Note 5 - Fair Value of Financial Instruments Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Impact of Non-Performance Risk Fair Value Disclosure [Table Text Block]

The following table quantifies the impact of our non-performance risk on our derivative assets and liabilities (in aggregate by type, excluding assumed financial guaranty derivatives) and VIE liabilities presented in our consolidated balance sheets. Radian Group's five-year CDS spread is presented as an illustration of the market's view of our non-performance risk; the CDS spread actually used in the valuation of specific fair value liabilities is typically based on the remaining term of the instrument.

(In basis points)	December 31, 2011	December 31, 2010	December 31, 2009	December 31, 2008
Radian Group's five-year CDS spread	2,732	465	1,530	2,466

(In millions)	Fair Value Liability before Consideration of Radian Non-Performance Risk December 31, 2011		Impact of Radian Non-Performance Risk December 31, 2011		Fair Value Liability Recorded December 31, 2011
Product
Corporate CDOs	$	463.1	$	458.0	$	5.1
Non-Corporate CDO-related (1)	1,520.2		1,405.3		114.9
NIMS-related (2)	17.4		9.6		7.8
Total	$	2,000.7	$	1,872.9	$	127.8

(In millions)	Fair Value Liability before Consideration of Radian Non-Performance Risk December 31, 2010		Impact of Radian Non-Performance Risk December 31, 2010		Fair Value Liability Recorded December 31, 2010
Product
Corporate CDOs	$	387.1	$	281.5	$	105.6
Non-Corporate CDO-related (1)	1,696.2		934.1		762.1
NIMS-related (2)	134.1		4.8		129.3
Total	$	2,217.4	$	1,220.4	$	997.0

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(1) Includes the net liability recorded within derivative assets and derivative liabilities, and the net liability recorded within VIE debt and other financial statement line items for consolidated VIEs.

(2) Includes NIMS VIE debt and NIMS derivative assets.

Radian Group's five-year CDS spread at December 31, 2011, implies a market view that there is an 84% probability that Radian Group will default in the next five years as compared to a 32% implied probability of default at December 31, 2010. The cumulative impact attributable to the market's perception of our non-performance risk increased by $652.5 million during 2011, as presented in the table above. This increase was primarily the result of the widening of Radian Group's CDS spreads during this period.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2011:

(In millions)	Level I		Level II		Level III		Total
Assets and Liabilities at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	386.9	$	723.6	$	—	$	1,110.5
State and municipal obligations	—		985.0		62.5		1,047.5
Money market instruments	723.2		—		—		723.2
Corporate bonds and notes	—		700.5		—		700.5
RMBS	—		884.7		45.5		930.2
CMBS	—		190.4		35.4		225.8
CDO	—		—		5.5		5.5
Other ABS	—		97.0		2.9		99.9
Foreign government securities	—		102.9		—		102.9
Hybrid securities	—		341.5		4.8		346.3
Equity securities (1)	116.0		152.4		0.8		269.2
Other investments (2)	—		151.6		6.8		158.4
Total Investments at Fair Value (3)	1,226.1		4,329.6		164.2		5,719.9
Derivative Assets	—		0.2		17.0		17.2
Other Assets (4)	—		—		104.0		104.0
Total Assets at Fair Value	$	1,226.1	$	4,329.8	$	285.2	$	5,841.1
Derivative Liabilities	$	—	$	—	$	126.0	$	126.0
VIE Debt (5)	—		—		228.2		228.2
Total Liabilities at Fair Value	$	—	$	—	$	354.2	$	354.2

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(1) Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common stocks invested across numerous companies and industries included within Levels II and III.

(2) Comprising short-term commercial paper within CPS trusts ($150.0 million) and short-term CDs ($1.6 million) included within Level II, and lottery annuities ($1.6 million) and TruPs held by consolidated VIEs ($5.2 million) included within Level III.

(3) Does not include fixed-maturities held to maturity ($2.6 million) and other invested assets ($61.0 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

(4) Comprising manufactured housing loan collateral related to two consolidated financial guaranty VIEs.

(5) Comprising consolidated debt related to NIMS VIEs ($9.4 million) and amounts related to financial guaranty VIEs ($218.8 million).

The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2010:

(In millions)	Level I		Level II		Level III		Total
Assets and Liabilities at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	1,075.0	$	731.4	$	—	$	1,806.4
State and municipal obligations	—		1,159.7		23.2		1,182.9
Money market instruments	310.9		—		—		310.9
Corporate bonds and notes	—		1,060.4		—		1,060.4
RMBS	—		913.5		52.5		966.0
CMBS	—		173.6		23.0		196.6
CDO	—		—		2.4		2.4
Other ABS	—		131.1		3.3		134.4
Foreign government securities	—		83.5		—		83.5
Hybrid securities	—		318.9		—		318.9
Equity securities (1)	168.4		168.6		2.9		339.9
Other investments (2)	—		150.0		4.6		154.6
Total Investments at Fair Value (3)	1,554.3		4,890.7		111.9		6,556.9
Derivative Assets	—		—		26.2		26.2
Other Assets (4)	—		—		109.7		109.7
Total Assets at Fair Value	$	1,554.3	$	4,890.7	$	247.8	$	6,692.8
Derivative Liabilities	$	—	$	—	$	723.6	$	723.6
VIE Debt (5)	—		—		520.1		520.1
Total Liabilities at Fair Value	$	—	$	—	$	1,243.7	$	1,243.7

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(1) Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common stocks invested across numerous companies and industries included within Levels II and III.

(2) Comprising short-term commercial paper within CPS trusts included within Level II, and lottery annuities ($2.6 million) and TruPs held by consolidated VIEs ($2.0 million) included within Level III.

(3) Does not include fixed-maturities held to maturity ($10.8 million), certain short-term investments ($1.6 million), primarily invested in CDs and time deposits, and other invested assets ($59.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

(4) Comprising manufactured housing loan collateral related to two consolidated financial guaranty VIEs.

(5) Comprising consolidated debt related to NIMS VIEs ($141.0 million) and amounts related to financial guaranty VIEs ($379.1 million) that required consolidation as of January 1, 2010, under the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs.

Fair Value, Assets and Liabilites Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following is a rollforward of Level III assets and liabilities measured at fair value for the year ended December 31, 2011:

(In millions)	Beginning Balance at January 1, 2011		Realized and Unrealized Gains (Losses) Recorded in Earnings  (1)			Purchases		Sales		Issuances		Settlements			Transfers Into (Out of) Level III (2)			Ending Balance at December 31, 2011
Investments:
State and municipal obligations	$	23.2	$	1.2		$	39.1	$	0.6	$	—	$	0.4		$	—		$	62.5
RMBS	52.5		(3.1		)	—		—		—		3.9			—			45.5
CMBS	23.0		12.4			—		—		—		—			—			35.4
CDO	2.4		2.7			—		—		—		(0.4		)	—			5.5
Other ABS	3.3		(0.4		)	—		—		—		—			—			2.9
Hybrid securities	—		(0.1		)	0.7		—		—		—			4.2			4.8
Equity securities	2.9		(1.2		)	3.7		1.0		—		—			(3.6		)	0.8
Other investments	4.6		3.2			—		0.7		—		0.3			—			6.8
Total Level III Investments	111.9		14.7			43.5		2.3		—		4.2			0.6			164.2
NIMS derivative assets	11.7		(2.2		)	0.3		—		—		7.7			(0.5		)	1.6
Other assets	109.7		21.5			—		—		—		27.2			—			104.0
Total Level III Assets	$	233.3	$	34.0		$	43.8	$	2.3	$	—	$	39.1		$	0.1		$	269.8
Derivative liabilities, net	$	709.1	$	629.0		$	—	$	—	$	—	$	(30.5	)	$	—		$	110.6
VIE debt	520.1		138.5			—		—		—		153.4			—			228.2
Total Level III Liabilities, net	$	1,229.2	$	767.5		$	—	$	—	$	—	$	122.9		$	—		$	338.8

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(1) Includes unrealized gains relating to assets and liabilities still held as of December 31, 2011, as follows: $12.0 million for investments, $9.4 million for other assets, $579.1 million for derivative liabilities, and $158.5 million for VIE debt.

(2) Transfers are recognized at the end of the period as the availability of market observed inputs change from period to period.

    At December 31, 2011, our total Level III assets approximated 4.9% of total assets measured at fair value and our total Level III liabilities accounted for 100% of total liabilities measured at fair value. Realized and unrealized gains and losses on Level III assets and liabilities in the rollforward represent gains and losses for the periods in which they were classified as Level III.

The following is a rollforward of Level III assets and liabilities measured at fair value for the year ended December 31, 2010:

(In millions)	Beginning Balance at January 1, 2010		VIE Consolidation at January 1, 2010 (1)			Realized and Unrealized Gains(Losses) Recorded in Earnings (2)			Purchases		Sales			Issuances			Settlements					Transfers Into (Out of) Level III  (3)			Ending Balance at December 31, 2010
Investments:
State and municipal obligations	$	24.4	$	—		$	0.1		$	1.4	$	—		$	—		$	2.7				$	—		$	23.2
RMBS	—		44.3			19.6			—		—			—			11.4					—			52.5
CMBS	—		23.8			(0.8		)	—		—			—			—					—			23.0
CDO	—		3.8			(1.8		)	—		(0.4		)	—			—					—			2.4
Other ABS	—		3.5			(0.2		)	—		—			—			—					—			3.3
Hybrid securities	0.6		—			—			—		—			—			—					(0.6		)	—
Equity securities	1.7		—			0.2			0.4		0.1			—			—					0.7			2.9
Other investments	3.8		3.7			(1.6		)	—		1.0			(0.3		)	—					—			4.6
Total Level III Investments	30.5		79.1			15.5			1.8		0.7			(0.3		)	14.1					0.1			111.9
NIMS and CPS derivative assets	44.7		—			(7.7		)	1.3		0.1			(0.1		)	26.4			(4	)	—			11.7
Other assets	—		119.7			18.3			—		—			—			28.3					—			109.7
Total Level III Assets	$	75.2	$	198.8		$	26.1		$	3.1	$	0.8		$	(0.4	)	$	68.8				$	0.1		$	233.3
Derivative liabilities, net	$	214.9	$	(51.8	)	$	551.2		$	—	$	—		$	—		$	(5.2	)			$	—		$	709.1
VIE debt	296.1		253.5			213.5			—		—			—			(243.0		)	(5	)	—			520.1
Total Level III Liabilities, net	$	511.0	$	201.7		$	764.7		$	—	$	—		$	—		$	(248.2	)			$	—		$	1,229.2

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(1) Represents the impact of our adoption of the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs.

(2) Includes unrealized gains (losses) relating to assets and liabilities still held as of December 31, 2010, as follows: $12.6 million for investments, $(1.4) million for NIMS derivative assets, $4.0 million for other assets, $(588.1) million for derivative liabilities, and $(165.7) million for VIE debt.

(3) Transfers are recognized at the end of the period as the availability of market observed inputs change from period to period.

(4) Includes impact of consolidation of VIE from CPS Trust I as of June 30, 2010, in the amount of $27.1 million.

(5) Includes impact of consolidation of VIE from CPS Trust I in the amount of $11.1 million. Offsetting this increase was $186.6 million related to NIMS purchases, $36.3 million related to financial guaranty VIE debt paydowns, and $31.2 million for CPS VIE debt purchases.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our consolidated balance sheets were as follows as of the dates indicated:

	December 31, 2011				December 31, 2010
(In millions)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Fixed-maturities held to maturity	$	2.6	$	2.7	$	10.8	$	11.4
Short-term investments (carried at cost)	—		—		1.6		1.6
Other invested assets	61.0		62.8		59.6		58.4
Liabilities:
Long-term debt	818.6		471.3		964.8		1,082.5
Non-derivative financial guaranty liabilities	342.3		425.7		406.1		531.1