In our mortgage insurance and title insurance businesses, we use reinsurance as part of our risk distribution strategy, including to manage our capital position and risk profile. The reinsurance arrangements for our mortgage insurance business include premiums ceded under the QSR Program and the XOL Program. The amount of credit that we receive under the PMIERs financial requirements for our third-party reinsurance transactions is subject to ongoing review and approval by the GSEs.


Reinsurance impacts on net premiums written and earned

	Net Premiums Written						Net Premiums Earned
	Years Ended December 31,						Years Ended December 31,
(In thousands)	2023		2022		2021		2023		2022		2021
Direct
Mortgage insurance	$	983,858	$	967,996	$	984,995	$	1,029,941	$	1,025,607	$	1,104,696
Title insurance	10,465		24,422		39,665		10,465		24,422		39,665
Total direct	994,323		992,418		1,024,660		1,040,406		1,050,029		1,144,361
Assumed (1)
Mortgage insurance	—		4,025		7,066		—		4,025		7,066


Ceded
Mortgage insurance (2)	(79,618)		(12,148)		(47,515)		(120,578)		(72,419)		(113,480)
Title insurance	(250)		(504)		(764)		(250)		(504)		(764)
Total ceded	(79,868)		(12,652)		(48,279)		(120,828)		(72,923)		(114,244)
Total net premiums	$	914,455	$	983,791	$	983,447	$	919,578	$	981,131	$	1,037,183

(1)Represents premiums from our participation in certain credit risk transfer programs. We discontinued our participation in these programs in December 2022 by novating 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.

(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 $20 million and $27 million are included in other liabilities on our consolidated balance sheets at December 31, 2023 and 2022, respectively.

Radian Guaranty entered into each of the 2023 and 2022 QSR Agreements with panels of third-party reinsurance providers to cede a contractual quota share percentage of certain of our NIW, which includes both Recurring Premium Policies and Single Premium Policies (as set forth in the table below), subject to certain conditions, including a limitation for the 2023 QSR Agreement on ceded RIF equal to $3.0 billion over the term of the agreement.

Radian Guaranty receives a ceding commission for ceded premiums earned pursuant to these transactions. Radian Guaranty is also entitled to receive a profit commission quarterly, subject to a final annual re-calculation, provided that the loss ratio on the loans covered under the agreements generally remains below the applicable prescribed thresholds. Losses on the ceded risk up to these thresholds reduce Radian Guaranty’s profit commission on a dollar-for-dollar basis.

Radian Guaranty may discontinue ceding new policies under the 2023 QSR Agreement at the end of any calendar quarter. As of July 1, 2023, Radian Guaranty is no longer ceding NIW under the 2022 QSR Agreement.

Radian Guaranty entered into each of the 2016 Single Premium QSR Agreement, 2018 Single Premium QSR Agreement and 2020 Single Premium QSR Agreement with panels of third-party reinsurers to cede a contractual quota share percentage of our Single Premium NIW as of the effective date of each agreement (as set forth in the table below), subject to certain conditions.

Radian Guaranty receives a ceding commission for ceded premiums written pursuant to these transactions. Radian Guaranty also receives a profit commission annually, provided that the loss ratio on the loans covered under the agreement

In 2012, Radian Guaranty entered into the 2012 QSR Agreements with a third-party reinsurance provider. Radian Guaranty has ceded the maximum amount permitted under the 2012 QSR Agreements and is no longer ceding NIW under this program. RIF ceded under the 2012 QSR Agreements was $100 million and $142 million as of December 31, 2023 and 2022, respectively.


QSR Program (1)

	2023 QSR Agreement		2022 QSR Agreement		2020 Single Premium QSR Agreement		2018 Single Premium QSR Agreement		2016 Single Premium QSR Agreement
NIW policy dates	Jul 1, 2023- Jun 30, 2024		Jan 1, 2022- Jun 30, 2023		Jan 1, 2020- Dec 31, 2021		Jan 1, 2018- Dec 31, 2019		Jan 1, 2012- Dec 31, 2017
Effective date	Jul 1, 2023		Jul 1, 2022		Jan 1, 2020		Jan 1, 2018		Jan 1, 2016
Scheduled termination date	Jun 30, 2034		Jun 30, 2033		Dec 31, 2031		Dec 31, 2029		Dec 31, 2027
Optional termination date (2)	Jul 1, 2027		Jul 1, 2026		Jan 1, 2024		Jan 1, 2022		Jan 1, 2020
Quota share %	22.5%		20%		65%		65%		18% - 57%
Ceding commission %	20%		20%		25%		25%		25%
Profit commission %	Up to 55%		Up to 59%		Up to 56%		Up to 56%		Up to 55%

(In millions)	December 31, 2023
RIF ceded	$	1,366	$	4,454	$	1,783	$	738	$	982

(In millions)	December 31, 2022
RIF ceded	$	—	$	3,307	$	1,993	$	876	$	1,207

(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.

Radian Guaranty has entered into a number of fully collateralized reinsurance arrangements with the Eagle Re Issuers, as described below. For the respective coverage periods, Radian Guaranty retains the first-loss layer of aggregate losses, as well as any losses in excess of the outstanding reinsurance coverage amounts. The Eagle Re Issuers provide second layer coverage up to the outstanding coverage amounts. For each of these reinsurance arrangements, the Eagle Re Issuers financed their coverage by issuing mortgage insurance-linked notes to eligible capital markets investors in unregistered private offerings.

The aggregate excess-of-loss reinsurance coverage for these arrangements decreases over the maturity period of the mortgage insurance-linked notes (either a 10-year or 12.5-year period depending on the transaction) as the principal balances of the underlying covered mortgages decrease and as any claims are paid by the applicable Eagle Re Issuer or the mortgage insurance is canceled. Radian Guaranty has rights to terminate the reinsurance agreements upon the occurrence of certain events, including an optional call feature that provides Radian Guaranty the right to terminate the transaction on or after the optional call date (5 or 7 years after the issuance of the mortgage insurance-linked notes depending on the transaction) and a right to exercise an optional clean-up call if the outstanding principal amount of the related mortgage insurance-linked notes falls below 10% of the initial coverage level or principal balance, depending on the transaction, of the related mortgage insurance-linked notes.

Under each of the reinsurance agreements, the outstanding reinsurance coverage amount will begin amortizing after an initial period in which a target level of credit enhancement is obtained and will stop amortizing if certain thresholds, or triggers, are reached, including a delinquency trigger event based on an elevated level of delinquencies as defined in the related mortgage insurance-linked notes transaction agreements.

Given the diminished PMIERs capital benefit and risk mitigation values that Radian Guaranty was receiving from the reinsurance agreements, in June 2023 Eagle Re 2019-1 Ltd. and Eagle Re 2020-1 Ltd. conducted tender offers to purchase the mortgage insurance-linked notes that supported their reinsurance agreements with Radian Guaranty. As a result of the tender offers, $455 million and $332 million of the original principal amount of the Eagle Re 2019-1 Ltd. and Eagle Re 2020-1 Ltd. mortgage insurance-linked notes, respectively, were tendered and repurchased, representing 100% of the Eagle Re 2019-1 Ltd. mortgage insurance-linked notes and 82% of the Eagle Re 2020-1 Ltd. mortgage insurance-linked notes. The corresponding portion of the reinsurance agreements supported by the tendered notes were terminated.

As a result of these tender offers in 2023, Radian Guaranty incurred additional ceded premiums earned of $21 million, consisting of $16 million related to the cost of tender premiums and associated expenses and $5 million related to the acceleration of deferred costs from the original executions of these transactions. Based on projections and expectations in June 2023 at the time of the tender offers, Radian Guaranty expected to save approximately $58 million of future ceded premiums over time as a result of these tenders, including a full recovery of the $21 million of upfront one-time costs noted above within one year.

Upon reaching the five-year optional call date, in November 2023, Radian Guaranty exercised its right to terminate Radian Guaranty’s excess-of-loss reinsurance agreement with Eagle Re 2018-1 Ltd. In connection with the termination of Radian Guaranty’s excess-of-loss reinsurance agreement with Eagle Re 2018-1 Ltd., the mortgage insurance-linked notes issued by Eagle Re 2018-1 Ltd. were redeemed in full with a distribution of remaining collateral assets.

For the respective coverage periods under traditional XOL reinsurance agreements, Radian Guaranty retains the first-loss layer of aggregate losses, as well as any losses in excess of the outstanding reinsurance coverage amounts. The reinsurers provide second layer coverage up to the outstanding coverage amounts. Radian Guaranty is then responsible for any losses in excess of the reinsurance coverage amount.

The 2023 XOL Agreement, which was executed in October 2023, is scheduled to terminate September 30, 2033. Radian Guaranty has the option, based on certain conditions, to terminate the agreement as of September 30, 2028, or at the end of any calendar quarter thereafter, which would result in Radian Guaranty reassuming the related RIF. In the event Radian Guaranty does not exercise its right to terminate the agreement on September 30, 2028, the monthly premium rate will increase from the original monthly premium.


XOL Program
	Mortgage Insurance-linked Notes (1)									Traditional Reinsurance
(In millions)	Eagle Re 2023-1 Ltd.		Eagle Re 2021-2 Ltd.		Eagle Re 2021-1 Ltd. (2)		Eagle Re 2020-1 Ltd. (2)		2023 XOL Agreement
Issued	October 2023		November 2021		April 2021		February 2020		October 2023
NIW policy dates	Apr 1, 2022- Dec 31, 2022		Jan 1, 2021- Jul 31, 2021		Aug 1, 2020- Dec 31, 2020		Jan 1, 2019- Sep 30, 2019		Oct 1, 2021- Mar 31, 2022
Initial RIF	$	8,782	$	10,758	$	11,061	$	9,866		$	8,002
Initial coverage	353		484		498		488			246
Initial first layer retention	287		242		221		202			240

(In millions)	December 31, 2023
RIF	$	8,659	$	7,651	$	6,227	$	2,031		$	7,814
Remaining coverage	353		355		250		7			226
First layer retention	287		242		221		201			240

(In millions)	December 31, 2022
RIF	$	—	$	9,150	$	7,758	$	2,401		$	—
Remaining coverage	—		472		366		368			—
First layer retention	—		242		221		202			—

(2)Radian Group purchased $45 million of Eagle Re 2021-1 Ltd. and $2 million of Eagle Re 2020-1 Ltd. outstanding principal amounts of the respective mortgage insurance-linked notes issued in connection with these reinsurance transactions. These notes are included in fixed-maturities available for sale on our consolidated balance sheets at December 31, 2023 and 2022. See Notes 5 and 6 for additional information.

The Eagle Re Issuers are not subsidiaries or affiliates of Radian Guaranty. Based on the accounting guidance that addresses VIEs, we have not consolidated any of the assets and liabilities of the Eagle Re Issuers in our financial statements, because Radian does not have: (i) the power to direct the activities that most significantly affect the Eagle Re Issuers’ economic performances or (ii) the obligation to absorb losses or the right to receive benefits from the Eagle Re Issuers that potentially could be significant to the Eagle Re Issuers. See Note 2 for more information on our accounting treatment of VIEs.

Following the discontinuation of the London Inter-bank Offered Rate (LIBOR), effective June 30, 2023, SOFR is the effective benchmark rate for all of our reinsurance agreements with the Eagle Re Issuers as of December 31, 2023. The reinsurance premium due to the Eagle Re Issuers is calculated by multiplying the outstanding reinsurance coverage amount at the beginning of a period by a coupon rate, which is the sum of SOFR, plus a contractual risk margin, and then subtracting actual investment income collected on the assets in the reinsurance trust during the preceding month. As a result, the premiums we pay will vary based on: (i) the spread between SOFR and the rates on the investments held by the reinsurance trust and (ii) the outstanding amount of reinsurance coverage.

As the reinsurance premium will vary based on changes in these rates, we concluded that the reinsurance agreements contain embedded derivatives, which we have accounted for separately as freestanding derivatives and recorded in other assets or other liabilities on our consolidated balance sheets. Changes in the fair value of these embedded derivatives are recorded in net gains (losses) on investments and other financial instruments on our consolidated statements of operations. See Note 5 herein for more information on our fair value measurements of financial instruments, including our embedded derivatives.

In the event an Eagle Re Issuer is unable to meet its future obligations to us, if any, our insurance subsidiaries would be liable to make claims payments to our policyholders. In the event that all of the assets in the reinsurance trust (consisting of U.S. government money market funds, cash or U.S. Treasury securities) become worthless and the Eagle Re Issuer is unable to make its payments to us, our maximum potential loss would be the amount of mortgage insurance claim payments for losses on the insured policies, net of the aggregate reinsurance payments already received, up to the full aggregate excess-of-loss reinsurance coverage amount. In the same scenario, the related embedded derivative would no longer have value.


Total VIE assets and liabilities of Eagle Re Issuers (1)

	December 31,
(In thousands)	2023		2022
Eagle Re 2021-2 Ltd.	$	354,947	$	471,942
Eagle Re 2023-1 Ltd.	353,077		—
Eagle Re 2021-1 Ltd.	250,268		366,169
Eagle Re 2020-1 Ltd.	6,617		368,378
Eagle Re 2019-1 Ltd.	—		384,602
Eagle Re 2018-1 Ltd.	—		275,718
Total	$	964,909	$	1,866,809

(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.

Although we use reinsurance as one of our risk management tools, reinsurance does not relieve us of our obligations to our policyholders. In the event the reinsurers are unable to meet their obligations to us, our insurance subsidiaries would be liable for any defaulted amounts. However, consistent with the PMIERs reinsurer counterparty collateral requirements, Radian Guaranty’s reinsurers have established trusts to help secure our potential cash recoveries. In addition to the total VIE assets of the Eagle Re Issuers discussed above, the amount held in reinsurance trusts was $274 million as of December 31, 2023, compared to $175 million as of December 31, 2022.

In addition, primarily for the Single Premium QSR Program, Radian Guaranty holds amounts related to ceded premiums written to collateralize the reinsurers’ obligations, which is reported in reinsurance funds withheld on our consolidated balance sheets. Any loss recoveries and profit commissions paid to Radian Guaranty related to the Single Premium QSR Program are expected to be realized from this account.