Note 3 - Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2016

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)	2016			2015			2016		2015
Mortgage Insurance
Net premiums written—insurance (1)	$	232,353		$	251,082		$	258,663	$	492,990
Decrease (increase) in unearned premiums	(3,268		)	(13,645		)	191,372		(30,958		)
Net premiums earned—insurance	229,085			237,437			450,035		462,032
Net investment income	28,839			19,285			56,040		36,613
Other income	3,424			1,743			5,339		3,074
Total (2)	261,348			258,465			511,414		501,719

Provision for losses	50,074			31,637			93,349		77,488
Policy acquisition costs	5,393			6,963			11,782		14,713
Other operating expenses before corporate allocations	36,126			41,853			69,955		75,903
Total (3)	91,593			80,453			175,086		168,104
Adjusted pretax operating income before corporate allocations	169,755			178,012			336,328		333,615
Allocation of corporate operating expenses	14,286			12,516			23,615		22,274
Allocation of interest expense	18,124			20,070			35,236		40,023
Adjusted pretax operating income	$	137,345		$	145,426		$	277,477	$	271,318

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(1)	Net of ceded premiums written under the QSR Transactions and the Single Premium QSR Transaction. See Note 7 for additional information.


(2)	Excludes net gains on investments and other financial instruments of $30.5 million and $61.8 million, respectively, for the three and six months ended June 30, 2016, and $28.4 million and $45.2 million, respectively, for the three and six months ended June 30, 2015, not included in adjusted pretax operating income.


(3)	Includes inter-segment expenses as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2016			2015		2016			2015
Services
Services revenue (1)	$	39,002		$	44,595	$	71,198		$	76,127

Direct cost of services	25,224			25,501		47,277			44,754
Other operating expenses before corporate allocations	12,537			11,522		26,420			20,379
Total	37,761			37,023		73,697			65,133
Adjusted pretax operating income (loss) before corporate allocations	1,241			7,572		(2,499		)	10,994
Allocation of corporate operating expenses	2,779			1,307		4,530			2,288
Allocation of interest expense	4,422			4,431		8,844			8,863
Adjusted pretax operating income (loss)	$	(5,960	)	$	1,834	$	(15,873	)	$	(157	)

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(1)	Includes inter-segment revenues as follows:

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

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)	2016			2015			2016			2015
Adjusted pretax operating income (loss):
Mortgage Insurance (1)	$	137,345		$	145,426		$	277,477		$	271,318
Services (1)	(5,960		)	1,834			(15,873		)	(157		)
Total adjusted pretax operating income	131,385			147,260			261,604			271,161

Net gains (losses) on investments and other financial instruments	30,527			28,448			61,813			45,227
Loss on induced conversion and debt extinguishment	(2,108		)	(91,876		)	(57,678		)	(91,876		)
Acquisition-related (expenses) benefits (2)	54			(567		)	(151		)	(774		)
Amortization and impairment of intangible assets	(3,311		)	(3,281		)	(6,639		)	(6,304		)
Consolidated pretax income from continuing operations	$	156,547		$	79,984		$	258,949		$	217,434

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(1)	Includes inter-segment expenses and revenues as listed in the notes to the preceding tables.


(2)	Acquisition-related (expenses) benefits represent expenses incurred to effect the acquisition of a business, net of adjustments to accruals previously recorded for acquisition expenses.