Note 2 - Discontinued Operations

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On April 1, 2015, Radian Guaranty completed the sale of 100% of the issued and outstanding shares of Radian Asset Assurance for a purchase price of approximately $810 million, pursuant to the Radian Asset Assurance Stock Purchase Agreement.

Based upon the applicable terms of the Radian Asset Assurance Stock Purchase Agreement, we determined that Radian Asset Assurance met the criteria for held for sale and discontinued operations accounting at December 31, 2014. As a result, we recognized a pretax impairment charge of approximately $467.5 million for the year ended December 31, 2014 and an additional pretax impairment charge of $13.9 million for the three months ended March 31, 2015. We recorded net income on discontinued operations of $0.5 million related to this sale in the first quarter of 2015. No general corporate overhead or interest expense was allocated to discontinued operations. The operating results of Radian Asset Assurance have been classified as discontinued operations for all periods presented in our condensed consolidated statements of operations.

The table below summarizes the components of income from discontinued operations, net of tax, for the period indicated. There was no activity for discontinued operations in the three months ended March 31, 2016.

	Three Months Ended March 31,
(In thousands)	2015
Net premiums earned	$	1,007
Net investment income	9,153
Net gains on investments and other financial instruments	13,668
Change in fair value of derivative instruments	2,625
Total revenues	26,453
Provision for losses	502
Policy acquisition costs	(191		)
Other operating expenses	4,107
Total expenses	4,418
Equity in net loss of affiliates	(13		)
Income from operations of businesses held for sale	22,022
Loss on sale	(13,930		)
Income tax provision	7,562
Income from discontinued operations, net of tax	$	530