Note 6 - Investments Level 3 (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Available-for-sale Securities [Line Items]

Schedule of Securities Financing Transactions [Table Text Block]

Key components of our securities lending agreements at December 31, 2017, consisted of the following:



(In thousands)	December 31, 2017
Loaned securities: (1)
Corporate bonds and notes	$	13,862
Foreign government and agency securities	867
Equity securities	13,235
Total loaned securities, at fair value	$	27,964

Total loaned securities, at amortized cost	$	27,846
Securities collateral on deposit from Borrowers (2)	9,342
Reinvested cash collateral, at estimated fair value (3)	19,357

______________________


(1)	Our securities loaned under securities lending agreements are included at fair value within other assets on our consolidated balance sheets. All of our securities lending agreements are classified as overnight and revolving. None of the amounts are subject to offsetting.


(2)	Securities collateral on deposit with us from Borrowers may not be transferred or re-pledged unless the Borrower is in default, and is therefore not reflected in our consolidated financial statements.


(3)	All cash collateral received has been reinvested in accordance with the securities lending agreements and is included in short-term investments. Amounts payable on the return of cash collateral under securities lending agreements are included within other liabilities on our consolidated balance sheets.

Available-for-sale Securities [Table Text Block]

Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated:



	December 31, 2017
(In thousands)	Amortized Cost		Fair Value			Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	69,668	$	69,396		$	96	$	367
State and municipal obligations	156,587		161,722			5,834		699
Corporate bonds and notes	1,869,318		1,894,886			33,620		8,052
RMBS	189,455		187,229			636		2,862
CMBS	451,595		453,394			3,409		1,610
Other ABS	672,715		674,548			2,655		822
Foreign government and agency securities	31,416		32,207			823		33
Total fixed-maturities available for sale	3,440,754		3,473,382		(1)	47,073		14,445
Equity securities available for sale (2)	176,349		176,065		(1)	1,705		1,989
Total debt and equity securities	$	3,617,103	$	3,649,447		$	48,778	$	16,434

______________________


(1)	Includes $14.7 million and $13.2 million of fixed maturities and equity securities, respectively, of securities loaned to third-party Borrowers under securities lending agreements, classified as other assets in our consolidated balance sheets, as further described below.


(2)	Primarily consists of investments in fixed-income and equity exchange-traded funds and publicly-traded business development company equities.



	December 31, 2016
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	78,931	$	75,474	$	2	$	3,459
State and municipal obligations	66,124		67,171		1,868		821
Corporate bonds and notes	1,463,720		1,455,628		14,320		22,412
RMBS	358,262		350,628		197		7,831
CMBS	429,057		428,289		2,255		3,023
Other ABS	433,603		434,728		2,037		912
Foreign government and agency securities	24,771		24,594		148		325
Other investments	2,000		2,000		—		—
Total fixed-maturities available for sale	2,856,468		2,838,512		20,827		38,783
Equity securities available for sale (1)	1,330		1,330		—		—
Total debt and equity securities	$	2,857,798	$	2,839,842	$	20,827	$	38,783

______________________


(1)	Primarily consists of investments in Federal Home Loan Bank stock as required in connection with the memberships of Radian Guaranty and Radian Reinsurance in the FHLB.

Unrealized Gain (Loss) on Investments [Table Text Block]

The change in unrealized gains (losses) recorded in accumulated other comprehensive income (loss) consisted of the following:



	Year Ended December 31,
(In thousands)	2017			2016			2015
Fixed-maturities:
Unrealized holding gains (losses) arising during the period, net of tax	$	32,147		$	8,822		$	(24,246	)
Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax	(2,556		)	2,361			(764		)
Net unrealized gains (losses) on investments, net of tax	$	34,703		$	6,461		$	(23,482	)

Equities:
Unrealized holding gains (losses) arising during the period, net of tax	$	(244	)	$	(40	)	$	1,673
Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax	(86		)	(110		)	44,947
Net unrealized gains (losses) on investments, net of tax	$	(158	)	$	70		$	(43,274	)

Schedule Of Unrealized Losses [Table Text Block]

the following tables show the gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated. Included in the amounts as of December 31, 2017, are loaned securities under securities lending agreements that are classified as other assets in our condensed consolidated balance sheets, as further described below.



	December 31, 2017
($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
($ in thousands) Description of Securities	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	6	$	23,309	$	129	3	$	9,799	$	238	9	$	33,108	$	367
State and municipal obligations	21	65,898		699		—	—		—		21	65,898		699
Corporate bonds and notes	152	672,318		4,601		32	139,105		3,451		184	811,423		8,052
RMBS	8	19,943		204		26	101,812		2,658		34	121,755		2,862
CMBS	35	139,353		1,395		4	3,518		215		39	142,871		1,610
Other ABS	92	260,864		777		7	8,297		45		99	269,161		822
Foreign government and agency securities	5	7,397		33		—	—		—		5	7,397		33
Equity securities	13	149,785		1,989		—	—		—		13	149,785		1,989
Total	332	$	1,338,867	$	9,827	72	$	262,531	$	6,607	404	$	1,601,398	$	16,434



	December 31, 2016
($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
($ in thousands) Description of Securities	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	7	$	73,160	$	3,459	—	$	—	$	—	7	$	73,160	$	3,459
State and municipal obligations	7	30,901		821		—	—		—		7	30,901		821
Corporate bonds and notes	185	788,876		22,135		2	4,582		277		187	793,458		22,412
RMBS	56	311,031		7,822		1	1,398		9		57	312,429		7,831
CMBS	37	218,170		2,909		2	6,585		114		39	224,755		3,023
Other ABS	58	131,268		470		16	45,886		442		74	177,154		912
Foreign government and agency securities	12	13,034		325		—	—		—		12	13,034		325
Total	362	$	1,566,440	$	37,941	21	$	58,451	$	842	383	$	1,624,891	$	38,783

Trading Securities (and Certain Trading Assets) [Table Text Block]

The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated:



	December 31,
(In thousands)	2017			2016
Trading securities:
U.S. government and agency securities	$	—		$	33,042
State and municipal obligations	214,841			259,573
Corporate bonds and notes	307,271			453,617
RMBS	29,520			38,214
CMBS	50,561			78,984
Other ABS	—			8,219
Foreign government and agency securities	4,241			8,213
Total	$	606,434	(1)	$	879,862

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(1)	Includes a de minimis amount of loaned securities under securities lending agreements that are classified as other assets in our consolidated balance sheets, as further described below.

Investment Income [Table Text Block]

Net investment income consisted of:



	Year Ended December 31,
(In thousands)	2017			2016			2015
Investment income:
Fixed-maturities	$	122,890		$	115,880		$	81,127
Equity securities	4,318			86			4,539
Short-term investments	5,453			3,086			745
Other	987			1,161			600
Gross investment income	133,648			120,213			87,011
Investment expenses	(6,400		)	(6,747		)	(5,474		)
Net investment income	$	127,248		$	113,466		$	81,537

Gain (Loss) on Investments [Table Text Block]

Net realized and unrealized gains (losses), including impairment losses, on investments and other financial instruments consisted of:



	Year Ended December 31,
(In thousands)	2017			2016			2015
Net realized gains (losses) on investments:
Fixed-maturities available for sale (1)	$	(3,014	)	$	4,160		$	(1,176	)
Equities available for sale (2)	368			(170		)	69,150			(3)
Trading securities	(5,995		)	(237		)	(9,231		)
Short-term investments	(16		)	(135		)	(24		)
Other invested assets	22			631			3,267
Other gains (losses)	32			64			110
Net realized gains (losses) on investments	(8,603		)	4,313			62,096
Other-than-temporary impairment losses	(1,420		)	(526		)	—
Unrealized gains (losses) on trading securities	13,230			27,217			(27,015		)
Total net gains (losses) on investments	3,207			31,004			35,081
Net gains (losses) on other financial instruments	414			(253		)	612
Net gains (losses) on investments and other financial instruments	$	3,621		$	30,751		$	35,693

______________________

(1)Components of net realized gains (losses) on fixed-maturities available for sale include:



	Year Ended December 31,
(In thousands)	2017			2016			2015
Gross investment gains from sales and redemptions	$	6,052		$	10,326		$	64
Gross investment losses from sales and redemptions	(9,066		)	(6,166		)	(1,240		)


(2)	Net realized gains (losses) on equities available for sale is equal to the gross amount of gains and losses, respectively, realized for those periods.


(3)	During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $69.2 million.

Investments Classified by Contractual Maturity Date [Table Text Block]

The contractual maturities of fixed-maturity investments available for sale are as follows:



	December 31, 2017
(In thousands)	Amortized Cost		Fair Value
Due in one year or less	$	36,688	$	36,645
Due after one year through five years (1)	705,484		705,958
Due after five years through ten years (1)	1,023,844		1,029,896
Due after ten years (1)	360,973		385,712
RMBS (2)	189,455		187,229
CMBS (2)	451,595		453,394
Other ABS (2)	672,715		674,548
Total (3)	$	3,440,754	$	3,473,382

______________________


(1)	Actual maturities may differ as a result of calls before scheduled maturity.


(2)	RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date.


(3)	Includes securities loaned under securities lending agreements.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

+ References + Details