ 55,250 $ 145,248 $ (91,542) $ 53,706 Leasehold improvements 39,134 (26,236) 12,898 34,805 (18,108) 16,697 Furniture and equipment 68,217 (65,384) 2,833 67,322 (62,639) 4,683 Total $ 263,335 $ (192,354) $ 70,981 $ 247,375 $ (172,289) $ 75,086 Deferred Policy Acquisition Costs Incremental, direct costs associated with the successful acquisition of mortgage insurance policies, consisting of compensation, premium tax and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Consistent with industry accounting practice, amortization of these costs for each underwriting year book of business is recognized in proportion to estimated gross profits over the estimated life of the policies. Estimated gross profits are composed of earned premium, interest income, losses and LAE. Estimates of expected gross profit, including the Persistency Rate and loss development assumptions for each underwriting year used as a basis for amortization, are evaluated quarterly and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that previous estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions may have a significant effect on the amortization of deferred policy acquisition costs. Ceding commissions received under our reinsurance arrangements related to these costs are also deferred and accounted for using similar assumptions. See Note 8 for additional information. Earnings 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 primarily to our share-based compensation arrangements. In computing diluted net income per share, we use the treasury stock method, which is computed by assuming the issuance of common stock for the potential dilution of our unvested RSUs. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income. Share-Based Compensation The cost related to share-based equity instruments is measured based on the grant-date fair value at the date of issuance, which for RSU awards is primarily determined by our common stock price on the date of grant. For share-based awards with performance conditions related to our own operations, the expense recognized is dependent on the probability of the performance measure being achieved. Compensation cost is generally recognized over the periods that an employee provides service in exchange for the award. Any forfeitures |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The calculation of basic and diluted net income per share is as follows. Net income per share Years Ended December 31, (In thousands, except per-share amounts) 2022 2021 2020 Net income—basic and diluted $ 742,934 $ 600,671 $ 393,626 Average common shares outstanding—basic 167,930 188,370 195,443 Dilutive effect of stock-based compensation arrangements (1) 2,734 1,893 1,199 Adjusted average common shares outstanding—diluted 170,664 190,263 196,642 Net income per share Basic $ 4.42 $ 3.19 $ 2.01 Diluted $ 4.35 $ 3.16 $ 2.00 (1) 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. Years Ended December 31, (In thousands) 2022 2021 2020 Shares of common stock equivalents — 28 865 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We have two strategic business units that we manage separately—Mortgage and homegenius. Our Mortgage segment derives its revenue from mortgage insurance and other mortgage and risk services, including contract underwriting solutions provided to mortgage lending institutions and mortgage credit investors. Our homegenius segment offers an array of title, real estate and technology products and services to consumers, mortgage lenders, mortgage and real estate investors, GSEs, real estate brokers and agents. In addition, we report as All Other activities that include: (i) income (losses) from assets held by Radian Group, our holding company; (ii) related general corporate operating expenses not attributable or allocated to our reportable segments; and (iii) certain investments in new business opportunities, including activities and investments associated with Radian Mortgage Capital, and other immaterial activities. We allocate corporate operating expenses to both reportable segments based primarily 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. We do not manage assets by segment. See Note 1 for additional details about our Mortgage and homegenius businesses. Adjusted Pretax Operating Income (Loss) Our senior management, including our Chief Executive Officer (Radian’s 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, except for certain investments attributable to our reportable segments and All Other activities; (ii) gains (losses) 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 impairment of internal-use software, gains (losses) from the sale of lines of business and acquisition-related income and expenses. 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). These adjustments, along with the reasons for their treatment, are described below. (1) Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized gains and losses arise primarily from changes in the market value of our investments that are classified as trading or equity securities. These valuation adjustments may not necessarily result in realized economic gains or losses. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses and changes in fair value of other financial instruments. Except for certain investments attributable to our reportable segments and All Other activities, we do not view them to be indicative of our fundamental operating activities. (2) Gains (losses) on extinguishment of debt. Gains or losses on early extinguishment of debt and losses incurred to purchase our debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial and capital positions; therefore, we do not view these activities as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends. (3) Amortization and impairment of goodwill and other acquired intangible assets. Amortization of acquired intangible assets represents the periodic expense required to amortize the cost of acquired intangible assets over their estimated useful lives. Acquired intangible assets are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. We do not view these charges as part of the operating performance of our primary activities. (4) Impairment of other long-lived assets and other non-operating items. Includes activities that we do not view to be indicative of our fundamental operating activities, such as: (i) impairment of internal-use software and other long-lived assets; (ii) gains (losses) from the sale of lines of business; and (iii) acquisition-related income and expenses. The reconciliation of adjusted pretax operating income (loss) for our reportable segments to consolidated pretax income is as follows. Reconciliation of adjusted pretax operating income (loss) by segment December 31, (In thousands) 2022 2021 2020 Adjusted pretax operating income (loss) Mortgage $ 1,131,943 $ 781,546 $ 453,294 homegenius (88,198) (27,324) (23,240) Total adjusted pretax operating income for reportable segments 1,043,745 754,222 430,054 All Other adjusted pretax operating income 8,972 3,527 2,013 Net gains (losses) on investments and other financial instruments (1) (80,780) 14,094 60,277 Amortization of other acquired intangible assets (4,308) (3,450) (5,144) Impairment of other long-lived assets and other non-operating items (14,850) (3,561) (7,759) Consolidated pretax income $ 952,779 $ 764,832 $ 479,441 (1) For 2022 and 2021, excludes certain net gains (losses) on investments that are attributable to specific operating segments and therefore included in adjusted pretax operating income (loss). Revenue and Other Segment Information The following tables reconcile reportable segment revenues to consolidated revenues and summarize interest expense, depreciation expense, allocation of corporate operating expenses and adjusted pretax operating income for our reportable segments as follows. Reportable segment revenue and other segment information December 31, 2022 (In thousands) Mortgage homegenius Reportable Segment Total All Other Inter-segment Adjustments Consolidated Total Net premiums earned $ 957,213 $ 23,918 $ 981,131 $ — $ — $ — $ 981,131 Services revenue 7,390 85,158 92,548 — (332) — 92,216 Net investment income 171,221 729 171,950 23,708 — — 195,658 Net gains (losses) on investments and other financial instruments — — — 47 — (80,780) (80,733) Other income 2,376 170 2,546 78 (170) — 2,454 Total revenues $ 1,138,200 $ 109,975 $ 1,248,175 $ 23,833 $ (502) $ (80,780) $ 1,190,726 Other segment information: Interest expense $ 84,440 $ — $ 84,440 Direct depreciation expense 8,986 2,538 11,524 Allocation of corporate operating expenses (1) 138,566 22,856 161,422 (1) Includes allocated depreciation expense of $3.0 million, $0.5 million and $3.6 million allocated to Mortgage, homegenius and Reportable Segment Total, respectively. December 31, 2021 (In thousands) Mortgage homegenius Reportable Segment Total All Other Inter-segment Adjustments Consolidated Total Net premiums earned $ 998,282 $ 38,901 $ 1,037,183 $ — $ — $ — $ 1,037,183 Services revenue 17,670 108,282 125,952 154 (281) — 125,825 Net investment income 132,929 358 133,287 14,622 — — 147,909 Net gains (losses) on investments and other financial instruments — 1,509 1,509 — — 14,094 15,603 Other income 2,678 — 2,678 734 — — 3,412 Total revenues $ 1,151,559 $ 149,050 $ 1,300,609 $ 15,510 $ (281) $ 14,094 $ 1,329,932 Other segment information: Interest expense $ 84,344 $ — $ 84,344 Direct depreciation expense 9,580 2,452 12,032 Allocation of corporate operating expenses (1) 127,482 18,482 145,964 (1) Includes allocated depreciation expense of $3.2 million, $0.5 million and $3.7 million allocated to Mortgage, homegenius and Reportable Segment Total, respectively. December 31, 2020 (In thousands) Mortgage homegenius Reportable Segment Total All Other Inter-segment Adjustments Consolidated Total Net premiums earned $ 1,092,767 $ 22,554 $ 1,115,321 $ — $ — $ — $ 1,115,321 Services revenue 14,765 79,524 94,289 12,535 (1,439) — 105,385 Net investment income 137,195 361 137,556 16,481 — — 154,037 Net gains (losses) on investments and other financial instruments — — — — — 60,277 60,277 Other income 2,816 — 2,816 534 — 247 3,597 Total revenues $ 1,247,543 $ 102,439 $ 1,349,982 $ 29,550 $ (1,439) $ 60,524 $ 1,438,617 Other segment information: Interest expense $ 71,150 $ — $ 71,150 Direct depreciation expense 12,387 2,857 15,244 Allocation of corporate operating expenses (1) 114,802 12,807 127,609 (1) Includes allocated depreciation expense of $2.6 million, $0.3 million and $2.9 million allocated to Mortgage, homegenius and Reportable Segment Total, respectively. There was no single customer that accounted for more than 10% of our consolidated revenues (excluding net gains (losses) on investments and other financial instruments) in 2022, 2021 or 2020. There was no customer that accounted for more than 10% of NIW in 2022, as compared to one in both 2021 and 2020. The table below, which represents total services revenue on our consolidated statements of operations for the periods indicated, represents the disaggregation of services revenues by revenue type. Services revenue Years Ended December 31, (In thousands) 2022 2021 2020 homegenius Title $ 18,687 $ 40,202 $ 23,265 Real estate Valuation 30,002 28,590 17,986 Single-family rental 24,387 27,291 17,159 REO asset management 3,091 2,370 5,518 Other real estate services 115 144 2,479 Technology Asset management workflow platform 4,814 5,535 7,998 Other technology services 3,730 3,869 3,763 Mortgage 7,390 17,670 14,682 All Other (1) — 154 12,535 Total services revenue $ 92,216 $ 125,825 $ 105,385 (1) Includes services revenue from Clayton Services LLC, a former indirect subsidiary of Radian Group, prior to its sale in January 2020 and amounts related to our traditional appraisal business, which we wound down beginning in the fourth quarter of 2020. Revenue recognized related to services made available to customers and billed is reflected in accounts and notes receivable. Accounts and notes receivable include $11.8 million and $20.0 million as of December 31, 2022 and 2021, 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. Deferred revenue, which represents advance payments received from customers in advance of revenue recognition, is immaterial for all periods presented. We have no material bad-debt expense. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following tables include a list of assets that are measured at fair value by hierarchy level as of December 31, 2022 and 2021. Assets and liabilities carried at fair value by hierarchy level December 31, 2022 (In thousands) Level I Level II Level III Total Investments Fixed-maturities available for sale U.S. government and agency securities $ 140,011 $ 5,431 $ — $ 145,442 State and municipal obligations — 142,386 — 142,386 Corporate bonds and notes — 2,490,582 — 2,490,582 RMBS — 928,399 — 928,399 CMBS — 593,357 — 593,357 CLO — 498,192 — 498,192 Other ABS — 161,359 — 161,359 Foreign government and agency securities — 4,975 — 4,975 Mortgage insurance-linked notes (1) — 53,019 — 53,019 Total fixed-maturities available for sale 140,011 4,877,700 — 5,017,711 Trading securities State and municipal obligations — 70,511 — 70,511 Corporate bonds and notes — 32,827 — 32,827 RMBS — 6,847 — 6,847 CMBS — 5,480 — 5,480 Total trading securities — 115,665 — 115,665 Equity securities 138,716 7,749 2,500 148,965 Mortgage loans held for sale — 3,549 — 3,549 Other invested assets (2) — — 4,296 4,296 Short-term investments State and municipal obligations — 2,785 — 2,785 Money market instruments 241,440 — — 241,440 Corporate bonds and notes — 42,385 — 42,385 Other investments (3) — 115,480 — 115,480 Total short-term investments 241,440 160,650 — 402,090 Total investments at fair value (2) 520,167 5,165,313 6,796 5,692,276 Other Derivative assets — 11 — 11 Loaned securities (4) Corporate bonds and notes — 47,585 — 47,585 Equity securities 64,554 — — 64,554 Total assets at fair value (2) $ 584,721 $ 5,212,909 $ 6,796 $ 5,804,426 Assets and liabilities carried at fair value by hierarchy level December 31, 2022 (In thousands) Level I Level II Level III Total Liabilities Derivative liabilities (5) $ — $ 42 $ 4,858 $ 4,900 Total liabilities at fair value $ — $ 42 $ 4,858 $ 4,900 (1) Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information. (2) Does not include other invested assets of $1.2 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (3) Comprises short-term certificates of deposit and commercial paper. (4) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our consolidated balance sheets. See Note 6 for more information. (5) Consists primarily of embedded derivatives related to our Excess-of-Loss Program, which are classified as other liabilities Assets carried at fair value by hierarchy level December 31, 2021 (In thousands) Level I Level II Level III Total Investments Fixed-maturities available for sale U.S. government and agency securities $ 192,452 $ 29,278 $ — $ 221,730 State and municipal obligations — 177,257 — 177,257 Corporate bonds and notes — 2,910,231 — 2,910,231 RMBS — 705,117 — 705,117 CMBS — 709,203 — 709,203 CLO — 530,040 — 530,040 Other ABS — 211,187 — 211,187 Foreign government and agency securities — 5,296 — 5,296 Mortgage insurance-linked notes (1) — 47,017 — 47,017 Total fixed-maturities available for sale 192,452 5,324,626 — 5,517,078 Trading securities State and municipal obligations — 94,637 — 94,637 Corporate bonds and notes — 119,186 — 119,186 RMBS — 9,438 — 9,438 CMBS — 33,285 — 33,285 Total trading securities — 256,546 — 256,546 Equity securities 176,828 7,417 — 184,245 Other invested assets (2) — — 3,000 3,000 Assets carried at fair value by hierarchy level December 31, 2021 (In thousands) Level I Level II Level III Total Short-term investments U.S. government and agency securities 94,665 — — 94,665 State and municipal obligations — 12,270 — 12,270 Money market instruments 274,535 — — 274,535 Corporate bonds and notes — 65,191 — 65,191 CMBS — 3,023 — 3,023 Other investments (3) — 101,824 — 101,824 Total short-term investments 369,200 182,308 — 551,508 Total investments at fair value (2) 738,480 5,770,897 3,000 6,512,377 Other Derivative assets (4) — — 4,200 4,200 Loaned securities (5) Corporate bonds and notes — 65,994 — 65,994 Equity securities 38,002 — — 38,002 Total assets at fair value (2) $ 776,482 $ 5,836,891 $ 7,200 $ 6,620,573 (1) Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information. (2) Does not include other invested assets of $1.2 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (3) Comprises short-term certificates of deposit and commercial paper. (4) Consists primarily of embedded derivatives related to our Excess-of-Loss Program, which are classified as other assets in our consolidated balance sheets. See Note 8 for more information. (5) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our consolidated balance sheets. See Note 6 for more information. There were no transfers to or from Level III for the years ended December 31, 2022 and 2021. 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 years ended December 31, 2022 and 2021. Valuation Methodologies for Assets Measured at Fair Value We are responsible for the determination of the value of all investments carried at fair value and the supporting methodologies and assumptions. To assist us in this responsibility, we utilize independent third-party valuation service providers to gather, analyze and interpret market information and estimate fair values based upon relevant methodologies and assumptions for various asset classes and individual securities. We perform monthly quantitative and qualitative analyses on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. Our analysis includes: (i) a review of the methodology used by third-party pricing services; (ii) a comparison of pricing services’ valuations to other independent sources; (iii) a review of month-to-month price fluctuations; and (iv) a comparison of actual purchase and sale transactions with valuations received from third parties. These processes are designed to ensure that our investment values are accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied and that the assumptions are reasonable and consistent with the objective of determining fair value. The following are descriptions of our valuation methodologies for financial assets measured at fair value. U.S. Government and Agency Securities. The fair value of U.S. government and agency securities is estimated using observed market transactions, including broker-dealer quotes and actual trade activity as a basis for valuation. U.S. government and agency securities are categorized in either Level I or Level II of the fair value hierarchy. State and Municipal Obligations. The fair value of state and municipal obligations is estimated using recent transaction activity, including market observations. Valuation models are used, which incorporate bond structure, yield curve, credit spreads and other factors. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. Money Market Instruments. The fair value of money market instruments is based on daily prices, which are published and available to all potential investors and market participants. As such, these securities are categorized in Level I of the fair value hierarchy. Corporate Bonds and Notes. The fair value of corporate bonds and notes is estimated using recent transaction activity, including market observations. Spread models are used that incorporate issuer and structure characteristics, such as credit risk and early redemption features, where applicable. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. Asset-backed and Mortgage-backed Securities. The fair value of these instruments, which include RMBS, CMBS, CLO, Other ABS and mortgage insurance-linked notes, is estimated based on prices of comparable securities and spreads and observable prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. The fair value of any Level III securities is generally estimated by discounting estimated future cash flows. Foreign Government and Agency Securities. The fair value of foreign government and agency securities is estimated using observed market yields used to create a maturity curve and observed credit spreads from market makers and broker-dealers. These securities are categorized in Level II of the fair value hierarchy. Equity Securities. The fair value of these securities is generally estimated using observable market data in active markets or bid prices from market makers and broker-dealers. Generally, these securities are categorized in Level I or II of the fair value hierarchy, as observable market data are readily available. Certain equity securities may be categorized in Level III of the fair value hierarchy due to a lack of market-based transaction data or the use of model-based valuations. Mortgage Loans Held for Sale. The fair value of these mortgage loans is generally estimated using measurements derived from observable market data, adjusted for certain loan-level factors such as loan type, loan amount, note rate, LTV, and expected exit value of the loan. As such, these loans are generally categorized in Level II of the fair value hierarchy. Other Investments. These securities primarily consist of commercial paper and short-term certificates of deposit, which are categorized in Level II of the fair value hierarchy. The fair value of these investments is estimated using market data for comparable instruments of similar maturity and average yield. Other Invested Assets. These assets consist of interests in private debt or equity investments. The estimated fair value of these other invested assets is primarily based on the private company’s performance, as well as the terms of the instrument and general market benchmarks. As such, these investments are categorized in Level III of the fair value hierarchy. Derivative Assets and Liabilities. These instruments primarily consist of embedded derivatives related to our Excess-of-Loss Program, which are categorized in Level III of the fair value hierarchy. The fair value of these derivatives reflects the present value impact of the variation in investment income on the assets held by the reinsurance trusts and the contractual reference rate used to calculate the reinsurance premiums we will pay. Beginning in 2022, our derivative assets and liabilities also include the fair value of certain forward commitments and hedging instruments related to our investments in mortgage loans held for sale. These derivative assets and liabilities are categorized in either Level II or III of the fair value hierarchy. Other Fair Value Disclosure The carrying value and estimated fair value of other selected liabilities not carried at fair value in our consolidated balance sheets were as follows as of the dates indicated. Financial liabilities not carried at fair value December 31, 2022 December 31, 2021 (In thousands) Carrying Estimated Carrying Estimated Senior notes $ 1,413,504 $ 1,361,844 $ 1,409,473 $ 1,534,378 Other borrowings FHLB advances $ 153,686 $ 153,728 $ 150,983 $ 152,117 Mortgage financing facilities 2,136 2,136 — — Total other borrowings $ 155,822 $ 155,864 $ 150,983 $ 152,117 The fair value of our senior notes is estimated based on quoted market prices. The fair value of our other borrowings is estimated based on contractual cash flows discounted at current borrowing rates for similar borrowing arrangements. These liabilities are categorized in Level II of the fair value hierarchy. See Note 12 for further information about these borrowings. The fair value of our remaining financial instruments included in other assets and other liabilities in our consolidated balance sheets approximates their carrying amounts as of December 31, 2022 and 2021. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
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. Available for sale securities December 31, 2022 (In thousands) Amortized Gross Gross Fair Value Fixed-maturities available for sale U.S. government and agency securities $ 174,138 $ 206 $ (28,902) $ 145,442 State and municipal obligations 164,325 — (21,939) 142,386 Corporate bonds and notes 2,886,905 1,403 (350,537) 2,537,771 RMBS 1,025,795 1,163 (98,559) 928,399 CMBS 645,890 13 (52,546) 593,357 CLO 518,677 — (20,485) 498,192 Other ABS 168,033 69 (6,743) 161,359 Foreign government and agency securities 5,118 — (143) 4,975 Mortgage insurance-linked notes (1) 54,578 80 (1,639) 53,019 Total securities available for sale, including loaned securities 5,643,459 $ 2,934 $ (581,493) (2) 5,064,900 Less: loaned securities (3) 56,198 47,189 Total fixed-maturities available for sale $ 5,587,261 $ 5,017,711 December 31, 2021 (In thousands) Amortized Gross Gross Fair Value Fixed-maturities available for sale U.S. government and agency securities $ 221,407 $ 1,719 $ (1,396) $ 221,730 State and municipal obligations 162,964 14,694 (401) 177,257 Corporate bonds and notes 2,867,063 133,665 (24,886) 2,975,842 RMBS 697,581 14,313 (6,777) 705,117 CMBS 690,827 21,444 (3,068) 709,203 CLO 529,906 1,032 (898) 530,040 Other ABS 210,657 1,142 (612) 211,187 Foreign government and agency securities 5,109 187 — 5,296 Mortgage insurance-linked notes (1) 45,384 1,633 — 47,017 Total securities available for sale, including loaned securities 5,430,898 $ 189,829 $ (38,038) (2) 5,582,689 Less: loaned securities (3) 63,169 65,611 Total fixed-maturities available for sale $ 5,367,729 $ 5,517,078 (1) Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information. (2) See “—Gross Unrealized Losses and Related Fair Value of Available for Sale Securities” below for additional details. (3) Included in other assets in our consolidated balance sheets as further described below. See “—Loaned Securities” below for a discussion of our securities lending. 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. There was no allowance as of December 31, 2022. Rollforward of allowance for credit losses on fixed-maturities available for sale Year Ended December 31, (In thousands) 2021 Beginning balance $ 948 Net increases (decreases) in allowance on previously impaired securities (918) Reduction for securities sold (30) Ending balance $ — Gross Unrealized Losses and Related Fair Value of Available for Sale Securities For securities deemed “available for sale” that are in an unrealized loss position and for which an allowance for credit loss has not been established, the following tables show the gross unrealized losses and fair value, 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 December 31, 2022 and 2021, are loaned securities that are classified as other assets in our consolidated balance sheets, as further described below. Unrealized losses on fixed-maturities available for sale by category and length of time December 31, 2022 ($ in thousands) Less Than 12 Months 12 Months or Greater Total Description of # of Fair Unrealized # of Fair Unrealized # of Fair Unrealized U.S. government and agency securities 14 $ 86,964 $ (21,370) 10 $ 47,770 $ (7,532) 24 $ 134,734 $ (28,902) State and municipal obligations 43 116,285 (14,231) 20 25,401 (7,708) 63 141,686 (21,939) Corporate bonds and notes 411 1,769,547 (176,768) 203 701,936 (173,769) 614 2,471,483 (350,537) RMBS 124 610,812 (46,117) 59 261,370 (52,442) 183 872,182 (98,559) CMBS 108 469,100 (38,178) 55 121,277 (14,368) 163 590,377 (52,546) CLO 94 246,705 (10,271) 61 245,584 (10,214) 155 492,289 (20,485) Other ABS 61 115,181 (3,603) 18 31,041 (3,140) 79 146,222 (6,743) Mortgage insurance-linked notes 2 43,745 (1,639) — — — 2 43,745 (1,639) Foreign government and agency securities 1 4,975 (143) — — — 1 4,975 (143) Total 858 $ 3,463,314 $ (312,320) 426 $ 1,434,379 $ (269,173) 1,284 $ 4,897,693 $ (581,493) December 31, 2021 ($ in thousands) Less Than 12 Months 12 Months or Greater Total Description of # of Fair Unrealized # of Fair Unrealized # of Fair Unrealized U.S. government and agency securities 14 $ 101,602 $ (1,165) 2 $ 6,937 $ (231) 16 $ 108,539 $ (1,396) State and municipal obligations 20 32,721 (401) — — — 20 32,721 (401) Corporate bonds and notes 209 864,355 (16,799) 34 99,475 (8,087) 243 963,830 (24,886) RMBS 57 365,476 (6,749) 3 1,543 (28) 60 367,019 (6,777) CMBS 81 188,457 (2,053) 9 22,050 (1,015) 90 210,507 (3,068) CLO 84 313,380 (675) 11 35,612 (223) 95 348,992 (898) Other ABS 54 138,851 (603) 1 631 (9) 55 139,482 (612) Total 519 $ 2,004,842 $ (28,445) 60 $ 166,248 $ (9,593) 579 $ 2,171,090 $ (38,038) Given our intent and ability as of December 31, 2022, to hold these securities until recovery of their amortized cost basis, we do not expect to realize a loss on any of our investments in an unrealized loss position. See Note 2 for information regarding our accounting policy for impairments. Loaned Securities 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. These securities lending agreements are collateralized financing arrangements whereby we transfer securities to third parties through an intermediary in exchange for cash or other securities. However, pursuant to the terms of these agreements, we maintain effective control over all loaned securities. Although we report such securities at fair value within other assets in our 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. Under our securities lending agreements, the borrower is required to provide to us collateral, consisting of cash or securities, in amounts generally equal to or exceeding: (i) 102% of the value of the loaned securities (105% in the case of foreign securities) or (ii) another agreed-upon percentage not less than 100% of the market value of the loaned securities. Any cash collateral we receive may be invested in liquid assets. Cash collateral, which is reinvested for our benefit by the intermediary in accordance with the investment guidelines contained in the securities lending and collateral agreements, is reflected in short-term investments, with an offsetting liability recognized in other liabilities for the obligation to return the cash collateral. Securities collateral we receive is held on deposit for the borrower’s benefit and we may not transfer or loan such securities collateral unless the borrower is in default. Therefore, such securities collateral is not reflected in our consolidated financial statements given that the risks and rewards of ownership are not transferred to us from the borrowers. Fees received and paid in connection with securities lending agreements are recorded in net investment income and interest expense, respectively, on the consolidated statements of operations. All of our securities lending agreements are classified as overnight and revolving. Securities collateral on deposit with us from third-party borrowers totaling $16.2 million and $57.8 million as of December 31, 2022 and 2021, respectively, may not be transferred or re-pledged unless the third-party borrower is in default, and is therefore not reflected in our consolidated financial statements. Net Investment Income Net investment income consisted of the following. Net investment income Years Ended December 31, (In thousands) 2022 2021 2020 Investment income Fixed-maturities $ 184,189 $ 145,613 $ 148,127 Equity securities 11,210 8,158 6,378 Mortgage loans 39 — — Short-term investments 5,716 817 5,774 Other 1,370 368 354 Gross investment income 202,524 154,956 160,633 Investment expenses (6,866) (7,047) (6,596) Net investment income $ 195,658 $ 147,909 $ 154,037 Net Gains (Losses) on Investments and Other Financial Instruments Net gains (losses) on investments and other financial instruments consisted of the following. Net gains (losses) on investments and other financial instruments Years Ended December 31, (In thousands) 2022 2021 2020 Net realized gains (losses) on investments sold or redeemed Fixed-maturities available for sale Gross realized gains $ 2,763 $ 22,766 $ 37,431 Gross realized losses (12,737) (17,105) (2,562) Fixed-maturities available for sale, net (9,974) 5,661 34,869 Trading securities (135) 390 4 Equity securities 1,655 10,820 353 Mortgage loans held for sale 28 — — Other investments 148 3,971 600 Net realized gains (losses) on investments sold or redeemed (8,278) 20,842 35,826 Change in unrealized gains (losses) on investments sold or redeemed (3,458) (8,714) (1,630) Impairment losses due to intent to sell — — (1,401) Net decrease (increase) in expected credit losses — 918 (1,254) Net unrealized gains (losses) on investments still held Trading securities (27,700) (7,330) 10,583 Equity securities (25,255) 10,210 1,759 Mortgage loans held for sale 51 — — Other investments (387) 1,173 248 Net unrealized gains (losses) on investments still held (53,291) 4,053 12,590 Total net gains (losses) on investments (65,027) 17,099 44,131 Net gains (losses) on other financial instruments (1) (15,706) (1,496) 16,146 Net gains (losses) on investments and other financial instruments $ (80,733) $ 15,603 $ 60,277 (1) Primarily reflects the change in fair value of the embedded derivatives associated with our Excess-of-Loss program. See Note 8 for more information. Contractual Maturities The contractual maturities of fixed-maturities available for sale were as follows. Contractual maturities of fixed-maturities available for sale December 31, 2022 (In thousands) Amortized Cost Fair Value Due in one year or less $ 111,909 $ 110,443 Due after one year through five years (1) 1,274,935 1,197,900 Due after five years through 10 years (1) 989,545 857,164 Due after 10 years (1) 854,097 665,067 Asset-backed securities and mortgage-related assets (2) 2,412,973 2,234,326 Total 5,643,459 5,064,900 Less: loaned securities 56,198 47,189 Total fixed-maturities available for sale $ 5,587,261 $ 5,017,711 (1) Actual maturities may differ as a result of calls before scheduled maturity. (2) Includes RMBS, CMBS, CLO, Other ABS, mortgage insurance-linked notes and mortgage loans, which are not due at a single maturity date. Other Our fixed-maturities available for sale include securities totaling $13.3 million and $14.3 million at December 31, 2022 and 2021, respectively, on deposit and serving as collateral with various state regulatory authorities. Our fixed-maturities available for sale and trading securities also include securities serving as collateral for our FHLB advances. See Note 12 for additional information about our FHLB advances. |
Goodwill and Other Acquired Int
Goodwill and Other Acquired Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Acquired Intangible Assets, Net | Goodwill and Other Acquired Intangible Assets, Net All of our goodwill and other acquired intangible assets relate to our homegenius segment. There was no change to our goodwill balance of $9.8 million during the years ended December 31, 2022 and 2021. As part of our annual goodwill impairment assessment performed during the fourth quarter of each year, we determined there was no impairment indicated in either 2022 or 2021. 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. Other acquired intangible assets December 31, 2022 December 31, 2021 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 43,550 $ (38,067) $ 5,483 $ 43,550 $ (34,620) $ 8,930 Technology 8,285 (8,285) — 8,285 (7,675) 610 Licenses 463 (463) — 463 (212) 251 Total $ 52,298 $ (46,815) $ 5,483 $ 52,298 $ (42,507) $ 9,791 The estimated amortization expense for 2023 is $5.5 million, which represents the remaining net carrying amount as of December 31, 2022. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
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 premiums ceded under the 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. Reinsurance impacts on net premiums written and earned Net Premiums Written Net Premiums Earned Years Ended December 31, Years Ended December 31, (In thousands) 2022 2021 2020 2022 2021 2020 Direct Mortgage insurance $ 967,996 $ 984,995 $ 1,085,670 $ 1,025,607 $ 1,104,696 $ 1,263,684 Title insurance 24,422 39,665 22,843 24,422 39,665 22,843 Total direct 992,418 1,024,660 1,108,513 1,050,029 1,144,361 1,286,527 Assumed (1) Mortgage insurance 4,025 7,066 12,197 4,025 7,066 12,214 Ceded Mortgage insurance (2) (12,148) (47,515) (86,912) (72,419) (113,480) (183,131) Title insurance (504) (764) (289) (504) (764) (289) Total ceded (2) (12,652) (48,279) (87,201) (72,923) (114,244) (183,420) Total net premiums $ 983,791 $ 983,447 $ 1,033,509 $ 981,131 $ 1,037,183 $ 1,115,321 (1) Represents premiums from our participation in certain credit risk transfer programs, which we discontinued in December 2022 as a result of the novation of these insurance policies to an unrelated third-party reinsurer. See Note 16 for additional information. (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 recoverable. Other reinsurance impacts Years Ended December 31, (In thousands) 2022 2021 2020 Ceding commissions earned (1) $ 18,998 $ 31,745 $ 53,654 Ceded losses (2) (41,980) (4,570) 58,266 (1) Ceding commissions earned are primarily related to mortgage insurance and are included as an offset to expenses primarily in other operating expenses on our consolidated statements of operations. Deferred ceding commissions of $27.4 million and $38.6 million are included in other liabilities on our consolidated balance sheets at December 31, 2022 and 2021, respectively. (2) Primarily all related to mortgage insurance. QSR Program 2022 QSR Agreement In the third quarter of 2022, Radian Guaranty entered into the 2022 QSR Agreement with a panel of third-party reinsurance providers to cede a contractual quota share percent of certain of our NIW, which includes both Recurring Premium Policies and Single Premium Policies (as set forth in the table below), subject to certain conditions, including a limitation on ceded RIF equal to $8.5 billion over the term of the agreement. Radian Guaranty may discontinue ceding new policies under the agreement at the end of any calendar quarter. Radian Guaranty receives a ceding commission for ceded premiums earned pursuant to these transactions. Radian Guaranty is also entitled to receive a profit commission quarterly, subject to a final annual re-calculation, 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 these thresholds reduce Radian Guaranty’s profit commission on a dollar-for-dollar basis. 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 annually, 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 these thresholds reduce Radian Guaranty’s profit commission on a dollar-for-dollar basis. As of January 1, 2022, Radian Guaranty is no longer ceding NIW under the Single Premium QSR Program. 2012 QSR Agreements In 2012, Radian Guaranty entered into the 2012 QSR Agreements with a third-party reinsurance provider. Radian Guaranty has ceded the maximum amount permitted under the 2012 QSR Agreements and is no longer ceding NIW under this program. RIF ceded under the 2012 QSR Agreements was $142.4 million and $207.1 million as of December 31, 2022 and 2021, respectively. The following table sets forth additional details regarding the QSR Programs. QSR Program (1) 2022 QSR Agreement 2020 Single Premium QSR Agreement 2018 Single Premium QSR Agreement 2016 Single Premium QSR Agreement NIW policy dates Jan 1, 2022- Jan 1, 2020- Jan 1, 2018- Jan 1, 2012- Effective date July 1, 2022 January 1, 2020 January 1, 2018 January 1, 2016 Scheduled termination date June 30, 2033 December 31, 2031 December 31, 2029 December 31, 2027 Optional termination date (2) July 1, 2026 January 1, 2024 January 1, 2022 January 1, 2020 Quota share % 20% 65% 65% 18% - 57% (3) Ceding commission % 20% 25% 25% 25% Profit commission % Up to 59% Up to 56% Up to 56% Up to 55% (In millions) As of December 31, 2022 RIF ceded $ 3,307 $ 1,993 $ 876 $ 1,207 (In millions) As of December 31, 2021 RIF ceded $ — $ 2,198 $ 1,117 $ 1,913 (1) Excludes the 2012 QSR Agreements, for which RIF ceded is no longer material. (2) 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 reinsurers calculated in accordance with the terms of the applicable agreement. Radian Guaranty also may terminate any of the agreements prior to the scheduled termination date under certain circumstances, including if one or both of the GSEs no longer grant full PMIERs credit for the reinsurance. (3) Effective September 30, 2022, one reinsurer terminated its interest in the 2016 Single Premium QSR Agreement in exchange for participating in the 2022 QSR Agreement. As a result, the portions ceded under this agreement declined from 20% to 65% to approximately 18% to 57% as of September 30, 2022. Excess-of-Loss Program Radian Guaranty has entered into six fully collateralized reinsurance arrangements with the Eagle Re Issuers, of which five remain active as of December 31, 2022. 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 reinsurance arrangements, the Eagle Re Issuers financed their coverage by issuing mortgage insurance-linked notes to eligible capital markets investors in unregistered private offerings. The aggregate excess-of-loss reinsurance coverage for these arrangements decreases over the maturity period of the mortgage insurance-linked notes (either a 10-year or 12.5-year period depending on the transaction) 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, including an optional call feature that provides Radian Guaranty the right to terminate the transaction on or after the optional call date (5 or 7 years after the issuance of the insurance-linked notes depending on the transaction) and a right to exercise an optional clean-up call if the outstanding principal amount of the related insurance-linked notes falls below 10% of the initial principal balance of the related insurance-linked notes. Under each of the reinsurance agreements, the outstanding reinsurance coverage amount will begin amortizing after an initial period in which a target level of credit enhancement is obtained and will stop amortizing if certain thresholds, or triggers, are reached, including a delinquency trigger event based on an elevated level of delinquencies as defined in the related insurance-linked notes transaction agreements. The insurance-linked notes issued by Eagle Re 2018-1 and 2019-1 are currently subject to a delinquency trigger event, which was first reported to the insurance-linked note investors on June 25, 2020. For the insurance-linked notes that are subject to a delinquency trigger event, 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. Effective September 26, 2022, Radian Guaranty exercised its optional clean-up call right to terminate Radian Guaranty’s excess-of-loss reinsurance agreement with Eagle Re 2020-2 Ltd. In connection with the termination of Radian Guaranty’s excess-of-loss reinsurance agreement with Eagle Re 2020-2 Ltd., the insurance-linked notes issued by Eagle Re 2020-2 Ltd. were redeemed in full with a distribution of remaining collateral assets. The following tables set forth additional details regarding the Excess-of-Loss Program. Excess-of-Loss Program (1) (In millions) Eagle Re 2021-2 Ltd. Eagle Re 2021-1 Ltd. (2) Eagle Re 2020-1 Ltd. Eagle Re 2019-1 Ltd. Eagle Re 2018-1 Ltd. Issued November April February April November NIW policy dates Jan 1, 2021- Aug 1, 2020- Jan 1, 2019- Jan 1, 2018- Jan 1, 2017- Initial RIF $ 10,758 $ 11,061 $ 9,866 $ 10,705 $ 9,109 Initial coverage 484 498 488 562 434 Initial first layer retention 242 221 202 268 205 (In millions) As of December 31, 2022 RIF $ 9,150 $ 7,758 $ 2,401 $ 1,769 $ 1,509 Remaining coverage 472 366 368 385 276 First layer retention 242 221 202 263 200 (In millions) As of December 31, 2021 RIF $ 10,379 $ 9,496 $ 3,241 $ 2,429 $ 2,117 Remaining coverage 484 498 488 385 276 First layer retention 242 221 202 264 201 (1) Excludes Eagle Re 2020-2 Ltd., which was terminated in September 2022, as further discussed above. (2) Radian Group purchased $45.4 million original principal amount of the mortgage insurance-linked notes issued in connection with this reinsurance transaction, which are included in fixed-maturities available for sale on our consolidated balance sheet at December 31, 2022. See Notes 5 and 6 for additional information. 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 assets and liabilities of the Eagle Re Issuers in our 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 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 (or an acceptable alternative to LIBOR) or SOFR, as applicable, 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 (or an acceptable alternative to LIBOR) or SOFR, as provided in each applicable reinsurance agreement, 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 consolidated balance sheets. Changes in the fair value of these embedded derivatives are recorded in net gains (losses) on investments and other financial instruments in our consolidated statements of operations. See Note 5 herein for more information on our fair value measurements of financial instruments, including 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) 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. The Eagle Re Issuers represent our only VIEs as of December 31, 2022 and 2021. The following table presents the total assets and liabilities of the Eagle Re Issuers as of the dates indicated. Total VIE assets and liabilities of Eagle Re Issuers (1) December 31, (In thousands) 2022 2021 Eagle Re 2021-2 Ltd. $ 471,942 $ 484,122 Eagle Re 2021-1 Ltd. 366,169 497,735 Eagle Re 2020-2 Ltd. (2) — 143,986 Eagle Re 2020-1 Ltd. 368,378 488,385 Eagle Re 2019-1 Ltd. 384,602 384,602 Eagle Re 2018-1 Ltd. 275,718 275,718 Total $ 1,866,809 $ 2,274,548 (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 as described above. Assets and liabilities are equal to each other for each of the Eagle Re Issuers. (2) In September 2022, the excess-of-loss reinsurance agreement with Eagle Re 2020-2 Ltd. was terminated, as further discussed above. 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 reinsurance trusts was $174.5 million as of December 31, 2022, compared to $167.9 million as of December 31, 2021. In addition, primarily 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 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. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The following table shows the components of other assets as of the dates indicated. Other assets December 31, (In thousands) 2022 2021 Prepaid reinsurance premiums (1) $ 141,402 $ 201,674 Loaned securities (Notes 5 and 6) 112,139 103,996 Company-owned life insurance (2) 105,331 113,386 Right-of-use assets (Note 13) 21,099 31,878 Other 47,053 32,246 Total other assets $ 427,024 $ 483,180 (1) Relates primarily to our Single Premium QSR Program. (2) We are the beneficiary of insurance policies on the lives of certain of our current and past officers and employees. The balances reported in other assets reflect the amounts that could be realized upon surrender of the insurance policies as of each respective date. Right-of-Use Assets During 2021, in response to the COVID-19 pandemic and our transition to a hybrid work environment, we made the decision to exit, and to actively market for sublease, all office space in our former corporate headquarters in downtown Philadelphia. As part of this change, we entered into two new leases with reduced square footage, including our new corporate headquarters, effective September 2021, in Wayne, Pennsylvania and a Cherry Hill, New Jersey location. As a result of this decision and our ongoing evaluation of all of our existing leases, future space needs and evolving sublease market conditions, we recognized impairments to our right-of-use assets of $7.6 million and $1.1 million for the years ended December 31, 2022 and 2021, respectively. In addition, we recognized impairments to related property and equipment, including leasehold improvements, of $5.4 million and $0.3 million for the years ended December 31, 2022 and 2021, respectively. These impairments related primarily to our former corporate headquarters leases, and reduced the carrying value of certain lease assets and the related property and equipment to their estimated fair values. The right-of-use asset fair values were estimated using an income approach based on forecasted future cash flows expected to be derived from the property based on projected sublease market rents, which could differ from actual results and require us to revise our estimates in future periods. Following these impairments, which were recorded within other operating expenses in our consolidated statements of operations, the aggregate carrying value of the right-of-use assets and leasehold improvements related to the former corporate headquarters leases was $12.9 million as of December 31, 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision The components of our consolidated income tax provision from continuing operations are as follows. Income tax provision Years Ended December 31, (In thousands) 2022 2021 2020 Current provision (benefit) $ 2,920 $ 2,368 $ (16,264) Deferred provision 206,925 161,793 102,079 Total income tax provision $ 209,845 $ 164,161 $ 85,815 The reconciliation of taxes computed at the statutory tax rate of 21% in 2022, 2021 and 2020 to the provision for income taxes is as follows. Reconciliation of provision for income taxes Years Ended December 31, (In thousands) 2022 2021 2020 Provision for income taxes computed at the statutory tax rate $ 200,084 $ 160,615 $ 100,683 Change in tax resulting from: State tax provision (benefit), net of federal impact 20,869 (1,714) (9,062) Valuation allowance (13,791) 5,700 11,290 Uncertain tax positions (1,076) 853 (14,784) Other, net 3,759 (1,293) (2,312) Provision for income taxes $ 209,845 $ 164,161 $ 85,815 Deferred Tax Assets and Liabilities The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows. Deferred tax assets and liabilities December 31, (In thousands) 2022 2021 Deferred tax assets Net unrealized loss on investments $ 121,497 $ — State income taxes, net of federal impact 58,031 77,637 Goodwill and intangibles 30,782 29,723 Unearned premiums 26,108 23,699 Accrued expenses 11,913 16,584 Lease liability 10,371 11,240 Differences in fair value of financial instruments 5,998 — Loss reserves 3,102 6,286 Other 32,328 27,932 Total deferred tax assets $ 300,130 $ 193,101 Deferred tax liabilities Contingency reserve $ 587,722 $ 368,000 Depreciation 10,031 12,775 Net unrealized gain on investments — 31,876 Differences in fair value of financial instruments — 7,763 Other 23,823 26,768 Total deferred tax liabilities 621,576 447,182 Less: Valuation allowance 69,637 83,428 Net deferred tax asset (liability) $ (391,083) $ (337,509) Current and Deferred Taxes As of December 31, 2022 and 2021, our current federal income tax liability was $21.4 million and $19.9 million, respectively, which primarily relates to applying the standards of accounting for uncertainty in income taxes, and is included as a component of other liabilities in our consolidated balance sheets. 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. Certain entities within our consolidated group have generated net deferred tax assets relating primarily to state and local NOL carryforwards which, if unutilized, will expire during various future tax periods. We have determined that certain of these entities 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, we have concluded a valuation allowance is required with respect to deferred tax assets relating to these state and local NOLs and other state timing adjustments. As of December 31, 2022 and 2021, this valuation allowance was $69.6 million and $83.4 million, respectively. In addition, as of December 31, 2022, we have generated deferred tax assets related to unrealized capital losses, and we consider it more likely than not that these assets will be realized. We will continue to monitor the level of these losses and our overall ability to realize the related deferred tax assets in the coming quarters. 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 December 31, 2022 and 2021, we held $596.4 million and $354.1 million, respectively, of these bonds, which are included as prepaid federal income taxes in our consolidated balance sheets. The corresponding deduction of our statutory contingency reserves resulted in the recognition of a net deferred tax liability. See Note 16 for additional information about our U.S. Mortgage Guaranty Tax and Loss Bonds. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (the “IRA”), which, among other things, implemented a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases that occur after December 31, 2022, and several tax incentives to promote clean energy. Currently, we do not believe that this new minimum tax or the other income tax provisions of the IRA will have a material impact on our consolidated financial statements. Unrecognized Tax Benefits As of December 31, 2022, we have $2.8 million of net unrecognized tax benefits, including $2.1 million of interest and penalties, that would affect the effective tax rate if recognized. Our policy for the recognition of interest and penalties associated with uncertain tax positions is to record such items as a component of our income tax provision, of which $0.2 million of benefit and $0.7 million of expense were recorded for the years ended December 31, 2022 and 2021, respectively. A reconciliation of the beginning and ending gross unrecognized tax benefits is as follows. Reconciliation of gross unrecognized tax benefits Years Ended December 31, (In thousands) 2022 2021 Balance at beginning of period $ 19,888 $ 20,249 Tax positions related to the current year: Increases 1,791 267 Decreases — (858) Tax positions related to prior years: Increases 17,666 230 Decreases (17) — Lapses of applicable statute of limitation (18,518) — Balance at end of period $ 20,810 $ 19,888 Our gross unrecognized tax benefits increased by $0.9 million from December 31, 2021, to December 31, 2022, primarily due to the impact of unrecognized tax benefits associated with our recognition of certain premium income, partially offset by reductions related to lapses of the statute of limitations. Although unrecognized tax benefits decreased due to statute expirations, certain amounts for premium income recognition continued to impact subsequent years, resulting in a corresponding increase in unrecognized tax benefits related to premium income recognition. Over the next 12 months, our unrecognized tax benefits may decrease by approximately $0.4 million due to the expiration of the applicable statute of limitations relating to the 2019 tax year. The statute of limitations related to our federal consolidated income tax return remains open for tax years 2019-2022. Additionally, among the entities within our consolidated group, various tax years remain open to potential examination by state and local taxing authorities. |
Losses and LAE
Losses and LAE | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | |
Losses and LAE | Losses and LAE Our reserve for losses and LAE, at the end of each period indicated, consisted of the following. Reserve for losses and LAE December 31, (In thousands) 2022 2021 Primary case $ 398,874 $ 790,380 Primary IBNR and LAE 12,169 22,745 Pool and other 9,912 10,011 Mortgage insurance 420,955 823,136 Title insurance 5,888 5,506 Total reserve for losses and LAE $ 426,843 $ 828,642 For the periods indicated, the following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE. Rollforward of mortgage insurance reserve for losses Years Ended December 31, (In thousands) 2022 2021 2020 Balance at beginning of year $ 823,136 $ 844,107 $ 401,273 Less: Reinsurance recoverable (1) 66,676 71,769 14,594 Balance at beginning of year, net of reinsurance recoverable 756,460 772,338 386,679 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 160,049 160,565 517,807 Prior years (499,423) (141,126) (34,547) Total incurred (339,374) 19,439 483,260 Deduct: Paid claims and LAE related to: Current year (2) 499 1,112 4,148 Prior years 20,359 34,205 93,453 Total paid 20,858 35,317 97,601 Balance at end of period, net of reinsurance recoverable 396,228 756,460 772,338 Add: reinsurance recoverable (1) 24,727 66,676 71,769 Balance at end of year $ 420,955 $ 823,136 $ 844,107 (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 Total incurred losses are driven by: (i) case reserves established for new default notices, which are primarily impacted by both 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 and (ii) reserve developments on prior period defaults, which are primarily impacted by changes to our prior Default to Claim Rate assumptions. New primary default notices totaled 37,738 for the year ended December 31, 2022, compared to 37,470 for the year ended December 31, 2021, and 108,025 for the year ended December 31, 2020. For the year ended December 31, 2020, the significant number of new primary default notices were 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 8.0% as of both December 31, 2022 and 2021, compared to 8.5% as of December 31, 2020. We continue to closely monitor the trends in Cures and claims paid for our default inventory, while also weighing the risks and uncertainties associated with the current economic environment. Our provision for losses during 2022 and 2021 was positively impacted by favorable reserve development on prior year defaults, primarily as a result of more favorable trends in Cures than originally estimated, due to favorable outcomes resulting from mortgage forbearance programs implemented in response to the COVID-19 pandemic as well as positive trends in home price appreciation. These favorable observed trends resulted in reductions in our Default to Claim Rate assumptions for prior year default notices, particularly for those defaults first reported in 2020 following the start of the COVID-19 pandemic. Our provision for losses during 2020 was also positively impacted by favorable reserve development on prior year defaults, primarily driven by a reduction in certain Default to Claim Rate assumptions for those prior year defaults based on observed trends. Default to Claim Rate Our Default to Claim Rate estimates on defaulted loans are mainly developed based on the Stage of Default and Time in Default of the underlying defaulted loans grouped according to the period in which the default occurred, as measured by the progress toward foreclosure sale and the number of months in default. While our estimates of ultimate losses on defaults from prior years declined in each recent year due to elevated Cures, which reduced our inventory of primary defaults, COVID-19- related hardship forbearance plans and foreclosure moratoriums resulted in delays in resolving the remaining defaults, leading to an increase in the Default to Claim Rates applied to the remaining inventory in 2021. During 2022, the ongoing favorable trend in Cures led to reductions in our Default to Claim Rate assumptions. The following table shows our gross Default to Claim Rates on our primary portfolio based on the Time in Default and as of the dates indicated. Default to Claim Rates December 31, 2022 2021 2020 Default to Claim Rate on: New defaults 8.0 % 8.0 % 8.5 % Defaults not in Foreclosure Stage Time in Default: < 2 years (1) 21.8 % 41.6 % 21.0 % Time in Default: 2 - 5 years 65.0 % 75.0 % 62.5 % Time in Default: > 5 years 70.0 % 80.0 % 70.0 % Foreclosure Stage Defaults 75.0 % 85.0 % 75.0 % (1) Represents the weighted average Default to Claim Rate for all defaults not in foreclosure stage that have been in default for up to two years, including new defaults. The estimated Default to Claim Rates applied to defaults within this population vary by Time in Default, and range from the Default to Claim Rates on new defaults shown above, up to 55.0%, 80.1% and 55.0% for more aged defaults in this category as of December 31, 2022, 2021 and 2020, respectively. Our estimate of expected Rescissions and Claim Denials (net of expected Reinstatements) embedded in our estimated net Default to Claim Rate is generally based on our recent experience. Consideration is also given to differences in characteristics between those rescinded policies and denied claims and the loans remaining in our defaulted inventory. Claims Paid Total claims paid decreased in 2022 compared to 2021. The decrease in claims paid is primarily attributable to a reduction in payments made to settle certain previously disclosed legal proceedings. Concentration of Risk As of December 31, 2022 and 2021, there was no state that accounted for more than 10% of our mortgage insurance business measured by primary RIF. Texas accounted for 12.0% of our direct NIW for the year ended December 31, 2022, while California accounted for 10.9% and 10.4% for the years ended December 31, 2021 and 2020, respectively. Additional Disclosures The following tables provide information as of and for the periods indicated about: (i) incurred losses, net of reinsurance; (ii) the total of IBNR liabilities plus expected development on reported claims, included within the net incurred loss amounts; (iii) the cumulative number of reported defaults; and (iv) cumulative paid claims, net of reinsurance. The default year represents the period that a new default notice is first reported to us by loan servicers, related to borrowers who missed two monthly payments. The information about net incurred losses and paid claims development for the years ended prior to 2022 is presented as supplementary information. Incurred losses, net of reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Defaults (2) ($ in thousands) Years Ended December 31, Unaudited Default Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 As of December 31, 2022 2013 $ 505,732 $ 405,334 $ 401,444 $ 404,333 $ 402,259 $ 400,243 $ 399,356 $ 399,317 $ 398,820 $ 397,207 $ 5 58,577 2014 337,784 247,074 265,891 264,620 260,098 261,507 261,377 260,254 257,773 6 47,976 2015 222,555 198,186 178,042 183,952 183,546 184,066 182,647 180,435 9 42,607 2016 201,016 165,440 149,753 148,811 148,640 148,349 145,267 14 40,503 2017 180,851 151,802 133,357 130,274 126,989 122,407 25 42,888 2018 131,513 116,634 95,534 88,252 75,262 32 37,369 2019 143,475 136,860 109,416 66,466 79 40,985 2020 504,160 408,809 87,213 193 108,025 2021 156,328 72,475 184 37,470 2022 155,908 1,550 37,738 Total $ 1,560,413 (1) Represents reserves as of December 31, 2022, related to IBNR liabilities. (2) Represents total number of new primary default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods. Cumulative paid claims, net of reinsurance (In thousands) Years Ended December 31, Unaudited Default Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 34,504 $ 191,040 $ 307,361 $ 357,087 $ 379,036 $ 388,688 $ 392,818 $ 395,093 $ 395,292 $ 395,630 2014 13,108 115,852 200,422 233,607 246,611 252,619 255,742 256,107 255,981 2015 10,479 84,271 142,421 163,916 172,645 174,812 175,874 176,823 2016 11,061 76,616 119,357 134,115 137,306 138,525 139,539 2017 24,653 66,585 99,678 108,484 111,458 112,445 2018 5,584 36,066 54,625 60,926 62,968 2019 4,220 18,703 28,896 35,594 2020 4,148 9,867 14,635 2021 1,112 2,561 2022 498 Total $ 1,196,674 All outstanding liabilities before 2013, net of reinsurance 22,206 Liabilities for claims, net of reinsurance (1) $ 385,945 (1) Calculated as follows: (In thousands) Incurred losses, net of reinsurance $ 1,560,413 All outstanding liabilities before 2013, net of reinsurance 22,206 Cumulative paid claims, net of reinsurance (1,196,674) Liabilities for claims, net of reinsurance $ 385,945 The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the mortgage insurance reserve for losses and LAE at December 31, 2022. Net outstanding liabilities - mortgage insurance (In thousands) December 31, 2022 Reserve for losses and LAE, net of reinsurance $ 385,945 Reinsurance recoverable on unpaid claims 24,727 Unallocated LAE 10,283 Total gross reserve for losses and LAE (1) $ 420,955 (1) Excludes title insurance reserve for losses and LAE of $5.9 million. The following is supplementary information about average historical claims duration as of December 31, 2022, representing the average distribution of when claims are paid relative to the year of default. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Mortgage insurance 6.8% 30.0% 24.5% 10.4% 3.8% 1.5% 0.9% 0.4% —% 0.1% |
Borrowings and Financing Activi
Borrowings and Financing Activities | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt, Unclassified [Abstract] | |
Borrowings and Financing Activities | Borrowings and Financing Activities The carrying value of our debt at December 31, 2022 and 2021, was as follows. Borrowings December 31, ($ in thousands) Interest rate 2022 2021 Senior notes Senior Notes due 2024 4.500 % $ 447,805 $ 446,631 Senior Notes due 2025 6.625 % 520,305 518,405 Senior Notes due 2027 4.875 % 445,394 444,437 Total senior notes $ 1,413,504 $ 1,409,473 December 31, ($ in thousands) Average interest rate (1) 2022 2021 Other Borrowings FHLB advances FHLB advances due 2022 — % $ — $ 71,050 FHLB advances due 2023 2.806 % 104,895 52,995 FHLB advances due 2024 2.540 % 32,371 (2) 13,954 FHLB advances due 2025 1.590 % 9,984 9,984 FHLB advances due 2027 2.181 % 6,436 3,000 Total FHLB advances 153,686 150,983 Mortgage financing facilities 5.928 % 2,136 — Total other borrowings $ 155,822 $ 150,983 (1) As of December 31, 2022. See “—FHLB Advances” below for more information. (2) Includes $13.4 million of floating-rate advances with a weighted average interest rate of 3.617%, which resets daily based on changes in SOFR. Senior Notes Senior Notes due 2024 . These notes, which were issued in September 2017, bear interest payable semi-annually on April 1 and October 1 of each year, and mature on October 1, 2024. Senior Notes due 2025. These notes, which were issued in May 2020, bear interest payable semi-annually on March 15 and September 15 of each year, and mature on March 15, 2025. Senior Notes due 2027. These notes, which were issued in June 2019, bear interest payable semi-annually on March 15 and September 15 of each year, and mature on March 15, 2027. Redemption Terms in Senior Notes. We have the option to redeem the Senior Notes due 2024, 2025 and 2027, in whole or in part, at any time, or from time to time, prior to July 1, 2024 (the date that is three months prior to the maturity date of the Senior notes due 2024), September 15, 2024 (the date that is six months prior to the maturity date of the Senior notes due 2025) and September 15, 2026 (the date that is six months prior to the maturity date of the Senior notes due 2027) (in each case, the “Par Call Date”), respectively, 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. Covenants in Senior Notes. The indentures governing the Senior Notes due 2024, 2025 and 2027 contain covenants customary for securities of this nature, including covenants related to the payments of the notes, periodic reporting and certificates to be issued and covenants related to amendments to the indentures. Additionally, the indentures include 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. We were in compliance with all covenants as of December 31, 2022. FHLB Advances Radian Guaranty is a member of the FHLB. As a member, it may borrow from the FHLB, subject to certain conditions, which include the need to post collateral and the requirement to maintain a minimum investment in FHLB stock, in part depending on the level of its outstanding FHLB advances. Interest on the FHLB advances is primarily fixed-rate and 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 paying a prepayment fee. The principal balance of the FHLB advances is required to be collateralized by eligible assets with a market value that must be maintained generally within a minimum range of 103% to 114% of the amount borrowed, depending on the type of assets pledged. Our fixed-maturities available for sale and trading securities include securities totaling $163.9 million and $167.3 million at December 31, 2022 and 2021, respectively, which serve as collateral for our FHLB advances to satisfy this requirement. Revolving Credit Facility Radian Group has in place a $275 million unsecured revolving credit facility with a syndicate of bank lenders. The revolving credit facility matures in December 2026, although under certain conditions Radian Group may need to offer to repay any outstanding amounts and terminate lender commitments earlier than the maturity date. Terms of the credit facility include an accordion feature that allows Radian Group, at its option, to increase the total borrowing capacity during the term of the agreement, subject to our obtaining the necessary increased commitments from lenders (which may include then existing or other lenders), up to a total of $400 million. Subject to certain limitations, borrowings under the credit facility may be used for working capital and general corporate purposes, including capital contributions to Radian Group’s insurance subsidiaries as well as growth initiatives. The credit facility contains customary representations, warranties, covenants, terms and conditions. Our ability to borrow under the credit facility is conditioned on the satisfaction of certain financial and other covenants, including covenants related to minimum net worth and statutory surplus, a maximum debt-to-capitalization level, limits on certain types of indebtedness and liens, and Radian Guaranty’s eligibility as a private mortgage insurer with the GSEs. At December 31, 2022, Radian Group was in compliance with all the covenants and there were no amounts outstanding under this revolving credit facility. Mortgage Financing Facilities In July 2022, Radian Mortgage Capital and its wholly owned subsidiary Liberty entered into the Goldman Sachs Master Repurchase Agreement, pursuant to which Liberty may from time to time sell to Goldman Sachs, and later repurchase, certain Participation Interests (as defined in the Goldman Sachs Master Repurchase Agreement) in residential mortgage loan assets. The Goldman Sachs Master Repurchase Agreement will terminate in July 2023, unless extended or terminated earlier. In September 2022, Radian Mortgage Capital entered into the BMO Master Repurchase Agreement, pursuant to which Radian Mortgage Capital may from time to time sell to BMO, and later repurchase, certain residential mortgage loan assets. The BMO Master Repurchase Agreement will expire in September 2023, unless the agreement is extended or terminated earlier. Both Master Repurchase Agreements are uncommitted, and Goldman Sachs and BMO are under no obligation to fund the purchase of any residential mortgage loan assets under their respective agreements. In the event Goldman Sachs or BMO advances funds to purchase residential mortgage loan assets, the amount of such advances generally will be calculated as a percentage of the unpaid principal balance or market value of the residential mortgage loan assets, depending on the credit characteristics of the loans being purchased. The Master Repurchase Agreements contain provisions that provide Goldman Sachs and BMO, respectively, with certain rights in the event of a decline in the market value of the purchased residential mortgage loan assets. Under these provisions, Liberty or Radian Mortgage Capital, as applicable, may be required to transfer cash or additional eligible residential mortgage loan assets with an aggregate market value that is equal to the difference between the value of the residential mortgage loan assets then subject to the applicable Master Repurchase Agreement and a minimum threshold amount. Radian Group has entered into the Parent Guarantees to guaranty the obligations of certain of its subsidiaries in connection with the Master Repurchase Agreements described above. Pursuant to the Parent Guarantees, Radian Group is subject to negative and affirmative covenants customary for this type of financing transaction, including, among others, limitations on the incurrence of debt and restrictions on certain transactions with affiliates, payments and investments and various financial covenants that the Company must remain in compliance with, including those related to: (i) the total adjusted capital of the Company’s primary mortgage insurance subsidiary, currently Radian Guaranty; (ii) the Company’s minimum consolidated net worth; and (iii) the Company’s maximum Debt-to-Total Capitalization Ratio (as defined in the Parent Guarantees). The covenants and financial covenants in the Parent Guarantees are generally consistent with the comparable covenants in the Company’s revolving credit facility, including with respect to the payment of dividends on shares of its common stock which are permitted under the revolving credit facility and the Master Repurchase Agreements so long as no default or event of default exists and the Company is in pro forma compliance with the applicable financial covenants on the date a dividend is declared. As of December 31, 2022, Radian Group was in compliance with all of the Master Repurchase Agreements’ covenants, and $2.1 million in mortgage financing facilities were outstanding and included in other borrowings in our consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are routinely involved in a number of legal actions and proceedings, including reviews, audits, inquiries, information-gathering requests and investigations by various regulatory entities, as well as litigation and other disputes arising in the ordinary course of our business. We also are periodically subject to reviews and audits, as well as inquiries, information-gathering requests and investigations, by various regulatory entities. 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 Mortgage 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. In the course of our regular review of pending legal actions and proceedings, we determine whether it is reasonably possible that a potential loss may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any. Management believes, based on current knowledge and after consultation with counsel, that the outcome of currently pending or threatened actions will not have a material adverse effect on our consolidated financial condition. The outcome of legal actions and proceedings is inherently uncertain, and it is possible that any one or more matters could have an adverse effect on our liquidity, financial condition or results of operations for any particular period. In accordance with applicable accounting standards and guidance, we establish accruals only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range. Legal actions and proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business in excess of amounts we have established as reserves for such matters. Loss estimates are inherently subjective, based on currently available information and are subject to management’s judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and unpredictability surrounding the outcome of legal and other proceedings, actual results may differ materially from any amounts that have been accrued. Lease Liability Our lease liability represents the present value of future lease payments over the lease term. Our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate, on a collateralized basis, to discount the lease payments based on information available at lease commencement. Our leases expire periodically through August 2032 and contain provisions for scheduled periodic rent increases. We estimate the incremental borrowing rate based on the yields of Radian Group corporate bonds, as adjusted to reflect a collateralized borrowing rate, resulting in discount rates ranging from 4.8% to 7.5%. While the majority of our lease population expires within one year of one of Radian Group’s corporate bonds, our more significant leases do not. For those leases, we adjust the corporate bond rate for both U.S. Department of the Treasury rate yields, and a corporate spread adjustment determined from recent market data. The following tables provide additional information related to our leases, including: (i) the components of our total lease cost; (ii) the cash flows arising from our lease transactions; (iii) supplemental balance sheet information; (iv) the weighted-average remaining lease term; (v) the weighted-average discount rate used for our leases; and (vi) the remaining maturities of our lease liabilities, as of and for the periods indicated. Total lease cost Years Ended December 31, (In thousands) 2022 2021 Operating lease cost $ 10,633 $ 9,333 Short-term lease cost 220 384 Total lease cost $ 10,853 $ 9,717 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (12,520) $ (9,060) Operating leases December 31, ($ in thousands) 2022 2021 Operating leases Operating lease right-of-use assets (1) $ 21,099 $ 31,878 Operating lease liabilities (2) 49,386 53,523 Weighted-average remaining lease term - operating leases (in years) 7.5 years 7.9 years Weighted-average discount rate - operating leases 6.9 % 6.2 % Remaining maturities of lease liabilities for future years is as follows: 2023 $ 13,050 2024 12,832 2025 10,606 2026 8,147 2027 7,233 2028 and thereafter 29,361 Total lease payments 81,229 Less: Imputed interest (31,843) Present value of lease liabilities (2) $ 49,386 (1) Classified in other assets in our consolidated balance sheets. See Note 9. (2) Classified in other liabilities in our consolidated balance sheets. We entered into a sublease agreement in January 2022, for which we expect sublease receipts to begin in 2023, for a portion of the office space in our former corporate headquarters in Philadelphia and are actively marketing all remaining space in that location for sublease. Upon entering a sublease agreement, we do not anticipate being relieved of our primary obligation under the original lease and will act as a lessor recognizing any sublease income on a straight-line basis over the remaining lease term as an offset to other operating expenses. Other We provide contract underwriting to our mortgage insurance customers, pursuant to which we offer limited indemnification remedies. In 2022 and 2021, our provision for contract underwriting expenses and our payments for losses |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Shares of Common Stock The following table shows the changes in common stock outstanding for 2022, 2021 and 2020. Common stock outstanding Years Ended December 31, (In thousands) 2022 2021 2020 Balance at beginning of year 175,421 191,606 201,164 Shares repurchased under share repurchase programs (19,506) (17,752) (11,036) Issuance of common stock under incentive and benefit plans, net of shares withheld for employee taxes 1,141 1,567 1,478 Balance at end of year 157,056 175,421 191,606 Share Repurchase Activity From time to time, Radian Group’s board of directors approves share repurchase programs authorizing the Company 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 generally operates its share repurchase programs pursuant to a trading plan under Rule 10b5-1 of the Exchange Act, which permits the Company to purchase shares, at predetermined price targets, when it may otherwise be precluded from doing so. In February 2022, Radian Group’s board of directors approved a share repurchase program authorizing the Company to spend up to $400 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. The authorization was originally set to expire in February 2024. During the year ended December 31, 2022, the Company purchased 19.5 million shares at an average price of $20.52 per share, including commissions, completing this repurchase program. As of December 31, 2022, no purchase authority remained available under this share repurchase program. In January 2023, Radian Group’s board of directors approved a share repurchase program authorizing the Company to spend up to $300 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 plans to utilize a trading plan under Rule 10b5-1 of the Exchange Act, which, once implemented, permits the Company to purchase shares, at predetermined price targets, when it may otherwise be precluded from doing so. The authorization will expire in January 2025. Other Purchases We may purchase shares on the open market to settle stock options exercised by employees. In addition, upon the vesting of certain RSUs 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 We declared quarterly cash dividends on our common stock equal to $0.125 per share during each quarter of 2020 and the first quarter of 2021 and declared quarterly cash dividends on our common stock equal to $0.14 per share for the remaining quarters of 2021. In February 2022, Radian Group’s board of directors authorized an increase to the Company’s quarterly dividend from $0.14 to $0.20 per share, beginning with the dividend declared in the first quarter of 2022. In February 2023, Radian Group’s board of directors authorized an increase in the Company’s quarterly dividend from $0.20 to $0.225 per share for the first quarter of 2023. Dividend equivalents are accrued on RSUs when dividends are declared on the Company’s common stock, subject to certain exclusions. See Note 17 for information about our dividend equivalents on RSU awards. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables show the rollforward of accumulated other comprehensive income (loss) as of the periods indicated. Rollforward of accumulated other comprehensive income (loss) Year Ended December 31, 2022 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 152,016 $ 31,923 $ 120,093 Other comprehensive income (loss) Unrealized holding gains (losses) on investments arising during the period for which an allowance for expected credit losses has not been recognized (740,324) (155,468) (584,856) Less: Reclassification adjustment for net gains (losses) on investments included in net income (1) Net realized gains (losses) on disposals and non-credit related impairment losses (9,974) (2,094) (7,880) Net unrealized gains (losses) on investments (730,350) (153,374) (576,976) Other adjustments to comprehensive income, net 106 22 84 Other comprehensive income (loss) (730,244) (153,352) (576,892) Balance at end of period $ (578,228) $ (121,429) $ (456,799) Year Ended December 31, 2021 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 333,829 $ 70,104 $ 263,725 Other comprehensive income (loss) Unrealized holding gains (losses) on investments arising during the period for which an allowance for expected credit losses has not been recognized (175,234) (36,799) (138,435) Less: Reclassification adjustment for net gains (losses) included in net income (1) Net realized gains (losses) on disposals and non-credit related impairment losses 5,661 1,189 4,472 Net decrease (increase) in expected credit losses 918 193 725 Net unrealized gains on investments (181,813) (38,181) (143,632) Other comprehensive income (loss) (181,813) (38,181) (143,632) Balance at end of period $ 152,016 $ 31,923 $ 120,093 Rollforward of accumulated other comprehensive income (loss) Year Ended December 31, 2020 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 139,858 $ 29,370 $ 110,488 Other comprehensive income (loss) Unrealized holding gains (losses) on investments arising during the period for which an allowance for expected credit losses has not been recognized 226,280 47,519 178,761 Less: Reclassification adjustment for net gains (losses) included in net income (1) Net realized gains (losses) on disposals and non-credit related impairment losses 33,468 7,028 26,440 Net decrease (increase) in expected credit losses (1,254) (263) (991) Net unrealized gains on investments 194,066 40,754 153,312 Other adjustments to comprehensive income, net (95) (20) (75) Other comprehensive income (loss) 193,971 40,734 153,237 Balance at end of period $ 333,829 $ 70,104 $ 263,725 (1) Included in net gains (losses) on investments and other financial instruments in our consolidated statements of operations. |
Statutory Information
Statutory Information | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Statutory Information | Statutory Information Radian Group serves as the holding company for our insurance subsidiaries, through which we conduct our mortgage insurance and title insurance businesses. These insurance subsidiaries are subject to comprehensive, detailed regulation by the insurance departments in the various states where our insurance subsidiaries are domiciled or licensed to transact business. Insurance laws vary from state to state, but generally grant broad supervisory powers to state agencies or officials to examine insurance companies and enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. All of our mortgage insurance subsidiaries are domiciled in Pennsylvania and, following the series of capital actions in the fourth quarter of 2022 as described below, we currently write new mortgage insurance business using only one principal subsidiary, Radian Guaranty. Radian Guaranty is authorized as a monoline insurer to write mortgage guaranty insurance (or in states where there is no specific authorization for mortgage guaranty insurance, the applicable line of insurance under which mortgage guaranty insurance is regulated) in all 50 states, the District of Columbia and Guam. As part of our title services, we offer title insurance through Radian Title Insurance, which is domiciled in Ohio and licensed to issue title insurance policies in 41 states and the District of Columbia. In addition to complying with state insurance regulations, in order to be eligible to insure loans purchased by the GSEs, mortgage insurers such as Radian Guaranty must meet the GSEs’ eligibility requirements, or PMIERs. The PMIERs are comprehensive, covering virtually all aspects of the business and operations of a private mortgage insurer, including internal risk management and quality controls, the relationship between the GSEs and the approved insurer, as well as the approved insurer’s financial condition. See “—PMIERs” below for additional information. The PMIERs and state insurance regulations include various capital requirements and dividend restrictions based on our insurance subsidiaries’ statutory financial position and results of operations, as described below. Our failure to maintain adequate levels of capital could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition. Recent Capital Actions As part of our ongoing efforts to enhance financial flexibility and improve operational efficiency, we completed the following series of capital actions during the fourth quarter of 2022 affecting our mortgage insurance subsidiaries: ■ Effective December 1, 2022, Radian Reinsurance completed the novation to an unrelated third-party insurer of its entire insured portfolio of credit risk transfer transactions with the GSEs. Under the terms of the novation agreements, which were approved by the GSEs, the third-party insurer assumed all rights, interests, liabilities and obligations under the credit risk transfer transactions originally insured by Radian Reinsurance, which totaled $276 million of risk in force as of September 30, 2022. ■ Following the novation of Radian Reinsurance’s entire insured portfolio, Radian Group completed the merger of Radian Reinsurance into Radian Guaranty, effective December 28, 2022. As of September 30, 2022, Radian Reinsurance had statutory admitted assets of $325 million that were merged into Radian Guaranty effective for the fourth quarter of 2022. ■ Following completion of the merger of Radian Reinsurance into Radian Guaranty, the Pennsylvania Insurance Department approved a $282 million return of capital from Radian Guaranty to Radian Group, which was paid from Radian Guaranty’s gross paid in and contributed statutory surplus on December 30, 2022. In addition, the Pennsylvania Insurance Department also approved the early repayment from Radian Guaranty to Radian Group of the Surplus Note due 2027, which was also repaid on December 30, 2022. See “—Statutory Dividend Restrictions” below for further discussion of the impact these actions had on Radian Guaranty’s ability to pay ordinary dividends. Statutory Financial Statements We prepare our statutory financial statements in accordance with the accounting practices required or permitted, if applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries. Required SAP are established by the NAIC, as well as state laws, regulations and general administrative rules. In addition, insurance departments have the right to permit other specific practices that may deviate from prescribed practices. As of December 31, 2022, we did not have any prescribed or permitted SAP that resulted in reported statutory surplus or risk-based capital being materially different from what would have been reported had NAIC statutory accounting practices been followed. Reflecting the principal differences between SAP and GAAP, statutory financial statements typically do not include unrealized gains or losses on fixed-maturity securities, deferred policy acquisition costs, certain net deferred tax assets and certain other less readily marketable assets that are designated as non-admitted assets. In addition to these general differences, SAP also requires that mortgage insurance companies establish a special contingency reserve equal to 50% of premiums earned in each year, generally to be maintained for 10 years, to protect policyholders against loss during adverse economic cycles. As a result of the requirement to establish and maintain this statutory liability, contingency reserves affect the ability of a mortgage insurer to pay dividends, as described below. With regulatory approval, a mortgage insurance company may make early withdrawals from this contingency reserve when incurred losses exceed 35% of net premiums in a calendar year. Radian Guaranty did not release any amounts from its contingency reserves in 2022 or 2021. Based on the typical 10-year holding requirement, Radian Guaranty is scheduled to release contingency reserves to unassigned surplus in material amounts beginning in 2024. See “—Statutory Dividend Restrictions” below for additional information. As a mortgage guaranty insurer, we are eligible for a tax deduction, subject to certain limitations, related to amounts required to be set aside in statutory contingency reserves to the extent we purchase U.S. Mortgage Guaranty Tax and Loss Bonds issued by the U.S. Department of the Treasury. Under SAP, this deduction reduces the tax provision reflected in the statutory financial statements, which in turn increases statutory net income and surplus as well as Available Assets under the PMIERs. As of December 31, 2022, Radian Guaranty held $596.4 million of these bonds, which have a 10-year original maturity but may generally be redeemed in any tax year prior to maturity. Our insurance subsidiaries’ statutory net income and statutory policyholders’ surplus for the years ended and as of December 31, 2022, 2021 and 2020, were as follows. Statutory net income Years Ended December 31, (In thousands) 2022 2021 2020 Radian Guaranty (1) $ 1,091,946 $ 762,609 $ 474,431 Other mortgage subsidiaries 1,957 1,669 1,086 Radian Title Insurance 2,589 6,862 2,126 Statutory policyholders’ surplus (2) December 31, (In thousands) 2022 2021 2020 Radian Guaranty (1) $ 758,467 $ 1,105,266 $ 842,188 Other mortgage subsidiaries 17,086 14,524 41,327 (3) Radian Title Insurance 39,285 36,599 28,849 (1) The amounts for 2021 and 2020 have been updated to reflect the merger of Radian Reinsurance into Radian Guaranty. See “—Recent Capital Actions” above. (2) See the “Surplus additions (distributions)” table under “—Statutory Dividend Restrictions” below for additional information on certain changes impacting policyholders’ surplus. (3) Includes the surplus for two previous insurance subsidiaries, Radian Mortgage Guaranty Inc. and Radian Investor Surety Inc., which were dissolved in 2021. Statutory Capital Requirements Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, a maximum ratio of net RIF relative to statutory capital, or Risk-to-capital. There are 16 RBC States that currently impose a Statutory RBC Requirement. The most common Statutory RBC Requirement is that a mortgage insurer’s Risk-to-capital may not exceed 25 to 1. In certain of the RBC States, a mortgage insurer must satisfy an MPP Requirement. Unless an RBC State grants a waiver or other form of relief, if a mortgage insurer, such as Radian Guaranty, is not in compliance with the Statutory RBC Requirement of that state, the mortgage insurer may be prohibited from writing new mortgage insurance business in that state. The statutory capital requirements for the non-RBC States are de minimis (ranging from $1 million to $5 million); however, the insurance laws of these states generally grant broad supervisory powers to state agencies or officials to enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. Radian Guaranty’s domiciliary state, Pennsylvania, is not one of the RBC States. Radian Guaranty was in compliance with all applicable Statutory RBC Requirements and MPP Requirements in each of the RBC States as of December 31, 2022. Radian Guaranty’s Risk-to-capital was 10.7:1 and 11.1:1 as of December 31, 2022 and 2021, respectively. 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. Our other mortgage insurance and title insurance subsidiaries were also in compliance with all statutory and counterparty capital requirements as of December 31, 2022 and 2021. For many years, the NAIC has been considering changes to the Model Act and has been reviewing the minimum capital and surplus requirements for mortgage insurers. In 2021, the NAIC developed a new, legally non-binding capital monitoring framework that regulators could use as an alternative for assessing the capital adequacy of a mortgage insurer and added a new mortgage guaranty supplemental filing for companies to annually report related information. This monitoring framework, which is separate from the Model Act, is intended to be reactive to, among other things, changes in the economic and housing environment, including changes in home prices and incomes. In October 2022, the NAIC publicly released a new exposure draft of a revised Model Act (the “2022 Exposure Draft”) for comment. With respect to minimum capital and surplus requirements for mortgage insurers, the 2022 Exposure Draft largely preserves the same requirements as exist in the current Model Act. The outcome of the new Model Act process remains subject to change, and therefore, the potential impact on the Company cannot be determined and, among other things, will depend on whether the NAIC adopts final changes to the Model Act and which states, if any, ultimately adopt the new Model Act. PMIERs The PMIERs financial requirements require that a mortgage insurer’s Available Assets meet or exceed its Minimum Required Assets. At December 31, 2022, Radian Guaranty is an approved mortgage insurer under the PMIERs and is in compliance with the current PMIERs financial requirements. The GSEs may amend the PMIERs at any time, and they have broad discretion to interpret the requirements, which could impact the calculation of Radian Guaranty’s Available Assets and/or Minimum Required Assets. In addition, the GSEs have a broad range of consent rights under the PMIERs and require private mortgage insurers to obtain the prior consent of the GSEs before taking certain actions. If Radian Guaranty is unable to satisfy the requirements set forth in the PMIERs, the GSEs could restrict it from conducting certain types of business with them or take actions that may include not purchasing loans insured by Radian Guaranty. Statutory Dividend Restrictions As of December 31, 2022, the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $4.3 billion of our consolidated net assets. Despite holding assets above the minimum statutory capital thresholds and PMIERs financial requirements, the ability of Radian’s mortgage insurance subsidiaries to pay dividends on their common stock has been restricted by certain provisions of the insurance laws of Pennsylvania, their state of domicile. Under Pennsylvania’s insurance laws, ordinary dividends and distributions may only be paid out of an insurer’s positive unassigned surplus unless the Pennsylvania Insurance Department approves the payment of extraordinary dividends or other distributions from another source. Prior to the beneficial impact to unassigned surplus from the merger with Radian Reinsurance discussed above, Radian Guaranty had negative unassigned surplus of $562.8 million as of December 31, 2021. In light of Radian Guaranty’s negative unassigned surplus position in recent years, any distributions to Radian Group required the prior approval of the Pennsylvania Insurance Department. Radian Guaranty sought and received such approval during 2022 to return capital by paying Extraordinary Distributions to Radian Group, including a $500 million distribution in February 2022 and a $282 million distribution in December 2022, which were paid in cash and marketable securities in the form of returns of paid-in capital. While all proposed dividends and distributions to stockholders must be filed with the Pennsylvania Insurance Department prior to payment, if a Pennsylvania domiciled insurer has positive unassigned surplus, such insurer can pay dividends or other distributions during any 12-month period in an aggregate amount less than or equal to the greater of: (i) 10% of the preceding year-end statutory policyholders’ surplus or (ii) the preceding year’s statutory net income, in each case without the prior approval of the Pennsylvania Insurance Department. Aided by the positive impacts of the merger with Radian Reinsurance in December 2022, Radian Guaranty had positive unassigned surplus of $258.5 million as of December 31, 2022. As a result, Radian Guaranty now has the ability to pay ordinary dividends beginning in the first quarter of 2023. As of December 31, 2022 and 2021, Radian Guaranty had contingency reserves of $4.4 billion and $3.9 billion, respectively. As discussed above, absent early releases related to elevated incurred losses, Radian Guaranty is scheduled to release contingency reserves to unassigned surplus in material amounts beginning in 2024, which should enhance Radian Guaranty’s ability to maintain a positive unassigned surplus position and to continue to pay ordinary dividends to Radian Group in future periods. The surplus additions (distributions) between Radian Group and Radian Guaranty and our other insurance subsidiaries for the years ended December 31, 2022, 2021 and 2020, were as follows. Surplus additions (distributions) Years Ended December 31, (In thousands) 2022 2021 2020 Additions to Radian Guaranty surplus $ — $ — $ 200,000 Distributions from Radian Guaranty surplus (1) (881,979) — — Additions to other insurance subsidiaries’ surplus — 250 — Distributions from other insurance subsidiaries’ surplus (2) (32,500) (40,000) (465,000) (1) Consists of $782 million in returns of capital and a $100 million repayment of the Surplus Note due 2027. (2) These distributions were from Radian Reinsurance prior to its merger with Radian Guaranty. |
Share-Based Compensation and Ot
Share-Based Compensation and Other Benefit Programs | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation and Other Benefit Programs | Share-Based Compensation and Other Benefit Programs In May 2021, our stockholders approved the 2021 Equity Plan. The terms of the 2021 Equity Plan apply to awards granted on or after May 12, 2021, the effective date of the plan (the “Effective Date”). In addition to the 2021 Equity Plan, we also have awards outstanding under the 1995 Equity Plan, the 2008 Equity Plan and the 2017 Equity Plan (collectively, the “Prior Equity Plans”). The last awards granted pursuant to the 2008 and 1995 Equity Plans were granted in 2014 and 2008, respectively. The 2021 Equity Plan authorizes the issuance of up to 8.3 million new shares of our common stock, plus: (i) any shares of our common stock that remained available for awards under the 2017 Equity Plan as of the Effective Date and (ii) any shares of our common stock subject to outstanding awards under the Prior Equity Plans as of the Effective Date that are payable in shares and that terminate, expire, or are canceled without having been exercised, vested, or settled in full (as applicable) on or after the Effective Date, subject to certain adjustments set forth in the 2021 Equity Plan (“Prior Plans Shares”). There were 8.1 million shares available for grant under the 2021 Equity Plan, including Prior Plans Shares, as of December 31, 2022. Outstanding awards granted under the Equity Plans include both performance-based and time-based RSUs, non-qualified stock options and phantom stock. The maximum contractual term for stock options and similar instruments under the Equity Plans is 10 years, although awards of these instruments may be granted with shorter terms. All new awards under the 2021 Equity Plan have been granted in the form of performance-based and time-based RSUs. Most awards vest at the end of the performance or service period and will vest earlier under certain circumstances. In the event of a grantee’s death or disability, awards generally vest immediately. Upon retirement, if certain conditions are met, awards generally vest immediately or at the end of the performance period, if any. Certain time-based RSU awards granted to officers under our 2021 Equity Plan and 2017 Equity Plan will vest in whole or in part in the event the grantee’s employment is terminated by us without cause or for “good reason.” Awards granted to officers will vest in connection with a change of control only in the event the grantee’s employment is terminated by us without cause or the grantee terminates employment for “good reason,” in each case within 90 days before or one year after the change of control. Awards to our non-employee directors will vest in connection with a change of control only in the event the grantee fails to be appointed to the board of directors of the surviving entity or is not nominated for reelection, or fails to be reelected after nomination, to the board of directors of the Company or the surviving entity. The following table summarizes the compensation cost recognized and additional information regarding all share-based awards for the years indicated. Share-based compensation expense Years Ended December 31, (In thousands) 2022 2021 2020 Compensation cost recognized (1) RSUs $ 37,465 $ 27,803 $ 18,403 ESPP and other 596 560 790 Total compensation cost recognized 38,061 28,363 19,193 Income tax benefit related to share-based compensation expense 7,524 7,168 4,264 Share-based compensation expense, net $ 30,537 $ 21,195 $ 14,929 (1) Compensation cost is generally recognized over the periods that an employee provides service in exchange for the award. For purposes of calculating compensation cost recognized for retirement eligible grantees, we consider the service condition to be met (and recognize the full compensation costs) as of the date when a grantee becomes retirement eligible. As of December 31, 2022, unrecognized compensation expense for all of our outstanding share-based awards was $31.7 million. Absent a change of control under the Equity Plans, this expense is expected to be recognized over a weighted-average period of approximately 1.7 years. The ultimate unrecognized expense associated with our outstanding awards could differ, depending upon whether or not the performance and service conditions are met. RSUs Information with regard to RSUs to be settled in stock for the periods indicated is as follows. Rollforward of RSUs Performance-Based Time-Vested Number of Weighted-Average Number of Weighted-Average Outstanding, December 31, 2021 (1) 2,340,673 $ 16.76 1,808,551 $ 15.51 Granted (2) 643,740 20.09 612,099 20.61 Performance adjustment (3) 197,534 — — — Vested (4) (796,479) 18.35 (503,231) 19.47 Forfeited (23,067) 20.08 (25,619) 18.77 Outstanding, December 31, 2022 (1) 2,362,401 $ 17.59 1,891,800 $ 16.06 (1) Outstanding RSUs represent shares that have not yet been issued because not all conditions necessary to earn the right to benefit from the instruments have been satisfied. For performance-based awards, the final number of RSUs distributed depends on the cumulative growth in Radian’s book value over the respective three-year performance period and, with the exception of certain retirement-eligible employees, continued service through the vesting date, which could result in changes in the number of vested RSUs. (2) For performance-based RSUs, amount represents the number of target shares at grant date. (3) For performance-based RSUs, represents the difference between the number of target shares at grant date and the number of shares vested at settlement, which can range from 0 to 200% of target depending on results over the applicable performance periods. (4) Represents amounts vested during the year, including the impact of performance adjustments for performance-based awards. The weighted-average grant date fair value of performance-based RSUs granted during 2021 and 2020 was $20.39 and $11.91, respectively. The weighted-average grant date fair value of time-vested RSUs granted during 2021 and 2020 was $21.71 and $13.49, respectively. The fair value as of the respective vesting dates of performance-based RSUs vested during 2022, 2021 and 2020 was $16.9 million, $18.9 million and $17.2 million, respectively. The fair value as of the respective vesting dates of time-vested RSUs vested during 2022, 2021 and 2020 was $10.6 million, $18.1 million and $7.6 million, respectively. Dividend equivalents are accrued on all awards when dividends are declared on the Company’s common stock and will generally be paid in cash when the awards are settled. Performance-Based RSUs. In 2022, 2021 and 2020, the vesting of the performance-based RSUs will be based upon the cumulative growth in Radian’s book value per share, adjusted for certain defined items, over a three-year performance period. The payout at the end of the three-year performance period can range from 0% to a maximum payout of 200% of the award’s target number of RSUs granted. Performance-based RSUs granted to executive officers are subject to a one-year post vesting holding period. The grant date fair value of the performance-based RSUs that are based on the cumulative growth in Radian’s book value per share is calculated based on the stock price as of the grant date, discounted for executive officers to account for the one-year-post-vesting holding period. Time-Vested RSUs. With the exception of certain time-vested RSUs granted in 2022, 2021 and 2020 to non-employee directors, the time-vested RSU awards granted in 2022, 2021 and 2020 are scheduled to vest in: (i) pro rata installments on each of the first three anniversaries of the grant date or (ii) generally at the end of three years. Certain time-vested RSU awards granted in 2022, 2021 and 2020 to non-employee directors generally are subject to one-year cliff vesting; however, awards granted to non-employee directors prior to 2020 remain outstanding and the shares are not issued until the non-employee director retires or certain conditions related to a change in control are met, as described above. Non-Qualified Stock Options Information with regard to stock options for the periods indicated is as follows. Rollforward of non-qualified stock options ($ in thousands, except per-share amounts) Number of Weighted Weighted Aggregate Intrinsic Value (1) Outstanding, December 31, 2021 563,906 $ 12.21 Granted — — Exercised (192,501) 7.24 Forfeited — — Expired — — Outstanding, December 31, 2022 371,405 $ 14.78 2.1 years $ 1,593 Exercisable, December 31, 2022 371,405 $ 14.78 2.1 years $ 1,593 (1) Based on the market price of $19.07 at December 31, 2022. The following table summarizes additional information concerning stock option activity for the periods indicated. Additional information Years Ended December 31, (In thousands) 2022 2021 2020 Aggregate intrinsic value of options exercised $ 2,926 $ 3,354 $ 3,344 Tax benefit of options exercised 614 704 702 Cash received from options exercised 1,341 1,382 1,553 Upon the exercise of stock options, we generally issue shares from the authorized, unissued share reserves when the exercise price is less than the treasury stock repurchase price and from treasury stock when the exercise price is greater than the treasury stock repurchase price. Generally, the stock option awards have a four-year vesting period, with 50% of the award vesting on or after the third anniversary of the grant date and the remaining 50% of the award vesting on or after the fourth anniversary of the grant date, provided the applicable stock price performance hurdle is met. There have been no stock options granted since 2016. Employee Stock Purchase Plan The ESPP is designed to allow eligible employees to purchase shares of our common stock at a discount of 15% off the lower of the fair market value of our common stock at the beginning or end of a six-month offering period (each period being the first and second six months in a calendar year). Under this plan, we issued approximately 100 thousand shares to employees during each of the years ended December 31, 2022, 2021 and 2020. As of February 2023, approximately 1.5 million shares remain available for issuance under the ESPP. Benefit Plans The Radian Group Inc. Savings Incentive Plan (“Savings Plan”) covers substantially all of our full-time and our part-time employees. Participants can contribute up to 100% of their eligible earnings as pretax and/or after-tax (“Roth IRA”) contributions up to a maximum Internal Revenue Service annual limit, which was $20,500 for 2022. The Savings Plan also includes the catch-up contribution provision whereby participants who are or will be age 50 and above during the Savings Plan year may contribute an additional contribution. The maximum catch-up contribution for the Savings Plan in 2022 was $6,500. We match up to 100% of the first 6.0% of eligible compensation contributed in any given year. Our expense for matching funds for the years ended December 31, 2022, 2021 and 2020, was $9.7 million, $7.8 million and $7.8 million, respectively. |
Schedule I_ Summary of Investme
Schedule I: Summary of Investments—Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Schedule I Summary of Investments [Abstract] | |
Schedule I: Summary of Investments—Other Than Investments in Related Parties | Schedule I (In thousands) Amortized Fair Value Amount Reflected on the Consolidated Balance Sheet Type of Investment Fixed-maturities available for sale Bonds U.S. government and agency securities $ 174,138 $ 145,442 $ 145,442 State and municipal obligations 164,325 142,386 142,386 Corporate bonds and notes 2,886,905 2,537,771 2,537,771 RMBS 1,025,795 928,399 928,399 CMBS 645,890 593,357 593,357 CLO 518,677 498,192 498,192 Other ABS 168,033 161,359 161,359 Foreign government and agency securities 5,118 4,975 4,975 Mortgage insurance-linked notes (1) 54,578 53,019 53,019 Total securities available for sale 5,643,459 5,064,900 (2) 5,064,900 (2) Trading securities 122,472 115,665 115,665 Equity securities Common stocks Industrial, miscellaneous and all other 230,525 213,519 213,519 Total equity securities 230,525 213,519 (3) 213,519 (3) Mortgage loans held for sale 3,498 3,549 3,549 Other invested assets 5,336 5,511 5,511 Short-term investments (4) 402,552 402,486 (5) 402,486 (5) Total investments other than investments in related parties $ 6,407,842 $ 5,805,630 $ 5,805,630 (1) Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 of Notes to Consolidated Financial Statements for more information about our reinsurance programs. (2) Includes $47.2 million of fixed-maturity securities available for sale loaned under securities lending agreements that are classified as other assets in our consolidated balance sheets. (3) Includes $64.6 million of equity securities loaned under securities lending agreements that are classified as other assets in our consolidated balance sheets. (4) Includes cash collateral held under securities lending agreements of $99.7 million that is reinvested in money market instruments. (5) Includes $0.4 million of short-term investments loaned under securities lending agreements that are classified as other assets in our consolidated balance sheets. |
Schedule II - Financial Informa
Schedule II - Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II—Financial Information of Registrant | Condensed Balance Sheet (In thousands, except per-share amounts) December 31, December 31, Assets Investments Fixed-maturities available for sale—at fair value (amortized cost of $747,309 and $485,727) $ 675,948 $ 481,659 Equity securities—at fair value (cost of $140,733) 140,804 — Other invested assets—at fair value 3,958 3,511 Short-term investments—at fair value (includes $61,328 and $1,058 of reinvested cash collateral held under securities lending agreements) 108,232 120,601 Total investments 928,942 605,771 Cash 1,872 38,846 Investment in subsidiaries, at equity in net assets (Note C) 4,576,644 5,210,917 Accounts and notes receivable (Note C) 657 100,002 Other assets (Note C) 157,370 65,923 Total assets $ 5,665,485 $ 6,021,459 Liabilities and stockholders’ equity Liabilities Senior notes $ 1,413,504 $ 1,409,473 Net deferred tax liability (Note A) 196,829 283,585 Other liabilities (Note C) 135,825 69,605 Total liabilities 1,746,158 1,762,663 Common stockholders’ equity Common stock ($0.001 par value; 485,000 shares authorized; 2022: 176,509 and 157,056 shares issued and outstanding, respectively; 2021: 194,408 and 175,421 shares issued and outstanding, respectively) 176 194 Treasury stock, at cost (2022: 19,453 shares; 2021: 18,987 shares) (930,643) (920,798) Additional paid-in capital 1,519,641 1,878,372 Retained earnings 3,786,952 3,180,935 Accumulated other comprehensive income (loss) (456,799) 120,093 Total common stockholders’ equity 3,919,327 4,258,796 Total liabilities and stockholders’ equity $ 5,665,485 $ 6,021,459 Schedule II—Financial Information of Registrant Years Ended December 31, (In thousands) 2022 2021 2020 Revenues Net investment income $ 20,584 $ 7,540 $ 19,459 Net gains (losses) on investments and other financial instruments (4,322) 980 5,682 Other income 78 11 101 Total revenues 16,340 8,531 25,242 Expenses Other operating expenses 2,043 3,163 2,619 Total expenses (Note B) 2,043 3,163 2,619 Pretax income 14,297 5,368 22,623 Income tax provision (benefit) 8,148 1,167 (3,165) Equity in net income of affiliates 736,785 596,470 367,838 Net income 742,934 600,671 393,626 Other comprehensive income (loss), net of tax (576,892) (143,632) 153,237 Comprehensive income $ 166,042 $ 457,039 $ 546,863 Schedule II—Financial Information of Registrant Years Ended December 31, (In thousands) 2022 2021 2020 Cash flows from operating activities Net cash provided by (used in) operating activities (1) $ (71) $ 66,317 $ (13,741) Cash flows from investing activities Proceeds from sales of: Fixed-maturities available for sale 56,934 195,452 304,737 Trading securities 8,868 — — Equity securities — — 13,401 Proceeds from redemptions of: Fixed-maturities available for sale 194,859 301,788 238,161 Purchases of: Fixed-maturities available for sale (29,039) (156,344) (691,874) Equity securities (2,500) — — Sales, redemptions and (purchases) of: Short-term investments, net 188,149 113,939 (53,024) Other assets, net (3,851) (864) (6,068) Capital distributions from subsidiaries 32,512 44,951 19,000 Capital contributions to subsidiaries (8,000) (43,250) (5,050) Net cash provided by (used in) investing activities 437,932 455,672 (180,717) Cash flows from financing activities Dividends and dividend equivalents paid (135,437) (103,298) (97,458) Issuance of common stock 1,341 1,382 1,553 Repurchases of common stock (400,195) (399,100) (226,305) Issuance of senior notes, net — — 515,567 Credit facility commitment fees paid (814) (3,325) (2,292) Change in secured borrowings, net (with terms three months or less) 60,270 1,057 — Net cash provided by (used in) financing activities (474,835) (503,284) 191,065 Increase (decrease) in cash and restricted cash (36,974) 18,705 (3,393) Cash and restricted cash, beginning of period 38,846 20,141 23,534 Cash and restricted cash, end of period $ 1,872 $ 38,846 $ 20,141 (1) Includes cash distributions received from subsidiaries of $49.8 million, $85.0 million and $1.7 million in 2022, 2021 and 2020, respectively. Excludes non-cash distributions received from subsidiaries of $888.0 million, $92.3 million and $484.1 million in 2022, 2021 and 2020, respectively. Schedule II—Financial Information of Registrant Parent Company Only Note A The Radian Group Inc. (the “Parent Company,” “we” or “our”) financial statements represent the stand-alone financial statements of the Parent Company. These financial statements have been prepared on the same basis and using the same accounting policies as described in the consolidated financial statements included herein, except that the Parent Company uses the equity-method of accounting for its majority-owned subsidiaries. These financial statements should be read in conjunction with our consolidated financial statements and the accompanying notes thereto. See Notes 12 and 14 of Notes to Consolidated Financial Statements for additional information on the Parent Company’s debt obligations and capital stock. The Parent Company has entered into the following guarantees on behalf of our subsidiaries: ■ In 2022, Radian Group entered into the Parent Guarantees to support its mortgage conduit business. See Note 12 of Notes to Consolidated Financial Statements for additional information. ■ To allow our mortgage insurance customers to comply with applicable securities regulations for issuers of ABS (including mortgage-backed securities), Radian Group has guaranteed two structured transactions for Radian Guaranty with $58.4 million of aggregate remaining credit exposure as of December 31, 2022. ■ Radian Group and Radian Mortgage Assurance are parties to a guaranty agreement, which provides that Radian Group will make sufficient funds available to Radian Mortgage Assurance to ensure that Radian Mortgage Assurance has a minimum of $5.0 million of statutory policyholders’ surplus every calendar quarter. Radian Mortgage Assurance had $8.8 million of statutory policyholders’ surplus and no RIF exposure as of December 31, 2022. As of December 31, 2022, Radian Group recorded a net deferred tax liability of $196.8 million. This balance includes liabilities related to certain of our subsidiaries, which have incurred federal NOLs that could not be carried-back and utilized on a separate company tax return basis. As a result, we are not currently obligated under our tax-sharing agreement to reimburse these subsidiaries for their separate company federal NOL carryforward. However, if in a future period one of these subsidiaries utilizes its share of federal NOL carryforwards on a separate entity basis, then Radian Group may be obligated to fund such subsidiary’s share of our consolidated tax liability to the Internal Revenue Service. Note B The Parent Company provides certain services to its subsidiaries. The Parent Company allocates to its subsidiaries expenses it incurs in the capacity of supporting those subsidiaries, including operating expenses, which are allocated based on the forecasted annual percentage of total revenue, which approximates the estimated percentage of time spent on certain subsidiaries, and interest expense, which is allocated based on relative capital. These expenses are presented net of allocations in the Condensed Statements of Operations. Substantially all operating expenses and interest expense have been allocated to the subsidiaries for 2022, 2021 and 2020. Amounts allocated to the subsidiaries for expenses are based on actual cost, without any mark-up. The Parent Company considers these charges to be fair and reasonable. The subsidiaries generally reimburse the Parent Company for these costs in a timely manner, which has the impact of temporarily improving the cash flows of the Parent Company, if accrued expenses are reimbursed prior to actual payment. The following table shows the components of our Parent Company expenses that have been allocated to our subsidiaries for the periods indicated. Total allocated expenses Years Ended December 31, (In thousands) 2022 2021 2020 Allocated operating expenses $ 163,000 $ 147,386 $ 129,870 Allocated interest expense 82,568 82,833 68,938 Total allocated expenses $ 245,568 $ 230,219 $ 198,808 Note C During 2022 and 2021, certain non-insurance subsidiaries had not generated sufficient cash flow to reimburse the Parent Company for its share of its direct and allocated operating expenses, and therefore the Parent Company effectively contributed a total of $82.0 million and $48.5 million, respectively, to these subsidiaries to reflect the impairment of the intercompany receivables representing unreimbursed direct and allocated costs. See Note 16 of Notes to Consolidated Financial Statements for additional information related to capital transactions between the Parent Company and its consolidated insurance subsidiaries, including $882 million paid during 2022 from Radian Guaranty to Radian Group. During 2022, the Parent Company’s other assets and other liabilities increased by $66.5 million and $60.3 million, respectively, related to its participation in a securities lending program. See Note 6 of Notes to Consolidated Financial Statements for additional information related to our loaned securities. |
Schedule IV - Reinsurance, Insu
Schedule IV - Reinsurance, Insurance Premiums Earned | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV Reinsurance | Schedule IV—Reinsurance ($ in thousands) Gross Ceded Assumed Net Assumed Premiums 2022 Mortgage insurance $ 1,025,607 $ 72,419 $ 4,025 $ 957,213 0.42% Title insurance 24,422 504 — 23,918 0.00% Total $ 1,050,029 $ 72,923 $ 4,025 $ 981,131 0.41% 2021 Mortgage insurance $ 1,104,696 $ 113,480 $ 7,066 $ 998,282 0.71% Title insurance 39,665 764 — 38,901 0.00% Total $ 1,144,361 $ 114,244 $ 7,066 $ 1,037,183 0.68% 2020 Mortgage insurance $ 1,263,684 $ 183,131 $ 12,214 $ 1,092,767 1.12% Title insurance 22,843 289 — 22,554 0.00% Total $ 1,286,527 $ 183,420 $ 12,214 $ 1,115,321 1.10% |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our 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. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities 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 consolidated financial statements include our best estimates and assumptions, actual results may vary materially. |
Investments | Investments We group fixed-maturity securities in our investment portfolio into trading or available for sale securities. Trading securities are reported at fair value, with unrealized gains and losses reported as a separate component of income. Investments in fixed-maturity securities classified as available for sale 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). We also invest in several other types of investments including equity securities, which primarily consist of our interests in a variety of broadly diversified exchange traded funds and are recorded at fair value with unrealized gains and losses reported in income. Mortgage loans held for sale consist of residential mortgage loans, which we purchase with the intention of reselling and have elected to measure at fair value with unrealized gains and losses reported in income. Short-term investments are also carried at fair value and consist of money market instruments, certificates of deposit and highly liquid, interest-bearing instruments with an original maturity of 12 months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Notes 5 and 6 for further discussion on investments. We recognize an impairment as a loss for fixed-maturities available for sale on the consolidated statements of operations if: (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. If a sale is likely, the full amount of the impairment is recognized as a loss in the consolidated statements 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. 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. If a credit loss is determined to exist, the impairment 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. This credit loss impairment is included in net gains (losses) on investments and other financial instruments in the consolidated statements 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 as a credit loss impairment or a reversal of credit loss impairment. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and changes in the value of underlying collateral, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with GAAP, which establishes a three-level valuation hierarchy, we disclose fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below: Level I — Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level II — Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and Level III — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available. For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment necessary, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy. |
Restricted Cash | Restricted Cash Included in our restricted cash balances as of December 31, 2022 and 2021, were cash funds held in trusts for the benefit of certain lenders or policyholders. |
Accounts and Notes Receivable | Accounts and Notes Receivable Accounts and notes receivable primarily consist of accrued premiums receivable, amounts billed and due from our customers for services performed, and certain receivables related to our reinsurance transactions. Accounts and notes receivable are carried at their estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability based on past payment history and current economic conditions. See “—Revenue Recognition—Mortgage Insurance” below for information on our deferred premiums and Note 8 for details on our reinsurance agreements. |
Income Taxes | Income Taxes We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our deferred tax assets and deferred tax liabilities are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. Deferred tax assets and deferred tax liabilities are measured using the enacted tax rates that are expected to apply to taxable income in the periods in which the deferred tax asset or deferred tax liability is expected to be realized or settled. In regard to accumulated other comprehensive income, the Company’s policy for releasing disproportionate income tax effects is to release the effects as individual items are sold. |
Reserve for Losses and LAE | Reserve for Losses and LAE Mortgage Insurance We establish reserves to provide for losses and LAE on our mortgage insurance policies, which include the estimated costs of settling claims, in accordance with the accounting standard regarding accounting and reporting by insurance enterprises (ASC 944). Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, because there is no specific guidance for mortgage insurance, we establish reserves for mortgage insurance as described below, using the guidance contained in this standard supplemented with other accounting guidance. In our mortgage insurance business, the default and claim cycle begins with the receipt of a default notice from the loan servicer. Case reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default. We generally do not establish loss reserves for expected future claims on insured mortgages that are not in default. See “—Reserve for Premium Deficiency” below for an exception to these general principles. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. We use an actuarial projection methodology referred to as a “roll rate” analysis that uses historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default and Time in Default as well as the date that a loan goes into default. The Default to Claim Rate also includes our estimates with respect to expected Loss Mitigation Activities, which have the effect of reducing our Default to Claim Rates. After estimating the Default to Claim Rate, we estimate Claim Severity based on observed severity rates within product type, type of insurance and Time in Default cohorts. These severity estimates are then applied to individual loan coverage amounts to determine reserves. Rescissions, Claim Denials and Claim Curtailments may occur for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties and inadequate documentation, primarily related to our insurance written in years prior to and including 2008. For our Loss Mitigation Activities, we incorporate a process referred to as a claims rebuttal process by which the insured or servicer of loans may challenge our decisions. Our estimate of future Loss Mitigation Activities incorporates our estimates of the likely outcomes of our claims rebuttal process based on historical practices. Estimating our case reserve for losses involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss. The models, assumptions and estimates we use to establish loss reserves may not prove to be accurate, especially in the event of an extended economic downturn or a period of market volatility and economic uncertainty. These assumptions require management to use considerable judgment in estimating the rate at which these loans will result in claims and the amount of claims we expect to pay. As such, there is uncertainty around our reserve estimate. Title Insurance We establish reserves for estimated future claims payments on our title insurance policies at the time the related policy revenue is recorded. Our title insurance reserve for losses and LAE comprises estimates of both known claims and incurred but unreported claims expected to be paid in the future for policies issued as of the balance sheet date. We provide for losses associated with these policies based upon our historical experience and other factors. However, by their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability. |
Reserve for Premium Deficiency | Reserve for Premium Deficiency Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product line. We reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and update our premium deficiency analyses accordingly. For our mortgage insurance business, we group our mortgage insurance products into two categories: first-lien and second-lien mortgage loans. We did not require a first-lien or second-lien PDR as of December 31, 2022 or 2021. |
Revenue Recognition | Revenue Recognition Mortgage Insurance Premiums on mortgage insurance products are written on a recurring basis, either as monthly or annual premiums, or on a multi-year basis as a single premium. Monthly premiums written are earned as coverage is provided each month. For certain monthly policies where the billing is deferred for the first month’s coverage period, currently to the end of the policy, we record a net premium receivable representing the present value of such deferred premiums that we estimate will be collected at that future date. As of December 31, 2022 and 2021, this net premium receivable was $32.0 million and $30.3 million, respectively, representing the present values of $77.1 million and $74.0 million, respectively, in contractual deferred monthly premiums, after adjustments for the estimated collectability and timing of future billing. We recognize changes in this receivable based on changes in the estimated amount and timing of such collections, including as a result of changes in observed trends as well as our periodic review of our servicing guide and our operations and collections practices. Given the difference between the present value of the net premium receivable recorded and the contractual premiums due, such changes to the preceding factors could have a material effect on our results of operations in future periods if any changes are implemented. Annual premiums written are initially recorded as unearned premiums and amortized on a monthly, straight-line basis. Single premiums written are initially recorded as unearned premiums and earned over time based on the anticipated claim payment pattern, which includes historical industry experience and is updated periodically. When we rescind insurance coverage on a loan, we refund all premiums received in connection with such coverage. When insurance coverage on a loan is canceled due to claim payment, we refund all premiums received since the date of delinquency. When insurance coverage is cancelled for a reason other than Rescission or claim payment, all premium that is nonrefundable is immediately earned. Premium revenue is recognized net of our accrual for estimated premium refunds due to Rescissions or other factors. With respect to our reinsurance transactions, ceded premiums written on an annual or multi-year basis are initially set up as prepaid reinsurance and are amortized in a manner consistent with the recognition of income on direct premiums. Title Insurance and Related Services Title insurance premiums are recognized as revenue upon closing and completion of the real estate transaction. Premiums generally are calculated with reference to the policy amount. Premiums are charged to customers based on rates predetermined in coordination with each state’s respective Department of Insurance. Such regulations vary from state to state. Premium revenues from agency title operations are primarily comprised of premiums recognized upon title order and completion of real estate transaction closing. |
Revenue from Contract with Customer | Other Services We recognize revenue representing the transfer of services to customers in an amount that reflects the consideration that we expect to be entitled to receive in exchange for those services, which are recognized as the performance obligations are satisfied. Due to the transactional nature of our business, our services revenue may fluctuate from period to period as transactions are commenced or completed. Our services and related revenue recognition considerations are primarily as follows: Real Estate Services. We provide real estate services, including asset management and valuation services. Asset management services include management of the entire REO disposition process and services such as diligence and underwriting that serve the single-family rental asset class. Revenue attributable to REO services provided is based on a percentage of the sale and recognized over time, measured based on the progress to date and typically coincides with the client’s successful closing on the property. In certain instances, fees are received at the time that an asset is assigned to Radian for management. These fees are recorded as deferred revenue and are recognized over time based on progress to date and the availability to customers. For valuation services, we leverage technology and a quality control process to deliver real estate valuation products and services to our customers, which include: appraisal review products; hybrid/ancillary appraisal products; automated valuation products; interactive valuation products; and broker price opinions. Each service qualifies as a separate performance obligation for which revenue is recognized as the service is performed and made available to the client. Technology Services. We are developing a growing suite of real estate technology products and services that are designed to facilitate real estate transactions and are provided as proprietary SaaS solutions. In addition, we offer a web-based asset management workflow solution to assist in managing REO assets, rental properties, due diligence for bulk acquisitions of multiple properties, loss mitigation efforts and short sales. Revenue for these services are recognized over time as the service is provided and made available to the customer. |
Cost of Service | Cost of Services Cost of services consists primarily of costs paid for employee compensation and related payroll benefits, as well as corresponding travel and related expenses, incurred in providing such services to clients. |
Leases | Leases We determine if an arrangement includes a lease at inception, and if it does, we recognize a right-of-use asset and lease liability. Right-of-use assets represent our right to use an underlying asset for the lease term and are recognized net of any payments made or received from the lessor. Lease liabilities represent our obligation to make lease payments and are based on the present value of lease payments over the lease term. In determining the net present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date. Lease expense is recognized on a straight-line basis over the expected lease term. Lease and non-lease components are generally not accounted for separately. We have elected the short-term exemption for contracts with lease terms of 12 months or less. Our lease agreements primarily relate to operating leases for office space we use in our operations. Certain of our leases include renewal options and/or termination options that we did not consider in the determination of the right-of-use asset or the lease liability as we did not believe it was reasonably certain that we would exercise such options. |
Reinsurance | Reinsurance We cede insurance risk through the use of reinsurance contracts and follow reinsurance accounting for those transactions where significant risk is transferred. Loss reserves and unearned premiums are established before consideration is given to amounts related to our reinsurance agreements. In accordance with the terms of the QSR Program, rather than making a cash payment or transferring investments for ceded premiums written, Radian Guaranty holds the related amounts to collateralize the reinsurers’ obligations and has established a corresponding funds withheld liability. Any loss recoveries and any potential profit commission to Radian Guaranty will be realized from this account. The reinsurers’ share of earned premiums is paid from this account on a quarterly basis. For our Single Premium QSR Program, this liability also includes an interest credit on funds withheld, which is recorded as ceded premiums at a rate specified in the agreement and, depending on experience under the contract, may be paid to either Radian Guaranty or the reinsurers. |
Variable Interest Entities | Variable Interest Entities In connection with our reinsurance programs for our mortgage insurance business, we may enter into contracts with VIEs. VIEs include corporations, trusts or partnerships in which: (i) the entity has insufficient equity at risk to allow it to finance its activities without additional subordinated financial support or (ii) at-risk equity holders, as a group, do not have the characteristics of a controlling financial interest. |
Goodwill and Other Acquired Intangible Assets, Net | Goodwill and Other Acquired Intangible Assets, Net Goodwill is an asset representing the estimated future economic benefits arising from the assets we have acquired that were not individually identified and separately recognized. We generally perform our annual goodwill impairment test during the fourth quarter of each year, using balances as of the prior quarter. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently whenever circumstances indicate potential impairment at the reporting unit level. A reporting unit represents a business for which discrete financial information is available. We have concluded that we have one reporting unit, the homegenius segment, for purposes of our goodwill impairment assessment. Acquired intangible assets, other than goodwill, primarily consist of customer relationships and represent the value of the specifically acquired customer relationships. For financial reporting purposes, intangible assets with finite lives are amortized over their applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset. |
Property and Equipment | Property and Equipment We capitalize certain costs associated with the development of internal-use software and the purchase of property and equipment. Software, property and equipment are carried at cost, net of accumulated depreciation and amortization. Amortization and depreciation are calculated on a straight-line basis over the estimated useful life of the respective assets and commence during the month of our placement of the assets into use. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Incremental, direct costs associated with the successful acquisition of mortgage insurance policies, consisting of compensation, premium tax and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Consistent with industry accounting practice, amortization of these costs for each underwriting year book of business is recognized in proportion to estimated gross profits over the estimated life of the policies. |
Earnings per Share | Earnings 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 primarily to our share-based compensation arrangements. In computing diluted net income per share, we use the treasury stock method, which is computed by assuming the issuance of common stock for the potential dilution of our unvested RSUs. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income. |
Share-Based Compensation | Share-Based CompensationThe cost related to share-based equity instruments is measured based on the grant-date fair value at the date of issuance, which for RSU awards is primarily determined by our common stock price on the date of grant. For share-based awards with performance conditions related to our own operations, the expense recognized is dependent on the probability of the performance measure being achieved. Compensation cost is generally recognized over the periods that an employee provides service in exchange for the award. Any forfeitures of awards are recognized as they occur. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted During 2022 In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. In addition, this update introduces new disclosure requirements for equity securities subject to contractual sale restrictions measured at fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. We adopted this update effective December 31, 2022. The adoption of this update did not have any impact on our consolidated financial statements. Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services—Insurance—Targeted Improvements to the Accounting for Long-Duration Contracts. 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 adopted this update on January 1, 2023, but do not expect the adoption of these amendments to have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform—Facilitation of the Effects of Reference Reform on Financial Reporting. This guidance provides optional expedients and exceptions for applying GAAP requirements to investments, derivatives or other transactions affected by reference rate reform such as those that impact the assessment of contract modifications. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform—Deferral of the Sunset Date of Topic 848, which extends the period of time that preparers can utilize the reference rate reform relief guidance. The amendments in these updates are optional and may now be elected through December 31, 2024, as reference rate reform activities occur. We continue to evaluate the impact the discontinuance of LIBOR and the new accounting guidance will have on our financial statements and disclosures. |
Commitments and Contingencies | In the course of our regular review of pending legal actions and proceedings, we determine whether it is reasonably possible that a potential loss may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | The following is a summary of the gross and net carrying amounts and accumulated amortization / depreciation (including impairment) of our property and equipment as of the periods indicated. See Note 9 for more information about impairments. Property and equipment December 31, 2022 December 31, 2021 (In thousands) Gross Carrying Amount Accumulated Amortization / Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Net Carrying Amount Internal-use software $ 155,984 $ (100,734) $ 55,250 $ 145,248 $ (91,542) $ 53,706 Leasehold improvements 39,134 (26,236) 12,898 34,805 (18,108) 16,697 Furniture and equipment 68,217 (65,384) 2,833 67,322 (62,639) 4,683 Total $ 263,335 $ (192,354) $ 70,981 $ 247,375 $ (172,289) $ 75,086 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted net income per share is as follows. Net income per share Years Ended December 31, (In thousands, except per-share amounts) 2022 2021 2020 Net income—basic and diluted $ 742,934 $ 600,671 $ 393,626 Average common shares outstanding—basic 167,930 188,370 195,443 Dilutive effect of stock-based compensation arrangements (1) 2,734 1,893 1,199 Adjusted average common shares outstanding—diluted 170,664 190,263 196,642 Net income per share Basic $ 4.42 $ 3.19 $ 2.01 Diluted $ 4.35 $ 3.16 $ 2.00 (1) 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. Years Ended December 31, (In thousands) 2022 2021 2020 Shares of common stock equivalents — 28 865 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The reconciliation of adjusted pretax operating income (loss) for our reportable segments to consolidated pretax income is as follows. Reconciliation of adjusted pretax operating income (loss) by segment December 31, (In thousands) 2022 2021 2020 Adjusted pretax operating income (loss) Mortgage $ 1,131,943 $ 781,546 $ 453,294 homegenius (88,198) (27,324) (23,240) Total adjusted pretax operating income for reportable segments 1,043,745 754,222 430,054 All Other adjusted pretax operating income 8,972 3,527 2,013 Net gains (losses) on investments and other financial instruments (1) (80,780) 14,094 60,277 Amortization of other acquired intangible assets (4,308) (3,450) (5,144) Impairment of other long-lived assets and other non-operating items (14,850) (3,561) (7,759) Consolidated pretax income $ 952,779 $ 764,832 $ 479,441 (1) For 2022 and 2021, excludes certain net gains (losses) on investments that are attributable to specific operating segments and therefore included in adjusted pretax operating income (loss). |
Reconciliation of Revenue from Segments to Consolidated | The following tables reconcile reportable segment revenues to consolidated revenues and summarize interest expense, depreciation expense, allocation of corporate operating expenses and adjusted pretax operating income for our reportable segments as follows. Reportable segment revenue and other segment information December 31, 2022 (In thousands) Mortgage homegenius Reportable Segment Total All Other Inter-segment Adjustments Consolidated Total Net premiums earned $ 957,213 $ 23,918 $ 981,131 $ — $ — $ — $ 981,131 Services revenue 7,390 85,158 92,548 — (332) — 92,216 Net investment income 171,221 729 171,950 23,708 — — 195,658 Net gains (losses) on investments and other financial instruments — — — 47 — (80,780) (80,733) Other income 2,376 170 2,546 78 (170) — 2,454 Total revenues $ 1,138,200 $ 109,975 $ 1,248,175 $ 23,833 $ (502) $ (80,780) $ 1,190,726 Other segment information: Interest expense $ 84,440 $ — $ 84,440 Direct depreciation expense 8,986 2,538 11,524 Allocation of corporate operating expenses (1) 138,566 22,856 161,422 (1) Includes allocated depreciation expense of $3.0 million, $0.5 million and $3.6 million allocated to Mortgage, homegenius and Reportable Segment Total, respectively. December 31, 2021 (In thousands) Mortgage homegenius Reportable Segment Total All Other Inter-segment Adjustments Consolidated Total Net premiums earned $ 998,282 $ 38,901 $ 1,037,183 $ — $ — $ — $ 1,037,183 Services revenue 17,670 108,282 125,952 154 (281) — 125,825 Net investment income 132,929 358 133,287 14,622 — — 147,909 Net gains (losses) on investments and other financial instruments — 1,509 1,509 — — 14,094 15,603 Other income 2,678 — 2,678 734 — — 3,412 Total revenues $ 1,151,559 $ 149,050 $ 1,300,609 $ 15,510 $ (281) $ 14,094 $ 1,329,932 Other segment information: Interest expense $ 84,344 $ — $ 84,344 Direct depreciation expense 9,580 2,452 12,032 Allocation of corporate operating expenses (1) 127,482 18,482 145,964 (1) Includes allocated depreciation expense of $3.2 million, $0.5 million and $3.7 million allocated to Mortgage, homegenius and Reportable Segment Total, respectively. December 31, 2020 (In thousands) Mortgage homegenius Reportable Segment Total All Other Inter-segment Adjustments Consolidated Total Net premiums earned $ 1,092,767 $ 22,554 $ 1,115,321 $ — $ — $ — $ 1,115,321 Services revenue 14,765 79,524 94,289 12,535 (1,439) — 105,385 Net investment income 137,195 361 137,556 16,481 — — 154,037 Net gains (losses) on investments and other financial instruments — — — — — 60,277 60,277 Other income 2,816 — 2,816 534 — 247 3,597 Total revenues $ 1,247,543 $ 102,439 $ 1,349,982 $ 29,550 $ (1,439) $ 60,524 $ 1,438,617 Other segment information: Interest expense $ 71,150 $ — $ 71,150 Direct depreciation expense 12,387 2,857 15,244 Allocation of corporate operating expenses (1) 114,802 12,807 127,609 (1) Includes allocated depreciation expense of $2.6 million, $0.3 million and $2.9 million allocated to Mortgage, homegenius and Reportable Segment Total, respectively. |
Services Revenue | The table below, which represents total services revenue on our consolidated statements of operations for the periods indicated, represents the disaggregation of services revenues by revenue type. Services revenue Years Ended December 31, (In thousands) 2022 2021 2020 homegenius Title $ 18,687 $ 40,202 $ 23,265 Real estate Valuation 30,002 28,590 17,986 Single-family rental 24,387 27,291 17,159 REO asset management 3,091 2,370 5,518 Other real estate services 115 144 2,479 Technology Asset management workflow platform 4,814 5,535 7,998 Other technology services 3,730 3,869 3,763 Mortgage 7,390 17,670 14,682 All Other (1) — 154 12,535 Total services revenue $ 92,216 $ 125,825 $ 105,385 (1) Includes services revenue from Clayton Services LLC, a former indirect subsidiary of Radian Group, prior to its sale in January 2020 and amounts related to our traditional appraisal business, which we wound down beginning in the fourth quarter of 2020. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets & Liabilities Measured at Fair Value by Hierarchy Level | The following tables include a list of assets that are measured at fair value by hierarchy level as of December 31, 2022 and 2021. Assets and liabilities carried at fair value by hierarchy level December 31, 2022 (In thousands) Level I Level II Level III Total Investments Fixed-maturities available for sale U.S. government and agency securities $ 140,011 $ 5,431 $ — $ 145,442 State and municipal obligations — 142,386 — 142,386 Corporate bonds and notes — 2,490,582 — 2,490,582 RMBS — 928,399 — 928,399 CMBS — 593,357 — 593,357 CLO — 498,192 — 498,192 Other ABS — 161,359 — 161,359 Foreign government and agency securities — 4,975 — 4,975 Mortgage insurance-linked notes (1) — 53,019 — 53,019 Total fixed-maturities available for sale 140,011 4,877,700 — 5,017,711 Trading securities State and municipal obligations — 70,511 — 70,511 Corporate bonds and notes — 32,827 — 32,827 RMBS — 6,847 — 6,847 CMBS — 5,480 — 5,480 Total trading securities — 115,665 — 115,665 Equity securities 138,716 7,749 2,500 148,965 Mortgage loans held for sale — 3,549 — 3,549 Other invested assets (2) — — 4,296 4,296 Short-term investments State and municipal obligations — 2,785 — 2,785 Money market instruments 241,440 — — 241,440 Corporate bonds and notes — 42,385 — 42,385 Other investments (3) — 115,480 — 115,480 Total short-term investments 241,440 160,650 — 402,090 Total investments at fair value (2) 520,167 5,165,313 6,796 5,692,276 Other Derivative assets — 11 — 11 Loaned securities (4) Corporate bonds and notes — 47,585 — 47,585 Equity securities 64,554 — — 64,554 Total assets at fair value (2) $ 584,721 $ 5,212,909 $ 6,796 $ 5,804,426 Assets and liabilities carried at fair value by hierarchy level December 31, 2022 (In thousands) Level I Level II Level III Total Liabilities Derivative liabilities (5) $ — $ 42 $ 4,858 $ 4,900 Total liabilities at fair value $ — $ 42 $ 4,858 $ 4,900 (1) Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information. (2) Does not include other invested assets of $1.2 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (3) Comprises short-term certificates of deposit and commercial paper. (4) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our consolidated balance sheets. See Note 6 for more information. (5) Consists primarily of embedded derivatives related to our Excess-of-Loss Program, which are classified as other liabilities Assets carried at fair value by hierarchy level December 31, 2021 (In thousands) Level I Level II Level III Total Investments Fixed-maturities available for sale U.S. government and agency securities $ 192,452 $ 29,278 $ — $ 221,730 State and municipal obligations — 177,257 — 177,257 Corporate bonds and notes — 2,910,231 — 2,910,231 RMBS — 705,117 — 705,117 CMBS — 709,203 — 709,203 CLO — 530,040 — 530,040 Other ABS — 211,187 — 211,187 Foreign government and agency securities — 5,296 — 5,296 Mortgage insurance-linked notes (1) — 47,017 — 47,017 Total fixed-maturities available for sale 192,452 5,324,626 — 5,517,078 Trading securities State and municipal obligations — 94,637 — 94,637 Corporate bonds and notes — 119,186 — 119,186 RMBS — 9,438 — 9,438 CMBS — 33,285 — 33,285 Total trading securities — 256,546 — 256,546 Equity securities 176,828 7,417 — 184,245 Other invested assets (2) — — 3,000 3,000 Assets carried at fair value by hierarchy level December 31, 2021 (In thousands) Level I Level II Level III Total Short-term investments U.S. government and agency securities 94,665 — — 94,665 State and municipal obligations — 12,270 — 12,270 Money market instruments 274,535 — — 274,535 Corporate bonds and notes — 65,191 — 65,191 CMBS — 3,023 — 3,023 Other investments (3) — 101,824 — 101,824 Total short-term investments 369,200 182,308 — 551,508 Total investments at fair value (2) 738,480 5,770,897 3,000 6,512,377 Other Derivative assets (4) — — 4,200 4,200 Loaned securities (5) Corporate bonds and notes — 65,994 — 65,994 Equity securities 38,002 — — 38,002 Total assets at fair value (2) $ 776,482 $ 5,836,891 $ 7,200 $ 6,620,573 (1) Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information. (2) Does not include other invested assets of $1.2 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (3) Comprises short-term certificates of deposit and commercial paper. (4) Consists primarily of embedded derivatives related to our Excess-of-Loss Program, which are classified as other assets in our consolidated balance sheets. See Note 8 for more information. (5) Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our consolidated balance sheets. See Note 6 for more information. |
Carrying Value & Estimated Fair Value of Financial Liabilities Not Carried at Fair Value | The carrying value and estimated fair value of other selected liabilities not carried at fair value in our consolidated balance sheets were as follows as of the dates indicated. Financial liabilities not carried at fair value December 31, 2022 December 31, 2021 (In thousands) Carrying Estimated Carrying Estimated Senior notes $ 1,413,504 $ 1,361,844 $ 1,409,473 $ 1,534,378 Other borrowings FHLB advances $ 153,686 $ 153,728 $ 150,983 $ 152,117 Mortgage financing facilities 2,136 2,136 — — Total other borrowings $ 155,822 $ 155,864 $ 150,983 $ 152,117 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Debt Securities, Available-for-sale | Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated. Available for sale securities December 31, 2022 (In thousands) Amortized Gross Gross Fair Value Fixed-maturities available for sale U.S. government and agency securities $ 174,138 $ 206 $ (28,902) $ 145,442 State and municipal obligations 164,325 — (21,939) 142,386 Corporate bonds and notes 2,886,905 1,403 (350,537) 2,537,771 RMBS 1,025,795 1,163 (98,559) 928,399 CMBS 645,890 13 (52,546) 593,357 CLO 518,677 — (20,485) 498,192 Other ABS 168,033 69 (6,743) 161,359 Foreign government and agency securities 5,118 — (143) 4,975 Mortgage insurance-linked notes (1) 54,578 80 (1,639) 53,019 Total securities available for sale, including loaned securities 5,643,459 $ 2,934 $ (581,493) (2) 5,064,900 Less: loaned securities (3) 56,198 47,189 Total fixed-maturities available for sale $ 5,587,261 $ 5,017,711 December 31, 2021 (In thousands) Amortized Gross Gross Fair Value Fixed-maturities available for sale U.S. government and agency securities $ 221,407 $ 1,719 $ (1,396) $ 221,730 State and municipal obligations 162,964 14,694 (401) 177,257 Corporate bonds and notes 2,867,063 133,665 (24,886) 2,975,842 RMBS 697,581 14,313 (6,777) 705,117 CMBS 690,827 21,444 (3,068) 709,203 CLO 529,906 1,032 (898) 530,040 Other ABS 210,657 1,142 (612) 211,187 Foreign government and agency securities 5,109 187 — 5,296 Mortgage insurance-linked notes (1) 45,384 1,633 — 47,017 Total securities available for sale, including loaned securities 5,430,898 $ 189,829 $ (38,038) (2) 5,582,689 Less: loaned securities (3) 63,169 65,611 Total fixed-maturities available for sale $ 5,367,729 $ 5,517,078 (1) Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information. (2) See “—Gross Unrealized Losses and Related Fair Value of Available for Sale Securities” below for additional details. (3) Included in other assets in our consolidated balance sheets as further described below. See “—Loaned Securities” below for a discussion of our securities lending. |
Allowance for Credit Losses on Fixed-Maturities Available for Sale | 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. There was no allowance as of December 31, 2022. Rollforward of allowance for credit losses on fixed-maturities available for sale Year Ended December 31, (In thousands) 2021 Beginning balance $ 948 Net increases (decreases) in allowance on previously impaired securities (918) Reduction for securities sold (30) Ending balance $ — |
Gross Unrealized Losses and Related Fair Value of Available for Sale Securities | For securities deemed “available for sale” that are in an unrealized loss position and for which an allowance for credit loss has not been established, the following tables show the gross unrealized losses and fair value, 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 December 31, 2022 and 2021, are loaned securities that are classified as other assets in our consolidated balance sheets, as further described below. Unrealized losses on fixed-maturities available for sale by category and length of time December 31, 2022 ($ in thousands) Less Than 12 Months 12 Months or Greater Total Description of # of Fair Unrealized # of Fair Unrealized # of Fair Unrealized U.S. government and agency securities 14 $ 86,964 $ (21,370) 10 $ 47,770 $ (7,532) 24 $ 134,734 $ (28,902) State and municipal obligations 43 116,285 (14,231) 20 25,401 (7,708) 63 141,686 (21,939) Corporate bonds and notes 411 1,769,547 (176,768) 203 701,936 (173,769) 614 2,471,483 (350,537) RMBS 124 610,812 (46,117) 59 261,370 (52,442) 183 872,182 (98,559) CMBS 108 469,100 (38,178) 55 121,277 (14,368) 163 590,377 (52,546) CLO 94 246,705 (10,271) 61 245,584 (10,214) 155 492,289 (20,485) Other ABS 61 115,181 (3,603) 18 31,041 (3,140) 79 146,222 (6,743) Mortgage insurance-linked notes 2 43,745 (1,639) — — — 2 43,745 (1,639) Foreign government and agency securities 1 4,975 (143) — — — 1 4,975 (143) Total 858 $ 3,463,314 $ (312,320) 426 $ 1,434,379 $ (269,173) 1,284 $ 4,897,693 $ (581,493) December 31, 2021 ($ in thousands) Less Than 12 Months 12 Months or Greater Total Description of # of Fair Unrealized # of Fair Unrealized # of Fair Unrealized U.S. government and agency securities 14 $ 101,602 $ (1,165) 2 $ 6,937 $ (231) 16 $ 108,539 $ (1,396) State and municipal obligations 20 32,721 (401) — — — 20 32,721 (401) Corporate bonds and notes 209 864,355 (16,799) 34 99,475 (8,087) 243 963,830 (24,886) RMBS 57 365,476 (6,749) 3 1,543 (28) 60 367,019 (6,777) CMBS 81 188,457 (2,053) 9 22,050 (1,015) 90 210,507 (3,068) CLO 84 313,380 (675) 11 35,612 (223) 95 348,992 (898) Other ABS 54 138,851 (603) 1 631 (9) 55 139,482 (612) Total 519 $ 2,004,842 $ (28,445) 60 $ 166,248 $ (9,593) 579 $ 2,171,090 $ (38,038) |
Net Investment Income | Net investment income consisted of the following. Net investment income Years Ended December 31, (In thousands) 2022 2021 2020 Investment income Fixed-maturities $ 184,189 $ 145,613 $ 148,127 Equity securities 11,210 8,158 6,378 Mortgage loans 39 — — Short-term investments 5,716 817 5,774 Other 1,370 368 354 Gross investment income 202,524 154,956 160,633 Investment expenses (6,866) (7,047) (6,596) Net investment income $ 195,658 $ 147,909 $ 154,037 |
Net Gains (Losses) on Investments | Net gains (losses) on investments and other financial instruments consisted of the following. Net gains (losses) on investments and other financial instruments Years Ended December 31, (In thousands) 2022 2021 2020 Net realized gains (losses) on investments sold or redeemed Fixed-maturities available for sale Gross realized gains $ 2,763 $ 22,766 $ 37,431 Gross realized losses (12,737) (17,105) (2,562) Fixed-maturities available for sale, net (9,974) 5,661 34,869 Trading securities (135) 390 4 Equity securities 1,655 10,820 353 Mortgage loans held for sale 28 — — Other investments 148 3,971 600 Net realized gains (losses) on investments sold or redeemed (8,278) 20,842 35,826 Change in unrealized gains (losses) on investments sold or redeemed (3,458) (8,714) (1,630) Impairment losses due to intent to sell — — (1,401) Net decrease (increase) in expected credit losses — 918 (1,254) Net unrealized gains (losses) on investments still held Trading securities (27,700) (7,330) 10,583 Equity securities (25,255) 10,210 1,759 Mortgage loans held for sale 51 — — Other investments (387) 1,173 248 Net unrealized gains (losses) on investments still held (53,291) 4,053 12,590 Total net gains (losses) on investments (65,027) 17,099 44,131 Net gains (losses) on other financial instruments (1) (15,706) (1,496) 16,146 Net gains (losses) on investments and other financial instruments $ (80,733) $ 15,603 $ 60,277 (1) Primarily reflects the change in fair value of the embedded derivatives associated with our Excess-of-Loss program. See Note 8 for more information. |
Contractual Maturities | The contractual maturities of fixed-maturities available for sale were as follows. Contractual maturities of fixed-maturities available for sale December 31, 2022 (In thousands) Amortized Cost Fair Value Due in one year or less $ 111,909 $ 110,443 Due after one year through five years (1) 1,274,935 1,197,900 Due after five years through 10 years (1) 989,545 857,164 Due after 10 years (1) 854,097 665,067 Asset-backed securities and mortgage-related assets (2) 2,412,973 2,234,326 Total 5,643,459 5,064,900 Less: loaned securities 56,198 47,189 Total fixed-maturities available for sale $ 5,587,261 $ 5,017,711 (1) Actual maturities may differ as a result of calls before scheduled maturity. (2) Includes RMBS, CMBS, CLO, Other ABS, mortgage insurance-linked notes and mortgage loans, which are not due at a single maturity date. |
Goodwill and Other Acquired I_2
Goodwill and Other Acquired Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Gross and Net Carrying Amounts of Acquired Intangible Assets | 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. Other acquired intangible assets December 31, 2022 December 31, 2021 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 43,550 $ (38,067) $ 5,483 $ 43,550 $ (34,620) $ 8,930 Technology 8,285 (8,285) — 8,285 (7,675) 610 Licenses 463 (463) — 463 (212) 251 Total $ 52,298 $ (46,815) $ 5,483 $ 52,298 $ (42,507) $ 9,791 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance | The effect of all of our reinsurance programs on our net income is as follows. Reinsurance impacts on net premiums written and earned Net Premiums Written Net Premiums Earned Years Ended December 31, Years Ended December 31, (In thousands) 2022 2021 2020 2022 2021 2020 Direct Mortgage insurance $ 967,996 $ 984,995 $ 1,085,670 $ 1,025,607 $ 1,104,696 $ 1,263,684 Title insurance 24,422 39,665 22,843 24,422 39,665 22,843 Total direct 992,418 1,024,660 1,108,513 1,050,029 1,144,361 1,286,527 Assumed (1) Mortgage insurance 4,025 7,066 12,197 4,025 7,066 12,214 Ceded Mortgage insurance (2) (12,148) (47,515) (86,912) (72,419) (113,480) (183,131) Title insurance (504) (764) (289) (504) (764) (289) Total ceded (2) (12,652) (48,279) (87,201) (72,923) (114,244) (183,420) Total net premiums $ 983,791 $ 983,447 $ 1,033,509 $ 981,131 $ 1,037,183 $ 1,115,321 (1) Represents premiums from our participation in certain credit risk transfer programs, which we discontinued in December 2022 as a result of the novation of these insurance policies to an unrelated third-party reinsurer. See Note 16 for additional information. (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 recoverable. Other reinsurance impacts Years Ended December 31, (In thousands) 2022 2021 2020 Ceding commissions earned (1) $ 18,998 $ 31,745 $ 53,654 Ceded losses (2) (41,980) (4,570) 58,266 (1) Ceding commissions earned are primarily related to mortgage insurance and are included as an offset to expenses primarily in other operating expenses on our consolidated statements of operations. Deferred ceding commissions of $27.4 million and $38.6 million are included in other liabilities on our consolidated balance sheets at December 31, 2022 and 2021, respectively. (2) Primarily all related to mortgage insurance. |
Schedule of Single Premium Quota Share Reinsurance Program Details | The following table sets forth additional details regarding the QSR Programs. QSR Program (1) 2022 QSR Agreement 2020 Single Premium QSR Agreement 2018 Single Premium QSR Agreement 2016 Single Premium QSR Agreement NIW policy dates Jan 1, 2022- Jan 1, 2020- Jan 1, 2018- Jan 1, 2012- Effective date July 1, 2022 January 1, 2020 January 1, 2018 January 1, 2016 Scheduled termination date June 30, 2033 December 31, 2031 December 31, 2029 December 31, 2027 Optional termination date (2) July 1, 2026 January 1, 2024 January 1, 2022 January 1, 2020 Quota share % 20% 65% 65% 18% - 57% (3) Ceding commission % 20% 25% 25% 25% Profit commission % Up to 59% Up to 56% Up to 56% Up to 55% (In millions) As of December 31, 2022 RIF ceded $ 3,307 $ 1,993 $ 876 $ 1,207 (In millions) As of December 31, 2021 RIF ceded $ — $ 2,198 $ 1,117 $ 1,913 (1) Excludes the 2012 QSR Agreements, for which RIF ceded is no longer material. (2) 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 reinsurers calculated in accordance with the terms of the applicable agreement. Radian Guaranty also may terminate any of the agreements prior to the scheduled termination date under certain circumstances, including if one or both of the GSEs no longer grant full PMIERs credit for the reinsurance. (3) Effective September 30, 2022, one reinsurer terminated its interest in the 2016 Single Premium QSR Agreement in exchange for participating in the 2022 QSR Agreement. As a result, the portions ceded under this agreement declined from 20% to 65% to approximately 18% to 57% as of September 30, 2022. |
Schedule of Excess-of-Loss Program | The following tables set forth additional details regarding the Excess-of-Loss Program. Excess-of-Loss Program (1) (In millions) Eagle Re 2021-2 Ltd. Eagle Re 2021-1 Ltd. (2) Eagle Re 2020-1 Ltd. Eagle Re 2019-1 Ltd. Eagle Re 2018-1 Ltd. Issued November April February April November NIW policy dates Jan 1, 2021- Aug 1, 2020- Jan 1, 2019- Jan 1, 2018- Jan 1, 2017- Initial RIF $ 10,758 $ 11,061 $ 9,866 $ 10,705 $ 9,109 Initial coverage 484 498 488 562 434 Initial first layer retention 242 221 202 268 205 (In millions) As of December 31, 2022 RIF $ 9,150 $ 7,758 $ 2,401 $ 1,769 $ 1,509 Remaining coverage 472 366 368 385 276 First layer retention 242 221 202 263 200 (In millions) As of December 31, 2021 RIF $ 10,379 $ 9,496 $ 3,241 $ 2,429 $ 2,117 Remaining coverage 484 498 488 385 276 First layer retention 242 221 202 264 201 (1) Excludes Eagle Re 2020-2 Ltd., which was terminated in September 2022, as further discussed above. (2) Radian Group purchased $45.4 million original principal amount of the mortgage insurance-linked notes issued in connection with this reinsurance transaction, which are included in fixed-maturities available for sale on our consolidated balance sheet at December 31, 2022. See Notes 5 and 6 for additional information. |
Schedule of VIE Assets | The following table presents the total assets and liabilities of the Eagle Re Issuers as of the dates indicated. Total VIE assets and liabilities of Eagle Re Issuers (1) December 31, (In thousands) 2022 2021 Eagle Re 2021-2 Ltd. $ 471,942 $ 484,122 Eagle Re 2021-1 Ltd. 366,169 497,735 Eagle Re 2020-2 Ltd. (2) — 143,986 Eagle Re 2020-1 Ltd. 368,378 488,385 Eagle Re 2019-1 Ltd. 384,602 384,602 Eagle Re 2018-1 Ltd. 275,718 275,718 Total $ 1,866,809 $ 2,274,548 (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 as described above. Assets and liabilities are equal to each other for each of the Eagle Re Issuers. (2) In September 2022, the excess-of-loss reinsurance agreement with Eagle Re 2020-2 Ltd. was terminated, as further discussed above. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following table shows the components of other assets as of the dates indicated. Other assets December 31, (In thousands) 2022 2021 Prepaid reinsurance premiums (1) $ 141,402 $ 201,674 Loaned securities (Notes 5 and 6) 112,139 103,996 Company-owned life insurance (2) 105,331 113,386 Right-of-use assets (Note 13) 21,099 31,878 Other 47,053 32,246 Total other assets $ 427,024 $ 483,180 (1) Relates primarily to our Single Premium QSR Program. (2) We are the beneficiary of insurance policies on the lives of certain of our current and past officers and employees. The balances reported in other assets reflect the amounts that could be realized upon surrender of the insurance policies as of each respective date. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The components of our consolidated income tax provision from continuing operations are as follows. Income tax provision Years Ended December 31, (In thousands) 2022 2021 2020 Current provision (benefit) $ 2,920 $ 2,368 $ (16,264) Deferred provision 206,925 161,793 102,079 Total income tax provision $ 209,845 $ 164,161 $ 85,815 |
Reconciliation of Taxes Computed at Statutory Rate to Provision for Income Taxes | The reconciliation of taxes computed at the statutory tax rate of 21% in 2022, 2021 and 2020 to the provision for income taxes is as follows. Reconciliation of provision for income taxes Years Ended December 31, (In thousands) 2022 2021 2020 Provision for income taxes computed at the statutory tax rate $ 200,084 $ 160,615 $ 100,683 Change in tax resulting from: State tax provision (benefit), net of federal impact 20,869 (1,714) (9,062) Valuation allowance (13,791) 5,700 11,290 Uncertain tax positions (1,076) 853 (14,784) Other, net 3,759 (1,293) (2,312) Provision for income taxes $ 209,845 $ 164,161 $ 85,815 |
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows. Deferred tax assets and liabilities December 31, (In thousands) 2022 2021 Deferred tax assets Net unrealized loss on investments $ 121,497 $ — State income taxes, net of federal impact 58,031 77,637 Goodwill and intangibles 30,782 29,723 Unearned premiums 26,108 23,699 Accrued expenses 11,913 16,584 Lease liability 10,371 11,240 Differences in fair value of financial instruments 5,998 — Loss reserves 3,102 6,286 Other 32,328 27,932 Total deferred tax assets $ 300,130 $ 193,101 Deferred tax liabilities Contingency reserve $ 587,722 $ 368,000 Depreciation 10,031 12,775 Net unrealized gain on investments — 31,876 Differences in fair value of financial instruments — 7,763 Other 23,823 26,768 Total deferred tax liabilities 621,576 447,182 Less: Valuation allowance 69,637 83,428 Net deferred tax asset (liability) $ (391,083) $ (337,509) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending gross unrecognized tax benefits is as follows. Reconciliation of gross unrecognized tax benefits Years Ended December 31, (In thousands) 2022 2021 Balance at beginning of period $ 19,888 $ 20,249 Tax positions related to the current year: Increases 1,791 267 Decreases — (858) Tax positions related to prior years: Increases 17,666 230 Decreases (17) — Lapses of applicable statute of limitation (18,518) — Balance at end of period $ 20,810 $ 19,888 |
Losses and LAE (Tables)
Losses and LAE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Losses and Loss Adjustment Expenses, by Segment | Our reserve for losses and LAE, at the end of each period indicated, consisted of the following. Reserve for losses and LAE December 31, (In thousands) 2022 2021 Primary case $ 398,874 $ 790,380 Primary IBNR and LAE 12,169 22,745 Pool and other 9,912 10,011 Mortgage insurance 420,955 823,136 Title insurance 5,888 5,506 Total reserve for losses and LAE $ 426,843 $ 828,642 |
Rollforward of Mortgage Insurance Reserve for Losses | For the periods indicated, the following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE. Rollforward of mortgage insurance reserve for losses Years Ended December 31, (In thousands) 2022 2021 2020 Balance at beginning of year $ 823,136 $ 844,107 $ 401,273 Less: Reinsurance recoverable (1) 66,676 71,769 14,594 Balance at beginning of year, net of reinsurance recoverable 756,460 772,338 386,679 Add: Losses and LAE incurred in respect of default notices reported and unreported in: Current year (2) 160,049 160,565 517,807 Prior years (499,423) (141,126) (34,547) Total incurred (339,374) 19,439 483,260 Deduct: Paid claims and LAE related to: Current year (2) 499 1,112 4,148 Prior years 20,359 34,205 93,453 Total paid 20,858 35,317 97,601 Balance at end of period, net of reinsurance recoverable 396,228 756,460 772,338 Add: reinsurance recoverable (1) 24,727 66,676 71,769 Balance at end of year $ 420,955 $ 823,136 $ 844,107 (1) Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 8 for additional information. |
Schedule of Default to Claim Rates on Primary Portfolio | The following table shows our gross Default to Claim Rates on our primary portfolio based on the Time in Default and as of the dates indicated. Default to Claim Rates December 31, 2022 2021 2020 Default to Claim Rate on: New defaults 8.0 % 8.0 % 8.5 % Defaults not in Foreclosure Stage Time in Default: < 2 years (1) 21.8 % 41.6 % 21.0 % Time in Default: 2 - 5 years 65.0 % 75.0 % 62.5 % Time in Default: > 5 years 70.0 % 80.0 % 70.0 % Foreclosure Stage Defaults 75.0 % 85.0 % 75.0 % (1) Represents the weighted average Default to Claim Rate for all defaults not in foreclosure stage that have been in default for up to two years, including new defaults. The estimated Default to Claim Rates applied to defaults within this population vary by Time in Default, and range from the Default to Claim Rates on new defaults shown above, up to 55.0%, 80.1% and 55.0% for more aged defaults in this category as of December 31, 2022, 2021 and 2020, respectively. |
Schedule of Net Incurred Losses and Paid Claims Development | The information about net incurred losses and paid claims development for the years ended prior to 2022 is presented as supplementary information. Incurred losses, net of reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Defaults (2) ($ in thousands) Years Ended December 31, Unaudited Default Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 As of December 31, 2022 2013 $ 505,732 $ 405,334 $ 401,444 $ 404,333 $ 402,259 $ 400,243 $ 399,356 $ 399,317 $ 398,820 $ 397,207 $ 5 58,577 2014 337,784 247,074 265,891 264,620 260,098 261,507 261,377 260,254 257,773 6 47,976 2015 222,555 198,186 178,042 183,952 183,546 184,066 182,647 180,435 9 42,607 2016 201,016 165,440 149,753 148,811 148,640 148,349 145,267 14 40,503 2017 180,851 151,802 133,357 130,274 126,989 122,407 25 42,888 2018 131,513 116,634 95,534 88,252 75,262 32 37,369 2019 143,475 136,860 109,416 66,466 79 40,985 2020 504,160 408,809 87,213 193 108,025 2021 156,328 72,475 184 37,470 2022 155,908 1,550 37,738 Total $ 1,560,413 (1) Represents reserves as of December 31, 2022, related to IBNR liabilities. (2) Represents total number of new primary default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods. Cumulative paid claims, net of reinsurance (In thousands) Years Ended December 31, Unaudited Default Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 34,504 $ 191,040 $ 307,361 $ 357,087 $ 379,036 $ 388,688 $ 392,818 $ 395,093 $ 395,292 $ 395,630 2014 13,108 115,852 200,422 233,607 246,611 252,619 255,742 256,107 255,981 2015 10,479 84,271 142,421 163,916 172,645 174,812 175,874 176,823 2016 11,061 76,616 119,357 134,115 137,306 138,525 139,539 2017 24,653 66,585 99,678 108,484 111,458 112,445 2018 5,584 36,066 54,625 60,926 62,968 2019 4,220 18,703 28,896 35,594 2020 4,148 9,867 14,635 2021 1,112 2,561 2022 498 Total $ 1,196,674 All outstanding liabilities before 2013, net of reinsurance 22,206 Liabilities for claims, net of reinsurance (1) $ 385,945 (1) Calculated as follows: (In thousands) Incurred losses, net of reinsurance $ 1,560,413 All outstanding liabilities before 2013, net of reinsurance 22,206 Cumulative paid claims, net of reinsurance (1,196,674) Liabilities for claims, net of reinsurance $ 385,945 |
Reconciliation of Net Incurred Losses and Paid Claims Development to Mortgage Insurance Reserve for Losses and Loss Adjustment Expenses | The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the mortgage insurance reserve for losses and LAE at December 31, 2022. Net outstanding liabilities - mortgage insurance (In thousands) December 31, 2022 Reserve for losses and LAE, net of reinsurance $ 385,945 Reinsurance recoverable on unpaid claims 24,727 Unallocated LAE 10,283 Total gross reserve for losses and LAE (1) $ 420,955 (1) Excludes title insurance reserve for losses and LAE of $5.9 million. |
Schedule of Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2022, representing the average distribution of when claims are paid relative to the year of default. Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Mortgage insurance 6.8% 30.0% 24.5% 10.4% 3.8% 1.5% 0.9% 0.4% —% 0.1% |
Borrowings and Financing Acti_2
Borrowings and Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt, Unclassified [Abstract] | |
Schedule of Debt | The carrying value of our debt at December 31, 2022 and 2021, was as follows. Borrowings December 31, ($ in thousands) Interest rate 2022 2021 Senior notes Senior Notes due 2024 4.500 % $ 447,805 $ 446,631 Senior Notes due 2025 6.625 % 520,305 518,405 Senior Notes due 2027 4.875 % 445,394 444,437 Total senior notes $ 1,413,504 $ 1,409,473 December 31, ($ in thousands) Average interest rate (1) 2022 2021 Other Borrowings FHLB advances FHLB advances due 2022 — % $ — $ 71,050 FHLB advances due 2023 2.806 % 104,895 52,995 FHLB advances due 2024 2.540 % 32,371 (2) 13,954 FHLB advances due 2025 1.590 % 9,984 9,984 FHLB advances due 2027 2.181 % 6,436 3,000 Total FHLB advances 153,686 150,983 Mortgage financing facilities 5.928 % 2,136 — Total other borrowings $ 155,822 $ 150,983 (1) As of December 31, 2022. See “—FHLB Advances” below for more information. (2) Includes $13.4 million of floating-rate advances with a weighted average interest rate of 3.617%, which resets daily based on changes in SOFR. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Total Lease Cost | The following tables provide additional information related to our leases, including: (i) the components of our total lease cost; (ii) the cash flows arising from our lease transactions; (iii) supplemental balance sheet information; (iv) the weighted-average remaining lease term; (v) the weighted-average discount rate used for our leases; and (vi) the remaining maturities of our lease liabilities, as of and for the periods indicated. Total lease cost Years Ended December 31, (In thousands) 2022 2021 Operating lease cost $ 10,633 $ 9,333 Short-term lease cost 220 384 Total lease cost $ 10,853 $ 9,717 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (12,520) $ (9,060) |
Schedule of Operating Leases | Operating leases December 31, ($ in thousands) 2022 2021 Operating leases Operating lease right-of-use assets (1) $ 21,099 $ 31,878 Operating lease liabilities (2) 49,386 53,523 Weighted-average remaining lease term - operating leases (in years) 7.5 years 7.9 years Weighted-average discount rate - operating leases 6.9 % 6.2 % Remaining maturities of lease liabilities for future years is as follows: 2023 $ 13,050 2024 12,832 2025 10,606 2026 8,147 2027 7,233 2028 and thereafter 29,361 Total lease payments 81,229 Less: Imputed interest (31,843) Present value of lease liabilities (2) $ 49,386 (1) Classified in other assets in our consolidated balance sheets. See Note 9. (2) Classified in other liabilities in our consolidated balance sheets. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock Outstanding | The following table shows the changes in common stock outstanding for 2022, 2021 and 2020. Common stock outstanding Years Ended December 31, (In thousands) 2022 2021 2020 Balance at beginning of year 175,421 191,606 201,164 Shares repurchased under share repurchase programs (19,506) (17,752) (11,036) Issuance of common stock under incentive and benefit plans, net of shares withheld for employee taxes 1,141 1,567 1,478 Balance at end of year 157,056 175,421 191,606 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables show the rollforward of accumulated other comprehensive income (loss) as of the periods indicated. Rollforward of accumulated other comprehensive income (loss) Year Ended December 31, 2022 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 152,016 $ 31,923 $ 120,093 Other comprehensive income (loss) Unrealized holding gains (losses) on investments arising during the period for which an allowance for expected credit losses has not been recognized (740,324) (155,468) (584,856) Less: Reclassification adjustment for net gains (losses) on investments included in net income (1) Net realized gains (losses) on disposals and non-credit related impairment losses (9,974) (2,094) (7,880) Net unrealized gains (losses) on investments (730,350) (153,374) (576,976) Other adjustments to comprehensive income, net 106 22 84 Other comprehensive income (loss) (730,244) (153,352) (576,892) Balance at end of period $ (578,228) $ (121,429) $ (456,799) Year Ended December 31, 2021 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 333,829 $ 70,104 $ 263,725 Other comprehensive income (loss) Unrealized holding gains (losses) on investments arising during the period for which an allowance for expected credit losses has not been recognized (175,234) (36,799) (138,435) Less: Reclassification adjustment for net gains (losses) included in net income (1) Net realized gains (losses) on disposals and non-credit related impairment losses 5,661 1,189 4,472 Net decrease (increase) in expected credit losses 918 193 725 Net unrealized gains on investments (181,813) (38,181) (143,632) Other comprehensive income (loss) (181,813) (38,181) (143,632) Balance at end of period $ 152,016 $ 31,923 $ 120,093 Rollforward of accumulated other comprehensive income (loss) Year Ended December 31, 2020 (In thousands) Before Tax Tax Effect Net of Tax Balance at beginning of period $ 139,858 $ 29,370 $ 110,488 Other comprehensive income (loss) Unrealized holding gains (losses) on investments arising during the period for which an allowance for expected credit losses has not been recognized 226,280 47,519 178,761 Less: Reclassification adjustment for net gains (losses) included in net income (1) Net realized gains (losses) on disposals and non-credit related impairment losses 33,468 7,028 26,440 Net decrease (increase) in expected credit losses (1,254) (263) (991) Net unrealized gains on investments 194,066 40,754 153,312 Other adjustments to comprehensive income, net (95) (20) (75) Other comprehensive income (loss) 193,971 40,734 153,237 Balance at end of period $ 333,829 $ 70,104 $ 263,725 (1) Included in net gains (losses) on investments and other financial instruments in our consolidated statements of operations. |
Statutory Information (Tables)
Statutory Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Statutory net income and policyholders' surplus | Our insurance subsidiaries’ statutory net income and statutory policyholders’ surplus for the years ended and as of December 31, 2022, 2021 and 2020, were as follows. Statutory net income Years Ended December 31, (In thousands) 2022 2021 2020 Radian Guaranty (1) $ 1,091,946 $ 762,609 $ 474,431 Other mortgage subsidiaries 1,957 1,669 1,086 Radian Title Insurance 2,589 6,862 2,126 Statutory policyholders’ surplus (2) December 31, (In thousands) 2022 2021 2020 Radian Guaranty (1) $ 758,467 $ 1,105,266 $ 842,188 Other mortgage subsidiaries 17,086 14,524 41,327 (3) Radian Title Insurance 39,285 36,599 28,849 (1) The amounts for 2021 and 2020 have been updated to reflect the merger of Radian Reinsurance into Radian Guaranty. See “—Recent Capital Actions” above. (2) See the “Surplus additions (distributions)” table under “—Statutory Dividend Restrictions” below for additional information on certain changes impacting policyholders’ surplus. |
Surplus additions (distributions) | The surplus additions (distributions) between Radian Group and Radian Guaranty and our other insurance subsidiaries for the years ended December 31, 2022, 2021 and 2020, were as follows. Surplus additions (distributions) Years Ended December 31, (In thousands) 2022 2021 2020 Additions to Radian Guaranty surplus $ — $ — $ 200,000 Distributions from Radian Guaranty surplus (1) (881,979) — — Additions to other insurance subsidiaries’ surplus — 250 — Distributions from other insurance subsidiaries’ surplus (2) (32,500) (40,000) (465,000) (1) Consists of $782 million in returns of capital and a $100 million repayment of the Surplus Note due 2027. (2) These distributions were from Radian Reinsurance prior to its merger with Radian Guaranty. |
Share-Based Compensation and _2
Share-Based Compensation and Other Benefit Programs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost Recognized | The following table summarizes the compensation cost recognized and additional information regarding all share-based awards for the years indicated. Share-based compensation expense Years Ended December 31, (In thousands) 2022 2021 2020 Compensation cost recognized (1) RSUs $ 37,465 $ 27,803 $ 18,403 ESPP and other 596 560 790 Total compensation cost recognized 38,061 28,363 19,193 Income tax benefit related to share-based compensation expense 7,524 7,168 4,264 Share-based compensation expense, net $ 30,537 $ 21,195 $ 14,929 |
Schedule of RSUs Equity-Settled | Information with regard to RSUs to be settled in stock for the periods indicated is as follows. Rollforward of RSUs Performance-Based Time-Vested Number of Weighted-Average Number of Weighted-Average Outstanding, December 31, 2021 (1) 2,340,673 $ 16.76 1,808,551 $ 15.51 Granted (2) 643,740 20.09 612,099 20.61 Performance adjustment (3) 197,534 — — — Vested (4) (796,479) 18.35 (503,231) 19.47 Forfeited (23,067) 20.08 (25,619) 18.77 Outstanding, December 31, 2022 (1) 2,362,401 $ 17.59 1,891,800 $ 16.06 (1) Outstanding RSUs represent shares that have not yet been issued because not all conditions necessary to earn the right to benefit from the instruments have been satisfied. For performance-based awards, the final number of RSUs distributed depends on the cumulative growth in Radian’s book value over the respective three-year performance period and, with the exception of certain retirement-eligible employees, continued service through the vesting date, which could result in changes in the number of vested RSUs. (2) For performance-based RSUs, amount represents the number of target shares at grant date. (3) For performance-based RSUs, represents the difference between the number of target shares at grant date and the number of shares vested at settlement, which can range from 0 to 200% of target depending on results over the applicable performance periods. (4) Represents amounts vested during the year, including the impact of performance adjustments for performance-based awards. |
Schedule of Information with Regard to Stock Options | Information with regard to stock options for the periods indicated is as follows. Rollforward of non-qualified stock options ($ in thousands, except per-share amounts) Number of Weighted Weighted Aggregate Intrinsic Value (1) Outstanding, December 31, 2021 563,906 $ 12.21 Granted — — Exercised (192,501) 7.24 Forfeited — — Expired — — Outstanding, December 31, 2022 371,405 $ 14.78 2.1 years $ 1,593 Exercisable, December 31, 2022 371,405 $ 14.78 2.1 years $ 1,593 (1) Based on the market price of $19.07 at December 31, 2022. |
Schedule of Information of Exercised Stock Options | The following table summarizes additional information concerning stock option activity for the periods indicated. Additional information Years Ended December 31, (In thousands) 2022 2021 2020 Aggregate intrinsic value of options exercised $ 2,926 $ 3,354 $ 3,344 Tax benefit of options exercised 614 704 702 Cash received from options exercised 1,341 1,382 1,553 |
Schedule I_ Summary of Invest_2
Schedule I: Summary of Investments—Other Than Investments in Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule I Summary of Investments [Abstract] | |
Summary of Investments - Other Than Investments in Related Parties | (In thousands) Amortized Fair Value Amount Reflected on the Consolidated Balance Sheet Type of Investment Fixed-maturities available for sale Bonds U.S. government and agency securities $ 174,138 $ 145,442 $ 145,442 State and municipal obligations 164,325 142,386 142,386 Corporate bonds and notes 2,886,905 2,537,771 2,537,771 RMBS 1,025,795 928,399 928,399 CMBS 645,890 593,357 593,357 CLO 518,677 498,192 498,192 Other ABS 168,033 161,359 161,359 Foreign government and agency securities 5,118 4,975 4,975 Mortgage insurance-linked notes (1) 54,578 53,019 53,019 Total securities available for sale 5,643,459 5,064,900 (2) 5,064,900 (2) Trading securities 122,472 115,665 115,665 Equity securities Common stocks Industrial, miscellaneous and all other 230,525 213,519 213,519 Total equity securities 230,525 213,519 (3) 213,519 (3) Mortgage loans held for sale 3,498 3,549 3,549 Other invested assets 5,336 5,511 5,511 Short-term investments (4) 402,552 402,486 (5) 402,486 (5) Total investments other than investments in related parties $ 6,407,842 $ 5,805,630 $ 5,805,630 (1) Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 of Notes to Consolidated Financial Statements for more information about our reinsurance programs. (2) Includes $47.2 million of fixed-maturity securities available for sale loaned under securities lending agreements that are classified as other assets in our consolidated balance sheets. (3) Includes $64.6 million of equity securities loaned under securities lending agreements that are classified as other assets in our consolidated balance sheets. (4) Includes cash collateral held under securities lending agreements of $99.7 million that is reinvested in money market instruments. (5) Includes $0.4 million of short-term investments loaned under securities lending agreements that are classified as other assets in our consolidated balance sheets. |
Schedule II - Financial Infor_2
Schedule II - Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Financial Information of Registrant, Condensed Balance Sheet, Parent Company Only | Condensed Balance Sheet (In thousands, except per-share amounts) December 31, December 31, Assets Investments Fixed-maturities available for sale—at fair value (amortized cost of $747,309 and $485,727) $ 675,948 $ 481,659 Equity securities—at fair value (cost of $140,733) 140,804 — Other invested assets—at fair value 3,958 3,511 Short-term investments—at fair value (includes $61,328 and $1,058 of reinvested cash collateral held under securities lending agreements) 108,232 120,601 Total investments 928,942 605,771 Cash 1,872 38,846 Investment in subsidiaries, at equity in net assets (Note C) 4,576,644 5,210,917 Accounts and notes receivable (Note C) 657 100,002 Other assets (Note C) 157,370 65,923 Total assets $ 5,665,485 $ 6,021,459 Liabilities and stockholders’ equity Liabilities Senior notes $ 1,413,504 $ 1,409,473 Net deferred tax liability (Note A) 196,829 283,585 Other liabilities (Note C) 135,825 69,605 Total liabilities 1,746,158 1,762,663 Common stockholders’ equity Common stock ($0.001 par value; 485,000 shares authorized; 2022: 176,509 and 157,056 shares issued and outstanding, respectively; 2021: 194,408 and 175,421 shares issued and outstanding, respectively) 176 194 Treasury stock, at cost (2022: 19,453 shares; 2021: 18,987 shares) (930,643) (920,798) Additional paid-in capital 1,519,641 1,878,372 Retained earnings 3,786,952 3,180,935 Accumulated other comprehensive income (loss) (456,799) 120,093 Total common stockholders’ equity 3,919,327 4,258,796 Total liabilities and stockholders’ equity $ 5,665,485 $ 6,021,459 |
Financial Information of Registrant, Condensed Statements of Operations, Parent Company Only | Schedule II—Financial Information of Registrant Years Ended December 31, (In thousands) 2022 2021 2020 Revenues Net investment income $ 20,584 $ 7,540 $ 19,459 Net gains (losses) on investments and other financial instruments (4,322) 980 5,682 Other income 78 11 101 Total revenues 16,340 8,531 25,242 Expenses Other operating expenses 2,043 3,163 2,619 Total expenses (Note B) 2,043 3,163 2,619 Pretax income 14,297 5,368 22,623 Income tax provision (benefit) 8,148 1,167 (3,165) Equity in net income of affiliates 736,785 596,470 367,838 Net income 742,934 600,671 393,626 Other comprehensive income (loss), net of tax (576,892) (143,632) 153,237 Comprehensive income $ 166,042 $ 457,039 $ 546,863 |
Financial Information of Registrant, Condensed Statements of Cash Flows, Parent Company Only | Schedule II—Financial Information of Registrant Years Ended December 31, (In thousands) 2022 2021 2020 Cash flows from operating activities Net cash provided by (used in) operating activities (1) $ (71) $ 66,317 $ (13,741) Cash flows from investing activities Proceeds from sales of: Fixed-maturities available for sale 56,934 195,452 304,737 Trading securities 8,868 — — Equity securities — — 13,401 Proceeds from redemptions of: Fixed-maturities available for sale 194,859 301,788 238,161 Purchases of: Fixed-maturities available for sale (29,039) (156,344) (691,874) Equity securities (2,500) — — Sales, redemptions and (purchases) of: Short-term investments, net 188,149 113,939 (53,024) Other assets, net (3,851) (864) (6,068) Capital distributions from subsidiaries 32,512 44,951 19,000 Capital contributions to subsidiaries (8,000) (43,250) (5,050) Net cash provided by (used in) investing activities 437,932 455,672 (180,717) Cash flows from financing activities Dividends and dividend equivalents paid (135,437) (103,298) (97,458) Issuance of common stock 1,341 1,382 1,553 Repurchases of common stock (400,195) (399,100) (226,305) Issuance of senior notes, net — — 515,567 Credit facility commitment fees paid (814) (3,325) (2,292) Change in secured borrowings, net (with terms three months or less) 60,270 1,057 — Net cash provided by (used in) financing activities (474,835) (503,284) 191,065 Increase (decrease) in cash and restricted cash (36,974) 18,705 (3,393) Cash and restricted cash, beginning of period 38,846 20,141 23,534 Cash and restricted cash, end of period $ 1,872 $ 38,846 $ 20,141 (1) Includes cash distributions received from subsidiaries of $49.8 million, $85.0 million and $1.7 million in 2022, 2021 and 2020, respectively. Excludes non-cash distributions received from subsidiaries of $888.0 million, $92.3 million and $484.1 million in 2022, 2021 and 2020, respectively. |
Components of Parent Company Expenses Allocated to Subsidiaries | The following table shows the components of our Parent Company expenses that have been allocated to our subsidiaries for the periods indicated. Total allocated expenses Years Ended December 31, (In thousands) 2022 2021 2020 Allocated operating expenses $ 163,000 $ 147,386 $ 129,870 Allocated interest expense 82,568 82,833 68,938 Total allocated expenses $ 245,568 $ 230,219 $ 198,808 |
Schedule IV - Reinsurance, In_2
Schedule IV - Reinsurance, Insurance Premiums Earned (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Insurance Premiums Earned | ($ in thousands) Gross Ceded Assumed Net Assumed Premiums 2022 Mortgage insurance $ 1,025,607 $ 72,419 $ 4,025 $ 957,213 0.42% Title insurance 24,422 504 — 23,918 0.00% Total $ 1,050,029 $ 72,923 $ 4,025 $ 981,131 0.41% 2021 Mortgage insurance $ 1,104,696 $ 113,480 $ 7,066 $ 998,282 0.71% Title insurance 39,665 764 — 38,901 0.00% Total $ 1,144,361 $ 114,244 $ 7,066 $ 1,037,183 0.68% 2020 Mortgage insurance $ 1,263,684 $ 183,131 $ 12,214 $ 1,092,767 1.12% Title insurance 22,843 289 — 22,554 0.00% Total $ 1,286,527 $ 183,420 $ 12,214 $ 1,115,321 1.10% |
Description of Business - Gener
Description of Business - General (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Organization of Business [Abstract] | |
Number of reportable segments | 2 |
Description of Business - Mortg
Description of Business - Mortgage (Details) - Mortgage - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Business Overview [Abstract] | ||
Down payment percent of purchase price | 20% | |
Equity in home (percent) | 20% | |
Direct primary mortgage insurance in force | $ 261 | $ 246 |
Direct primary mortgage insurance risk in force | $ 66.1 | $ 60.9 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) payment reportingUnit category | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Significant Accounting Policies Line Items [Line Items] | |||
Maximum maturity duration for short term investment grouping | 12 months | ||
Number of payments missed for insured loans | payment | 2 | ||
Number of reporting units | reportingUnit | 1 | ||
Depreciation and amortization expense | $ 15.2 | $ 15.9 | $ 18.3 |
Minimum | |||
Significant Accounting Policies Line Items [Line Items] | |||
Number of payments missed for insured loans | payment | 2 | ||
Useful life | 3 years | ||
Maximum | |||
Significant Accounting Policies Line Items [Line Items] | |||
Term of contract | 12 months | ||
Useful life | 7 years | ||
Mortgage | |||
Significant Accounting Policies Line Items [Line Items] | |||
Number of mortgage insurance product categories | category | 2 | ||
Premium receivable for deferred monthly premiums | $ 32 | 30.3 | |
Contractual deferred monthly premiums | $ 77.1 | $ 74 |
Significant Accounting Polici_5
Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Significant Accounting Policies Line Items [Line Items] | ||
Gross Carrying Amount | $ 263,335 | $ 247,375 |
Accumulated Amortization / Depreciation | (192,354) | (172,289) |
Net Carrying Amount | 70,981 | 75,086 |
Internal-use software | ||
Significant Accounting Policies Line Items [Line Items] | ||
Gross Carrying Amount | 155,984 | 145,248 |
Accumulated Amortization / Depreciation | (100,734) | (91,542) |
Net Carrying Amount | 55,250 | 53,706 |
Leasehold improvements | ||
Significant Accounting Policies Line Items [Line Items] | ||
Gross Carrying Amount | 39,134 | 34,805 |
Accumulated Amortization / Depreciation | (26,236) | (18,108) |
Net Carrying Amount | 12,898 | 16,697 |
Furniture and equipment | ||
Significant Accounting Policies Line Items [Line Items] | ||
Gross Carrying Amount | 68,217 | 67,322 |
Accumulated Amortization / Depreciation | (65,384) | (62,639) |
Net Carrying Amount | $ 2,833 | $ 4,683 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income—basic | $ 742,934 | $ 600,671 | $ 393,626 |
Net income—diluted | $ 742,934 | $ 600,671 | $ 393,626 |
Average common shares outstanding—basic | 167,930 | 188,370 | 195,443 |
Dilutive effect of stock-based compensation arrangements (in shares) | 2,734 | 1,893 | 1,199 |
Adjusted average common shares outstanding—diluted | 170,664 | 190,263 | 196,642 |
Net income per share | |||
Net income per share, basic (in usd per share) | $ 4.42 | $ 3.19 | $ 2.01 |
Net income per share, diluted (in usd per share) | $ 4.35 | $ 3.16 | $ 2 |
Stock Compensation Plan | |||
Net income per share | |||
Shares of common stock equivalents | 0 | 28 | 865 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) customer | Dec. 31, 2020 USD ($) customer | |
Revenue, Major Customer [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Accounts and notes receivable | $ 119,834 | $ 124,016 | |
homegenius | |||
Revenue, Major Customer [Line Items] | |||
Accounts and notes receivable | 11,800 | 20,000 | |
Total adjusted pretax operating income for reportable segments | |||
Revenue, Major Customer [Line Items] | |||
Bad debt expense | $ 0 | $ 0 | $ 0 |
Customer Concentration Risk | New Insurance Written | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | customer | 1 | 1 |
Segment Reporting - Adjusted Pr
Segment Reporting - Adjusted Pretax Operating Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net gains (losses) on investments and other financial instruments | $ (80,733) | $ 15,603 | $ 60,277 |
Amortization of other acquired intangible assets | (4,308) | (3,450) | (5,144) |
Impairment of other long-lived assets and other non-operating items | (14,850) | (3,561) | (7,759) |
Pretax income | 952,779 | 764,832 | 479,441 |
Corporate, non-segment | |||
Segment Reporting Information [Line Items] | |||
Adjusted pretax operating income (loss) | 8,972 | 3,527 | 2,013 |
Adjustments | |||
Segment Reporting Information [Line Items] | |||
Net gains (losses) on investments and other financial instruments | (80,780) | 14,094 | 60,277 |
Mortgage | |||
Segment Reporting Information [Line Items] | |||
Adjusted pretax operating income (loss) | 1,131,943 | 781,546 | 453,294 |
Net gains (losses) on investments and other financial instruments | 0 | 0 | 0 |
homegenius | |||
Segment Reporting Information [Line Items] | |||
Adjusted pretax operating income (loss) | (88,198) | (27,324) | (23,240) |
Net gains (losses) on investments and other financial instruments | 0 | 1,509 | 0 |
Mortgage and homegenius segment | |||
Segment Reporting Information [Line Items] | |||
Adjusted pretax operating income (loss) | $ 1,043,745 | $ 754,222 | $ 430,054 |
Segment Reporting - Revenue and
Segment Reporting - Revenue and Other Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net premiums earned | $ 981,131 | $ 1,037,183 | $ 1,115,321 |
Services revenue | 92,216 | 125,825 | 105,385 |
Net investment income | 195,658 | 147,909 | 154,037 |
Net gains (losses) on investments and other financial instruments | (80,733) | 15,603 | 60,277 |
Other income | 2,454 | 3,412 | 3,597 |
Total revenues | 1,190,726 | 1,329,932 | 1,438,617 |
Interest expense | 84,454 | 84,344 | 71,150 |
Allocation of corporate operating expenses | 163,000 | 147,386 | 129,870 |
Other technology services | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Services revenue | 3,730 | 3,869 | 3,763 |
Inter-segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net premiums earned | 0 | 0 | 0 |
Services revenue | (332) | (281) | (1,439) |
Net investment income | 0 | 0 | 0 |
Net gains (losses) on investments and other financial instruments | 0 | 0 | 0 |
Other income | (170) | 0 | 0 |
Total revenues | (502) | (281) | (1,439) |
Adjustments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net premiums earned | 0 | 0 | 0 |
Services revenue | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Net gains (losses) on investments and other financial instruments | (80,780) | 14,094 | 60,277 |
Other income | 0 | 0 | 247 |
Total revenues | (80,780) | 14,094 | 60,524 |
Mortgage | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net premiums earned | 957,213 | 998,282 | 1,092,767 |
Services revenue | 7,390 | 17,670 | 14,765 |
Net investment income | 171,221 | 132,929 | 137,195 |
Net gains (losses) on investments and other financial instruments | 0 | 0 | 0 |
Other income | 2,376 | 2,678 | 2,816 |
Total revenues | 1,138,200 | 1,151,559 | 1,247,543 |
Interest expense | 84,440 | 84,344 | 71,150 |
Direct depreciation expense | 8,986 | 9,580 | 12,387 |
Allocation of corporate operating expenses | 138,566 | 127,482 | 114,802 |
Mortgage | Depreciation Expense | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Allocation of corporate operating expenses | 3,000 | 3,200 | 2,600 |
homegenius | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net premiums earned | 23,918 | 38,901 | 22,554 |
Services revenue | 85,158 | 108,282 | 79,524 |
Net investment income | 729 | 358 | 361 |
Net gains (losses) on investments and other financial instruments | 0 | 1,509 | 0 |
Other income | 170 | 0 | 0 |
Total revenues | 109,975 | 149,050 | 102,439 |
Interest expense | 0 | 0 | 0 |
Direct depreciation expense | 2,538 | 2,452 | 2,857 |
Allocation of corporate operating expenses | 22,856 | 18,482 | 12,807 |
homegenius | Depreciation Expense | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Allocation of corporate operating expenses | 500 | 500 | 300 |
Reportable Segment Total | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net premiums earned | 981,131 | 1,037,183 | 1,115,321 |
Services revenue | 92,548 | 125,952 | 94,289 |
Net investment income | 171,950 | 133,287 | 137,556 |
Net gains (losses) on investments and other financial instruments | 0 | 1,509 | 0 |
Other income | 2,546 | 2,678 | 2,816 |
Total revenues | 1,248,175 | 1,300,609 | 1,349,982 |
Interest expense | 84,440 | 84,344 | 71,150 |
Direct depreciation expense | 11,524 | 12,032 | 15,244 |
Allocation of corporate operating expenses | 161,422 | 145,964 | 127,609 |
Reportable Segment Total | Operating Segments | Depreciation Expense | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Allocation of corporate operating expenses | 3,600 | 3,700 | 2,900 |
All Other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Net premiums earned | 0 | 0 | 0 |
Services revenue | 0 | 154 | 12,535 |
Net investment income | 23,708 | 14,622 | 16,481 |
Net gains (losses) on investments and other financial instruments | 47 | 0 | 0 |
Other income | 78 | 734 | 534 |
Total revenues | $ 23,833 | $ 15,510 | $ 29,550 |
Segment Reporting - Service Rev
Segment Reporting - Service Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | $ 92,216 | $ 125,825 | $ 105,385 |
Title | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | 18,687 | 40,202 | 23,265 |
Valuation | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | 30,002 | 28,590 | 17,986 |
Single-family rental | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | 24,387 | 27,291 | 17,159 |
REO asset management | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | 3,091 | 2,370 | 5,518 |
Other real estate services | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | 115 | 144 | 2,479 |
Asset management workflow platform | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | 4,814 | 5,535 | 7,998 |
Other technology services | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | 3,730 | 3,869 | 3,763 |
Mortgage | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | 7,390 | 17,670 | 14,682 |
All Other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Services revenue | $ 0 | $ 154 | $ 12,535 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Assets Liabilities by Hierarchy Level (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | $ 112,139 | $ 103,996 |
Other invested assets | $ 5,511 | 4,165 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |
Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | $ 5,692,276 | 6,512,377 |
Derivative assets | 11 | 4,200 |
Total assets at fair value | 5,804,426 | 6,620,573 |
Derivative liabilities | 4,900 | |
Total liabilities at fair value | 4,900 | |
Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 5,017,711 | 5,517,078 |
Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 115,665 | 256,546 |
Equity securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 148,965 | 184,245 |
Mortgage loans held for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 3,549 | |
Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 402,090 | 551,508 |
Other investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 4,296 | 3,000 |
Partnership investment | Carrying Amount | ||
Fair Value by Hierarchy Level [Line Items] | ||
Other invested assets | 1,200 | 1,200 |
Level I | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 520,167 | 738,480 |
Derivative assets | 0 | 0 |
Total assets at fair value | 584,721 | 776,482 |
Derivative liabilities | 0 | |
Total liabilities at fair value | 0 | |
Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 140,011 | 192,452 |
Level I | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Level I | Equity securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 138,716 | 176,828 |
Level I | Mortgage loans held for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | |
Level I | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 241,440 | 369,200 |
Level I | Other investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Level II | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 5,165,313 | 5,770,897 |
Derivative assets | 11 | 0 |
Total assets at fair value | 5,212,909 | 5,836,891 |
Derivative liabilities | 42 | |
Total liabilities at fair value | 42 | |
Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 4,877,700 | 5,324,626 |
Level II | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 115,665 | 256,546 |
Level II | Equity securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 7,749 | 7,417 |
Level II | Mortgage loans held for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 3,549 | |
Level II | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 160,650 | 182,308 |
Level II | Other investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Level III | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 6,796 | 3,000 |
Derivative assets | 0 | 4,200 |
Total assets at fair value | 6,796 | 7,200 |
Derivative liabilities | 4,858 | |
Total liabilities at fair value | 4,858 | |
Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Level III | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Level III | Equity securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 2,500 | 0 |
Level III | Mortgage loans held for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | |
Level III | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Level III | Other investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 4,296 | 3,000 |
Loaned securities | Total fixed-maturities available for sale | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 47,200 | |
Loaned securities | Equity securities | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 64,600 | |
Loaned securities | Short-term investments | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 400 | |
U.S. government and agency securities | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 145,442 | 221,730 |
U.S. government and agency securities | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 94,665 | |
U.S. government and agency securities | Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 140,011 | 192,452 |
U.S. government and agency securities | Level I | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 94,665 | |
U.S. government and agency securities | Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 5,431 | 29,278 |
U.S. government and agency securities | Level II | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | |
U.S. government and agency securities | Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
U.S. government and agency securities | Level III | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | |
State and municipal obligations | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 142,386 | 177,257 |
State and municipal obligations | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 70,511 | 94,637 |
State and municipal obligations | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 2,785 | 12,270 |
State and municipal obligations | Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
State and municipal obligations | Level I | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
State and municipal obligations | Level I | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
State and municipal obligations | Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 142,386 | 177,257 |
State and municipal obligations | Level II | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 70,511 | 94,637 |
State and municipal obligations | Level II | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 2,785 | 12,270 |
State and municipal obligations | Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
State and municipal obligations | Level III | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
State and municipal obligations | Level III | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Money market instruments | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 241,440 | 274,535 |
Money market instruments | Level I | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 241,440 | 274,535 |
Money market instruments | Level II | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Money market instruments | Level III | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Corporate bonds and notes | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 2,490,582 | 2,910,231 |
Corporate bonds and notes | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 32,827 | 119,186 |
Corporate bonds and notes | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 42,385 | 65,191 |
Corporate bonds and notes | Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Corporate bonds and notes | Level I | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Corporate bonds and notes | Level I | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Corporate bonds and notes | Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 2,490,582 | 2,910,231 |
Corporate bonds and notes | Level II | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 32,827 | 119,186 |
Corporate bonds and notes | Level II | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 42,385 | 65,191 |
Corporate bonds and notes | Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Corporate bonds and notes | Level III | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Corporate bonds and notes | Level III | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Corporate bonds and notes | Loaned securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 47,585 | 65,994 |
Corporate bonds and notes | Loaned securities | Level I | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 0 | 0 |
Corporate bonds and notes | Loaned securities | Level II | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 47,585 | 65,994 |
Corporate bonds and notes | Loaned securities | Level III | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 0 | 0 |
RMBS | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 928,399 | 705,117 |
RMBS | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 6,847 | 9,438 |
RMBS | Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
RMBS | Level I | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
RMBS | Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 928,399 | 705,117 |
RMBS | Level II | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 6,847 | 9,438 |
RMBS | Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
RMBS | Level III | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
CMBS | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 593,357 | 709,203 |
CMBS | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 5,480 | 33,285 |
CMBS | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 3,023 | |
CMBS | Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
CMBS | Level I | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
CMBS | Level I | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | |
CMBS | Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 593,357 | 709,203 |
CMBS | Level II | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 5,480 | 33,285 |
CMBS | Level II | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 3,023 | |
CMBS | Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
CMBS | Level III | Trading securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
CMBS | Level III | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | |
CLO | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 498,192 | 530,040 |
CLO | Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
CLO | Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 498,192 | 530,040 |
CLO | Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Other ABS | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 161,359 | 211,187 |
Other ABS | Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Other ABS | Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 161,359 | 211,187 |
Other ABS | Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Foreign government and agency securities | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 4,975 | 5,296 |
Foreign government and agency securities | Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Foreign government and agency securities | Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 4,975 | 5,296 |
Foreign government and agency securities | Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Mortgage insurance-linked notes | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 53,019 | 47,017 |
Mortgage insurance-linked notes | Level I | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Mortgage insurance-linked notes | Level II | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 53,019 | 47,017 |
Mortgage insurance-linked notes | Level III | Total fixed-maturities available for sale | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Equity securities | Loaned securities | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 64,554 | 38,002 |
Equity securities | Loaned securities | Level I | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 64,554 | 38,002 |
Equity securities | Loaned securities | Level II | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 0 | 0 |
Equity securities | Loaned securities | Level III | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Loaned securities | 0 | 0 |
Other investments | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 115,480 | 101,824 |
Other investments | Level I | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 0 | 0 |
Other investments | Level II | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | 115,480 | 101,824 |
Other investments | Level III | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value by Hierarchy Level [Line Items] | ||
Total investments at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, level 3 asset transfers | $ 0 | $ 0 |
Fair value, level 2 liability transfers | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Other Fair Value Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 1,413,504 | $ 1,409,473 |
Total other borrowings | 155,822 | 150,983 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,413,504 | 1,409,473 |
FHLB advances | 153,686 | 150,983 |
Mortgage financing facilities | 2,136 | 0 |
Total other borrowings | 155,822 | 150,983 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes, estimated fair value | 1,361,844 | 1,534,378 |
FHLB advances, estimated fair value | 153,728 | 152,117 |
Mortgage financing facilities, estimated fair value | 2,136 | 0 |
Total other borrowings | $ 155,864 | $ 152,117 |
Investments - Available for Sal
Investments - Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Loaned securities | $ 112,139 | $ 103,996 |
Total fixed-maturities, available for sale, Amortized Cost | 5,587,261 | 5,367,729 |
Total fixed-maturities available for sale, Fair Value | 5,017,711 | 5,517,078 |
Fixed-maturities available for sale | U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 174,138 | 221,407 |
Gross Unrealized Gains | 206 | 1,719 |
Gross Unrealized Losses | (28,902) | (1,396) |
Fair Value | 145,442 | 221,730 |
Fixed-maturities available for sale | State and municipal obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 164,325 | 162,964 |
Gross Unrealized Gains | 0 | 14,694 |
Gross Unrealized Losses | (21,939) | (401) |
Fair Value | 142,386 | 177,257 |
Fixed-maturities available for sale | Corporate bonds and notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,886,905 | 2,867,063 |
Gross Unrealized Gains | 1,403 | 133,665 |
Gross Unrealized Losses | (350,537) | (24,886) |
Fair Value | 2,537,771 | 2,975,842 |
Fixed-maturities available for sale | RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,025,795 | 697,581 |
Gross Unrealized Gains | 1,163 | 14,313 |
Gross Unrealized Losses | (98,559) | (6,777) |
Fair Value | 928,399 | 705,117 |
Fixed-maturities available for sale | CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 645,890 | 690,827 |
Gross Unrealized Gains | 13 | 21,444 |
Gross Unrealized Losses | (52,546) | (3,068) |
Fair Value | 593,357 | 709,203 |
Fixed-maturities available for sale | CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 518,677 | 529,906 |
Gross Unrealized Gains | 0 | 1,032 |
Gross Unrealized Losses | (20,485) | (898) |
Fair Value | 498,192 | 530,040 |
Fixed-maturities available for sale | Other ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 168,033 | 210,657 |
Gross Unrealized Gains | 69 | 1,142 |
Gross Unrealized Losses | (6,743) | (612) |
Fair Value | 161,359 | 211,187 |
Fixed-maturities available for sale | Foreign government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,118 | 5,109 |
Gross Unrealized Gains | 0 | 187 |
Gross Unrealized Losses | (143) | 0 |
Fair Value | 4,975 | 5,296 |
Fixed-maturities available for sale | Mortgage insurance-linked notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 54,578 | 45,384 |
Gross Unrealized Gains | 80 | 1,633 |
Gross Unrealized Losses | (1,639) | 0 |
Fair Value | 53,019 | 47,017 |
Fixed-maturities available for sale | Total fixed-maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,643,459 | 5,430,898 |
Total fixed-maturities, available for sale, Amortized Cost | 5,587,261 | 5,367,729 |
Gross Unrealized Gains | 2,934 | 189,829 |
Gross Unrealized Losses | (581,493) | (38,038) |
Fair Value | 5,064,900 | 5,582,689 |
Total fixed-maturities available for sale, Fair Value | 5,017,711 | 5,517,078 |
Fixed-maturities available for sale | Loaned securities, amortized cost | Total fixed-maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Loaned securities | 56,198 | 63,169 |
Fixed-maturities available for sale | Loaned securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Loaned securities | 47,200 | |
Fixed-maturities available for sale | Loaned securities | Total fixed-maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Loaned securities | $ 47,189 | $ 65,611 |
Investments - Rollforward of Al
Investments - Rollforward of Allowance for Credit Losses (Details) - Corporate bonds and notes - Fixed-maturities available for sale $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 948 |
Net increases (decreases) in allowance on previously impaired securities | (918) |
Reduction for securities sold | (30) |
Ending balance | $ 0 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses and Related Fair Values of Available for Sale Securities (Details) $ in Thousands | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 858 | 519 |
Fair value, less than 12 months | $ 3,463,314 | $ 2,004,842 |
Unrealized losses, less than 12 months | $ (312,320) | $ (28,445) |
Number of securities, 12 months or greater | security | 426 | 60 |
Fair value, 12 months or greater | $ 1,434,379 | $ 166,248 |
Unrealized losses, 12 months or greater | $ (269,173) | $ (9,593) |
Number of securities, total | security | 1,284 | 579 |
Fair value, total | $ 4,897,693 | $ 2,171,090 |
Unrealized losses, total | $ (581,493) | $ (38,038) |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 14 | 14 |
Fair value, less than 12 months | $ 86,964 | $ 101,602 |
Unrealized losses, less than 12 months | $ (21,370) | $ (1,165) |
Number of securities, 12 months or greater | security | 10 | 2 |
Fair value, 12 months or greater | $ 47,770 | $ 6,937 |
Unrealized losses, 12 months or greater | $ (7,532) | $ (231) |
Number of securities, total | security | 24 | 16 |
Fair value, total | $ 134,734 | $ 108,539 |
Unrealized losses, total | $ (28,902) | $ (1,396) |
State and municipal obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 43 | 20 |
Fair value, less than 12 months | $ 116,285 | $ 32,721 |
Unrealized losses, less than 12 months | $ (14,231) | $ (401) |
Number of securities, 12 months or greater | security | 20 | 0 |
Fair value, 12 months or greater | $ 25,401 | $ 0 |
Unrealized losses, 12 months or greater | $ (7,708) | $ 0 |
Number of securities, total | security | 63 | 20 |
Fair value, total | $ 141,686 | $ 32,721 |
Unrealized losses, total | $ (21,939) | $ (401) |
Corporate bonds and notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 411 | 209 |
Fair value, less than 12 months | $ 1,769,547 | $ 864,355 |
Unrealized losses, less than 12 months | $ (176,768) | $ (16,799) |
Number of securities, 12 months or greater | security | 203 | 34 |
Fair value, 12 months or greater | $ 701,936 | $ 99,475 |
Unrealized losses, 12 months or greater | $ (173,769) | $ (8,087) |
Number of securities, total | security | 614 | 243 |
Fair value, total | $ 2,471,483 | $ 963,830 |
Unrealized losses, total | $ (350,537) | $ (24,886) |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 124 | 57 |
Fair value, less than 12 months | $ 610,812 | $ 365,476 |
Unrealized losses, less than 12 months | $ (46,117) | $ (6,749) |
Number of securities, 12 months or greater | security | 59 | 3 |
Fair value, 12 months or greater | $ 261,370 | $ 1,543 |
Unrealized losses, 12 months or greater | $ (52,442) | $ (28) |
Number of securities, total | security | 183 | 60 |
Fair value, total | $ 872,182 | $ 367,019 |
Unrealized losses, total | $ (98,559) | $ (6,777) |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 108 | 81 |
Fair value, less than 12 months | $ 469,100 | $ 188,457 |
Unrealized losses, less than 12 months | $ (38,178) | $ (2,053) |
Number of securities, 12 months or greater | security | 55 | 9 |
Fair value, 12 months or greater | $ 121,277 | $ 22,050 |
Unrealized losses, 12 months or greater | $ (14,368) | $ (1,015) |
Number of securities, total | security | 163 | 90 |
Fair value, total | $ 590,377 | $ 210,507 |
Unrealized losses, total | $ (52,546) | $ (3,068) |
CLO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 94 | 84 |
Fair value, less than 12 months | $ 246,705 | $ 313,380 |
Unrealized losses, less than 12 months | $ (10,271) | $ (675) |
Number of securities, 12 months or greater | security | 61 | 11 |
Fair value, 12 months or greater | $ 245,584 | $ 35,612 |
Unrealized losses, 12 months or greater | $ (10,214) | $ (223) |
Number of securities, total | security | 155 | 95 |
Fair value, total | $ 492,289 | $ 348,992 |
Unrealized losses, total | $ (20,485) | $ (898) |
Other ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 61 | 54 |
Fair value, less than 12 months | $ 115,181 | $ 138,851 |
Unrealized losses, less than 12 months | $ (3,603) | $ (603) |
Number of securities, 12 months or greater | security | 18 | 1 |
Fair value, 12 months or greater | $ 31,041 | $ 631 |
Unrealized losses, 12 months or greater | $ (3,140) | $ (9) |
Number of securities, total | security | 79 | 55 |
Fair value, total | $ 146,222 | $ 139,482 |
Unrealized losses, total | $ (6,743) | $ (612) |
Mortgage insurance-linked notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 2 | |
Fair value, less than 12 months | $ 43,745 | |
Unrealized losses, less than 12 months | $ (1,639) | |
Number of securities, 12 months or greater | security | 0 | |
Fair value, 12 months or greater | $ 0 | |
Unrealized losses, 12 months or greater | $ 0 | |
Number of securities, total | security | 2 | |
Fair value, total | $ 43,745 | |
Unrealized losses, total | $ (1,639) | |
Foreign government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities, less than 12 months | security | 1 | |
Fair value, less than 12 months | $ 4,975 | |
Unrealized losses, less than 12 months | $ (143) | |
Number of securities, 12 months or greater | security | 0 | |
Fair value, 12 months or greater | $ 0 | |
Unrealized losses, 12 months or greater | $ 0 | |
Number of securities, total | security | 1 | |
Fair value, total | $ 4,975 | |
Unrealized losses, total | $ (143) |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Investment Holdings [Line Items] | ||
Securities lending rate of collateral required | 1.02 | |
Fixed-maturities available for sale | Debt Securities | ||
Investment Holdings [Line Items] | ||
Assets held by insurance regulators | $ 13.3 | $ 14.3 |
Foreign government and agency securities | ||
Investment Holdings [Line Items] | ||
Securities lending rate of collateral required | 1.05 | |
Loaned securities | ||
Investment Holdings [Line Items] | ||
Securities lending rate of collateral required | 1 | |
Securities received as collateral | $ 16.2 | $ 57.8 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 202,524 | $ 154,956 | $ 160,633 |
Investment expenses | (6,866) | (7,047) | (6,596) |
Net investment income | 195,658 | 147,909 | 154,037 |
Fixed-maturities available for sale | |||
Net Investment Income [Line Items] | |||
Gross investment income | 184,189 | 145,613 | 148,127 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 11,210 | 8,158 | 6,378 |
Mortgage Loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 39 | 0 | 0 |
Short-term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 5,716 | 817 | 5,774 |
Other | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 1,370 | $ 368 | $ 354 |
Investments - Net Gains (Losses
Investments - Net Gains (Losses) on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fixed-maturities available for sale | |||
Mortgage loans held for sale | $ 28 | $ 0 | $ 0 |
Net realized gains (losses) on investments sold or redeemed | (8,278) | 20,842 | 35,826 |
Change in unrealized gains (losses) on investments sold or redeemed | 3,458 | 8,714 | 1,630 |
Impairment losses due to intent to sell | 0 | 0 | (1,401) |
Net decrease (increase) in expected credit losses | 0 | 918 | (1,254) |
Net unrealized gains (losses) on investments still held | |||
Mortgage loans held for sale | 51 | 0 | 0 |
Net unrealized gains (losses) on investments still held | (53,291) | 4,053 | 12,590 |
Total net gains (losses) on investments | (65,027) | 17,099 | 44,131 |
Net gains (losses) on other financial instruments (1) | (15,706) | (1,496) | 16,146 |
Net gains (losses) on investments and other financial instruments | (80,733) | 15,603 | 60,277 |
Fixed-maturities available for sale | |||
Fixed-maturities available for sale | |||
Gross realized gains | 2,763 | 22,766 | 37,431 |
Gross realized losses | (12,737) | (17,105) | (2,562) |
Fixed-maturities available for sale, net | (9,974) | 5,661 | 34,869 |
Trading securities | |||
Fixed-maturities available for sale | |||
Trading securities | (135) | 390 | 4 |
Net unrealized gains (losses) on investments still held | |||
Trading securities | (27,700) | (7,330) | 10,583 |
Equity securities | |||
Fixed-maturities available for sale | |||
Equity securities | 1,655 | 10,820 | 353 |
Net unrealized gains (losses) on investments still held | |||
Equity securities | (25,255) | 10,210 | 1,759 |
Other investments | |||
Fixed-maturities available for sale | |||
Other investments | 148 | 3,971 | 600 |
Net unrealized gains (losses) on investments still held | |||
Other investments | $ (387) | $ 1,173 | $ 248 |
Investments - Contractual Matur
Investments - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Less: loaned securities | $ 112,139 | $ 103,996 |
Total fixed-maturities, available for sale, Amortized Cost | 5,587,261 | 5,367,729 |
Fair Value | ||
Less: loaned securities | 112,139 | 103,996 |
Fixed-maturities available for sale—at fair value (amortized cost of $5,587,261 and $5,367,729) | 5,017,711 | 5,517,078 |
Total fixed-maturities available for sale | Non asset-backed securities | ||
Amortized Cost | ||
Due in one year or less | 111,909 | |
Due after one year through five years | 1,274,935 | |
Due after five years through 10 years | 989,545 | |
Due after 10 years | 854,097 | |
Fair Value | ||
Due in one year or less | 110,443 | |
Due after one year through five years | 1,197,900 | |
Due after five years through 10 years | 857,164 | |
Due after 10 years | 665,067 | |
Total fixed-maturities available for sale | Asset-backed securities and mortgage-related assets | ||
Amortized Cost | ||
Asset-backed and mortgage-backed securities | 2,412,973 | |
Fair Value | ||
Asset-backed and mortgage-backed securities | 2,234,326 | |
Total fixed-maturities available for sale | Total fixed-maturities available for sale | ||
Amortized Cost | ||
Total | 5,643,459 | 5,430,898 |
Total fixed-maturities, available for sale, Amortized Cost | 5,587,261 | 5,367,729 |
Fair Value | ||
Total | 5,064,900 | 5,582,689 |
Fixed-maturities available for sale—at fair value (amortized cost of $5,587,261 and $5,367,729) | 5,017,711 | 5,517,078 |
Loaned securities, amortized cost | Total fixed-maturities available for sale | Total fixed-maturities available for sale | ||
Amortized Cost | ||
Less: loaned securities | 56,198 | 63,169 |
Fair Value | ||
Less: loaned securities | 56,198 | 63,169 |
Loaned securities | Total fixed-maturities available for sale | ||
Amortized Cost | ||
Less: loaned securities | 47,200 | |
Fair Value | ||
Less: loaned securities | 47,200 | |
Loaned securities | Total fixed-maturities available for sale | Total fixed-maturities available for sale | ||
Amortized Cost | ||
Less: loaned securities | 47,189 | 65,611 |
Fair Value | ||
Less: loaned securities | $ 47,189 | $ 65,611 |
Goodwill and Other Acquired I_3
Goodwill and Other Acquired Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 9,800 | $ 9,800 |
Expected amortization expense for 2023 | $ 5,500 |
Goodwill and Other Acquired I_4
Goodwill and Other Acquired Intangible Assets, Net - Schedule of Acquired Finite-Lived Intangible Assets (Details) - homegenius - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 52,298 | $ 52,298 |
Accumulated Amortization | (46,815) | (42,507) |
Net Carrying Amount | 5,483 | 9,791 |
Client relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 43,550 | 43,550 |
Accumulated Amortization | (38,067) | (34,620) |
Net Carrying Amount | 5,483 | 8,930 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,285 | 8,285 |
Accumulated Amortization | (8,285) | (7,675) |
Net Carrying Amount | 0 | 610 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 463 | 463 |
Accumulated Amortization | (463) | (212) |
Net Carrying Amount | $ 0 | $ 251 |
Reinsurance - Effect of Reinsur
Reinsurance - Effect of Reinsurance Programs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Ceded Credit Risk [Line Items] | |||
Direct premiums written | $ 992,418,000 | $ 1,024,660,000 | $ 1,108,513,000 |
Ceded premiums written | (12,652,000) | (48,279,000) | (87,201,000) |
Total net premiums written | 983,791,000 | 983,447,000 | 1,033,509,000 |
Direct premiums earned | 1,050,029,000 | 1,144,361,000 | 1,286,527,000 |
Assumed premiums earned | 4,025,000 | 7,066,000 | 12,214,000 |
Ceded premiums earned | (72,923,000) | (114,244,000) | (183,420,000) |
Total net premiums earned | 981,131,000 | 1,037,183,000 | 1,115,321,000 |
Ceding commissions earned | 18,998,000 | 31,745,000 | 53,654,000 |
Ceded losses | (41,980,000) | (4,570,000) | |
Ceded losses | 58,266,000 | ||
Deferred ceding commissions | 27,400,000 | 38,600,000 | |
Mortgage insurance | |||
Ceded Credit Risk [Line Items] | |||
Direct premiums written | 967,996,000 | 984,995,000 | 1,085,670,000 |
Assumed premiums written | 4,025,000 | 7,066,000 | 12,197,000 |
Ceded premiums written | (12,148,000) | (47,515,000) | (86,912,000) |
Direct premiums earned | 1,025,607,000 | 1,104,696,000 | 1,263,684,000 |
Assumed premiums earned | 4,025,000 | 7,066,000 | 12,214,000 |
Ceded premiums earned | (72,419,000) | (113,480,000) | (183,131,000) |
Total net premiums earned | 957,213,000 | 998,282,000 | 1,092,767,000 |
Title insurance | |||
Ceded Credit Risk [Line Items] | |||
Direct premiums written | 24,422,000 | 39,665,000 | 22,843,000 |
Ceded premiums written | (504,000) | (764,000) | (289,000) |
Direct premiums earned | 24,422,000 | 39,665,000 | 22,843,000 |
Ceded premiums earned | $ (504,000) | $ (764,000) | $ (289,000) |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) reinsuranceArrangement | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Ceded Credit Risk [Line Items] | |||
Funds held under reinsurance agreements, off-balance sheet, asset | $ 174.5 | $ 167.9 | |
Mortgage | |||
Ceded Credit Risk [Line Items] | |||
RIF | $ 66,100 | 60,900 | |
QSR Program | Maximum | |||
Ceded Credit Risk [Line Items] | |||
RIF | $ 8,500 | ||
Radian Guaranty | Mortgage | |||
Ceded Credit Risk [Line Items] | |||
Number of fully collateralized reinsurance arrangements with the eagle re-issuers | reinsuranceArrangement | 6 | ||
Number of Active Fully Collateralized Reinsurance Arrangements With the Eagle Re Issuers | reinsuranceArrangement | 5 | ||
Radian Guaranty | Mortgage | Minimum | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance retention policy, term of coverage, period | 10 years | ||
Radian Guaranty | Mortgage | Maximum | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance retention policy, term of coverage, period | 12 years 6 months | ||
Radian Guaranty | QSR Program | |||
Ceded Credit Risk [Line Items] | |||
RIF ceded | $ 142.4 | $ 207.1 | |
Radian Guaranty | Excess-of-Loss Program | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance optional clean-up call, outstanding principal balance percentage threshold | 0.10 | ||
Radian Guaranty | Excess-of-Loss Program | Minimum | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance right to terminate, optional call date, years after issuance | 5 years | ||
Radian Guaranty | Excess-of-Loss Program | Maximum | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance right to terminate, optional call date, years after issuance | 7 years |
Reinsurance - Single Premium QS
Reinsurance - Single Premium QSR Program (Details) - Radian Guaranty - USD ($) $ in Millions | Sep. 30, 2022 | Jul. 01, 2022 | Jan. 01, 2020 | Jan. 01, 2018 | Jan. 01, 2016 | Dec. 31, 2022 | Dec. 31, 2021 |
2022 QSR Agreement | |||||||
Ceded Credit Risk [Line Items] | |||||||
Ceding commission % | 20% | ||||||
RIF ceded | $ 3,307 | $ 0 | |||||
2022 QSR Agreement | Product Concentration Risk | Revenue Benchmark | |||||||
Ceded Credit Risk [Line Items] | |||||||
Quota share % | 20% | ||||||
2022 QSR Agreement | Maximum | |||||||
Ceded Credit Risk [Line Items] | |||||||
Profit commission % | 59% | ||||||
2020 Single Premium QSR Agreement | |||||||
Ceded Credit Risk [Line Items] | |||||||
Ceding commission % | 25% | ||||||
RIF ceded | 1,993 | 2,198 | |||||
2020 Single Premium QSR Agreement | Product Concentration Risk | Revenue Benchmark | |||||||
Ceded Credit Risk [Line Items] | |||||||
Quota share % | 65% | ||||||
2020 Single Premium QSR Agreement | Maximum | |||||||
Ceded Credit Risk [Line Items] | |||||||
Profit commission % | 56% | ||||||
2018 Single Premium QSR Agreement | |||||||
Ceded Credit Risk [Line Items] | |||||||
Ceding commission % | 25% | ||||||
RIF ceded | 876 | 1,117 | |||||
2018 Single Premium QSR Agreement | Product Concentration Risk | Revenue Benchmark | |||||||
Ceded Credit Risk [Line Items] | |||||||
Quota share % | 65% | ||||||
2018 Single Premium QSR Agreement | Maximum | |||||||
Ceded Credit Risk [Line Items] | |||||||
Profit commission % | 56% | ||||||
2016 Single Premium QSR Agreement | |||||||
Ceded Credit Risk [Line Items] | |||||||
Ceding commission % | 25% | ||||||
RIF ceded | $ 1,207 | $ 1,913 | |||||
2016 Single Premium QSR Agreement | Minimum | Product Concentration Risk | Revenue Benchmark | |||||||
Ceded Credit Risk [Line Items] | |||||||
Quota share % | 18% | 20% | |||||
2016 Single Premium QSR Agreement | Maximum | |||||||
Ceded Credit Risk [Line Items] | |||||||
Profit commission % | 55% | ||||||
2016 Single Premium QSR Agreement | Maximum | Product Concentration Risk | Revenue Benchmark | |||||||
Ceded Credit Risk [Line Items] | |||||||
Quota share % | 57% | 65% |
Reinsurance - Excess-of-Loss Pr
Reinsurance - Excess-of-Loss Program (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2021 | Apr. 30, 2021 | Feb. 29, 2020 | Apr. 30, 2019 | Nov. 30, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage insurance | |||||||
Ceded Credit Risk [Line Items] | |||||||
RIF | $ 66,100 | $ 60,900 | |||||
Excess-of-Loss Program | Radian Guaranty | Eagle Re 2021-1 Ltd. (2) | Radian Group Inc. | |||||||
Ceded Credit Risk [Line Items] | |||||||
Proceeds from issuance of debt | 45.4 | ||||||
Excess-of-Loss Program | Mortgage insurance | Radian Guaranty | Eagle Re 2021-2 Ltd. | |||||||
Ceded Credit Risk [Line Items] | |||||||
RIF | $ 10,758 | 9,150 | 10,379 | ||||
Coverage | 484 | 472 | 484 | ||||
Excess-of-Loss Program | Mortgage insurance | Radian Guaranty | Eagle Re 2021-1 Ltd. (2) | |||||||
Ceded Credit Risk [Line Items] | |||||||
RIF | $ 11,061 | 7,758 | 9,496 | ||||
Coverage | 498 | 366 | 498 | ||||
Excess-of-Loss Program | Mortgage insurance | Radian Guaranty | Eagle Re 2020-1 Ltd. | |||||||
Ceded Credit Risk [Line Items] | |||||||
RIF | $ 9,866 | 2,401 | 3,241 | ||||
Coverage | 488 | 368 | 488 | ||||
Excess-of-Loss Program | Mortgage insurance | Radian Guaranty | Eagle Re 2019-1 Ltd. | |||||||
Ceded Credit Risk [Line Items] | |||||||
RIF | $ 10,705 | 1,769 | 2,429 | ||||
Coverage | 562 | 385 | 385 | ||||
Excess-of-Loss Program | Mortgage insurance | Radian Guaranty | Eagle Re 2018-1 Ltd. | |||||||
Ceded Credit Risk [Line Items] | |||||||
RIF | $ 9,109 | 1,509 | 2,117 | ||||
Coverage | 434 | 276 | 276 | ||||
Excess-of-Loss Program | XOL First Layer | Mortgage insurance | Radian Guaranty | Eagle Re 2021-2 Ltd. | |||||||
Ceded Credit Risk [Line Items] | |||||||
First layer retention | $ 242 | 242 | 242 | ||||
Excess-of-Loss Program | XOL First Layer | Mortgage insurance | Radian Guaranty | Eagle Re 2021-1 Ltd. (2) | |||||||
Ceded Credit Risk [Line Items] | |||||||
First layer retention | $ 221 | 221 | 221 | ||||
Excess-of-Loss Program | XOL First Layer | Mortgage insurance | Radian Guaranty | Eagle Re 2020-1 Ltd. | |||||||
Ceded Credit Risk [Line Items] | |||||||
First layer retention | $ 202 | 202 | 202 | ||||
Excess-of-Loss Program | XOL First Layer | Mortgage insurance | Radian Guaranty | Eagle Re 2019-1 Ltd. | |||||||
Ceded Credit Risk [Line Items] | |||||||
First layer retention | $ 268 | 263 | 264 | ||||
Excess-of-Loss Program | XOL First Layer | Mortgage insurance | Radian Guaranty | Eagle Re 2018-1 Ltd. | |||||||
Ceded Credit Risk [Line Items] | |||||||
First layer retention | $ 205 | $ 200 | $ 201 |
Reinsurance - Total VIE Assets
Reinsurance - Total VIE Assets and Liabilities of Eagle Re Issuers (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Ceded Credit Risk [Line Items] | ||
Total assets | $ 7,063,729 | $ 7,839,185 |
Total liabilities | 3,144,402 | 3,580,389 |
Variable Interest Entity, Primary Beneficiary | ||
Ceded Credit Risk [Line Items] | ||
Total assets | 1,866,809 | 2,274,548 |
Total liabilities | 1,866,809 | 2,274,548 |
Eagle Re 2021-2 Ltd. | Variable Interest Entity, Primary Beneficiary | Excess-of-Loss Program | Radian Guaranty | Mortgage | ||
Ceded Credit Risk [Line Items] | ||
Total assets | 471,942 | 484,122 |
Total liabilities | 471,942 | 484,122 |
Eagle Re 2021-1 Ltd. | Variable Interest Entity, Primary Beneficiary | Excess-of-Loss Program | Radian Guaranty | Mortgage | ||
Ceded Credit Risk [Line Items] | ||
Total assets | 366,169 | 497,735 |
Total liabilities | 366,169 | 497,735 |
Eagle Re 2020-2 Ltd. (2) | Variable Interest Entity, Primary Beneficiary | Excess-of-Loss Program | Radian Guaranty | Mortgage | ||
Ceded Credit Risk [Line Items] | ||
Total assets | 0 | 143,986 |
Total liabilities | 0 | 143,986 |
Eagle Re 2020-1 Ltd. | Variable Interest Entity, Primary Beneficiary | Excess-of-Loss Program | Radian Guaranty | Mortgage | ||
Ceded Credit Risk [Line Items] | ||
Total assets | 368,378 | 488,385 |
Total liabilities | 368,378 | 488,385 |
Eagle Re 2019-1 Ltd. | Variable Interest Entity, Primary Beneficiary | Excess-of-Loss Program | Radian Guaranty | Mortgage | ||
Ceded Credit Risk [Line Items] | ||
Total assets | 384,602 | 384,602 |
Total liabilities | 384,602 | 384,602 |
Eagle Re 2018-1 Ltd. | Variable Interest Entity, Primary Beneficiary | Excess-of-Loss Program | Radian Guaranty | Mortgage | ||
Ceded Credit Risk [Line Items] | ||
Total assets | 275,718 | 275,718 |
Total liabilities | $ 275,718 | $ 275,718 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | ||
Prepaid reinsurance premiums | $ 141,402 | $ 201,674 |
Loaned securities | 112,139 | 103,996 |
Company-owned life insurance | 105,331 | 113,386 |
Right-of-use assets | 21,099 | 31,878 |
Other | $ 47,053 | $ 32,246 |
Operating lease, right-of-use asset, statement of financial position [extensible enumeration] | Total other assets | Total other assets |
Total other assets | $ 427,024 | $ 483,180 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 lease | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Number of leases | lease | 2 | ||
Impairments recognized | $ 7,600 | $ 1,100 | |
Right-of-use assets | 21,099 | 31,878 | |
Property, Plant and Equipment and Leasehold Improvements | |||
Impairments recognized | 5,400 | $ 300 | |
Corporate headquarters | |||
Right-of-use assets | $ 12,900 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current provision (benefit) | $ 2,920 | $ 2,368 | $ (16,264) |
Deferred provision | 206,925 | 161,793 | 102,079 |
Total income tax provision | $ 209,845 | $ 164,161 | $ 85,815 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Taxes from Statutory Rate to Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal statutory income tax rate | 21% | 21% | 21% |
Provision for income taxes computed at the statutory tax rate | $ 200,084 | $ 160,615 | $ 100,683 |
Change in tax resulting from: | |||
State tax provision (benefit), net of federal impact | 20,869 | (1,714) | (9,062) |
Valuation allowance | (13,791) | 5,700 | 11,290 |
Uncertain tax positions | (1,076) | 853 | (14,784) |
Other, net | 3,759 | (1,293) | (2,312) |
Total income tax provision | $ 209,845 | $ 164,161 | $ 85,815 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Net unrealized loss on investments | $ 121,497 | $ 0 |
State income taxes, net of federal impact | 58,031 | 77,637 |
Goodwill and intangibles | 30,782 | 29,723 |
Unearned premiums | 26,108 | 23,699 |
Accrued expenses | 11,913 | 16,584 |
Lease liability | 10,371 | 11,240 |
Differences in fair value of financial instruments | 5,998 | 0 |
Loss reserves | 3,102 | 6,286 |
Other | 32,328 | 27,932 |
Total deferred tax assets | 300,130 | 193,101 |
Deferred tax liabilities | ||
Contingency reserve | 587,722 | 368,000 |
Depreciation | 10,031 | 12,775 |
Net unrealized gain on investments | 0 | 31,876 |
Differences in fair value of financial instruments | 0 | 7,763 |
Other | 23,823 | 26,768 |
Total deferred tax liabilities | 621,576 | 447,182 |
Less: Valuation allowance | 69,637 | 83,428 |
Net deferred tax asset (liability) | $ (391,083) | $ (337,509) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net federal income tax liability, current | $ 21,400 | $ 19,900 |
Deferred tax assets, valuation allowance | 69,637 | 83,428 |
Unrecognized tax benefits that would impact effective tax rate | 2,800 | |
Unrecognized tax (benefits) and expenses, interest and penalties charged to income | (200) | 700 |
Unrecognized tax benefits decreased amount | 900 | |
Decrease in unrecognized tax benefits is reasonably possible | 400 | |
Interest and Penalties | ||
Unrecognized tax benefits that would impact effective tax rate | 2,100 | |
US Treasury Securities | ||
Debt securities | $ 596,400 | $ 354,100 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 19,888 | $ 20,249 |
Tax positions related to the current year: | ||
Increases | 1,791 | 267 |
Decreases | 0 | (858) |
Tax positions related to prior years: | ||
Increases | 17,666 | 230 |
Decreases | (17) | 0 |
Lapses of applicable statute of limitation | (18,518) | 0 |
Balance at end of period | $ 20,810 | $ 19,888 |
Losses and LAE - Reserve for Lo
Losses and LAE - Reserve for Losses and LAE by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Total gross reserve for losses and LAE | $ 426,843 | $ 828,642 | ||
Mortgage insurance | ||||
Total gross reserve for losses and LAE | 420,955 | 823,136 | $ 844,107 | $ 401,273 |
Title insurance | ||||
Total gross reserve for losses and LAE | 5,888 | 5,506 | ||
Primary case | Mortgage insurance | ||||
Total gross reserve for losses and LAE | 398,874 | 790,380 | ||
Primary IBNR and LAE | Mortgage insurance | ||||
Total gross reserve for losses and LAE | 12,169 | 22,745 | ||
Pool and other | Mortgage insurance | ||||
Total gross reserve for losses and LAE | $ 9,912 | $ 10,011 |
Losses and LAE - Mortgage Insur
Losses and LAE - Mortgage Insurance Loss Reserves Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss reserve [Roll Forward] | ||||
Balance at beginning of year | $ 828,642 | |||
Deduct: Paid claims and LAE related to: | ||||
Balance at end of year | 426,843 | $ 828,642 | ||
Mortgage | ||||
Loss reserve [Roll Forward] | ||||
Balance at beginning of year | 823,136 | 844,107 | $ 401,273 | |
Less: Reinsurance recoverables | 66,676 | 71,769 | 14,594 | |
Balance at beginning of year, net of reinsurance recoverable | 396,228 | 756,460 | 772,338 | $ 386,679 |
Add: Losses and LAE incurred in respect of default notices reported and unreported in: | ||||
Current year | 160,049 | 160,565 | 517,807 | |
Prior years | (499,423) | (141,126) | (34,547) | |
Total incurred | (339,374) | 19,439 | 483,260 | |
Deduct: Paid claims and LAE related to: | ||||
Current year | 499 | 1,112 | 4,148 | |
Prior years | 20,359 | 34,205 | 93,453 | |
Total paid | 20,858 | 35,317 | 97,601 | |
Balance at end of period, net of reinsurance recoverable | 396,228 | 756,460 | 772,338 | |
Add: reinsurance recoverables | 24,727 | 66,676 | 71,769 | |
Balance at end of year | $ 420,955 | $ 823,136 | $ 844,107 |
Losses and LAE - Narrative (Det
Losses and LAE - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 default payment | Dec. 31, 2021 default | Dec. 31, 2020 default | |
Number of payments missed for insured loans | 2 | ||
Minimum | |||
Number of payments missed for insured loans | 2 | ||
Mortgage | TEXAS | New Insurance Written | Geographic Concentration Risk | |||
Concentration risk, percentage | 12% | ||
Mortgage | CALIFORNIA | New Insurance Written | Geographic Concentration Risk | |||
Concentration risk, percentage | 10.90% | 10.40% | |
Primary Mortgage Product | Mortgage | |||
Number of new primary default notices | default | 37,738 | 37,470 | 108,025 |
Default to claim rate assumption percentage | 8% | 8% | 8.50% |
Losses and LAE - Reserve Activi
Losses and LAE - Reserve Activity (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Time in default | 2 years | ||
Mortgage | Primary Mortgage Product | |||
New defaults | 8% | 8% | 8.50% |
Foreclosure Stage Defaults | 75% | 85% | 75% |
Mortgage | Time in Default: less than 2 years | Primary Mortgage Product | |||
Defaults not in Foreclosure Stage | 21.80% | 41.60% | 21% |
Mortgage | Time in Default: less than 2 years | Maximum | Primary Mortgage Product | |||
Defaults not in Foreclosure Stage | 55% | 80.10% | 55% |
Mortgage | Time in Default: 2 - 5 years | Primary Mortgage Product | |||
Defaults not in Foreclosure Stage | 65% | 75% | 62.50% |
Mortgage | Time in Default: > 5 years | Primary Mortgage Product | |||
Defaults not in Foreclosure Stage | 70% | 80% | 70% |
Losses and LAE - Additional Dis
Losses and LAE - Additional Disclosures: Claims Development (Details) - Mortgage insurance $ in Thousands | Dec. 31, 2022 USD ($) default | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2014 USD ($) | Dec. 31, 2013 USD ($) |
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 1,560,413 | |||||||||
2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | 397,207 | $ 398,820 | $ 399,317 | $ 399,356 | $ 400,243 | $ 402,259 | $ 404,333 | $ 401,444 | $ 405,334 | $ 505,732 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 5 | |||||||||
Cumulative Number of Reported Defaults | default | 58,577 | |||||||||
2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 257,773 | 260,254 | 261,377 | 261,507 | 260,098 | 264,620 | 265,891 | 247,074 | $ 337,784 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 6 | |||||||||
Cumulative Number of Reported Defaults | default | 47,976 | |||||||||
2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 180,435 | 182,647 | 184,066 | 183,546 | 183,952 | 178,042 | 198,186 | $ 222,555 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 9 | |||||||||
Cumulative Number of Reported Defaults | default | 42,607 | |||||||||
2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 145,267 | 148,349 | 148,640 | 148,811 | 149,753 | 165,440 | $ 201,016 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 14 | |||||||||
Cumulative Number of Reported Defaults | default | 40,503 | |||||||||
2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 122,407 | 126,989 | 130,274 | 133,357 | 151,802 | $ 180,851 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 25 | |||||||||
Cumulative Number of Reported Defaults | default | 42,888 | |||||||||
2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 75,262 | 88,252 | 95,534 | 116,634 | $ 131,513 | |||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 32 | |||||||||
Cumulative Number of Reported Defaults | default | 37,369 | |||||||||
2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 66,466 | 109,416 | 136,860 | $ 143,475 | ||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 79 | |||||||||
Cumulative Number of Reported Defaults | default | 40,985 | |||||||||
2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 87,213 | 408,809 | $ 504,160 | |||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 193 | |||||||||
Cumulative Number of Reported Defaults | default | 108,025 | |||||||||
2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 72,475 | $ 156,328 | ||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 184 | |||||||||
Cumulative Number of Reported Defaults | default | 37,470 | |||||||||
2022 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred losses, net of reinsurance | $ 155,908 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 1,550 | |||||||||
Cumulative Number of Reported Defaults | default | 37,738 |
Losses and LAE - Additional D_2
Losses and LAE - Additional Disclosures: Cumulative Paid Claims / Reconciliation of Outstanding Liabilities (Details) - Mortgage insurance - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | $ 1,196,674 | |||||||||
Incurred losses, net of reinsurance | 1,560,413 | |||||||||
Mortgage | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Liabilities for claims, net of reinsurance | 385,945 | |||||||||
2013 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 395,630 | $ 395,292 | $ 395,093 | $ 392,818 | $ 388,688 | $ 379,036 | $ 357,087 | $ 307,361 | $ 191,040 | $ 34,504 |
Incurred losses, net of reinsurance | 397,207 | 398,820 | 399,317 | 399,356 | 400,243 | 402,259 | 404,333 | 401,444 | 405,334 | $ 505,732 |
2014 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 255,981 | 256,107 | 255,742 | 252,619 | 246,611 | 233,607 | 200,422 | 115,852 | 13,108 | |
Incurred losses, net of reinsurance | 257,773 | 260,254 | 261,377 | 261,507 | 260,098 | 264,620 | 265,891 | 247,074 | $ 337,784 | |
2015 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 176,823 | 175,874 | 174,812 | 172,645 | 163,916 | 142,421 | 84,271 | 10,479 | ||
Incurred losses, net of reinsurance | 180,435 | 182,647 | 184,066 | 183,546 | 183,952 | 178,042 | 198,186 | $ 222,555 | ||
2016 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 139,539 | 138,525 | 137,306 | 134,115 | 119,357 | 76,616 | 11,061 | |||
Incurred losses, net of reinsurance | 145,267 | 148,349 | 148,640 | 148,811 | 149,753 | 165,440 | $ 201,016 | |||
2017 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 112,445 | 111,458 | 108,484 | 99,678 | 66,585 | 24,653 | ||||
Incurred losses, net of reinsurance | 122,407 | 126,989 | 130,274 | 133,357 | 151,802 | $ 180,851 | ||||
2018 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 62,968 | 60,926 | 54,625 | 36,066 | 5,584 | |||||
Incurred losses, net of reinsurance | 75,262 | 88,252 | 95,534 | 116,634 | $ 131,513 | |||||
2019 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 35,594 | 28,896 | 18,703 | 4,220 | ||||||
Incurred losses, net of reinsurance | 66,466 | 109,416 | 136,860 | $ 143,475 | ||||||
2020 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 14,635 | 9,867 | 4,148 | |||||||
Incurred losses, net of reinsurance | 87,213 | 408,809 | $ 504,160 | |||||||
2021 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 2,561 | 1,112 | ||||||||
Incurred losses, net of reinsurance | 72,475 | $ 156,328 | ||||||||
2022 | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | 498 | |||||||||
Incurred losses, net of reinsurance | 155,908 | |||||||||
All outstanding liabilities before 2013, net of reinsurance | ||||||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||||||
Cumulative paid claims, net of reinsurance | $ 22,206 |
Losses and LAE - Net Outstandin
Losses and LAE - Net Outstanding Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total gross reserve for losses and LAE | $ 426,843 | $ 828,642 | ||
Mortgage | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Reinsurance recoverable on unpaid claims | 24,727 | 66,676 | $ 71,769 | $ 14,594 |
Unallocated LAE | 10,283 | |||
Total gross reserve for losses and LAE | 420,955 | 823,136 | $ 844,107 | $ 401,273 |
Title insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total gross reserve for losses and LAE | 5,888 | $ 5,506 | ||
Mortgage insurance | Mortgage | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Reserve for losses and LAE, net of reinsurance | $ 385,945 |
Losses and LAE - Additional D_3
Losses and LAE - Additional Disclosures: Historical Claims Duration (Details) - Mortgage insurance | Dec. 31, 2022 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1 | 6.80% |
2 | 30% |
3 | 24.50% |
4 | 10.40% |
5 | 3.80% |
6 | 1.50% |
7 | 0.90% |
8 | 0.40% |
9 | 0% |
10 | 0.10% |
Borrowings and Financing Acti_3
Borrowings and Financing Activities - Schedule of Senior Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2020 | Jun. 30, 2019 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||||
Total other borrowings | $ 155,822 | $ 150,983 | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
FHLB, floating-rate advances | $ 13,400 | ||||
FHLB weighted average interest rate | 3.617% | ||||
Senior notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,413,504 | 1,409,473 | |||
Senior notes | Senior Notes due 2024 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on senior notes | 4.50% | ||||
Long-term debt | 447,805 | 446,631 | |||
Senior notes | Senior Notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on senior notes | 6.625% | ||||
Long-term debt | 520,305 | 518,405 | |||
Senior notes | Senior Notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on senior notes | 4.875% | ||||
Long-term debt | $ 445,394 | 444,437 | |||
FHLB advances | |||||
Debt Instrument [Line Items] | |||||
FHLB advances due in 2022, average interest rate | 0% | ||||
FHLB advances due in 2023, average interest rate | 2.806% | ||||
FHLB advances due in 2024, average interest rate | 2.54% | ||||
FHLB advances due in 2025, average interest rate | 1.59% | ||||
FHLB advances due in 2027, average interest rate | 2.181% | ||||
2022 | $ 0 | 71,050 | |||
2023 | 104,895 | 52,995 | |||
2024 | 32,371 | 13,954 | |||
2025 | 9,984 | 9,984 | |||
2027 | 6,436 | 3,000 | |||
Total FHLB advances | 153,686 | 150,983 | |||
Mortgage financing facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 2,136 | $ 0 | |||
Mortgage financing facilities, average interest rate | 5.928% |
Borrowings and Financing Acti_4
Borrowings and Financing Activities - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities | Fixed-maturities available for sale | ||
Debt Instrument [Line Items] | ||
Investments serving as collateral for FHLB advances | $ 163,900,000 | $ 167,300,000 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Mortgage financing facilities outstanding | $ 1,413,504,000 | $ 1,409,473,000 |
Senior notes | Senior Notes Due 2024, 2025 and 2027 | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage of principal amount | 100% | |
Basis spread on variable rate | 0.50% | |
Stock retention percentage required in order to make capital stock transactions | 80% | |
FHLB advances | ||
Debt Instrument [Line Items] | ||
FHLB maturity period | 90 days | |
Federal Home Loan Bank certificates and obligations | Minimum | ||
Debt Instrument [Line Items] | ||
FHLB ratio of market value to collateral advances | 1.03 | |
Federal Home Loan Bank certificates and obligations | Maximum | ||
Debt Instrument [Line Items] | ||
FHLB ratio of market value to collateral advances | 1.14 | |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, higher borrowing capacity option | $ 400,000,000 | |
Line of credit facility, fair value of amount outstanding | 0 | |
Revolving credit facility | Unsecured revolving credit facility, expiration date 2026 | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 275,000,000 | |
Mortgages | Mortgage financing facilities | ||
Debt Instrument [Line Items] | ||
Mortgage financing facilities outstanding | $ 2,100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Loss Contingencies [Line Items] | |
Lessee, operating lease, discount rate | 4.80% |
Maximum | |
Loss Contingencies [Line Items] | |
Lessee, operating lease, discount rate | 7.50% |
Insurance Claims | Total primary reserves | Maximum | |
Loss Contingencies [Line Items] | |
Loss contingency, legal actions commencement, period | 2 years |
Insurance Claims | Total pool reserves | Maximum | |
Loss Contingencies [Line Items] | |
Loss contingency, legal actions commencement, period | 3 years |
Commitments and Contingencies_2
Commitments and Contingencies - Total Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 10,633 | $ 9,333 |
Short-term lease cost | 220 | 384 |
Total lease cost | 10,853 | 9,717 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ (12,520) | $ (9,060) |
Commitments and Contingencies_3
Commitments and Contingencies - Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases | ||
Operating lease right-of-use assets | $ 21,099 | $ 31,878 |
Operating lease, right-of-use asset, statement of financial position [extensible enumeration] | Other assets (Note 9) | Other assets (Note 9) |
Operating lease liabilities | $ 49,386 | $ 53,523 |
Operating lease, liability, statement of financial position [extensible enumeration] | Other liabilities | Other liabilities |
Weighted-average remaining lease term - operating leases (in years) | 7 years 6 months | 7 years 10 months 24 days |
Weighted-average discount rate - operating leases | 6.90% | 6.20% |
Remaining maturities of lease liabilities for future years is as follows: | ||
2023 | $ 13,050 | |
2024 | 12,832 | |
2025 | 10,606 | |
2026 | 8,147 | |
2027 | 7,233 | |
2028 and thereafter | 29,361 | |
Total lease payments | 81,229 | |
Less: Imputed interest | (31,843) | |
Present value of lease liabilities | $ 49,386 | $ 53,523 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Feb. 09, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2023 | |
Class of Stock [Line Items] | |||||||||||||||
Payments for repurchase of common stock | $ 400,000 | $ 400,195 | $ 399,100 | $ 226,305 | |||||||||||
Quarterly cash dividends on common stock (in usd per share) | $ 0.20 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | ||||||
Forecast | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Quarterly cash dividends on common stock (in usd per share) | $ 0.225 | ||||||||||||||
Subsequent Event | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Stock repurchase program, authorized amount | $ 300,000 | ||||||||||||||
Total of 3Q19, 1Q20, and 3Q21 Repurchase Programs | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares repurchased under share repurchase programs (in shares) | 19,506 | 17,752 | 11,036 | ||||||||||||
Average price of repurchased shares (in usd per share) | $ 20.52 | ||||||||||||||
Stock repurchase program, remaining purchase authority | $ 0 |
Capital Stock - Shares of Commo
Capital Stock - Shares of Common Stock (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (decrease) in common stock | |||
Common stock, beginning balance (in shares) | 175,421 | 191,606 | 201,164 |
Issuance of common stock under incentive and benefit plans, net of shares withheld for employee taxes (in shares) | 1,141 | 1,567 | 1,478 |
Common stock, ending balance (in shares) | 157,056 | 175,421 | 191,606 |
Total of 3Q19, 1Q20, and 3Q21 Repurchase Programs | |||
Increase (decrease) in common stock | |||
Shares repurchased under share repurchase programs (in shares) | (19,506) | (17,752) | (11,036) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net of Tax | ||||
Balance at beginning and end of period | $ (456,799) | $ 120,093 | ||
Other comprehensive income (loss) | ||||
Unrealized holding gains (losses) arising during the period, net of tax | (584,856) | (138,435) | $ 178,761 | |
Less: Reclassification adjustment for net gains (losses) on investments included in net income: | ||||
Net realized gains (losses) on disposals and non-credit related impairment losses | (7,880) | 4,472 | 26,440 | |
Net decrease (increase) in expected credit losses | 0 | 725 | (991) | |
Net unrealized gains (losses) on investments | (576,976) | (143,632) | 153,312 | |
Other adjustments to comprehensive income (loss), net | 84 | 0 | (75) | |
Other comprehensive income (loss), net of tax | (576,892) | (143,632) | 153,237 | |
Other Comprehensive Income (Loss) | ||||
Before Tax | ||||
Balance at beginning of period | 152,016 | 333,829 | 139,858 | |
Other comprehensive income (loss) | ||||
Unrealized holding gains (losses) arising during the period, before tax | (740,324) | (175,234) | 226,280 | |
Less: Reclassification adjustment for net gains (losses) on investments included in net income | ||||
Net realized gains (losses) on disposals and non-credit related impairment losses | (9,974) | 5,661 | 33,468 | |
Net decrease (increase) in expected credit losses | 918 | (1,254) | ||
Net unrealized gains on investments | (730,350) | (181,813) | 194,066 | |
Other adjustments to comprehensive income, net | 106 | (95) | ||
Other comprehensive income (loss) | (730,244) | (181,813) | 193,971 | |
Balance at end of period | (578,228) | 152,016 | 333,829 | |
Tax Effect | ||||
Balance at beginning of period | 31,923 | 70,104 | 29,370 | |
Other comprehensive income (loss) | ||||
Unrealized holding gains (losses) arising during the period, tax | (155,468) | (36,799) | 47,519 | |
Less: Reclassification adjustment for net gains (losses) on investments included in net income: | ||||
Net realized gains (losses) on disposals and non-credit related impairment losses | (2,094) | 1,189 | 7,028 | |
Net decrease (increase) in expected credit losses | 193 | (263) | ||
Net unrealized gains on investments | (153,374) | (38,181) | 40,754 | |
Other adjustments to comprehensive income, net | 22 | (20) | ||
Other comprehensive income (loss) | (153,352) | (38,181) | 40,734 | |
Balance at end of period | (121,429) | 31,923 | 70,104 | |
Net of Tax | ||||
Balance at beginning and end of period | (456,799) | 120,093 | 263,725 | $ 110,488 |
Other comprehensive income (loss) | ||||
Unrealized holding gains (losses) arising during the period, net of tax | (584,856) | (138,435) | 178,761 | |
Less: Reclassification adjustment for net gains (losses) on investments included in net income: | ||||
Net realized gains (losses) on disposals and non-credit related impairment losses | (7,880) | 4,472 | 26,440 | |
Net decrease (increase) in expected credit losses | 725 | (991) | ||
Net unrealized gains (losses) on investments | (576,976) | (143,632) | 153,312 | |
Other adjustments to comprehensive income (loss), net | 84 | (75) | ||
Other comprehensive income (loss), net of tax | $ (576,892) | $ (143,632) | $ 153,237 |
Statutory Information - Narrati
Statutory Information - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Dec. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) state subsidiary | Feb. 28, 2022 USD ($) | Dec. 31, 2022 USD ($) state subsidiary | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2022 USD ($) | |
Statutory Accounting Practices [Line Items] | |||||||
Return of capital | $ 282,000 | $ 282,000 | |||||
Prepaid taxes | $ 596,368 | $ 596,368 | $ 354,123 | ||||
Original maturity of bonds | 10 years | ||||||
Risk-to-capital ratio maximum | 25 | 25 | |||||
Restricted net assets held by consolidated subsidiaries | $ 4,300,000 | $ 4,300,000 | |||||
Distributions from Radian Guaranty | $ 882,000 | ||||||
Credit Risk Transfer Transactions | |||||||
Statutory Accounting Practices [Line Items] | |||||||
RIF | $ 276,000 | ||||||
Radian Guaranty | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Number of states operated in | state | 50 | 50 | |||||
Return of capital | $ 500,000 | $ 782,000 | |||||
Risk-to-capital ratio | 10.7 | 10.7 | 11.1 | ||||
Unassigned surplus | $ 258,500 | $ 258,500 | $ (562,800) | ||||
Contingency reserve | $ 4,400,000 | 4,400,000 | 3,900,000 | ||||
Distributions from Radian Guaranty | $ 881,979 | $ 0 | $ 0 | ||||
Radian Reinsurance | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Admitted assets | $ 325,000 | ||||||
Radian Title Insurance | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Number of states operated in | state | 41 | 41 | |||||
Differences Between GAAP Basis and SAP Basis | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Special contingency reserve equal to premiums earned, percent | 50% | ||||||
Years contingency reserve maintained | 10 years | ||||||
Loss ratio, percent | 35% | ||||||
PENNSYLVANIA | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Number of subsidiaries | subsidiary | 1 | 1 | |||||
State Insurance Regulations | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Number of states with RBC requirement | state | 16 | 16 | |||||
Non RBC States | Minimum | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Statutory capital requirements for non-RBC states | $ 1,000 | $ 1,000 | |||||
Non RBC States | Maximum | |||||||
Statutory Accounting Practices [Line Items] | |||||||
Statutory capital requirements for non-RBC states | $ 5,000 | $ 5,000 |
Statutory Information - Statuto
Statutory Information - Statutory Financial Statements (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) insuranceSubsidiary | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Statutory Accounting Practices [Line Items] | |||
Number of insurance subsidiaries | insuranceSubsidiary | 2 | ||
Radian Guaranty | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | $ 1,091,946 | $ 762,609 | $ 474,431 |
Statutory policyholders' surplus | 758,467 | 1,105,266 | 842,188 |
Other mortgage subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | 1,957 | 1,669 | 1,086 |
Statutory policyholders' surplus | 17,086 | 14,524 | 41,327 |
Radian Title Insurance | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | 2,589 | 6,862 | 2,126 |
Statutory policyholders' surplus | $ 39,285 | $ 36,599 | $ 28,849 |
Statutory Information - Surplus
Statutory Information - Surplus Additions (Distributions) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 30, 2022 | Dec. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Surplus [Line Items] | ||||||
Distributions from Radian Guaranty surplus and from other insurance subsidiaries' surplus | $ (882,000) | |||||
Return of capital | $ 282,000 | $ 282,000 | ||||
Radian Guaranty | ||||||
Statutory Surplus [Line Items] | ||||||
Additions to Radian Guaranty surplus and to other insurance subsidiaries' surplus | 0 | $ 0 | $ 200,000 | |||
Distributions from Radian Guaranty surplus and from other insurance subsidiaries' surplus | (881,979) | 0 | 0 | |||
Return of capital | $ 500,000 | 782,000 | ||||
Repayments of debt | (100,000) | |||||
Other mortgage subsidiaries | ||||||
Statutory Surplus [Line Items] | ||||||
Additions to Radian Guaranty surplus and to other insurance subsidiaries' surplus | 0 | 250 | 0 | |||
Distributions from Radian Guaranty surplus and from other insurance subsidiaries' surplus | $ (32,500) | $ (40,000) | $ (465,000) |
Share-Based Compensation and _3
Share-Based Compensation and Other Benefit Programs - Narrative (Details) | 12 Months Ended | 72 Months Ended | |||
Dec. 31, 2022 USD ($) anniversary $ / shares shares | Dec. 31, 2021 USD ($) anniversary $ / shares shares | Dec. 31, 2020 USD ($) anniversary $ / shares shares | Dec. 31, 2022 USD ($) anniversary shares | Feb. 24, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum percentage of base earnings qualifying for pre-tax contributions | 100% | ||||
Defined contribution plan, annual contribution per employee, amount | $ 20,500 | ||||
Maximum catch-up amount | $ 6,500 | ||||
Matching contribution percentage | 100% | ||||
Base earnings qualifying for parent company matching contribution, percent | 6% | ||||
Matching funds expense | $ 9,700,000 | $ 7,800,000 | $ 7,800,000 | ||
Performance-Based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value (in usd per share) | $ / shares | $ 20.09 | ||||
Performance-Based | 2021 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of RSUs vested | $ 16,900,000 | ||||
Award period | 3 years | ||||
Performance-Based | 2020 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value (in usd per share) | $ / shares | $ 20.39 | ||||
Fair value of RSUs vested | $ 18,900,000 | ||||
Award period | 3 years | ||||
Performance-Based | 2019 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value (in usd per share) | $ / shares | $ 11.91 | ||||
Fair value of RSUs vested | $ 17,200,000 | ||||
Performance-Based | 2022 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award period | 3 years | ||||
Performance-Based | Minimum | 2021 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payout percentage of target award | 0% | ||||
Post-vesting holding period | 1 year | ||||
Performance-Based | Minimum | 2020 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payout percentage of target award | 0% | ||||
Post-vesting holding period | 1 year | ||||
Performance-Based | Minimum | 2022 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payout percentage of target award | 0% | ||||
Post-vesting holding period | 1 year | ||||
Performance-Based | Maximum | 2021 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payout percentage of target award | 200% | ||||
Performance-Based | Maximum | 2020 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payout percentage of target award | 200% | ||||
Performance-Based | Maximum | 2019 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payout percentage of target award | 200% | ||||
Time-Vested | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value (in usd per share) | $ / shares | $ 20.61 | ||||
Time-Vested | 2021 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of RSUs vested | $ 10,600,000 | ||||
Number of anniversaries of the grant date | anniversary | 3 | ||||
Award vesting period | 3 years | ||||
Time-Vested | 2020 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value (in usd per share) | $ / shares | $ 21.71 | ||||
Fair value of RSUs vested | $ 18,100,000 | ||||
Number of anniversaries of the grant date | anniversary | 3 | ||||
Award vesting period | 3 years | ||||
Time-Vested | 2019 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value (in usd per share) | $ / shares | $ 13.49 | ||||
Fair value of RSUs vested | $ 7,600,000 | ||||
Time-Vested | 2022 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of anniversaries of the grant date | anniversary | 3 | 3 | |||
Award vesting period | 3 years | ||||
Time-Vested | Minimum | 2021 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Time-Vested | Minimum | 2020 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Time-Vested | Minimum | 2022 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected vesting or offering term | 4 years | ||||
Stock options granted (in shares) | shares | 0 | ||||
Options | 2022 Award Year | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted (in shares) | shares | 0 | ||||
Options | Award vesting percentage on or after the third anniversary of grant date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights percentage | 50% | ||||
Options | Award vesting percentage on or after the fourth anniversary of grant date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights percentage | 50% | ||||
Equity Compensation Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum contractual term for all awards | 10 years | ||||
Unrecognized compensation expense | $ 31,700,000 | $ 31,700,000 | |||
Period for recognition | 1 year 8 months 12 days | ||||
Equity Compensation Plans | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Change of control, grantee employment termination, vesting period range (in days and years) | 90 days | ||||
Equity Compensation Plans | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Change of control, grantee employment termination, vesting period range (in days and years) | 1 year | ||||
2021 Equity Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of common stock authorized for issuance | shares | 8,300,000 | 8,300,000 | |||
Number of shares remaining available for grant (shares reserve) | shares | 8,100,000 | 8,100,000 | |||
Amended and Restated Radian Group Inc. Employee Stock Purchase Plan | ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected vesting or offering term | 6 months | ||||
Discount percentage from market price | 15% | ||||
Shares issued to employees under ESPP Plans (in shares) | shares | 100,000 | 100,000 | 100,000 | ||
Amended and Restated Radian Group Inc. Employee Stock Purchase Plan | ESPP | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
ESPP, number of shares available for issuance | shares | 1,500,000 |
Share-Based Compensation and _4
Share-Based Compensation and Other Benefit Programs - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Compensation cost recognized | |||
Total compensation cost recognized | $ 38,061 | $ 28,363 | $ 19,193 |
Income tax benefit related to share-based compensation expense | 7,524 | 7,168 | 4,264 |
Share-based compensation expense, net | 30,537 | 21,195 | 14,929 |
RSUs | |||
Compensation cost recognized | |||
Total compensation cost recognized | 37,465 | 27,803 | 18,403 |
ESPP and other | |||
Compensation cost recognized | |||
Total compensation cost recognized | $ 596 | $ 560 | $ 790 |
Share-Based Compensation and _5
Share-Based Compensation and Other Benefit Programs - RSUs (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Performance-Based | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, December 31, 2020 (in shares) | 2,340,673 | ||
Outstanding, December 31, 2020 (in usd per share) | $ 16.76 | ||
Granted (in shares) | 643,740 | ||
Granted (in usd per share) | $ 20.09 | ||
Performance adjustment (in shares) | 197,534 | ||
Performance adjustment (in usd per share) | $ 0 | ||
Vested (in shares) | (796,479) | ||
Vested (in usd per share) | $ 18.35 | ||
Forfeited (in shares) | (23,067) | ||
Forfeited (in usd per share) | $ 20.08 | ||
Outstanding, December 31, 2021 (in shares) | 2,362,401 | 2,340,673 | |
Outstanding, December 31, 2021 (in usd per share) | $ 17.59 | $ 16.76 | |
Performance-Based | 2021 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Award period | 3 years | ||
Performance-Based | 2020 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in usd per share) | $ 20.39 | ||
Award period | 3 years | ||
Performance-Based | 2019 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in usd per share) | $ 11.91 | ||
Performance-Based | 2022 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Award period | 3 years | ||
Time-Vested | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, December 31, 2020 (in shares) | 1,808,551 | ||
Outstanding, December 31, 2020 (in usd per share) | $ 15.51 | ||
Granted (in shares) | 612,099 | ||
Granted (in usd per share) | $ 20.61 | ||
Performance adjustment (in shares) | 0 | ||
Performance adjustment (in usd per share) | $ 0 | ||
Vested (in shares) | (503,231) | ||
Vested (in usd per share) | $ 19.47 | ||
Forfeited (in shares) | (25,619) | ||
Forfeited (in usd per share) | $ 18.77 | ||
Outstanding, December 31, 2021 (in shares) | 1,891,800 | 1,808,551 | |
Outstanding, December 31, 2021 (in usd per share) | $ 16.06 | $ 15.51 | |
Time-Vested | 2020 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in usd per share) | $ 21.71 | ||
Time-Vested | 2019 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in usd per share) | $ 13.49 | ||
Minimum | Performance-Based | 2021 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Payout percentage of target award | 0% | ||
Minimum | Performance-Based | 2020 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Payout percentage of target award | 0% | ||
Minimum | Performance-Based | 2022 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Payout percentage of target award | 0% | ||
Maximum | Performance-Based | 2021 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Payout percentage of target award | 200% | ||
Maximum | Performance-Based | 2020 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Payout percentage of target award | 200% | ||
Maximum | Performance-Based | 2019 Award Year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Payout percentage of target award | 200% |
Share-Based Compensation and _6
Share-Based Compensation and Other Benefit Programs - Non-Qualified Stock Options (Details) - Options $ / shares in Units, $ in Thousands | 12 Months Ended | 72 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, December 31, 2021 (in shares) | shares | 563,906 | |
Outstanding, December 31, 2021 (in usd per share) | $ / shares | $ 12.21 | |
Granted (in shares) | shares | 0 | |
Exercised (in shares) | shares | (192,501) | |
Exercised (in usd per share) | $ / shares | $ 7.24 | |
Forfeited (in shares) | shares | 0 | |
Forfeited (in usd per share) | $ / shares | $ 0 | |
Expired (in shares) | shares | 0 | |
Expired (in usd per share) | $ / shares | $ 0 | |
Outstanding, December 31, 2022 (in shares) | shares | 371,405 | 371,405 |
Outstanding, December 31, 2022 (in usd per share) | $ / shares | $ 14.78 | $ 14.78 |
Outstanding, December 31, 2022 Weighted Average Remaining Contractual Term | 2 years 1 month 6 days | |
Outstanding, December 31, 2022 Aggregate Intrinsic Value | $ | $ 1,593 | $ 1,593 |
Exercisable, December 31, 2022 (in shares) | shares | 371,405 | 371,405 |
Exercisable, December 31, 2022 (in usd per share) | $ / shares | $ 14.78 | $ 14.78 |
Exercisable, December 31, 2022 Weighted Average Remaining Contractual Term | 2 years 1 month 6 days | |
Exercisable, December 31, 2022 Aggregate Intrinsic Value | $ | $ 1,593 | $ 1,593 |
Share Price | $ / shares | $ 19.07 | $ 19.07 |
2022 Award Year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Granted (in shares) | shares | 0 | |
Granted (in usd per share) | $ / shares | $ 0 |
Share-Based Compensation and _7
Share-Based Compensation and Other Benefit Programs - Additional Information (Details) - Options - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of options exercised | $ 2,926 | $ 3,354 | $ 3,344 |
Tax benefit of options exercised | 614 | 704 | 702 |
Cash received from options exercised | $ 1,341 | $ 1,382 | $ 1,553 |
Schedule I_ Summary of Invest_3
Schedule I: Summary of Investments—Other Than Investments in Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | $ 6,407,842 | |
Fair Value | 5,805,630 | |
Amount Reflected on the Consolidated Balance Sheet | 5,805,630 | |
Loaned securities | 112,139 | $ 103,996 |
Reinvested cash collateral held under securities lending agreements | 99,735 | $ 48,652 |
U.S. government and agency securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 174,138 | |
Fair Value | 145,442 | |
Amount Reflected on the Consolidated Balance Sheet | 145,442 | |
State and municipal obligations | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 164,325 | |
Fair Value | 142,386 | |
Amount Reflected on the Consolidated Balance Sheet | 142,386 | |
Corporate bonds and notes | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 2,886,905 | |
Fair Value | 2,537,771 | |
Amount Reflected on the Consolidated Balance Sheet | 2,537,771 | |
RMBS | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 1,025,795 | |
Fair Value | 928,399 | |
Amount Reflected on the Consolidated Balance Sheet | 928,399 | |
CMBS | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 645,890 | |
Fair Value | 593,357 | |
Amount Reflected on the Consolidated Balance Sheet | 593,357 | |
CLO | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 518,677 | |
Fair Value | 498,192 | |
Amount Reflected on the Consolidated Balance Sheet | 498,192 | |
Other ABS | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 168,033 | |
Fair Value | 161,359 | |
Amount Reflected on the Consolidated Balance Sheet | 161,359 | |
Foreign government and agency securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 5,118 | |
Fair Value | 4,975 | |
Amount Reflected on the Consolidated Balance Sheet | 4,975 | |
Mortgage insurance-linked notes | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 54,578 | |
Fair Value | 53,019 | |
Amount Reflected on the Consolidated Balance Sheet | 53,019 | |
Total fixed-maturities available for sale | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 5,643,459 | |
Fair Value | 5,064,900 | |
Amount Reflected on the Consolidated Balance Sheet | 5,064,900 | |
Total fixed-maturities available for sale | Loaned securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Loaned securities | 47,200 | |
Trading securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 122,472 | |
Fair Value | 115,665 | |
Amount Reflected on the Consolidated Balance Sheet | 115,665 | |
Reinvested cash collateral held under securities lending agreements | 99,700 | |
Common stocks | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 230,525 | |
Fair Value | 213,519 | |
Amount Reflected on the Consolidated Balance Sheet | 213,519 | |
Total equity securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 230,525 | |
Fair Value | 213,519 | |
Amount Reflected on the Consolidated Balance Sheet | 213,519 | |
Mortgage loans held for sale | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 3,498 | |
Fair Value | 3,549 | |
Amount Reflected on the Consolidated Balance Sheet | 3,549 | |
Other invested assets | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 5,336 | |
Fair Value | 5,511 | |
Amount Reflected on the Consolidated Balance Sheet | 5,511 | |
Short-term investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized Cost | 402,552 | |
Fair Value | 402,486 | |
Amount Reflected on the Consolidated Balance Sheet | 402,486 | |
Short-term investments | Loaned securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Loaned securities | 400 | |
Equity securities | Loaned securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Loaned securities | $ 64,600 |
Schedule II - Financial Infor_3
Schedule II - Financial Information of Registrant - Parent Company Balance Sheet (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investments | ||||
Fixed-maturities available for sale—at fair value (amortized cost of $747,309 and $485,727) | $ 5,017,711 | $ 5,517,078 | ||
Equity securities—at fair value (cost of $140,733) | 148,965 | 184,245 | ||
Other invested assets—at fair value | 5,511 | 4,165 | ||
Short-term investments—at fair value (includes $61,328 and $1,058 of reinvested cash collateral held under securities lending agreements) | 402,090 | 551,508 | ||
Total investments | 5,693,491 | 6,513,542 | ||
Cash | 56,183 | 151,145 | ||
Investment in subsidiaries, at equity in net assets (Note C) | 4,300,000 | |||
Accounts and notes receivable (Note C) | 119,834 | 124,016 | ||
Other assets (Note C) | 427,024 | 483,180 | ||
Total assets | 7,063,729 | 7,839,185 | ||
Liabilities | ||||
Senior notes | 1,413,504 | 1,409,473 | ||
Net deferred tax liability (Note A) | 391,083 | 337,509 | ||
Other liabilities (Note C) | 333,604 | 296,614 | ||
Total liabilities | 3,144,402 | 3,580,389 | ||
Common stockholders’ equity | ||||
Common stock ($0.001 par value; 485,000 shares authorized; 2022: 176,509 and 157,056 shares issued and outstanding, respectively; 2021: 194,408 and 175,421 shares issued and outstanding, respectively) | 176 | 194 | ||
Treasury stock, at cost (2022: 19,453 shares; 2021: 18,987 shares) | (930,643) | (920,798) | ||
Additional paid-in capital | 1,519,641 | 1,878,372 | ||
Retained earnings | 3,786,952 | 3,180,935 | ||
Accumulated other comprehensive income (loss) | (456,799) | 120,093 | ||
Total common stockholders’ equity | 3,919,327 | 4,258,796 | $ 4,284,353 | |
Total liabilities and stockholders’ equity | 7,063,729 | 7,839,185 | ||
Balance Sheet Parentheticals [Abstract] | ||||
Fixed-maturities available for sale, amortized cost | 5,587,261 | 5,367,729 | ||
Equity securities, amortized cost | 162,899 | 176,229 | ||
Reinvested cash collateral held under securities lending agreements | $ 99,735 | $ 48,652 | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 485,000 | 485,000 | ||
Common stock, shares, issued (in shares) | 176,509 | 194,408 | ||
Common stock, shares, outstanding (in shares) | 157,056 | 175,421 | 191,606 | 201,164 |
Treasury stock (in shares) | 19,453 | 18,987 | ||
Parent Company | ||||
Investments | ||||
Fixed-maturities available for sale—at fair value (amortized cost of $747,309 and $485,727) | $ 675,948 | $ 481,659 | ||
Equity securities—at fair value (cost of $140,733) | 140,804 | 0 | ||
Other invested assets—at fair value | 3,958 | 3,511 | ||
Short-term investments—at fair value (includes $61,328 and $1,058 of reinvested cash collateral held under securities lending agreements) | 108,232 | 120,601 | ||
Total investments | 928,942 | 605,771 | ||
Cash | 1,872 | 38,846 | ||
Investment in subsidiaries, at equity in net assets (Note C) | 4,576,644 | 5,210,917 | ||
Accounts and notes receivable (Note C) | 657 | 100,002 | ||
Other assets (Note C) | 157,370 | 65,923 | ||
Total assets | 5,665,485 | 6,021,459 | ||
Liabilities | ||||
Senior notes | 1,413,504 | 1,409,473 | ||
Net deferred tax liability (Note A) | 196,829 | 283,585 | ||
Other liabilities (Note C) | 135,825 | 69,605 | ||
Total liabilities | 1,746,158 | 1,762,663 | ||
Common stockholders’ equity | ||||
Common stock ($0.001 par value; 485,000 shares authorized; 2022: 176,509 and 157,056 shares issued and outstanding, respectively; 2021: 194,408 and 175,421 shares issued and outstanding, respectively) | 176 | 194 | ||
Treasury stock, at cost (2022: 19,453 shares; 2021: 18,987 shares) | (930,643) | (920,798) | ||
Additional paid-in capital | 1,519,641 | 1,878,372 | ||
Retained earnings | 3,786,952 | 3,180,935 | ||
Accumulated other comprehensive income (loss) | (456,799) | 120,093 | ||
Total common stockholders’ equity | 3,919,327 | 4,258,796 | ||
Total liabilities and stockholders’ equity | 5,665,485 | 6,021,459 | ||
Balance Sheet Parentheticals [Abstract] | ||||
Fixed-maturities available for sale, amortized cost | 747,309 | 485,727 | ||
Equity securities, amortized cost | 140,733 | |||
Reinvested cash collateral held under securities lending agreements | $ 61,328 | $ 1,058 |
Schedule II - Financial Infor_4
Schedule II - Financial Information of Registrant - Parent Company Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Net investment income | $ 195,658 | $ 147,909 | $ 154,037 |
Net gains (losses) on investments and other financial instruments (includes net realized gains (losses) on investments of $(8,278), $20,842 and $35,826) (Note 6) | (80,733) | 15,603 | 60,277 |
Other income | 2,454 | 3,412 | 3,597 |
Total revenues | 1,190,726 | 1,329,932 | 1,438,617 |
Expenses | |||
Other operating expenses | 381,148 | 323,686 | 280,710 |
Total expenses (Note B) | 237,947 | 565,100 | 959,176 |
Pretax income | 952,779 | 764,832 | 479,441 |
Income tax provision (benefit) | 209,845 | 164,161 | 85,815 |
Net income | 742,934 | 600,671 | 393,626 |
Other comprehensive income (loss), net of tax | (576,892) | (143,632) | 153,237 |
Comprehensive income | 166,042 | 457,039 | 546,863 |
Parent Company | |||
Revenues | |||
Net investment income | 20,584 | 7,540 | 19,459 |
Net gains (losses) on investments and other financial instruments (includes net realized gains (losses) on investments of $(8,278), $20,842 and $35,826) (Note 6) | (4,322) | 980 | 5,682 |
Other income | 78 | 11 | 101 |
Total revenues | 16,340 | 8,531 | 25,242 |
Expenses | |||
Other operating expenses | 2,043 | 3,163 | 2,619 |
Total expenses (Note B) | 2,043 | 3,163 | 2,619 |
Pretax income | 14,297 | 5,368 | 22,623 |
Income tax provision (benefit) | 8,148 | 1,167 | (3,165) |
Equity in net income of affiliates | 736,785 | 596,470 | 367,838 |
Net income | 742,934 | 600,671 | 393,626 |
Other comprehensive income (loss), net of tax | (576,892) | (143,632) | 153,237 |
Comprehensive income | $ 166,042 | $ 457,039 | $ 546,863 |
Schedule II - Financial Infor_5
Schedule II - Financial Information of Registrant - Parent Company Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 09, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||||
Net cash provided by (used in) operating activities | $ 388,298 | $ 557,112 | $ 658,434 | |
Proceeds from sales of: | ||||
Fixed-maturities available for sale | 399,371 | 735,340 | 963,589 | |
Trading securities | 8,868 | 7,952 | 11,602 | |
Proceeds from redemptions of: | ||||
Fixed-maturities available for sale | 789,929 | 1,225,626 | 645,068 | |
Purchases of: | ||||
Fixed-maturities available for sale | (1,414,966) | (1,980,155) | (2,449,762) | |
Equity securities | (24,637) | (105,649) | (85,014) | |
Sales, redemptions and (purchases) of: | ||||
Short-term investments, net | 150,694 | 68,083 | (82,925) | |
Other assets and other invested assets, net | (6,887) | 6,126 | 1,434 | |
Net cash provided by (used in) investing activities | (5,175) | (1,862) | (883,180) | |
Cash flows from financing activities | ||||
Dividends and dividend equivalents paid | (135,437) | (103,298) | (97,458) | |
Issuance of common stock | 1,341 | 1,382 | 1,553 | |
Repurchases of common stock | $ (400,000) | (400,195) | (399,100) | (226,305) |
Issuance of senior notes, net | 0 | 0 | 515,567 | |
Credit facility commitment fees paid | (814) | (3,325) | (2,292) | |
Change in secured borrowings, net (with terms three months or less) | 60,270 | 1,057 | 0 | |
Net cash provided by (used in) financing activities | (479,183) | (496,776) | 222,618 | |
Increase (decrease) in cash and restricted cash | (96,060) | 58,474 | (2,128) | |
Cash and restricted cash, beginning of period | 152,620 | 94,146 | 96,274 | |
Cash and restricted cash, end of period | 56,560 | 152,620 | 94,146 | |
Parent Company | ||||
Cash flows from operating activities | ||||
Net cash provided by (used in) operating activities | (71) | 66,317 | (13,741) | |
Proceeds from sales of: | ||||
Fixed-maturities available for sale | 56,934 | 195,452 | 304,737 | |
Trading securities | 8,868 | 0 | 0 | |
Equity securities | 0 | 0 | 13,401 | |
Proceeds from redemptions of: | ||||
Fixed-maturities available for sale | 194,859 | 301,788 | 238,161 | |
Purchases of: | ||||
Fixed-maturities available for sale | (29,039) | (156,344) | (691,874) | |
Equity securities | (2,500) | 0 | 0 | |
Sales, redemptions and (purchases) of: | ||||
Short-term investments, net | 188,149 | 113,939 | (53,024) | |
Other assets and other invested assets, net | (3,851) | (864) | (6,068) | |
Capital distributions from subsidiaries | 32,512 | 44,951 | 19,000 | |
Capital contributions to subsidiaries | (8,000) | (43,250) | (5,050) | |
Net cash provided by (used in) investing activities | 437,932 | 455,672 | (180,717) | |
Cash flows from financing activities | ||||
Dividends and dividend equivalents paid | (135,437) | (103,298) | (97,458) | |
Issuance of common stock | 1,341 | 1,382 | 1,553 | |
Repurchases of common stock | (400,195) | (399,100) | (226,305) | |
Issuance of senior notes, net | 0 | 0 | 515,567 | |
Credit facility commitment fees paid | (814) | (3,325) | (2,292) | |
Net cash provided by (used in) financing activities | (474,835) | (503,284) | 191,065 | |
Increase (decrease) in cash and restricted cash | (36,974) | 18,705 | (3,393) | |
Cash and restricted cash, beginning of period | 38,846 | 20,141 | 23,534 | |
Cash and restricted cash, end of period | 1,872 | 38,846 | 20,141 | |
Cash distributions received from consolidated subsidiaries | 49,800 | 85,000 | 1,700 | |
Dividends received from consolidated subsidiaries | $ 888,000 | $ 92,300 | $ 484,100 |
Schedule II - Financial Infor_6
Schedule II - Financial Information of Registrant - Parent Company Only Supplemental Notes (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) financialGuarantyStructuredTransaction | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Condensed Financial Statements, Captions [Line Items] | |||
Net deferred tax liability | $ 391,083 | $ 337,509 | |
Allocated operating expenses | 163,000 | 147,386 | $ 129,870 |
Allocated interest expense | 82,568 | 82,833 | 68,938 |
Distributions from Radian Guaranty | 882,000 | ||
Increase in other assets | (65,744) | (65,071) | (114,769) |
Increase in other liabilities | (40,499) | (2,914) | (54,980) |
Mortgage financing facilities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Mortgage financing facilities outstanding | 2,136 | 0 | |
Radian Mortgage Assurance | |||
Condensed Financial Statements, Captions [Line Items] | |||
Statutory accounting practices, statutory capital and surplus required | 5,000 | ||
Statutory policyholders' surplus | 8,800 | ||
RIF | 0 | ||
Radian Guaranty | |||
Condensed Financial Statements, Captions [Line Items] | |||
Statutory policyholders' surplus | 758,467 | 1,105,266 | 842,188 |
Distributions from Radian Guaranty | $ 881,979 | 0 | 0 |
Radian Guaranty | Indirect Guarantee of Indebtedness | |||
Condensed Financial Statements, Captions [Line Items] | |||
Number of guaranteed structured transactions for Radian Guaranty | financialGuarantyStructuredTransaction | 2 | ||
Guarantor obligations, aggregate remaining credit exposure | $ 58,400 | ||
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net deferred tax liability | 196,829 | 283,585 | |
Total allocated expenses | 245,568 | 230,219 | $ 198,808 |
Investments in and advances to affiliates, at fair value, period increase (decrease) | 82,000 | $ 48,500 | |
Increase in other assets | 66,500 | ||
Increase in other liabilities | $ 60,300 |
Schedule IV - Reinsurance, In_3
Schedule IV - Reinsurance, Insurance Premiums Earned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | $ 1,050,029 | $ 1,144,361 | $ 1,286,527 |
Ceded to Other Companies | 72,923 | 114,244 | 183,420 |
Assumed from Other Companies | 4,025 | 7,066 | 12,214 |
Net premiums earned | $ 981,131 | $ 1,037,183 | $ 1,115,321 |
Assumed Premiums as a Percentage of Net Premiums | 0.41% | 0.68% | 1.10% |
Mortgage Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | $ 1,025,607 | $ 1,104,696 | $ 1,263,684 |
Ceded to Other Companies | 72,419 | 113,480 | 183,131 |
Assumed from Other Companies | 4,025 | 7,066 | 12,214 |
Net premiums earned | $ 957,213 | $ 998,282 | $ 1,092,767 |
Assumed Premiums as a Percentage of Net Premiums | 0.42% | 0.71% | 1.12% |
Title Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | $ 24,422 | $ 39,665 | $ 22,843 |
Ceded to Other Companies | 504 | 764 | 289 |
Assumed from Other Companies | 0 | 0 | 0 |
Net premiums earned | $ 23,918 | $ 38,901 | $ 22,554 |
Assumed Premiums as a Percentage of Net Premiums | 0% | 0% | 0% |