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SCHEDULE II-CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
SCHEDULE II-CONDENSED FINANCIAL INFORMATION OF REGISTRANT
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
CONDENSED BALANCE SHEETS
PARENT COMPANY ONLY
December 31, 2015 and 2014
 
(In thousands)
 
2015
 
2014
ASSETS
 
 
 
 
Fixed maturities (amortized cost, 2015 – $385,281; 2014 – $482,629)
 
$
382,565

 
$
480,125

Cash and cash equivalents
 
19,417

 
10,507

Investment in subsidiaries, at equity in net assets
 
2,903,944

 
1,821,024

Accounts receivable - affiliates
 
938

 
312

Income taxes - current and deferred
 
151,318

 
17,478

Accrued investment income
 
3,700

 
3,435

Other assets
 
11,325

 
15,156

Total assets
 
$
3,473,207

 
$
2,348,037

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 

 
 

Liabilities:
 
 

 
 

Senior notes
 
$
—

 
$
61,918

Convertible senior notes
 
833,503

 
845,000

Convertible junior debentures
 
389,522

 
389,522

Accrued interest
 
14,042

 
14,694

Total liabilities
 
1,237,067

 
1,311,134

 
 
 
 
 
Shareholders’ equity:
 
 

 
 

Common stock, (one dollar par value, shares authorized 1,000,000; shares issued 2015 – 340,097; 2014 – 340,047; outstanding 2015 – 339,657; 2014 – 338,560)
 
340,097

 
340,047

Paid-in capital
 
1,670,238

 
1,663,592

Treasury stock (shares at cost, 2015 – 440; 2014 – 1,487)
 
(3,362
)
 
(32,937
)
Accumulated other comprehensive loss, net of tax
 
(60,880
)
 
(81,341
)
Retained earnings (deficit)
 
290,047

 
(852,458
)
Total shareholders’ equity
 
2,236,140

 
1,036,903

Total liabilities and shareholders’ equity
 
$
3,473,207

 
$
2,348,037


See accompanying supplementary notes to Parent Company condensed financial statements.
MGIC INVESTMENT CORPORATION
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
CONDENSED STATEMENTS OF OPERATIONS
PARENT COMPANY ONLY
Years Ended December 31, 2015, 2014 and 2013
 
(In thousands)
 
2015
 
2014
 
2013
Revenues:
 
 
 
 
 
 
Investment income, net of expenses
 
$
7,586

 
$
6,985

 
$
5,033

Net realized investment gains
 
357

 
395

 
830

Total revenues
 
7,943

 
7,380

 
5,863

 
 
 
 
 
 
 
Expenses:
 
 

 
 

 
 

Operating expenses and other
 
1,089

 
1,383

 
511

Interest expense
 
68,932

 
69,648

 
79,663

Total expenses
 
70,021

 
71,031

 
80,174

Loss before tax
 
(62,078
)
 
(63,651
)
 
(74,311
)
Benefit from income taxes
 
(125,487
)
 
—

 
—

Equity in net income of subsidiaries
 
1,108,591

 
315,600

 
24,463

Net income (loss)
 
1,172,000

 
251,949

 
(49,848
)
Other comprehensive income (loss), net of tax
 
20,461

 
36,385

 
(69,563
)
Comprehensive income (loss)
 
$
1,192,461

 
$
288,334

 
$
(119,411
)

See accompanying supplementary notes to Parent Company condensed financial statements.
MGIC INVESTMENT CORPORATION
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
CONDENSED STATEMENTS OF CASH FLOWS
PARENT COMPANY ONLY
Years Ended December 31, 2015, 2014 and 2013
 
(In thousands)
 
2015
 
2014
 
2013
Cash flows from operating activities:
 
 
 
 
 
 
Net income (loss)
 
$
1,172,000

 
$
251,949

 
$
(49,848
)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
 
 

 
 

 
 

Equity in net income of subsidiaries
 
(1,108,591
)
 
(315,600
)
 
(24,463
)
Dividends received from subsidiaries
 
6,500

 
—

 
—

Deferred tax benefit
 
(125,532
)
 
—

 
—

Other
 
22,849

 
14,862

 
21,693

Change in certain assets and liabilities:
 
 

 
 

 
 

Accounts receivable - affiliates
 
(626
)
 
68

 
289

Income taxes receivable
 
(8,308
)
 
480

 
(3
)
Accrued investment income
 
(265
)
 
194

 
(2,611
)
Accrued interest
 
(652
)
 
(188
)
 
(15,577
)
Net cash used in operating activities
 
(42,625
)
 
(48,235
)
 
(70,520
)
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 

 
 

 
 

Capital distributions from (contributions to) subsidiaries
 
32,000

 
—

 
(800,000
)
Purchase of fixed maturities
 
(295,010
)
 
(553,538
)
 
(563,968
)
Sale of fixed maturities
 
386,385

 
613,322

 
148,608

Net cash provided by (used in) investing activities
 
123,375

 
59,784

 
(1,215,360
)
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 

 
 

 
 

Net proceeds from convertible senior notes
 
—

 
—

 
484,625

Common stock shares issued
 
—

 
—

 
663,335

Repayment of long-term debt
 
(73,957
)
 
(21,767
)
 
(17,235
)
Excess tax benefits related to share-based compensation
 
2,117

 
—

 
—

Net cash (used in) provided by financing activities
 
(71,840
)
 
(21,767
)
 
1,130,725

 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
 
8,910

 
(10,218
)
 
(155,155
)
Cash and cash equivalents at beginning of year
 
10,507

 
20,725

 
175,880

Cash and cash equivalents at end of year
 
$
19,417

 
$
10,507

 
$
20,725


See accompanying supplementary notes to Parent Company condensed financial statements.
SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT
PARENT COMPANY ONLY
SUPPLEMENTARY NOTES

Note A

The accompanying Parent Company financial statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements appearing in Item 8 of this annual report.

Note B

Our insurance subsidiaries are subject to statutory regulations as to maintenance of policyholders’ surplus and payment of dividends. The maximum amount of dividends that the insurance subsidiaries may pay in any twelve-month period without regulatory approval by the Office of the Commissioner of Insurance of the State of Wisconsin is the lesser of adjusted statutory net income or 10% of statutory policyholders’ surplus as of the preceding calendar year end. Adjusted statutory net income is defined for this purpose to be the greater of statutory net income, net of realized investment gains, for the calendar year preceding the date of the dividend or statutory net income, net of realized investment gains, for the three calendar years preceding the date of the dividend less dividends paid within the first two of the preceding three calendar years.

The convertible senior notes and convertible debentures, discussed in Note 8 – “Debt” to our consolidated financial statements in Item 8, are obligations of MGIC Investment Corporation, our holding company, and not of its subsidiaries. The payment of dividends from our insurance subsidiaries, which other than investment income and raising capital in the public markets, is the principal source of our holding company cash inflow, and is restricted by insurance regulation. MGIC is the principal source of dividend-paying capacity and OCI authorization is required for MGIC to pay dividends. Although MGIC has not paid any dividends to our holding company since 2008, we are discussing with the OCI the resumption of ongoing extraordinary dividends in 2016. During 2015, dividends of $38.5 million were paid to the holding company from other insurance subsidiaries.

In the fourth quarter of 2008, we suspended the payment of dividends to shareholders.