
Details of fixed income investment securities by category as of December 31, 2022
Table	5.1a
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	145,581	$	2	$	(9,683)	$	135,900
Obligations of U.S. states and political subdivisions		2,400,261		4,866		(256,073)		2,149,054
Corporate debt securities		2,416,475		1,043		(196,377)		2,221,141
ABS		126,723		5		(6,041)		120,687
RMBS		223,743		10		(25,744)		198,009
CMBS		257,785		22		(20,591)		237,216
CLOs		337,656		5		(7,829)		329,832
Foreign government debt		4,486		—		(699)		3,787
Commercial paper		14,075		—		(3)		14,072
Total fixed income securities		$	5,926,785	$	5,953	$	(523,040)	$	5,409,698


Details of fixed income investment securities by category as of December 31, 2021
Table	5.1b
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	133,990	$	285	$	(868)	$	133,407
Obligations of U.S. states and political subdivisions		2,408,688		133,361		(7,396)		2,534,653
Corporate debt securities		2,704,586		75,172		(13,776)		2,765,982
ABS		150,888		830		(1,008)		150,710
RMBS		309,991		2,397		(3,278)		309,110
CMBS		315,330		5,736		(1,936)		319,130
CLOs		360,436		609		(106)		360,939
Foreign government debt		13,749		—		(99)		13,650
Total fixed income securities		$	6,397,658	$	218,390	$	(28,467)	$	6,587,581

We had $11.8 million and $13.4 million of investments at fair value on deposit with various states as of December 31, 2022 and 2021, respectively, due to regulatory requirements of those state insurance departments.

In connection with our insurance and reinsurance activities within MAC and MIC, insurance subsidiaries of MGIC, we are required to maintain assets in trusts for the benefit of contractual counterparties, which had investments at fair value of $128.4 million and $189.8 million at December 31, 2022 and 2021, respectively. The decrease is primarily due to a decline in collateral required as the risk in force covered by these insurance and reinsurance activities has decreased.

The amortized cost and fair values of fixed income securities at December 31, 2022, by contractual maturity, are shown in table 5.2 below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most mortgage and asset-backed securities provide for periodic payments throughout their lives, they are listed in separate categories.


Fixed income securities maturity schedule
Table	5.2
		December 31, 2022
(In thousands)		Amortized Cost		Fair Value
Due in one year or less		$	452,188	$	445,210
Due after one year through five years		1,358,606		1,288,152
Due after five years through ten years		1,890,875		1,713,608
Due after ten years		1,279,209		1,076,984
		4,980,878		4,523,954

ABS		126,723		120,687
RMBS		223,743		198,009
CMBS		257,785		237,216
CLOs		337,656		329,832
Total as of December 31, 2022		$	5,926,785	$	5,409,698


Details of net gains (losses) on investments and other financial instruments
Table	5.4
(in thousands)		December 31, 2022	December 31, 2021	December 31, 2020

Fixed income securities
Gains on sales		7,152	8,980	21,272
Losses on sales		(15,477)	(1,942)	(8,809)
Change in credit allowance		—	49	(49)
Impairments		(1,415)	—	(331)
Equity securities gains (losses)
Gains (losses) on sales		(7)	4	1,344
Market adjustment		(2,013)	(463)	552
Change in embedded derivative on Home Re Transactions (1)		4,269	(721)	(1,176)
Other
Gains (losses) on sales		2	(33)	(231)
Market adjustment		26	(13)	4
Net gains (losses) on investments and other financial instruments		(7,463)	5,861	12,576

Proceeds from sales of fixed income securities		397,553	471,783	803,401
Proceeds from sales of equity securities		97	2,621	25,693

Our other invested assets balances includes an investment in Federal Home Loan Bank ("FHLB") stock that is carried at cost, which due to its nature approximates fair value. Ownership of FHLB stock provides access to a secured lending facility. In the first quarter of 2022, we repaid the outstanding principal balance of our Federal Home Loan Bank Advance ("FHLB Advance") and accordingly reduced our investment in FHLB stock. At December 31, 2021, the FHLB Advance amount was secured by $167.2 million of eligible collateral. As a result of the prepayment of the FHLB Advance in 2022, we are no longer required to maintain collateral.

Tables 5.5a and 5.5b below summarize, for all available-for-sale investments in an unrealized loss position as of December 31, 2022 and 2021, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in tables 5.5a and 5.5b below are estimated using the process described in Note 6 - "Fair Value Measurements" to these consolidated financial statements.


Unrealized loss aging for securities by type and length of time as of December 31, 2022
Table	5.5a
		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	67,531	$	(3,583)	$	76,246	$	(6,100)	$	143,777	$	(9,683)
Obligations of U.S. states and political subdivisions		1,344,272		(157,903)		360,956		(98,170)		1,705,228		(256,073)
Corporate debt securities		1,488,255		(109,976)		758,732		(86,401)		2,246,987		(196,377)
ABS		53,201		(1,008)		67,073		(5,033)		120,274		(6,041)
RMBS		77,563		(8,572)		136,179		(17,172)		213,742		(25,744)
CMBS		166,973		(12,951)		70,792		(7,640)		237,765		(20,591)
CLOs		213,461		(4,644)		114,459		(3,185)		327,920		(7,829)
Foreign government debt		—		—		3,787		(699)		3,787		(699)
Commercial paper		—		—		3,816		(3)		3,816		(3)
Total		$	3,411,256	$	(298,637)	$	1,592,040	$	(224,403)	$	5,003,296	$	(523,040)


Unrealized loss aging for securities by type and length of time as of December 31, 2021
Table	5.5b
		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	91,154	$	(790)	$	2,616	$	(78)	$	93,770	$	(868)
Obligations of U.S. states and political subdivisions		452,021		(7,189)		15,540		(207)		467,561		(7,396)
Corporate debt securities		865,085		(13,260)		10,997		(516)		876,082		(13,776)
ABS		100,064		(998)		1,552		(10)		101,616		(1,008)
RMBS		180,586		(2,548)		31,641		(730)		212,227		(3,278)
CMBS		89,889		(1,887)		1,511		(49)		91,400		(1,936)
CLOs		177,663		(71)		21,973		(35)		199,636		(106)
Foreign government debt		13,649		(99)		—		—		13,649		(99)
Total		$	1,970,111	$	(26,842)	$	85,830	$	(1,625)	$	2,055,941	$	(28,467)

There were 1,226 and 610 securities in an unrealized loss position as of December 31, 2022 and 2021, respectively. Based on current facts and circumstances, we believe the unrealized losses as of December 31, 2022 presented in table 5.5a above are not indicative of the ultimate collectability of the current amortized cost of the securities. The unrealized losses in all categories of our investments were primarily caused by an increase in prevailing interest rates. We also rely upon estimates of several credit and non-credit factors in our review and evaluation of individual investments to determine whether a credit impairment exists. All of the securities in an unrealized loss position are current with respect to their interest obligations.


Net investment income
Table	5.7
(In thousands)		2022		2021		2020
Fixed income securities		$	166,306	$	160,030	$	157,065
Equity securities		437		471		620
Cash equivalents		5,049		75		1,648
Other		51		22		275
Investment income		171,843		160,598		159,608
Investment expenses		(4,367)		(4,160)		(5,212)
Net investment income		$	167,476	$	156,438	$	154,396