Note 2 - Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Summarized financial information concerning our operating segments as of and for the periods indicated, is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2014		2013		2014		2013
Mortgage Insurance
Net premiums written—insurance	$	221,947	$	251,159	$	434,900	$	468,445
Net premiums earned—insurance	$	203,646	$	197,952	$	402,408	$	380,944
Net premiums earned on derivatives	—		—		—		—
Net investment income	15,271		15,266		29,292		30,368
Other income	1,626		2,159		2,683		3,871
Total revenues	220,543		215,377		434,383		415,183
Provision for losses	64,265		136,410		113,425		268,366
Estimated present value of net credit losses incurred	180		323		319		24
Change in PDR	383		1,251		849		622
Policy acquisition costs	6,746		6,501		13,763		18,233
Other operating expenses	49,607		51,295		99,965		117,075
Interest expense	6,405		3,704		11,777		6,373
Total expenses	127,586		199,484		240,098		410,693
Adjusted pretax operating income	$	92,957	$	15,893	$	194,285	$	4,490
New Insurance Written (“NIW”) (in millions)	$	9,322	$	13,377	$	16,130	$	24,283

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2014			2013			2014			2013
Financial Guaranty
Net premiums written—insurance	$	420		$	70		$	1,173		$	(10,031	)
Net premiums earned—insurance	$	10,468		$	15,172		$	17,371		$	24,768
Net premiums earned on derivatives	3,346			4,857			6,791			9,849
Net investment income	10,466			12,349			20,674			24,120
Other income	191			75			261			134
Total revenues	24,471			32,453			45,097			58,871
Provision for losses	5,078			3,881			10,727			3,984
Estimated present value of net credit losses (recoveries) incurred	11,279			(618		)	10,778			(3,463		)
Change in PDR	—			—			—			—
Policy acquisition costs	1,675			3,505			3,272			8,968
Other operating expenses	9,212			9,686			18,763			24,006
Interest expense	15,943			15,716			30,498			28,928
Total expenses	43,187			32,170			74,038			62,423
Equity in net (loss) income of affiliates	—			—			(13		)	1
Adjusted pretax operating (loss) income	$	(18,716	)	$	283		$	(28,954	)	$	(3,551	)

	At June 30, 2014
(In thousands)	Mortgage Insurance		Financial Guaranty		Mortgage and Real Estate Services (1)		Total
Cash and investments	$	2,747,960	$	2,240,149	$	18,112	$	5,006,221
Deferred policy acquisition costs	26,443		34,333		—		60,776
Goodwill and other intangible assets, net	2,266		—		294,682		296,948
Total assets	3,153,482		2,438,418		340,651		5,932,551
Unearned premiums	597,860		183,800		—		781,660
Reserve for losses and LAE	1,714,681		34,754		—		1,749,435
VIE debt	3,237		90,394		—		93,631
Derivative liabilities	—		200,227		—		200,227

____________________

(1) Comprising the acquisition of Clayton effective June 30, 2014. For additional information, see Note 1.

	At June 30, 2013
(In thousands)	Mortgage Insurance		Financial Guaranty		Total
Cash and investments	$	2,962,997	$	2,403,636	$	5,366,633
Deferred policy acquisition costs	29,138		41,289		70,427
Total assets	3,431,444		2,622,556		6,054,000
Unearned premiums	483,303		229,403		712,706
Reserve for losses and LAE	2,690,861		25,629		2,716,490
VIE debt	10,963		95,804		106,767
Derivative liabilities	—		350,576		350,576

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

The reconciliation of adjusted pretax operating income (loss) to consolidated pretax income (loss) and consolidated net income (loss) is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2014			2013			2014			2013
Adjusted pretax operating income (loss):
Mortgage insurance	$	92,957		$	15,893		$	194,285		$	4,490
Financial guaranty	(18,716		)	283			(28,954		)	(3,551		)
Total adjusted pretax operating income	$	74,241		$	16,176		$	165,331		$	939
Change in fair value of derivative instruments	57,477			86,535			107,563			(81,135		)
Less: Estimated present value of net credit (losses) recoveries incurred	(11,459		)	295			(11,097		)	3,439
Less: Net premiums earned on derivatives	3,346			4,857			6,791			9,849
Change in fair value of derivative instruments expected to reverse over time	65,590			81,383			111,869			(94,423		)
Net gains (losses) on investments	47,219			(130,254		)	111,670			(135,759		)
Net (losses) gains on other financial instruments	(1,909		)	1,188			(1,211		)	(4,487		)
Acquisition-related expenses	(6,732		)	—			(6,732		)	—
Consolidated pretax income (loss)	178,409			(31,507		)	380,927			(233,730		)
Income tax provision (benefit)	3,576			1,665			3,335			(13,058		)
Consolidated net income (loss)	$	174,833		$	(33,172	)	$	377,592		$	(220,672	)