Note 3 - Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

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

Summarized operating results for our segments as of and for the periods indicated, are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Mortgage Insurance
Net premiums written—insurance	$	251,082		$	221,947		$	492,990		$	434,900
Increase in unearned premiums	(13,645		)	(18,301		)	(30,958		)	(32,492		)
Net premiums earned—insurance	237,437			203,646			462,032			402,408
Net investment income (1)	19,285			16,663			36,613			31,981
Other income (1)	1,743			1,620			3,074			2,616
Total	258,465			221,929			501,719			437,005
Provision for losses	31,637			64,648			77,488			114,274
Change in expected economic loss or recovery for consolidated VIEs	—			180			—			319
Policy acquisition costs	6,963			6,746			14,713			13,763
Other operating expenses before corporate allocations	41,853			36,356			75,903			74,120
Total (2)	80,453			107,930			168,104			202,476
Adjusted pretax operating income before corporate allocations	178,012			113,999			333,615			234,529
Allocation of corporate operating expenses (1)	12,516			17,021			22,274			32,905
Allocation of interest expense (1)	20,070			22,348			40,023			42,275
Adjusted pretax operating income	$	145,426		$	74,630		$	271,318		$	159,349

____________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, 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, as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Net investment income	$	—	$	1,392	$	882	$	2,689
Other income	—		113		26		182
Allocation of corporate operating expenses	—		4,412		2,074		8,561
Allocation of interest expense	—		15,943		9,918		30,498

(2) Includes inter-segment expenses as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Inter-segment expenses	$	1,092	$	—	$	1,994	$	—

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015		2014			2015			2014
Services
Services revenue	$	44,595	$	—		$	76,127		$	—
Other income	—		119			—			249
Total (1)	44,595		119			76,127			249
Direct cost of services	25,501		—			44,754			—
Other operating expenses before corporate allocations	11,522		642			20,379			1,501
Total	37,023		642			65,133			1,501
Adjusted pretax operating income (loss) before corporate allocations	7,572		(523		)	10,994			(1,252		)
Allocation of corporate operating expenses	1,307		—			2,288			—
Allocation of interest expense	4,431		—			8,863			—
Adjusted pretax operating income (loss)	$	1,834	$	(523	)	$	(157	)	$	(1,252	)

____________

(1) Includes inter-segment revenues as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Inter-segment revenues	$	1,092	$	—	$	1,994	$	—

Selected balance sheet information for our segments as of the periods indicated, is as follows:

	At June 30, 2015
(In thousands)	Mortgage Insurance		Services		Total
Total assets	$	5,384,224	$	352,280	$	5,736,504

	At December 31, 2014
(In thousands)	Mortgage Insurance		Services		Total
Assets held for sale (1)	$	—	$	—	$	1,736,444
Total assets	4,769,014		336,878		6,842,336

________________

(1) 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 June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Adjusted pretax operating income (loss):
Mortgage Insurance (1) (2)	$	145,426		$	74,630		$	271,318		$	159,349
Services (2)	1,834			(523		)	(157		)	(1,252		)
Total adjusted pretax operating income	147,260			74,107			271,161			158,097
Net gains on investments and other financial instruments (3)	28,448			25,512			45,227			68,619
Loss on induced conversion and debt extinguishment	(91,876		)	—			(91,876		)	—
Acquisition-related expenses	(567		)	(6,732		)	(774		)	(6,732		)
Amortization and impairment of intangible assets	(3,281		)	—			(6,304		)	—
Consolidated pretax income from continuing operations	$	79,984		$	92,887		$	217,434		$	219,984

______________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment, as listed in the preceding 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 and revenues as listed in the notes to the preceding tables.

(3) The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains on investments and other financial instruments has been adjusted by $0.2 million and $0.3 million for the three and six months ended June 30, 2014, respectively, to reverse this item.