Note 3 - Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31,
(In thousands)	2017			2016 (1)
Mortgage Insurance
Net premiums written—insurance (2)	$	224,665		$	26,310
(Increase) decrease in unearned premiums	(2,865		)	194,640
Net premiums earned—insurance	221,800			220,950
Net investment income	31,032			27,201
Other income	746			666
Total (3)	253,578			248,817
Provision for losses	47,232			43,275
Policy acquisition costs	6,729			6,389
Other operating expenses before corporate allocations	39,289			32,546
Total (4)	93,250			82,210
Adjusted pretax operating income before corporate allocations	160,328			166,607
Allocation of corporate operating expenses	14,186			9,329
Allocation of interest expense	11,509			17,112
Adjusted pretax operating income	$	134,633		$	140,166

______________________

(1) Reflects changes to align our segment reporting structure with recent changes in personnel reporting lines and management oversight related to contract underwriting performed on behalf of third parties. Revenue and expenses for this business are now reflected in the Services segment. As a result, Services revenue, cost of services and other operating expenses have increased, with offsetting reductions in Mortgage Insurance other income and other operating expenses.

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

(3) Excludes net losses on investments and other financial instruments of $2.9 million for the three months ended March 31, 2017, and net gains on investments and other financial instruments of $31.3 million for the three months ended March 31, 2016, not included in adjusted pretax operating income.

(4) Includes inter-segment expenses as follows:

	Three Months Ended March 31,
(In thousands)	2017		2016
Inter-segment expenses	$	2,062	$	1,599

	Three Months Ended March 31,
(In thousands)	2017			2016 (1)
Services
Services revenue (2)	$	40,089		$	34,448
Cost of services	28,690			23,854
Other operating expenses before corporate allocations	12,604			14,368
Total	41,294			38,222
Adjusted pretax operating income (loss) before corporate allocations	(1,205		)	(3,774		)
Allocation of corporate operating expenses	3,718			1,751
Allocation of interest expense	4,429			4,422
Adjusted pretax operating income (loss)	$	(9,352	)	$	(9,947	)

______________________

(1) Reflects changes to align our segment reporting structure with recent changes in personnel reporting lines and management oversight related to contract underwriting performed on behalf of third parties. Revenue and expenses for this business are now reflected in the Services segment. As a result, Services revenue, cost of services and other operating expenses have increased, with offsetting reductions in Mortgage Insurance other income and other operating expenses.

(2) Includes inter-segment revenues as follows:

	Three Months Ended March 31,
(In thousands)	2017		2016
Inter-segment revenues	$	2,062	$	1,599

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

	At March 31, 2017
(In thousands)	Mortgage Insurance		Services		Total
Total assets	$	5,475,502	$	352,258	$	5,827,760

	At December 31, 2016
(In thousands)	Mortgage Insurance		Services		Total
Total assets	$	5,506,338	$	356,836	$	5,863,174

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

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

	Three Months Ended March 31,
(In thousands)	2017			2016
Adjusted pretax operating income (loss):
Mortgage Insurance (1)	$	134,633		$	140,166
Services (1)	(9,352		)	(9,947		)
Total adjusted pretax operating income	125,281			130,219
Net gains (losses) on investments and other financial instruments	(2,851		)	31,286
Loss on induced conversion and debt extinguishment	(4,456		)	(55,570		)
Acquisition-related expenses (2)	(8		)	(205		)
Amortization and impairment of intangible assets	(3,296		)	(3,328		)
Consolidated pretax income	$	114,670		$	102,402

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

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