Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables include a list of assets and liabilities that are measured at fair value by hierarchy level as of March 31, 2023, and December 31, 2022.

Assets and liabilities carried at fair value by hierarchy level
	March 31, 2023
(In thousands)	Level I		Level II		Level III		Total
Investments
Fixed-maturities available for sale
U.S. government and agency securities	$	157,517	$	10,654	$	—	$	168,171
State and municipal obligations	—		166,177		—		166,177
Corporate bonds and notes	—		2,539,221		—		2,539,221
RMBS	—		962,469		—		962,469
CMBS	—		589,838		—		589,838
CLO	—		488,784		—		488,784
Other ABS	—		198,759		—		198,759
Foreign government and agency securities	—		5,014		—		5,014
Mortgage insurance-linked notes (1)	—		53,942		—		53,942
Total fixed-maturities available for sale	157,517		5,014,858		—		5,172,375
Trading securities
State and municipal obligations	—		72,361		—		72,361
Corporate bonds and notes	—		24,676		—		24,676
RMBS	—		6,679		—		6,679
CMBS	—		4,590		—		4,590
Total trading securities	—		108,306		—		108,306
Equity securities	147,241		6,129		2,500		155,870
Mortgage loans held for sale	—		18,843		—		18,843
Other invested assets (2)	—		—		4,296		4,296
Short-term investments
State and municipal obligations	—		2,585		—		2,585
Money market instruments	222,426		—		—		222,426
Corporate bonds and notes	—		57,534		—		57,534
RMBS	—		1,737		—		1,737
Other ABS	—		2,700		—		2,700
Other investments (3)	—		89,770		—		89,770
Total short-term investments	222,426		154,326		—		376,752
Total investments at fair value (2)	527,184		5,302,462		6,796		5,836,442
Other
Derivative assets	—		108		644		752
Loaned securities (4)
State and municipal obligations	—		245		—		245
Corporate bonds and notes	—		62,350		—		62,350
Equity securities	60,257		—		—		60,257
Mortgage insurance-linked notes (1)	—		7,517		—		7,517
Total assets at fair value (2)	$	587,441	$	5,372,682	$	7,440	$	5,967,563
Liabilities
Derivative liabilities (5)	$	—	$	29	$	1,913	$	1,942
Total liabilities at fair value	$	—	$	29	$	1,913	$	1,942

(1)Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information.

(2)Does not include other invested assets of $1.4 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient.

(3)Comprises short-term certificates of deposit and commercial paper.

(4)Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 6 for more information.

(5)Consists primarily of embedded derivatives related to our Excess-of-Loss Program, which are classified as other liabilities in our condensed consolidated balance sheets. See Note 8 for more information.

Assets and liabilities carried at fair value by hierarchy level
	December 31, 2022
(In thousands)	Level I		Level II		Level III		Total
Investments
Fixed-maturities available for sale
U.S. government and agency securities	$	140,011	$	5,431	$	—	$	145,442
State and municipal obligations	—		142,386		—		142,386
Corporate bonds and notes	—		2,490,582		—		2,490,582
RMBS	—		928,399		—		928,399
CMBS	—		593,357		—		593,357
CLO	—		498,192		—		498,192
Other ABS	—		161,359		—		161,359
Foreign government and agency securities	—		4,975		—		4,975
Mortgage insurance-linked notes (1)	—		53,019		—		53,019
Total fixed-maturities available for sale	140,011		4,877,700		—		5,017,711
Trading securities
State and municipal obligations	—		70,511		—		70,511
Corporate bonds and notes	—		32,827		—		32,827
RMBS	—		6,847		—		6,847
CMBS	—		5,480		—		5,480
Total trading securities	—		115,665		—		115,665
Equity securities	138,716		7,749		2,500		148,965
Mortgage loans held for sale	—		3,549		—		3,549
Other invested assets (2)	—		—		4,296		4,296
Short-term investments
State and municipal obligations	—		2,785		—		2,785
Money market instruments	241,440		—		—		241,440
Corporate bonds and notes	—		42,385		—		42,385
Other investments (3)	—		115,480		—		115,480
Total short-term investments	241,440		160,650		—		402,090
Total investments at fair value (2)	520,167		5,165,313		6,796		5,692,276
Other
Derivative assets	—		11		—		11
Loaned securities (4)
Corporate bonds and notes	—		47,585		—		47,585
Equity securities	64,554		—		—		64,554
Total assets at fair value (2)	$	584,721	$	5,212,909	$	6,796	$	5,804,426

Assets and liabilities carried at fair value by hierarchy level
	December 31, 2022
(In thousands)	Level I		Level II		Level III		Total
Liabilities
Derivative liabilities (5)	$	—	$	42	$	4,858	$	4,900
Total liabilities at fair value	$	—	$	42	$	4,858	$	4,900

(1)Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Excess-of-Loss Program. See Note 8 for more information.

(2)Does not include other invested assets of $1.2 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient.

(3)Comprises short-term certificates of deposit and commercial paper.

(4)Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our condensed consolidated balance sheets. See Note 6 for more information.

(5)Consists primarily of embedded derivatives related to our Excess-of-Loss Program, which are classified as other liabilities in our condensed consolidated balance sheets. See Note 8 for more information.

Schedule of Liabilities Not Carried at Fair Value

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value in our condensed consolidated balance sheets were as follows as of the dates indicated.

Financial instruments not carried at fair value
	March 31, 2023				December 31, 2022
(In thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Company-owned life insurance	$	106,549	$	98,471	$	105,331	$	94,943
Senior notes	$	1,414,549	$	1,379,446	$	1,413,504	$	1,361,844
Other borrowings
FHLB advances	$	113,171	$	113,268	$	153,686	$	153,728
Mortgage financing facilities	8,471		8,471		2,136		2,136
Total other borrowings	$	121,642	$	121,739	$	155,822	$	155,864