
Details of fixed income investment securities by category as of December 31, 2023
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		$	167,995	$	51	$	(6,364)	$	161,682
Obligations of U.S. states and political subdivisions		2,092,754		5,159		(189,835)		1,908,078
Corporate debt securities		2,626,401		17,391		(128,211)		2,515,581
ABS		173,256		1,292		(3,275)		171,273
RMBS		347,132		4,297		(20,656)		330,773
CMBS		293,204		5		(15,752)		277,457
CLOs		327,467		37		(1,408)		326,096
Foreign government debt		4,486		—		(643)		3,843
Commercial paper		28,327		3		—		28,330
Total fixed income securities		$	6,061,022	$	28,235	$	(366,144)	$	5,723,113


Details of fixed income investment securities by category as of December 31, 2022
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		$	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 $12.2 million and $11.8 million of investments at fair value on deposit with various states as of December 31, 2023 and 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 $156.9 million and $128.4 million at December 31, 2023 and 2022, respectively. The increase is primarily due to an increase in collateral required as the risk in force covered by these insurance and reinsurance activities has increased.

The amortized cost and fair values of fixed income securities at December 31, 2023, 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, 2023
(In thousands)		Amortized Cost		Fair Value
Due in one year or less		$	645,017	$	639,245
Due after one year through five years		1,530,186		1,487,270
Due after five years through ten years		1,824,666		1,708,591
Due after ten years		920,094		782,408
		4,919,963		4,617,514

ABS		173,256		171,273
RMBS		347,132		330,773
CMBS		293,204		277,457
CLOs		327,467		326,096
Total as of December 31, 2023		$	6,061,022	$	5,723,113

The net gains (losses) on investments and other financial instruments and the proceeds from the sale of fixed income securities classified as available-for-sale and equity securities are shown in table 5.4 below.


Details of net gains (losses) on investments and other financial instruments
Table	5.4
(in thousands)		December 31, 2023		December 31, 2022		December 31, 2021

Fixed income securities
Gains on sales		$	3,071	$	7,152	$	8,980
Losses on sales		(17,620)		(15,477)		(1,942)
Change in credit allowance		—		—		49
Impairments		—		(1,415)		—
Equity securities gains (losses)
Gains (losses) on sales		—		(7)		4
Changes in fair value		530		(2,013)		(463)
Change in embedded derivative on Home Re Transactions (1)		(118)		4,269		(721)
Other
Gains (losses) on sales		(1)		2		(33)
Market adjustment		(3)		26		(13)
Net gains (losses) on investments and other financial instruments		$	(14,141)	$	(7,463)	$	5,861

Proceeds from sales of fixed income securities		$	375,788	$	397,553	$	471,783
Proceeds from sales of equity securities		—		97		2,621

(1) See Note 6 "Fair Value Measurements" for discussion of the embedded derivative on the Home Re Transactions.

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.

Tables 5.5a and 5.5b below summarize, for all available-for-sale investments in an unrealized loss position as of December 31, 2023 and 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 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, 2023
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		$	26,550	$	(75)	$	98,359	$	(6,289)	$	124,909	$	(6,364)
Obligations of U.S. states and political subdivisions		275,727		(3,622)		1,200,533		(186,213)		1,476,260		(189,835)
Corporate debt securities		270,956		(6,060)		1,604,021		(122,151)		1,874,977		(128,211)
ABS		41,549		(1,234)		62,611		(2,041)		104,160		(3,275)
RMBS		44,867		(872)		176,349		(19,784)		221,216		(20,656)
CMBS		35,249		(391)		244,216		(15,361)		279,465		(15,752)
CLOs		—		—		274,729		(1,408)		274,729		(1,408)
Foreign government debt		—		—		3,843		(643)		3,843		(643)

Total		$	694,898	$	(12,254)	$	3,664,661	$	(353,890)	$	4,359,559	$	(366,144)


Unrealized loss aging for securities by type and length of time as of December 31, 2022
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		$	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 1,021 and 1,226 securities in an unrealized loss position as of December 31, 2023 and 2022, respectively. Based on current facts and circumstances, we believe the unrealized losses as of December 31, 2023 presented in table 5.5a above are not indicative of the ultimate collectability of the par value 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)		2023		2022		2021
Fixed income securities		$	202,655	$	166,306	$	160,030
Equity securities		529		437		471
Cash equivalents		16,111		5,049		75
Other		44		51		22
Investment income		219,339		171,843		160,598
Investment expenses		(4,599)		(4,367)		(4,160)
Net investment income		$	214,740	$	167,476	$	156,438