
Details of fixed income securities by category as of March 31, 2023
Table	7.1a
(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		$	223,428	$	31	$	(7,713)	$	215,746
Obligations of U.S. states and political subdivisions		2,403,603		9,776		(201,039)		2,212,340
Corporate debt securities		2,341,134		1,733		(164,925)		2,177,942
ABS		124,175		15		(4,819)		119,371
RMBS		217,751		10		(22,256)		195,505
CMBS		250,589		20		(18,704)		231,905
CLOs		337,033		—		(6,459)		330,574
Foreign government debt		4,486		—		(659)		3,827
Commercial paper		76,846		—		(3)		76,843
Total fixed income securities		$	5,979,045	$	11,585	$	(426,577)	$	5,564,053


Details of fixed income securities by category as of December 31, 2022
Table	7.1b

(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		$	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

We had $12.1 million and $11.8 million of investments at fair value on deposit with various states as of March 31, 2023 and December 31, 2022, 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 $130.7 million and $128.4 million at March 31, 2023 and December 31, 2022, respectively.

The amortized cost and fair values of fixed income securities at March 31, 2023, by contractual maturity, are shown in table 7.2 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	7.2
		March 31, 2023
(In thousands)		Amortized cost		Fair Value
Due in one year or less		$	667,113	$	657,832
Due after one year through five years		1,362,173		1,300,280
Due after five years through ten years		1,831,636		1,693,166
Due after ten years		1,188,575		1,035,420
		5,049,497		4,686,698

ABS		124,175		119,371
RMBS		217,751		195,505
CMBS		250,589		231,905
CLOs		337,033		330,574
Total as of March 31, 2023		$	5,979,045	$	5,564,053


Details of net gains (losses) on investments and other financial instruments
Table	7.4	Three Months Ended March 31,
(in thousands)		2023	2022

Fixed income securities
Gains on sales		59	4,134
Losses on sales		(4,133)	(4,657)


Equity securities gains (losses)

Market adjustment		360	(1,005)
Change in embedded derivative on Home Re Transactions (1)		(3,976)	733
Other
Gains (losses) on sales		6	11
Market adjustment		(14)	12
Net gains (losses) on investments and other financial instruments		(7,698)	(772)

Proceeds from sales of fixed income securities		32,181	216,824
Proceeds from sales of equity securities		—	—

Our other invested assets balance includes an investment in 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, subject to certain conditions, which includes requirements to post collateral and to maintain a minimum investment in FHLB stock.

Tables 7.5a and 7.5b below summarize, for all available-for-sale investments in an unrealized loss position at March 31, 2023 and December 31, 2022, 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 7.5a and 7.5b are estimated using the process described in Note 8 - “Fair Value Measurements” to these consolidated financial statements and in Note 3 - “Significant Accounting Policies” to the consolidated financial statements in our 2022 Annual Report on Form 10-K.


Unrealized loss aging for securities by type and length of time as of March 31, 2023
Table	7.5a

		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		$	59,935	$	(1,108)	$	84,568	$	(6,605)	$	144,503	$	(7,713)
Obligations of U.S. states and political subdivisions		615,219		(13,633)		962,757		(187,406)		1,577,976		(201,039)
Corporate debt securities		889,684		(28,273)		1,269,912		(136,652)		2,159,596		(164,925)
ABS		36,028		(245)		77,206		(4,574)		113,234		(4,819)
RMBS		4,078		(177)		207,258		(22,079)		211,336		(22,256)
CMBS		11,699		(714)		221,259		(17,990)		232,958		(18,704)
CLOs		17,068		(195)		313,506		(6,264)		330,574		(6,459)
Foreign government debt		—		—		3,828		(659)		3,828		(659)
Commercial paper		491		—		3,375		(3)		3,866		(3)
Total		$	1,634,202	$	(44,345)	$	3,143,669	$	(382,232)	$	4,777,871	$	(426,577)


Unrealized loss aging for securities by type and length of time as of December 31, 2022
Table	7.5b

		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		$	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)

There were 1,152 and 1,226 securities in an unrealized loss position at March 31, 2023 and December 31, 2022, respectively. Based on current facts and circumstances, we believe the unrealized losses as of March 31, 2023 presented in table 7.5a 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 at March 31, 2023 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.