Reinsurance (Tables)

12 Months Ended

Dec. 31, 2021

Reinsurance Disclosures [Abstract]

Effects of Reinsurance

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
	Years Ended December 31,						Years Ended December 31,
(In thousands)	2021		2020		2019		2021		2020		2019
Direct
Mortgage insurance	$	984,995	$	1,085,670	$	1,120,996	$	1,104,696	$	1,263,684	$	1,233,528	(1)
Title insurance	39,665		22,843		11,342		39,665		22,843		11,342
Total direct	1,024,660		1,108,513		1,132,338		1,144,361		1,286,527		1,244,870		(1)
Assumed (2)
Mortgage insurance	7,066		12,197		10,379		7,066		12,214		10,382
Ceded
Mortgage insurance (3)	(47,515)		(86,912)		(55,925)		(113,480)		(183,131)		(109,696)		(1)
Title insurance	(764)		(289)		(207)		(764)		(289)		(207)
Total ceded (3)	(48,279)		(87,201)		(56,132)		(114,244)		(183,420)		(109,903)		(1)
Total net premiums	$	983,447	$	1,033,509	$	1,086,585	$	1,037,183	1,115,321		$	1,145,349	(1)

(1)Includes a cumulative adjustment to unearned premiums related to an update to the amortization rates used to recognize revenue for Single Premium Policies. See Note 2 for further information.

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

(3)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
	Years Ended December 31,
(In thousands)	2021		2020		2019
Ceding commissions earned (1)	$	31,745	$	53,654	$	48,659
Ceded losses (2)	(4,570)		58,266		5,859

(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 consolidated statements of operations. Deferred ceding commissions of $38.6 million and $52.5 million are included in other liabilities on our consolidated balance sheets at December 31, 2021 and 2020, respectively.

(2)Primarily all related to mortgage insurance.

Schedule of Single Premium Quota Share Reinsurance Program Details

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

Single Premium QSR Program
	2020 Single Premium QSR Agreement		2018 Single Premium QSR Agreement		2016 Single Premium QSR Agreement
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 December 31, 2021
RIF ceded	$	2,198	$	1,117	$	1,913
(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

The following tables set forth additional details regarding the Excess-of-Loss Program as of December 31, 2021 and December 31, 2020.

Excess-of-Loss Program
(In millions)	Eagle Re 2021-2 Ltd.		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	November 2021		April 2021			October 2020		February 2020		April 2019		November 2018
NIW policy dates	Jan 1, 2021- Jul 31, 2021		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	$	10,758	$	11,061		$	13,011	$	9,866	$	10,705	$	9,109
Initial coverage	484		498		(1)	390		488		562		434		(2)
Initial first layer retention	242		221			423		202		268		205
(In millions)	As of December 31, 2021
RIF	$	10,379	$	9,496		$	7,623	$	3,241	$	2,429	$	2,117
Remaining coverage	484		498			144		488		385		276
First layer retention	242		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 consolidated balance sheet at December 31, 2021. See Notes 5 and 6 for additional information.

(2)Excludes a separate excess-of-loss reinsurance agreement entered into by Radian Guaranty with coverage of $21.4 million. This agreement was terminated in December 2021.

Schedule of VIE Assets

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

Total VIE assets and liabilities of Eagle Re Issuers (1)
	December 31,
(In thousands)	2021		2020
Eagle Re 2021-2 Ltd.	$	484,122	$	—
Eagle Re 2021-1 Ltd.	497,735		—
Eagle Re 2020-2 Ltd.	143,986		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	$	2,274,548	$	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.