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Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
For discussion of our valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 of Notes to Consolidated Financial Statements in our 2023 Form 10-K.
The following tables include a list of assets and liabilities that are measured at fair value by hierarchy level as of the dates indicated.
Assets and liabilities carried at fair value by hierarchy level
June 30, 2024
(In thousands)Level ILevel IILevel IIITotal
Investments
Fixed-maturities available for sale
U.S. government and agency securities$125,468 $9,226 $— $134,694 
State and municipal obligations— 152,959 — 152,959 
Corporate bonds and notes— 2,409,183 — 2,409,183 
RMBS— 1,060,805 — 1,060,805 
CMBS— 495,615 — 495,615 
CLO— 515,339 — 515,339 
Other ABS— 360,171 — 360,171 
Mortgage insurance-linked notes (1)
— 47,755 — 47,755 
Total fixed-maturities available for sale125,468 5,051,053 — 5,176,521 
Assets and liabilities carried at fair value by hierarchy level
June 30, 2024
(In thousands)Level ILevel IILevel IIITotal
Trading securities
State and municipal obligations— 57,728 — 57,728 
Corporate bonds and notes— 24,129 — 24,129 
RMBS— 5,440 — 5,440 
CMBS— 4,631 — 4,631 
Total trading securities— 91,928 — 91,928 
Equity securities132,827 3,941 6,546 143,314 
Mortgage loans held for sale (2)
— 458,096 — 458,096 
Other invested assets (3) (4)
— — 5,628 5,628 
Short-term investments
U.S. government and agency securities174,339 — — 174,339 
State and municipal obligations— 3,599 — 3,599 
Money market instruments276,958 — — 276,958 
Corporate bonds and notes— 95,210 — 95,210 
Other ABS— 12,161 — 12,161 
Other investments (5)
— 148,601 — 148,601 
Total short-term investments451,297 259,571 — 710,868 
Total investments at fair value (4)
709,592 5,864,589 12,174 6,586,355 
Other
Derivative assets— 4,688 — 4,688 
Mortgage servicing rights— — 1,561 1,561 
Loaned securities (6)
U.S. government and agency securities23,366 — — 23,366 
State and municipal obligations— 12 — 12 
Corporate bonds and notes— 104,859 — 104,859 
Equity securities19,861 — — 19,861 
Total assets at fair value (4)
$752,819 $5,974,148 $13,735 $6,740,702 
Liabilities
Derivative liabilities (7)
$— $— $1,348 $1,348 
Total liabilities at fair value$— $— $1,348 $1,348 
(1)Includes mortgage insurance-linked notes purchased by Radian Group in connection with the XOL Program. See Note 8 for more information.
(2)See Note 7 for more information about our mortgage loans held for sale.
(3)Consists primarily of interests in private debt and equity investments.
(4)Does not include other invested assets of $2 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient.
(5)Comprises short-term certificates of deposit and commercial paper.
(6)Securities loaned to third-party borrowers under securities lending agreements are classified as other assets on our condensed consolidated balance sheets. See Note 6 for more information on our securities lending agreements.
(7)Level III derivative liabilities consist of embedded derivatives related to our XOL Program, which are classified as other liabilities on our condensed consolidated balance sheets. See Note 8 for more information.
Assets and liabilities carried at fair value by hierarchy level
December 31, 2023
(In thousands)Level ILevel IILevel IIITotal
Investments
Fixed-maturities available for sale
U.S. government and agency securities$124,734 $9,859 $— $134,593 
State and municipal obligations— 142,785 — 142,785 
Corporate bonds and notes— 2,511,905 — 2,511,905 
RMBS— 1,014,071 — 1,014,071 
CMBS— 558,383 — 558,383 
CLO— 487,849 — 487,849 
Other ABS— 284,559 — 284,559 
Foreign government and agency securities— 5,087 — 5,087 
Mortgage insurance-linked notes (1)
— 48,996 — 48,996 
Total fixed-maturities available for sale124,734 5,063,494 — 5,188,228 
Trading securities
State and municipal obligations— 70,844 — 70,844 
Corporate bonds and notes— 24,913 — 24,913 
RMBS— 5,930 — 5,930 
CMBS— 4,736 — 4,736 
Total trading securities— 106,423 — 106,423 
Equity securities81,170 5,387 2,500 89,057 
Mortgage loans held for sale (2)
— 32,755 — 32,755 
Other invested assets (3) (4)
— — 7,196 7,196 
Short-term investments
State and municipal obligations— 2,700 — 2,700 
Money market instruments368,433 — — 368,433 
Corporate bonds and notes— 150,930 — 150,930 
CMBS— 1,347 — 1,347 
Other ABS— 1,158 — 1,158 
Other investments (5)
— 135,998 — 135,998 
Total short-term investments368,433 292,133 — 660,566 
Total investments at fair value (4)
574,337 5,500,192 9,696 6,084,225 
Other
Derivative assets (6)
— 1,912 1 1,913 
Loaned securities (7)
U.S. government and agency securities9,803 — — 9,803 
Corporate bonds and notes— 117,992 — 117,992 
Equity securities75,898 — — 75,898 
Total assets at fair value (4)
$660,038 $5,620,096 $9,697 $6,289,831 
Assets and liabilities carried at fair value by hierarchy level
December 31, 2023
(In thousands)Level ILevel IILevel IIITotal
Liabilities
Derivative liabilities (6)
$— $817 $692 $1,509 
Total liabilities at fair value$— $817 $692 $1,509 
(1)Includes mortgage insurance-linked notes purchased by Radian Group in connection with the XOL Program. See Note 8 for more information.
(2)We elected the fair value option for our mortgage loans held for sale to mitigate income statement volatility and allow for consistent treatment of both loans and any associated hedges or derivatives. See Note 7 for more information about our mortgage loans held for sale.
(3)Consists primarily of interests in private debt and equity investments.
(4)Does not include other invested assets of $1 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient.
(5)Comprises short-term certificates of deposit and commercial paper.
(6)Level III derivative assets and liabilities consist of embedded derivatives related to our XOL Program, which are classified as other assets and liabilities in our consolidated balance sheets. See Note 8 for more information.
(7)Securities loaned to third-party borrowers under securities lending agreements are classified as other assets in our consolidated balance sheets. See Note 6 for more information.
Activity related to Level III assets and liabilities (including realized and unrealized gains and losses, purchases, sales, issuances, settlements and transfers) was immaterial for the three and six months ended June 30, 2024 and 2023.
Other Fair Value Disclosure
The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our condensed consolidated balance sheets were as follows as of the dates indicated.
Financial instruments not carried at fair value
June 30, 2024December 31, 2023
(In thousands)Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Company-owned life insurance$108,875 $108,875 $106,417 $106,417 
Senior notes1,513,782 1,519,639 1,417,781 1,406,118 
Secured borrowings
FHLB advances$62,531 $62,540 $95,277 $95,348 
Mortgage loan financing facilities422,134 422,134 24,199 24,199 
Total secured borrowings$484,665 $484,674 $119,476 $119,547 
The fair value of our company-owned life insurance is estimated based on the cash surrender value less applicable surrender charges. These assets are categorized in Level II of the fair value hierarchy. See Note 9 for further information on our company-owned life insurance.
The fair value of our senior notes is estimated based on quoted market prices. The fair value of our secured borrowings is estimated based on current market rates and contractual cash flows including, for FHLB advances, any fees that may be required to be paid to the FHLB. These liabilities are categorized in Level II of the fair value hierarchy. See Note 12 for further information about our senior notes and secured borrowings.