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Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have two strategic business units that we manage separately—Mortgage Insurance and homegenius. Our Mortgage Insurance segment derives its revenue from mortgage insurance and other mortgage and risk services, including contract underwriting solutions provided to mortgage lending institutions and mortgage credit investors. Our homegenius segment offers an array of title, real estate and real estate technology products and services to consumers, mortgage lenders, mortgage and real estate investors, GSEs, real estate brokers and agents, and corporations for their employees.
In addition, we report as All Other activities that include: (i) income (losses) from assets held by Radian Group, our holding company; (ii) related general corporate operating expenses not attributable or allocated to our reportable segments; and (iii) certain new business opportunities and other immaterial activities, the majority of which are currently activities associated with our mortgage conduit business conducted through Radian Mortgage Capital.
We allocate corporate operating expenses to our reportable segments and other immaterial operating segments included in All Other based primarily on each segment’s forecasted annual percentage of total revenue, which approximates the estimated percentage of management time spent on each segment. In addition, we allocate all corporate interest expense to our Mortgage Insurance segment, due to the capital-intensive nature of our mortgage insurance business. We do not manage assets by segment.
See Note 1 for additional details about our Mortgage Insurance and homegenius businesses.
Adjusted Pretax Operating Income (Loss)
Our senior management, including our Chief Executive Officer (Radian’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of Radian’s business segments and to allocate resources to the segments.
Adjusted pretax operating income (loss) is defined as pretax income (loss) excluding the effects of: (i) net gains (losses) on investments and other financial instruments, except for certain investments and other financial instruments attributable to our reportable segments and All Other activities; (ii) amortization and impairment of goodwill and other acquired intangible assets; and (iii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income and expenses and gains (losses) on extinguishment of debt.
Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (i) not viewed as part of the operating performance of our primary activities or (ii) not expected to result in an economic impact equal to the amount reflected in pretax income (loss). These adjustments, along with the reasons for their treatment, are described below.
(1) Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized gains and losses arise primarily from changes in the market value of our investments that are classified as trading or equity securities. These valuation adjustments may not necessarily result in realized economic gains or losses.
Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses and changes in fair value of other financial instruments. Except for certain investments and other financial instruments attributable to our reportable segments and All Other activities, we do not view them to be indicative of our fundamental operating activities.
(2)Amortization and impairment of goodwill and other acquired intangible assets. Amortization of acquired intangible assets represents the periodic expense required to amortize the cost of acquired intangible assets over their estimated useful lives. Acquired intangible assets are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. We do not view these charges as part of the operating performance of our primary activities.
(3)Impairment of other long-lived assets and other non-operating items, if any. Impairment of other long-lived assets and other non-operating items includes activities that we do not view to be indicative of our fundamental operating activities, such as: (i) impairment of internal-use software and other long-lived assets; (ii) gains (losses) from the sale of lines of business; (iii) acquisition-related income and expenses; and (iv) gains (losses) on extinguishment of debt.
The reconciliation of adjusted pretax operating income (loss) for our reportable segments to consolidated pretax income is as follows.
Reconciliation of adjusted pretax operating income (loss) by segment
December 31,
(In thousands)202320222021
Adjusted pretax operating income (loss)
Mortgage Insurance$829,824 $1,131,943 $781,546 
homegenius(86,270)(88,198)(27,324)
Total adjusted pretax operating income for reportable segments743,554 1,043,745 754,222 
All Other adjusted pretax operating income42,873 8,972 3,527 
Net gains (losses) on investments and other financial instruments (1)
9,427 (80,780)14,094 
Impairment of goodwill (Note 2)(9,802)— — 
Amortization of other acquired intangible assets(5,483)(4,308)(3,450)
Impairment of other long-lived assets and other non-operating items (2)
(13,082)(14,850)(3,561)
Consolidated pretax income $767,487 $952,779 $764,832 
(1)Excludes certain net gains (losses), if any, on investments and other financial instruments that are attributable to specific operating segments and therefore included in adjusted pretax operating income (loss).
(2)Amounts primarily relate to impairments of other long-lived assets that are included in other operating expenses on the consolidated statements of operations. For 2023, amount includes $9 million and $5 million related to impairments of our lease-related assets and internal use software, respectively. For 2022, amount is primarily related to impairments of our lease-related assets. See Note 9 for more information on our lease-related impairments.
Revenue and Other Segment Information
The following tables reconcile reportable segment revenues to consolidated revenues and summarize interest expense, depreciation expense, allocation of corporate operating expenses and adjusted pretax operating income for our reportable segments as follows.
Reportable segment revenue and other segment information
December 31, 2023
(In thousands)Mortgage InsurancehomegeniusReportable Segment TotalAll OtherInter-segmentAdjustmentsConsolidated Total
Net premiums earned$909,363 $10,215 $919,578 $— $— $— $919,578 
Services revenue1,088 45,394 46,482 — (390)— 46,092 
Net investment income 195,077 2,031 197,108 61,322 — — 258,430 
Net gains (losses) on investments and other financial instruments— — — 814 — 9,427 10,241 
Other income5,372 — 5,372 27 (20)868 6,247 
Total revenues$1,110,900 $57,640 $1,168,540 $62,163 $(410)$10,295 $1,240,588 
Other segment information:
Interest expense$86,188 $— $86,188 
Direct depreciation expense8,164 2,563 10,727 
Allocation of corporate operating expenses (1)
140,583 18,783 159,366 
(1)Includes immaterial allocated depreciation expense.
December 31, 2022
(In thousands)Mortgage InsurancehomegeniusReportable Segment TotalAll OtherInter-segmentAdjustmentsConsolidated Total
Net premiums earned$957,213 $23,918 $981,131 $— $— $— $981,131 
Services revenue7,390 85,158 92,548 — (332)— 92,216 
Net investment income 171,221 729 171,950 23,708 — — 195,658 
Net gains (losses) on investments and other financial instruments— — — 47 — (80,780)(80,733)
Other income 2,376 170 2,546 78 (170)— 2,454 
Total revenues$1,138,200 $109,975 $1,248,175 $23,833 $(502)$(80,780)$1,190,726 
Other segment information:
Interest expense$84,440 $— $84,440 
Direct depreciation expense8,986 2,538 11,524 
Allocation of corporate operating expenses (1)
138,566 22,856 161,422 
(1)Includes immaterial allocated depreciation expense.
December 31, 2021
(In thousands)Mortgage InsurancehomegeniusReportable Segment TotalAll OtherInter-segmentAdjustmentsConsolidated Total
Net premiums earned$998,282 $38,901 $1,037,183 $— $— $— $1,037,183 
Services revenue17,670 108,282 125,952 154 (281)— 125,825 
Net investment income 132,929 358 133,287 14,622 — — 147,909 
Net gains (losses) on investments and other financial instruments— 1,509 1,509 — — 14,094 15,603 
Other income 2,678 — 2,678 734 — — 3,412 
Total revenues$1,151,559 $149,050 $1,300,609 $15,510 $(281)$14,094 $1,329,932 
Other segment information:
Interest expense$84,344 $— $84,344 
Direct depreciation expense9,580 2,452 12,032 
Allocation of corporate operating expenses (1)
127,482 18,482 145,964 
(1)Includes immaterial allocated depreciation expense.
There was no single customer that accounted for more than 10% of our consolidated revenues (excluding net gains (losses) on investments and other financial instruments) in 2023, 2022 or 2021. There was no customer that accounted for more than 10% of NIW in 2023 or 2022, as compared to one in 2021.
The table below, which represents total services revenue on our consolidated statements of operations for the periods indicated, represents the disaggregation of services revenues by revenue type.
Services revenue
Years Ended December 31,
(In thousands)202320222021
homegenius
Real estate
Valuation$17,139 $33,724 $32,459 
Single-family rental7,743 24,387 27,291 
Asset management technology platform4,639 4,814 5,535 
Real estate owned asset management3,960 3,091 2,370 
Other real estate services30 115 144 
Title11,464 18,687 40,202 
Real estate technology29 8 — 
Mortgage Insurance
Contract underwriting services1,088 1,775 5,676 
Loan fulfillment services— 5,615 11,994 
All Other— — 154 
Total services revenue$46,092 $92,216 $125,825 
Revenue recognized related to services made available to customers and billed is reflected in accounts and notes receivable. Accounts and notes receivable include $5 million and $12 million as of December 31, 2023 and 2022, respectively, related to services revenue contracts. Revenue recognized related to services performed and not yet billed is recorded in unbilled receivables and reflected in other assets. Deferred revenue, which represents advance payments received from customers in advance of revenue recognition, is immaterial for all periods presented. We have no material bad-debt expense.