Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

5. 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 2024 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
	March 31, 2025
(In thousands)	Level I		Level II		Level III		Total
Investments
Fixed maturities available for sale
U.S. government and agency securities	$	134,828	$	8,408	$	—	$	143,236
State and municipal obligations		—		141,878		—		141,878
Corporate bonds and notes		—		2,463,119		—		2,463,119
RMBS		—		1,006,325		—		1,006,325
CMBS		—		394,441		—		394,441
CLO		—		395,759		—		395,759
Other ABS		—		520,447		—		520,447
Mortgage insurance-linked notes (1)		—		46,987		—		46,987
Total fixed maturities available for sale		134,828		4,977,364		—		5,112,192
Fixed maturities trading securities
State and municipal obligations		—		44,377		—		44,377
Corporate bonds and notes		—		24,489		—		24,489
RMBS		—		2,921		—		2,921
CMBS		—		5,225		—		5,225
Total fixed maturities trading securities		—		77,012		—		77,012
Equity securities		101,343		2,725		6,546		110,614
Residential mortgage loans held for sale (2)		—		279,097		—		279,097
Other invested assets (3) (4)		—		—		6,088		6,088
Short-term investments
State and municipal obligations		—		895		—		895
Money market instruments		443,823		—		—		443,823
Corporate bonds and notes		—		33,283		—		33,283
Other ABS		—		8,302		—		8,302
Other investments (5)		—		40,360		—		40,360
Total short-term investments		443,823		82,840		—		526,663
Total investments at fair value (4)		679,994		5,419,038		12,634		6,111,666
Other
Derivative assets		—		3,542		—		3,542
Mortgage servicing and other related rights		—		—		3,427		3,427
Loaned securities (6)
Corporate bonds and notes		—		132,388		—		132,388
Equity securities		22,503		—		—		22,503
Securitized residential mortgage loans held for investment (2)		—		1,058,736		—		1,058,736
Total assets at fair value (4)	$	702,497	$	6,613,704	$	16,061	$	7,332,262
Liabilities
Derivative liabilities	$	—	$	108	$	821	$	929
Securitized nonrecourse debt (2)		—		1,029,008		—		1,029,008
Total liabilities at fair value	$	—	$	1,029,116	$	821	$	1,029,937

(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.

Assets and liabilities carried at fair value by hierarchy level
	December 31, 2024
(In thousands)	Level I		Level II		Level III		Total
Investments
Fixed maturities available for sale
U.S. government and agency securities	$	119,630	$	8,702	$	—	$	128,332
State and municipal obligations		—		148,891		—		148,891
Corporate bonds and notes		—		2,476,639		—		2,476,639
RMBS		—		1,011,630		—		1,011,630
CMBS		—		411,999		—		411,999
CLO		—		411,462		—		411,462
Other ABS		—		438,811		—		438,811
Mortgage insurance-linked notes (1)		—		47,156		—		47,156
Total fixed maturities available for sale		119,630		4,955,290		—		5,074,920
Fixed maturities trading securities
State and municipal obligations		—		50,845		—		50,845
Corporate bonds and notes		—		23,940		—		23,940
RMBS		—		3,029		—		3,029
CMBS		—		4,838		—		4,838
Total fixed maturities trading securities		—		82,652		—		82,652
Equity securities		128,368		3,275		6,546		138,189
Residential mortgage loans held for sale (2)		—		519,885		—		519,885
Other invested assets (3) (4)		—		—		5,908		5,908
Short-term investments
State and municipal obligations		—		1,750		—		1,750
Money market instruments		384,934		—		—		384,934
Corporate bonds and notes		—		49,905		—		49,905
Other ABS		—		16,054		—		16,054
Other investments (5)		—		69,005		—		69,005
Total short-term investments		384,934		136,714		—		521,648
Total investments at fair value (4)		632,932		5,697,816		12,454		6,343,202
Other
Derivative assets		—		4,274		—		4,274
Mortgage servicing rights		—		—		2,702		2,702
Loaned securities (6)
Corporate bonds and notes		—		130,256		—		130,256
Other ABS		—		60		—		60
Equity securities		8,805		—		—		8,805
Securitized residential mortgage loans held for investment (2)		—		717,228		—		717,228
Total assets at fair value (4)	$	641,737	$	6,549,634	$	15,156	$	7,206,527
Liabilities
Derivative liabilities	$	—	$	40	$	1,249	$	1,289
Securitized nonrecourse debt (2)		—		703,526		—		703,526
Total liabilities at fair value	$	—	$	703,566	$	1,249	$	704,815

(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 in our condensed consolidated balance sheets. See Note 6 for more information on our securities lending agreements.

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 are as follows as of the dates indicated.

Financial instruments not carried at fair value
	March 31, 2025				December 31, 2024
(In thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Company-owned life insurance	$	110,552	$	110,552	$	110,968	$	110,968
Senior notes		1,065,965		1,093,637		1,065,337		1,088,306
Secured borrowings
Mortgage loan financing facilities	$	240,545	$	240,545	$	492,429	$	492,429
FHLB advances		32,122		32,152		45,865		45,888
Total secured borrowings	$	272,667	$	272,697	$	538,294	$	538,317

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. The carrying amount of borrowings under our mortgage loan financing facilities approximates fair value due to the floating rate nature of that debt. These liabilities are all categorized in Level II of the fair value hierarchy. See Note 12 for further information about our senior notes and secured borrowings.