Note 3 - Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015
(In thousands)	Mortgage Insurance			Services			Total
Net premiums written—insurance	$	241,908		$	—		$	241,908
Increase in unearned premiums	(17,313		)	—			(17,313		)
Net premiums earned—insurance	224,595			—			224,595
Services revenue	—			30,742			30,742
Net investment income (1)	17,328			—			17,328
Other income (1)	1,331			790			2,121
Total (2)	243,254			31,532			274,786
Provision for losses	45,851			—			45,851
Policy acquisition costs	7,750			—			7,750
Direct cost of services	—			18,451			18,451
Other operating expenses before corporate allocations (3)	34,050			9,659			43,709
Total (4)	87,651			28,110			115,761
Adjusted pretax operating income before corporate allocations	155,603			3,422			159,025
Allocation of corporate operating expenses (1)	9,758			981			10,739
Allocation of interest expense (1)	19,953			4,432			24,385
Adjusted pretax operating income (loss)	$	125,892		$	(1,991	)	$	123,901
Cash and investments	$	3,669,413		$	9,437		$	3,678,850
Restricted cash	11,348			2,872			14,220
Goodwill	—			194,246			194,246
Other intangible assets, net	—			99,552			99,552
Assets held for sale (5)	—			—			1,755,873
Total assets (5)	4,708,744			349,238			6,813,855
Unearned premiums	657,555			—			657,555
Reserve for losses and LAE	1,384,714			—			1,384,714
NIW (in millions)	$	9,385

____________

(1) Includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations. These items include net investment income of $0.9 million, corporate overhead expenses of $2.1 million and interest expense of $9.9 million.

(2) Excludes net gains on investments and other financial instruments of $16.8 million, not included in adjusted pretax operating income. Includes inter-segment revenues of $0.9 million in the Services segment.

(3) Excludes $0.2 million of acquisition-related expenses not included in segment other operating expenses.

(4) Includes inter-segment expenses of $0.9 million in the Mortgage Insurance segment.

(5) Assets held for sale are not part of the Mortgage Insurance or Services segments.

	Three Months Ended March 31, 2014
(In thousands)	Mortgage Insurance			Services			Total
Net premiums written—insurance	$	212,953		$	—		$	212,953
Increase in unearned premiums	(14,191		)	—			(14,191		)
Net premiums earned—insurance	198,762			—			198,762
Net investment income (1)	15,318			—			15,318
Other income (1)	996			130			1,126
Total (2)	215,076			130			215,206
Provision for losses	49,626			—			49,626
Change in expected economic loss or recovery for consolidated VIEs	139			—			139
Policy acquisition costs	7,017			—			7,017
Other operating expenses before corporate allocations	37,764			859			38,623
Total	94,546			859			95,405
Adjusted pretax operating income (loss) before corporate allocations	120,530			(729		)	119,801
Allocation of corporate operating expenses (1)	15,884			—			15,884
Allocation of interest expense (1)	19,927			—			19,927
Adjusted pretax operating income (loss)	$	84,719		$	(729	)	$	83,990
Cash and investments	$	3,302,763		$	24		$	3,302,787
Restricted cash	22,366			—			22,366
Goodwill	—			2,095			2,095
Other intangible assets, net	—			188			188
Assets held for sale (3)	—			—			1,795,185
Total assets (3)	3,731,139			2,661			5,528,985
Unearned premiums	580,453			—			580,453
Reserve for losses and LAE	1,893,960			—			1,893,960
NIW (in millions)	$	6,808

________________

(1) Includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations. These items include net investment income of $1.3 million, other income of $0.1 million, corporate overhead expenses of $4.1 million and interest expense of $14.6 million.

(2) Excludes net gains on investments and other financial instruments of $43.1 million, not included in adjusted pretax operating income.

(3) Assets held for sale are not part of the Mortgage Insurance or Services segments.

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

The reconciliation of adjusted pretax operating income to consolidated pretax income from continuing operations is as follows:

	Three Months Ended March 31,
(In thousands)	2015			2014
Adjusted pretax operating income (loss):
Mortgage Insurance (1) (2)	$	125,892		$	84,719
Services (3)	(1,991		)	(729		)
Total adjusted pretax operating income	123,901			83,990
Net gains on investments and other financial instruments	16,779			43,107			(4)
Acquisition-related expenses	(207		)	—
Amortization and impairment of intangible assets	(3,023		)	—
Consolidated pretax income from continuing operations	$	137,450		$	127,097

______________

(1) Includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment for all periods presented, as listed in the preceding detailed tables. These amounts represent items that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations.

(2) Includes inter-segment expenses of $0.9 million for the three months ended March 31, 2015.

(3) Includes inter-segment revenues of $0.9 million for the three months ended March 31, 2015.

(4) The change in expected economic loss or recovery associated with our consolidated VIEs is included in adjusted pretax operating income above. Therefore, for purposes of this reconciliation, net gains on investments and other financial instruments has been adjusted by $0.1 million for the three months ended March 31, 2014 to reverse this item, which represents an amount that is not included in net income.