Note 3 - Segment Reporting (Tables)

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
(In thousands)	2017			2016 (1)			2017			2016 (1)
Mortgage Insurance
Net premiums written—insurance (2)	$	241,307		$	232,353		$	465,972		$	258,663
(Increase) decrease in unearned premiums	(12,211		)	(3,268		)	(15,076		)	191,372
Net premiums earned—insurance	229,096			229,085			450,896			450,035
Net investment income	30,071			28,839			61,103			56,040
Other income	612			1,454			1,358			2,120
Total (3)	259,779			259,378			513,357			508,195
Provision for losses	17,714			50,074			64,946			93,349
Policy acquisition costs	6,123			5,393			12,852			11,782
Other operating expenses before corporate allocations	37,939			34,365			77,228			66,911
Total (4)	61,776			89,832			155,026			172,042
Adjusted pretax operating income before corporate allocations	198,003			169,546			358,331			336,153
Allocation of corporate operating expenses	15,894			14,286			30,080			23,615
Allocation of interest expense	11,748			18,124			23,257			35,236
Adjusted pretax operating income	$	170,361		$	137,136		$	304,994		$	277,302

______________________

(1) Reflects changes made during the fourth quarter of 2016 to align our segment reporting structure concurrent with 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 gains on investments and other financial instruments of $5.3 million and $2.5 million, respectively, for the three and six months ended June 30, 2017, and 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, not included in adjusted pretax operating income.

(4)Includes inter-segment expenses as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2017		2016		2017		2016
Inter-segment expenses	$	2,173	$	1,947	$	4,235	$	3,546

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2017			2016 (1)			2017			2016 (1)
Services
Services revenue (2)	$	39,975		$	42,210		$	80,064		$	76,658
Cost of services	25,962			27,730			54,652			51,584
Other operating expenses before corporate allocations	12,803			13,030			25,407			27,398
Total	38,765			40,760			80,059			78,982
Adjusted pretax operating income (loss) before corporate allocations	1,210			1,450			5			(2,324		)
Allocation of corporate operating expenses	3,404			2,779			7,122			4,530
Allocation of interest expense	4,431			4,422			8,860			8,844
Adjusted pretax operating income (loss)	$	(6,625	)	$	(5,751	)	$	(15,977	)	$	(15,698	)

______________________

(1) Reflects changes made during the fourth quarter of 2016 to align our segment reporting structure concurrent with 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 June 30,				Six Months Ended June 30,
(In thousands)	2017		2016		2017		2016
Inter-segment revenues	$	2,173	$	1,947	$	4,235	$	3,546

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

	At June 30, 2017
(In thousands)	Mortgage Insurance		Services (1)		Total
Total assets	$	5,605,607	$	211,499	$	5,817,106

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

______________________

(1) The decrease in total assets for the Services segment at June 30, 2017, as compared to December 31, 2016, is primarily due to the impairment of goodwill and other intangible assets. See Note 6 for further details.

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

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

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2017			2016			2017			2016
Adjusted pretax operating income (loss):
Mortgage Insurance (1)	$	170,361		$	137,136		$	304,994		$	277,302
Services (1)	(6,625		)	(5,751		)	(15,977		)	(15,698		)
Total adjusted pretax operating income	163,736			131,385			289,017			261,604
Net gains (losses) on investments and other financial instruments	5,331			30,527			2,480			61,813
Loss on induced conversion and debt extinguishment	(1,247		)	(2,108		)	(5,703		)	(57,678		)
Acquisition-related expenses (2)	(64		)	54			(72		)	(151		)
Impairment of goodwill	(184,374		)	—			(184,374		)	—
Amortization and impairment of other intangible assets	(18,856		)	(3,311		)	(22,152		)	(6,639		)
Consolidated pretax income (loss)	$	(35,474	)	$	156,547		$	79,196		$	258,949

______________________

(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.