Note 2 - Segment Reporting (Tables)

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Mortgage Insurance
Net premiums written—insurance	$	245,775		$	250,799		$	680,675		$	719,244
Increase in unearned premiums	(27,948		)	(50,679		)	(60,440		)	(138,180		)
Net premiums earned—insurance	217,827			200,120			620,235			581,064
Net premiums earned on derivatives	—			—			—			—
Net investment income	15,904			14,868			45,196			45,236
Other income	1,130			1,250			3,813			5,121
Total revenues	234,861			216,238			669,244			631,421
Provision for losses	48,942			149,687			163,216			418,675
Estimated present value of net credit (recoveries) losses incurred	(190		)	(74		)	129			(50		)
Policy acquisition costs	4,240			5,839			18,003			24,072
Other operating expenses	41,368			59,590			141,333			176,665
Interest expense	7,936			4,447			19,713			10,820
Total expenses	102,296			219,489			342,394			630,182
Adjusted pretax operating income (loss)	$	132,565		$	(3,251	)	$	326,850		$	1,239
NIW (in millions)	$	11,210		$	13,720		$	27,340		$	38,003

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Financial Guaranty
Net premiums written—insurance	$	(1,523	)	$	43		$	(350	)	$	(9,988	)
Decrease in unearned premiums	10,852			11,821			27,050			46,620
Net premiums earned—insurance	9,329			11,864			26,700			36,632
Net premiums earned on derivatives	2,882			4,170			9,673			14,019
Net investment income	10,274			11,864			30,948			35,984
Other income	41			64			302			198
Total revenues	22,526			27,962			67,623			86,833
Provision for losses	(6,416		)	5,162			4,311			9,146
Estimated present value of net credit (recoveries) losses incurred	(475		)	3,347			10,303			(116		)
Policy acquisition costs	1,794			2,119			5,066			11,087
Other operating expenses	6,663			11,384			25,426			35,390
Interest expense	11,629			15,123			42,127			44,051
Total expenses	13,195			37,135			87,233			99,558
Equity in net (loss) income of affiliates	—			—			(13		)	1
Adjusted pretax operating income (loss)	$	9,331		$	(9,173	)	$	(19,623	)	$	(12,724	)

	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2014		2014
Mortgage and Real Estate Services
Services revenue	$	42,243	$	42,243
Direct cost of services	23,896		23,896
Gross profit on services	18,347		18,347
Operating expenses	8,663		8,663
Interest expense	4,424		4,424
Total expenses	13,087		13,087
Adjusted pretax operating income	$	5,260	$	5,260

	At September 30, 2014
(In thousands)	Mortgage Insurance		Financial Guaranty		Mortgage and Real Estate Services		Total
Cash and investments	$	3,017,737	$	1,978,972	$	10,600	$	5,007,309
Restricted cash	11,574		73		4,862		16,509
Deferred policy acquisition costs	27,595		32,545		—		60,140
Goodwill	2,095		—		191,931		194,026
Other intangible assets, net	154		—		99,452		99,606
Total assets	3,447,406		2,175,773		336,512		5,959,691
Unearned premiums	625,269		171,473		—		796,742
Reserve for losses and LAE	1,588,131		32,220		—		1,620,351
VIE debt	3,196		88,036		—		91,232
Derivative liabilities	—		185,258		—		185,258

	At September 30, 2013
(In thousands)	Mortgage Insurance		Financial Guaranty		Total
Cash and investments	$	2,767,160	$	2,293,485	$	5,060,645
Restricted cash	22,890		101		22,991
Deferred policy acquisition costs	29,158		39,303		68,461
Total assets	3,238,224		2,520,349		5,758,573
Unearned premiums	535,420		216,167		751,587
Reserve for losses and LAE	2,314,785		32,094		2,346,879
VIE debt	11,109		93,109		104,218
Derivative liabilities	—		344,870		344,870

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 September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Adjusted pretax operating income (loss):
Mortgage insurance	$	132,565		$	(3,251	)	$	326,850		$	1,239
Financial guaranty	9,331			(9,173		)	(19,623		)	(12,724		)
Mortgage and real estate services	5,260			—			5,260			—
Total adjusted pretax operating income (loss)	$	147,156		$	(12,424	)	$	312,487		$	(11,485	)
Change in fair value of derivative instruments	19,360			10,778			126,923			(70,357		)
Less: Estimated present value of net credit recoveries (losses) incurred	665			(3,273		)	(10,432		)	166
Less: Net premiums earned on derivatives	2,882			4,170			9,673			14,019
Change in fair value of derivative instruments expected to reverse over time	15,813			9,881			127,682			(84,542		)
Net (losses) gains on investments	(7,839		)	(7,132		)	103,831			(142,891		)
Net gains (losses) on other financial instruments	982			902			(229		)	(3,585		)
Acquisition-related expenses	432			—			(6,300		)	—
Amortization of intangible assets	(3,294		)	—			(3,294		)	—
Consolidated pretax income (loss)	153,250			(8,773		)	534,177			(242,503		)
Income tax (benefit) provision	(340		)	3,909			2,995			(9,149		)
Consolidated net income (loss)	$	153,590		$	(12,682	)	$	531,182		$	(233,354	)