Note 8 - Reinsurance (Tables)

9 Months Ended

Sep. 30, 2021

Reinsurance Disclosures [Abstract]

Reinsurance, Net Premiums Written and Earned [Table Text Block]

The effect of all of our reinsurance programs on our net income is as follows.

Reinsurance impacts on net premiums written and earned
	Net Premiums Written								Net Premiums Earned
	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2021		2020		2021		2020		2021		2020		2021		2020
Direct
Mortgage insurance	$	240,669	$	266,067	$	734,993	$	812,806	$	265,378	$	325,556	$	835,462	$	937,827
Title insurance	12,570		3,173		27,714		7,461		12,570		3,173		27,714		7,461
Total direct	253,239		269,240		762,707		820,267		277,948		328,729		863,176		945,288
Assumed (1)
Mortgage insurance	1,683		2,942		5,596		9,585		1,683		2,946		5,596		9,599
Ceded (2)
Mortgage insurance	(14,236)		(9,731)		(34,572)		(72,681)		(30,194)		(45,146)		(92,441)		(141,475)
Title insurance	(319)		(58)		(585)		(231)		(319)		(58)		(585)		(231)
Total ceded	(14,555)		(9,789)		(35,157)		(72,912)		(30,513)		(45,204)		(93,026)		(141,706)
Total Net premiums	$	240,367	$	262,393	$	733,146	$	756,940	$	249,118	$	286,471	$	775,746	$	813,181

(1)Primarily includes premiums from our participation in certain credit risk transfer programs.

(2)Net of profit commission, which is impacted by the level of ceded losses recoverable, if any, on reinsurance transactions. See Note 11 for additional information on our reserve for losses and reinsurance recoverables.

Other reinsurance impacts
	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2021		2020		2021		2020
Ceding commissions earned (1)	$	7,120	$	17,038	$	25,446	$	40,457
Ceded losses (2)	795		10,189		3,463		51,786

(1)Ceding commissions earned are primarily related to mortgage insurance and are included as an offset to expenses primarily in other operating expenses on our condensed consolidated statements of operations. Deferred ceding commissions of $40.7 million and $52.5 million are included in other liabilities on our condensed consolidated balance sheets at September 30, 2021 and December 31, 2020, respectively.

(2)Primarily all related to mortgage insurance.

Schedule of Single Premium Quota Share Reinsurance Program Details [Table Text Block]

The following table sets forth additional details regarding the Single Premium QSR Program.

Single Premium QSR Program
	2020 Singles QSR		2018 Singles QSR		2016 Singles QSR
NIW Policy Dates	Jan 1, 2020-Dec 31, 2021		Jan 1, 2018-Dec 31, 2019		Jan 1, 2012-Dec 31, 2017
Effective Date	January 1, 2020		January 1, 2018		January 1, 2016
Scheduled Termination Date	December 31, 2031		December 31, 2029		December 31, 2027
Optional Termination Date	January 1, 2024		January 1, 2022		January 1, 2020
Quota Share %	65%		65%		20% - 65% (1)
Ceding Commission %	25%		25%		25%
Profit Commission %	Up to 56%		Up to 56%		Up to 55%
(In millions)	As of September 30, 2021
RIF Ceded	$	2,046	$	1,279	$	2,115
(In millions)	As of December 31, 2020
RIF Ceded	$	1,597	$	1,979	$	3,071

(1)Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk on performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages. Loans included in the 2012 through 2014 vintages, and any other loans subject to the agreement that were delinquent at the time of the amendment, were unaffected by the change and therefore the amount of ceded risk for those loans continues to range from 20% to 35%.

Schedule of Collateralized Reinsurance Agreements [Table Text Block]

The following table sets forth additional details regarding the Excess-of-Loss Program as of September 30, 2021.

Excess-of-Loss Program
(In millions)	Eagle Re 2021-1 Ltd.			Eagle Re 2020-2 Ltd.		Eagle Re 2020-1 Ltd.		Eagle Re 2019-1 Ltd.		Eagle Re 2018-1 Ltd.
Issued	April 2021			October 2020		February 2020		April 2019		November 2018
NIW Policy Dates	Aug 1, 2020- Dec 31, 2020			Oct 1, 2019- Jul 31, 2020		Jan 1, 2019- Sep 30, 2019		Jan 1, 2018- Dec 31, 2018		Jan 1, 2017- Dec 31, 2017
Initial RIF	$	11,061		$	13,011	$	9,866	$	10,705	$	9,109
Initial Coverage	498		(1)	390		488		562		434		(2)
Initial First Layer Retention	221			423		202		268		205
(In millions)	As of September 30, 2021
RIF	$	9,999		$	8,451	$	3,727	$	2,787	$	2,415
Remaining Coverage	498			206		488		385		276		(2)
First Layer Retention	221			423		202		264		201
(In millions)	As of December 31, 2020
RIF	$	—		$	11,748	$	6,121	$	4,657	$	3,986
Remaining Coverage	—			390		488		385		276		(2)
First Layer Retention	—			423		202		265		201

(1)Radian Group purchased $45.4 million original principal amount of these mortgage insurance-linked notes, which are included in fixed-maturities available for sale on our condensed consolidated balance sheet at September 30, 2021. See Notes 5 and 6 for additional information.

(2)Excludes a separate excess-of-loss reinsurance agreement entered into by Radian Guaranty with both initial and remaining coverage of $21.4 million.

Schedule of VIE Assets [Table Text Block]

The following table presents the total assets and liabilities of the Eagle Re Issuers as of the dates indicated.

Total assets and liabilities of Eagle Re Issuers (1)
(In thousands)	September 30, 2021		December 31, 2020
Eagle Re 2021-1 Ltd.	$	497,735	$	—
Eagle Re 2020-2 Ltd.	205,581		390,324
Eagle Re 2020-1 Ltd.	488,385		488,385
Eagle Re 2019-1 Ltd.	384,602		384,602
Eagle Re 2018-1 Ltd.	275,718		275,718
Total	$	1,852,021	$	1,539,029

(1)Assets held by the Eagle Re Issuers are required to be invested in U.S. government money market funds, cash or U.S. Treasury securities. Liabilities of the Eagle Re Issuers consist of their mortgage insurance-linked notes, described above. Assets and liabilities are equal to each other for each of the Eagle Re Issuers.