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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

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 the dates indicated.


Assets and liabilities carried at fair value by hierarchy level


	September 30, 2024
(In thousands)	Level I		Level II		Level III		Total


Investments
Fixed-maturities available for sale
U.S. government and agency securities	$	127,300	$	8,962	$	—	$	136,262
State and municipal obligations		—		160,289		—		160,289
Corporate bonds and notes		—		2,553,145		—		2,553,145
RMBS		—		1,058,454		—		1,058,454
CMBS		—		473,312		—		473,312
CLO		—		467,761		—		467,761
Other ABS		—		395,603		—		395,603
Mortgage insurance-linked notes (1)		—		47,654		—		47,654
Total fixed-maturities available for sale		127,300		5,165,180		—		5,292,480

Trading securities
State and municipal obligations		—		53,592		—		53,592
Corporate bonds and notes		—		25,465		—		25,465
RMBS		—		5,346		—		5,346
CMBS		—		4,869		—		4,869
Total trading securities		—		89,272		—		89,272

Equity securities		135,556		3,615		6,546		145,717

Residential mortgage loans held for sale (2)		—		529,517		—		529,517

Other invested assets (3) (4)		—		—		5,808		5,808

Short-term investments
State and municipal obligations		—		2,200		—		2,200
Money market instruments		318,929		—		—		318,929
Corporate bonds and notes		—		50,512		—		50,512
Other ABS		—		9,789		—		9,789
Other investments (5)		—		50,955		—		50,955
Total short-term investments		318,929		113,456		—		432,385
Total investments at fair value (4)		581,785		5,901,040		12,354		6,495,179

Other
Derivative assets		—		2,830		—		2,830
Mortgage servicing rights		—		—		1,714		1,714
Loaned securities (6)
State and municipal obligations		—		13		—		13
Corporate bonds and notes		—		121,819		—		121,819
Other ABS		—		1,206		—		1,206
Equity securities		18,576		—		—		18,576
Securitized residential mortgage loans held for investment (2)		—		353,078		—		353,078
Total assets at fair value (4)	$	600,361	$	6,379,986	$	14,068	$	6,994,415

Liabilities
Derivative liabilities (7)	$	—	$	94	$	2,748	$	2,842
Securitized nonrecourse debt (2)		—		344,904		—		344,904
Total liabilities at fair value	$	—	$	344,998	$	2,748	$	347,746

(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 residential mortgage loan activities, including our private label securitization program.

(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 I		Level II		Level III		Total


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 sale		124,734		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 securities		81,170		5,387		2,500		89,057

Residential 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 instruments		368,433		—		—		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 investments		368,433		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 securities		9,803		—		—		9,803
Corporate bonds and notes		—		117,992		—		117,992
Equity securities		75,898		—		—		75,898
Total assets at fair value (4)	$	660,038	$	5,620,096	$	9,697	$	6,289,831

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)

See Note 7 for more information about our residential mortgage loan activities.

(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.

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 on our condensed consolidated balance sheets were as follows as of the dates indicated.


Financial instruments not carried at fair value


	September 30, 2024				December 31, 2023

(In thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value


Company-owned life insurance	$	109,980	$	109,980	$	106,417	$	106,417
Senior notes		1,064,718		1,103,786		1,417,781		1,406,118
Secured borrowings
FHLB advances	$	54,364	$	54,435	$	95,277	$	95,348
Mortgage loan financing facilities		497,552		497,552		24,199		24,199
Total secured borrowings	$	551,916	$	551,987	$	119,476	$	119,547