XML 46 R26.htm IDEA: XBRL DOCUMENT v3.22.4
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
SCHEDULE II - Condensed Financial Information of Registrant
Condensed Balance Sheets
Parent Company Only
December 31,
(In thousands)20222021
ASSETS
Fixed income, available-for-sale, at fair value (amortized cost, 2022 – $419,751 ; 2021 – $550,324)$407,509 $538,872 
Cash and cash equivalents239,404 124,164 
Investment in subsidiaries, at equity in net assets4,502,261 4,964,954 
Accounts receivable - affiliates864 2,130 
Income taxes - current and deferred167,966 242,427 
Accrued investment income3,387 2,642 
Total assets$5,321,391 $5,875,189 
LIABILITIES AND SHAREHOLDERS' EQUITY  
Liabilities:  
Senior notes$641,724 $881,508 
Convertible junior subordinated debentures21,086 110,204 
Accrued interest13,271 20,501 
Other liabilities2,570 1,594 
Total liabilities678,651 1,013,807 
Shareholders’ equity:  
Common stock (one dollar par value, shares authorized 1,000,000; shares issued 2022 - 371,353; 2021 - 371,353; shares outstanding 2022 - 293,433; 2021 - 320,336)371,353 371,353 
Paid-in capital1,798,842 1,794,906 
Treasury stock at cost (shares 2022 - 77,920; 2021 - 51,017)(1,050,238)(675,265)
Accumulated other comprehensive income, net of tax(481,511)119,697 
Retained earnings4,004,294 3,250,691 
Total shareholders’ equity4,642,740 4,861,382 
Total liabilities and shareholders’ equity$5,321,391 $5,875,189 
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,
(In thousands)202220212020
Revenues:
Investment income, net of expenses$7,193 $3,850 $7,090 
Net realized investment gains (losses)(2,628)490 1,454 
Total revenues4,565 4,340 8,544 
Expenses:  
Operating expenses1,575 1,644 719 
Interest expense47,601 68,359 65,472 
Loss on debt extinguishment
38,870 36,914 35,033 
Total expenses88,046 106,917 101,224 
Loss before tax(83,481)(102,577)(92,680)
(Benefit from) provision for income taxes(17,851)(21,240)(18,431)
Equity in net income of subsidiaries930,979 716,320 520,342 
Net income865,349 634,983 446,093 
Other comprehensive income (loss), net of tax(601,208)(97,124)144,113 
Comprehensive income$264,141 $537,859 $590,206 
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,
(In thousands)202220212020
Cash flows from operating activities:
Net income$865,349 $634,983 $446,093 
Adjustments to reconcile net income to net cash provided by operating activities:   
Equity in net income of subsidiaries(930,979)(716,320)(520,342)
Dividends received from subsidiaries626,695 400,000 221,024 
Deferred tax (benefit) expense119,588 (21,551)(18,252)
Loss on debt extinguishment38,870 36,914 35,033 
Other33,619 29,799 19,088 
Change in certain assets and liabilities:   
Accounts receivable - affiliates1,266 (680)972 
Income taxes receivable(43,123)(306)— 
Accrued investment income931 1,118 (1,262)
Accrued interest(7,230)(2,503)5,076 
Net cash provided by operating activities704,986 361,454 187,430 
Cash flows from investing activities:   
Purchases of investments(1,457)(339,384)(1,131,060)
Proceeds from sales of investments287,924 556,384 812,188 
Net cash provided by (used in) investing activities286,467 217,000 (318,872)
Cash flows from financing activities:   
Proceeds from issuance of senior notes— — 640,250 
Purchase of senior notes— — (179,735)
Payment of original issue discount - senior notes— — (2,969)
Purchase of convertible junior subordinated debentures(89,118)(98,610)(36,392)
Payment of original issue discount - convertible junior subordinated debentures— — (15,049)
Redemption of 5.75% senior notes(242,296)— — 
Cash portion of loss on debt extinguishment(38,185)(36,914)(25,266)
Repurchase of common stock(385,573)(290,818)(119,997)
Dividends paid(110,947)(94,219)(82,061)
Payment of debt issuance costs— — (2,020)
Payment of withholding taxes related to share-based compensation net share settlement(10,094)(6,729)(8,940)
Net cash provided by (used in) financing activities(876,213)(527,290)167,821 
Net increase (decrease) in cash and cash equivalents115,240 51,164 36,379 
Cash and cash equivalents at beginning of year124,164 73,000 36,621 
Cash and cash equivalents at end of year$239,404 $124,164 $73,000 
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 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 OCI 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 maximum dividend that could be paid is reduced by dividends paid in the twelve months preceding the dividend payment date.

The payment of dividends from MGIC is the principal source of cash inflow for MGIC Investment Corporation, our holding company, other than investment income and raising capital in the public markets. The payment of dividends by our insurance subsidiaries is restricted by insurance regulation as discussed above. MGIC paid a total of $800 million, $400 million and $390 million in dividends in cash and fixed income securities to our holding company during 2022, 2021 and 2020, respectively. No contributions were made to our insurance subsidiaries in 2022, 2021 or 2020.
Note CThe senior notes and convertible junior subordinated debentures ("9% Debentures"), discussed in Note 7 – “Debt” to our consolidated financial statements, are obligations of MGIC Investment Corporation, our holding company, and not of its subsidiaries.