XML 56 R37.htm IDEA: XBRL DOCUMENT v3.22.4
Reinsurance (Tables)
 12 Months Ended
Dec. 31, 2022
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 WrittenNet Premiums Earned
Years Ended December 31,Years Ended December 31,
(In thousands)202220212020202220212020
Direct
Mortgage insurance$967,996 $984,995 $1,085,670 $1,025,607 $1,104,696 $1,263,684 
Title insurance24,422 39,665 22,843 24,422 39,665 22,843 
Total direct992,418 1,024,660 1,108,513 1,050,029 1,144,361 1,286,527 
Assumed (1)
Mortgage insurance4,025 7,066 12,197 4,025 7,066 12,214 
Ceded
Mortgage insurance (2)
(12,148)(47,515)(86,912)(72,419)(113,480)(183,131)
Title insurance(504)(764)(289)(504)(764)(289)
Total ceded (2)
(12,652)(48,279)(87,201)(72,923)(114,244)(183,420)
Total net premiums$983,791 $983,447 $1,033,509 $981,131 $1,037,183 $1,115,321 
(1)Represents premiums from our participation in certain credit risk transfer programs, which we discontinued in December 2022 as a result of the novation of these insurance policies to an unrelated third-party reinsurer. See Note 16 for additional information.
(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 recoverable.
Other reinsurance impacts
Years Ended December 31,
(In thousands)202220212020
Ceding commissions earned (1)
$18,998 $31,745 $53,654 
Ceded losses (2)
(41,980)(4,570)58,266 
(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 $27.4 million and $38.6 million are included in other liabilities on our consolidated balance sheets at December 31, 2022 and 2021, 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 QSR Programs.
QSR Program (1)
2022 QSR Agreement2020 Single Premium QSR Agreement2018 Single Premium QSR Agreement2016 Single Premium QSR Agreement
NIW policy datesJan 1, 2022-
Jun 30, 2023		Jan 1, 2020-
Dec 31, 2021		Jan 1, 2018-
Dec 31, 2019		Jan 1, 2012-
Dec 31, 2017
Effective dateJuly 1, 2022January 1, 2020January 1, 2018January 1, 2016
Scheduled termination dateJune 30, 2033December 31, 2031December 31, 2029December 31, 2027
Optional termination date (2)
July 1, 2026January 1, 2024January 1, 2022January 1, 2020
Quota share %20%65%65%
18% - 57% (3)
Ceding commission %20%25%25%25%
Profit commission %
Up to 59%
Up to 56%
Up to 56%
Up to 55%
 
(In millions)As of December 31, 2022
RIF ceded$3,307 $1,993 $876 $1,207 
 
(In millions)As of December 31, 2021
RIF ceded$— $2,198 $1,117 $1,913 
(1)Excludes the 2012 QSR Agreements, for which RIF ceded is no longer material.
(2)Radian Guaranty has the option, based on certain conditions and subject to a termination fee, to terminate any of the agreements at the end of any calendar quarter on or after the applicable optional termination date. If Radian Guaranty exercises this option in the future, it would result in Radian Guaranty reassuming the related RIF in exchange for a net payment to the reinsurers calculated in accordance with the terms of the applicable agreement. Radian Guaranty also may terminate any of the agreements prior to the scheduled termination date under certain circumstances, including if one or both of the GSEs no longer grant full PMIERs credit for the reinsurance.
(3)Effective September 30, 2022, one reinsurer terminated its interest in the 2016 Single Premium QSR Agreement in exchange for participating in the 2022 QSR Agreement. As a result, the portions ceded under this agreement declined from 20% to 65% to approximately 18% to 57% as of September 30, 2022.
Schedule of Excess-of-Loss Program
The following tables set forth additional details regarding the Excess-of-Loss Program.
Excess-of-Loss Program (1)
(In millions)Eagle Re 2021-2 Ltd.
Eagle Re 2021-1 Ltd. (2)
Eagle Re 2020-1 Ltd.Eagle Re 2019-1 Ltd.Eagle Re 2018-1 Ltd.
IssuedNovember
2021		April
2021		February
2020		April
2019		November
2018
NIW policy datesJan 1, 2021-
Jul 31, 2021		Aug 1, 2020-
Dec 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 $9,866 $10,705 $9,109 
Initial coverage484 498 488 562 434 
Initial first layer retention242 221 202 268 205 
(In millions)As of December 31, 2022
RIF$9,150 $7,758 $2,401 $1,769 $1,509 
Remaining coverage472 366 368 385 276 
First layer retention242 221 202 263 200 
(In millions)As of December 31, 2021
RIF$10,379 $9,496 $3,241 $2,429 $2,117 
Remaining coverage484 498 488 385 276 
First layer retention242 221 202 264 201 
(1)Excludes Eagle Re 2020-2 Ltd., which was terminated in September 2022, as further discussed above.
(2)Radian Group purchased $45.4 million original principal amount of the mortgage insurance-linked notes issued in connection with this reinsurance transaction, which are included in fixed-maturities available for sale on our consolidated balance sheet at December 31, 2022. See Notes 5 and 6 for additional information.
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)20222021
Eagle Re 2021-2 Ltd.$471,942 $484,122 
Eagle Re 2021-1 Ltd.366,169 497,735 
Eagle Re 2020-2 Ltd. (2)
— 143,986 
Eagle Re 2020-1 Ltd.368,378 488,385 
Eagle Re 2019-1 Ltd.384,602 384,602 
Eagle Re 2018-1 Ltd.275,718 275,718 
Total$1,866,809 $2,274,548 
(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 as described above. Assets and liabilities are equal to each other for each of the Eagle Re Issuers.
(2)In September 2022, the excess-of-loss reinsurance agreement with Eagle Re 2020-2 Ltd. was terminated, as further discussed above.