XML 39 R33.htm IDEA: XBRL DOCUMENT v3.24.3
Reinsurance (Tables)
 9 Months Ended
Sep. 30, 2024
Reinsurance Disclosures [Abstract]  
Schedule of Reinsurance Impacts on Net Premiums Written and Earned

The effect of all of our reinsurance programs on our net income is as follows.

 

Reinsurance impacts on net premiums written and earned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Premiums Written

 

 

Net Premiums Earned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage insurance

 

$

255,422

 

 

$

247,941

 

 

$

758,245

 

 

$

736,173

 

 

$

263,509

 

 

$

258,207

 

 

$

785,634

 

 

$

771,251

 

Title insurance

 

 

4,079

 

 

 

3,561

 

 

 

9,030

 

 

 

8,246

 

 

 

4,079

 

 

 

3,561

 

 

 

9,030

 

 

 

8,246

 

Total direct

 

 

259,501

 

 

 

251,502

 

 

 

767,275

 

 

 

744,419

 

 

 

267,588

 

 

 

261,768

 

 

 

794,664

 

 

 

779,497

 

Ceded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage insurance (1)

 

 

(21,774

)

 

 

(12,771

)

 

 

(60,075

)

 

 

(57,044

)

 

 

(28,365

)

 

 

(21,406

)

 

 

(81,673

)

 

 

(92,268

)

Title insurance

 

 

(90

)

 

 

(100

)

 

 

(270

)

 

 

(300

)

 

 

(90

)

 

 

(100

)

 

 

(270

)

 

 

(300

)

Total ceded (1)

 

 

(21,864

)

 

 

(12,871

)

 

 

(60,345

)

 

 

(57,344

)

 

 

(28,455

)

 

 

(21,506

)

 

 

(81,943

)

 

 

(92,568

)

Total net premiums

 

$

237,637

 

 

$

238,631

 

 

$

706,930

 

 

$

687,075

 

 

$

239,133

 

 

$

240,262

 

 

$

712,721

 

 

$

686,929

 

 

(1)
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. The nine months ended September 30, 2023, include a $21 million increase in ceded premiums related to the tender offers that were completed in the second quarter of 2023 by Eagle Re 2019-1 Ltd. and Eagle Re 2020-1 Ltd. to purchase the mortgage insurance-linked notes issued by such entities.

 

Other reinsurance impacts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ceding commissions earned (1)

 

$

6,672

 

 

$

5,650

 

 

$

19,130

 

 

$

15,953

 

Ceded losses (2)

 

 

3,161

 

 

 

1,289

 

 

 

8,360

 

 

 

(1,095

)

 

(1)
Ceding commissions earned are related to mortgage insurance and are included as an offset to expenses primarily in other operating expenses in our condensed consolidated statements of operations. Deferred ceding commissions of $16 million and $20 million are included in other liabilities on our condensed consolidated balance sheets at September 30, 2024, and December 31, 2023, respectively.
(2)
Ceded losses are primarily related to mortgage insurance.
Schedule of Single Premium QSR Program

The following table sets forth additional details regarding the QSR Program, with RIF ceded as of the dates indicated.

 

QSR Program (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 QSR Agreement

 

 

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, 2024-
Jun 30, 2025

 

 

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, 2024

 

 

Jul 1, 2023

 

 

Jul 1, 2022

 

 

Jan 1, 2020

 

 

Jan 1, 2018

 

 

Jan 1, 2016

 

Scheduled termination date

 

Jun 30, 2035

 

 

Jun 30, 2034

 

 

Jun 30, 2033

 

 

Dec 31, 2031

 

 

Dec 31, 2029

 

 

Dec 31, 2027

 

Optional termination date (2)

 

Jul 1, 2028

 

 

Jul 1, 2027

 

 

Jul 1, 2026

 

 

Jan 1, 2024

 

 

Jan 1, 2022

 

 

Jan 1, 2020

 

Quota share %

 

25%

 

 

22.5%

 

 

20%

 

 

65%

 

 

65%

 

 

18% - 57%

 

Ceding commission %

 

20%

 

 

20%

 

 

20%

 

 

25%

 

 

25%

 

 

25%

 

Profit commission %

 

Up to 59%

 

 

Up to 55%

 

 

Up to 59%

 

 

Up to 56%

 

 

Up to 56%

 

 

Up to 55%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RIF ceded

 

$

834

 

 

$

2,638

 

 

$

4,178

 

 

$

1,587

 

 

$

680

 

 

$

904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RIF ceded

 

$

—

 

 

$

1,366

 

 

$

4,454

 

 

$

1,783

 

 

$

739

 

 

$

982

 

 

(1)
Excludes the 2012 QSR Agreements, for which RIF ceded is no longer material.
(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.
Schedule of Excess-of-Loss Program

The following tables set forth additional details regarding the XOL Program, with RIF, remaining coverage and first layer retention as of the dates indicated.

 

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)

 

 

2023 XOL
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued

 

October
2023

 

 

November
2021

 

 

April
2021

 

 

October
2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NIW policy dates

 

Apr 1, 2022-
Dec 31, 2022

 

 

Jan 1, 2021-
Jul 31, 2021

 

 

Aug 1, 2020-
Dec 31, 2020

 

 

Oct 1, 2021-
Mar 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial RIF

 

$

8,782

 

 

$

10,758

 

 

$

11,061

 

 

$

8,002

 

Initial coverage

 

 

353

 

 

 

484

 

 

 

498

 

 

 

246

 

Initial first layer retention

 

 

287

 

 

 

242

 

 

 

221

 

 

 

240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RIF

 

$

8,139

 

 

$

6,611

 

 

$

5,267

 

 

$

7,067

 

Remaining coverage

 

 

344

 

 

 

274

 

 

 

178

 

 

 

184

 

First layer retention

 

 

286

 

 

 

241

 

 

 

221

 

 

 

240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RIF

 

$

8,659

 

 

$

7,651

 

 

$

6,227

 

 

$

7,814

 

Remaining coverage

 

 

353

 

 

 

355

 

 

 

250

 

 

 

226

 

First layer retention

 

 

287

 

 

 

242

 

 

 

221

 

 

 

240

 

 

(1)
Excludes Eagle Re 2020-1 Ltd., which as further discussed above, was terminated in March 2024.
(2)
Radian Group purchased $45 million of Eagle Re 2021-1 Ltd. outstanding principal amounts of the respective mortgage insurance-linked notes issued in connection with that reinsurance transaction. On our condensed consolidated balance sheet at September 30, 2024, these notes are included either in fixed-maturities available for sale or, if included in our securities lending program, in other assets. See Notes 5 and 6 for additional information.
Schedule of VIE Assets

The following table presents the total VIE assets and liabilities of the Eagle Re Issuers as of the dates indicated.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

September 30,
2024

 

 

December 31,
2023

 

 

 

 

 

 

 

 

Eagle Re 2023-1 Ltd.

 

$

344,396

 

 

$

353,077

 

Eagle Re 2021-2 Ltd.

 

 

273,905

 

 

 

354,947

 

Eagle Re 2021-1 Ltd.

 

 

177,655

 

 

 

250,268

 

Eagle Re 2020-1 Ltd.

 

 

—

 

 

 

6,617

 

Total

 

$

795,956

 

 

$

964,909

 

 

(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.