XML 22 R16.htm IDEA: XBRL DOCUMENT v3.25.1
Investments
 3 Months Ended
Mar. 31, 2025
Investments [Abstract]  
Investments

6. Investments

Available for Sale Securities

Our available for sale securities within our investment portfolio consist of the following as of the dates indicated.

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

171,718

 

 

$

8

 

 

$

(28,490

)

 

 

$

143,236

 

State and municipal obligations

 

 

157,430

 

 

 

269

 

 

 

(15,821

)

 

 

 

141,878

 

Corporate bonds and notes

 

 

2,829,292

 

 

 

10,268

 

 

 

(245,503

)

 

 

 

2,594,057

 

RMBS

 

 

1,080,716

 

 

 

8,457

 

 

 

(82,848

)

 

 

 

1,006,325

 

CMBS

 

 

415,327

 

 

 

50

 

 

 

(20,936

)

 

 

 

394,441

 

CLO

 

 

396,203

 

 

 

273

 

 

 

(717

)

 

 

 

395,759

 

Other ABS

 

 

520,648

 

 

 

2,970

 

 

 

(3,171

)

 

 

 

520,447

 

Mortgage insurance-linked notes (1)

 

 

45,384

 

 

 

1,603

 

 

 

—

 

 

 

 

46,987

 

Total securities available for sale, including loaned securities

 

 

5,616,718

 

 

$

23,898

 

 

$

(397,486

)

(2)

 

 

5,243,130

 

Less: loaned securities (3)

 

 

137,232

 

 

 

 

 

 

 

 

 

 

130,938

 

Total fixed maturities available for sale

 

$

5,479,486

 

 

 

 

 

 

 

 

 

$

5,112,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

160,509

 

 

$

—

 

 

$

(32,177

)

 

 

$

128,332

 

State and municipal obligations

 

 

167,114

 

 

 

40

 

 

 

(18,263

)

 

 

 

148,891

 

Corporate bonds and notes

 

 

2,878,705

 

 

 

5,261

 

 

 

(277,535

)

 

 

 

2,606,431

 

RMBS

 

 

1,104,721

 

 

 

6,965

 

 

 

(100,056

)

 

 

 

1,011,630

 

CMBS

 

 

438,139

 

 

 

51

 

 

 

(26,191

)

 

 

 

411,999

 

CLO

 

 

411,328

 

 

 

983

 

 

 

(849

)

 

 

 

411,462

 

Other ABS

 

 

442,620

 

 

 

1,556

 

 

 

(5,305

)

 

 

 

438,871

 

Mortgage insurance-linked notes (1)

 

 

45,447

 

 

 

1,709

 

 

 

—

 

 

 

 

47,156

 

Total securities available for sale, including loaned securities

 

 

5,648,583

 

 

$

16,565

 

 

$

(460,376

)

(2)

 

 

5,204,772

 

Less: loaned securities (3)

 

 

137,082

 

 

 

 

 

 

 

 

 

 

129,852

 

Total fixed maturities available for sale

 

$

5,511,501

 

 

 

 

 

 

 

 

 

$

5,074,920

 

 

 

(1)
Includes mortgage insurance-linked notes purchased by Radian Group in connection with the XOL Program. See Note 8 for more information.
(2)
See “Gross Unrealized Losses and Related Fair Value of Available for Sale Securities” below for additional details.
(3)
Included in other assets on our condensed consolidated balance sheets. See “Loaned Securities” below for a discussion of our securities lending agreements.

Gross Unrealized Losses and Related Fair Value of Available for Sale Securities

For securities deemed “available for sale” that are in an unrealized loss position and for which an allowance for credit loss has not been established, the following tables show the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated. Included in the amounts as of March 31, 2025, and December 31, 2024, are loaned securities that are classified as other assets on our condensed consolidated balance sheets, as further described below.

 

Unrealized losses on fixed maturities available for sale by category and length of time

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2025

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)
Description of Securities

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

19,797

 

 

$

(397

)

 

$

113,454

 

 

$

(28,093

)

 

$

133,251

 

 

$

(28,490

)

State and municipal obligations

 

 

30,101

 

 

 

(1,126

)

 

 

84,894

 

 

 

(14,695

)

 

 

114,995

 

 

 

(15,821

)

Corporate bonds and notes

 

 

496,187

 

 

 

(10,138

)

 

 

1,434,951

 

 

 

(235,365

)

 

 

1,931,138

 

 

 

(245,503

)

RMBS

 

 

135,449

 

 

 

(2,936

)

 

 

557,444

 

 

 

(79,912

)

 

 

692,893

 

 

 

(82,848

)

CMBS

 

 

18,806

 

 

 

(103

)

 

 

369,433

 

 

 

(20,833

)

 

 

388,239

 

 

 

(20,936

)

CLO

 

 

128,603

 

 

 

(267

)

 

 

29,699

 

 

 

(450

)

 

 

158,302

 

 

 

(717

)

Other ABS

 

 

132,457

 

 

 

(1,519

)

 

 

34,818

 

 

 

(1,652

)

 

 

167,275

 

 

 

(3,171

)

Total

 

$

961,400

 

 

$

(16,486

)

 

$

2,624,693

 

 

$

(381,000

)

 

$

3,586,093

 

 

$

(397,486

)

 

 

December 31, 2024

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)
Description of Securities

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency securities

 

$

5,807

 

 

$

(574

)

 

$

113,783

 

 

$

(31,603

)

 

$

119,590

 

 

$

(32,177

)

State and municipal obligations

 

 

45,539

 

 

 

(2,399

)

 

 

78,523

 

 

 

(15,864

)

 

 

124,062

 

 

 

(18,263

)

Corporate bonds and notes

 

 

749,427

 

 

 

(18,113

)

 

 

1,552,535

 

 

 

(259,422

)

 

 

2,301,962

 

 

 

(277,535

)

RMBS

 

 

296,899

 

 

 

(6,467

)

 

 

559,525

 

 

 

(93,589

)

 

 

856,424

 

 

 

(100,056

)

CMBS

 

 

15,179

 

 

 

(139

)

 

 

388,282

 

 

 

(26,052

)

 

 

403,461

 

 

 

(26,191

)

CLO

 

 

44,350

 

 

 

(65

)

 

 

43,542

 

 

 

(784

)

 

 

87,892

 

 

 

(849

)

Other ABS

 

 

180,824

 

 

 

(3,081

)

 

 

45,192

 

 

 

(2,224

)

 

 

226,016

 

 

 

(5,305

)

Total

 

$

1,338,025

 

 

$

(30,838

)

 

$

2,781,382

 

 

$

(429,538

)

 

$

4,119,407

 

 

$

(460,376

)

 

There were 941 and 1,059 securities in an unrealized loss position at March 31, 2025, and December 31, 2024, respectively. We determined that these unrealized losses were due to non-credit factors and that, as of March 31, 2025, we did not expect to realize a loss for our investments in an unrealized loss position given our intent and ability to hold these investment securities until recovery of their amortized cost basis. See Note 2 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for information regarding our accounting policy for impairments of investments.

Contractual Maturities

The contractual maturities of fixed-maturities available for sale are as follows.

 

Contractual maturities of fixed maturities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2025

 

(In thousands)

 

Amortized Cost

 

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

 

$

116,836

 

 

$

115,488

 

Due after one year through five years (1)

 

 

1,068,443

 

 

 

1,040,580

 

Due after five years through 10 years (1)

 

 

1,063,636

 

 

 

1,007,473

 

Due after 10 years (1)

 

 

909,525

 

 

 

715,630

 

Asset-backed and mortgage-backed securities (2)

 

 

2,458,278

 

 

 

2,363,959

 

Total

 

 

5,616,718

 

 

 

5,243,130

 

Less: loaned securities

 

 

137,232

 

 

 

130,938

 

Total fixed maturities available for sale

 

$

5,479,486

 

 

$

5,112,192

 

 

(1)
Actual maturities may differ as a result of calls before scheduled maturity.
(2)
Includes RMBS, CMBS, CLO, Other ABS and mortgage insurance-linked notes, which are not due at a single maturity date.

Net Investment Income

Net investment income consists of the following.

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

 

 

 

 

 

 

 

(In thousands)

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

 

 

 

 

Fixed maturities

 

$

56,714

 

 

$

57,259

 

Equity securities

 

 

2,145

 

 

 

2,539

 

Residential mortgage loans held for sale (1)

 

 

6,273

 

 

 

1,793

 

Short-term investments

 

 

4,751

 

 

 

8,958

 

Other (2)

 

 

1,573

 

 

 

1,597

 

Gross investment income

 

 

71,456

 

 

 

72,146

 

Investment expenses (2)

 

 

(2,882

)

 

 

(2,925

)

Net investment income

 

$

68,574

 

 

$

69,221

 

 

(1)
See Note 7 for additional information on our residential mortgage loans held for sale.
(2)
Includes the impact from our securities lending activities. Investment expenses also include other investment management expenses.

Net Gains (Losses) on Investments and Other Financial Instruments

Net gains (losses) on investments and other financial instruments consists of the following.

 

Net gains (losses) on investments and other financial instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

 

 

 

 

 

 

 

(In thousands)

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gains (losses) on investments sold or redeemed (1)

 

 

 

 

 

 

Fixed maturities available for sale

 

 

 

 

 

 

Gross realized gains

 

$

92

 

 

$

52

 

Gross realized losses

 

 

(2,442

)

 

 

(3,735

)

Fixed maturities available for sale, net

 

 

(2,350

)

 

 

(3,683

)

Equity securities

 

 

898

 

 

 

—

 

Other investments

 

 

18

 

 

 

1

 

Net realized gains (losses) on investments sold or redeemed (1)

 

 

(1,434

)

 

 

(3,682

)

Change in unrealized gains (losses) on investments sold or redeemed (1)

 

 

(916

)

 

 

7

 

Net unrealized gains (losses) on investments still held (1)

 

 

 

 

 

 

Fixed maturities trading securities

 

 

2,244

 

 

 

(1,977

)

Equity securities

 

 

(1,555

)

 

 

4,074

 

Other investments

 

 

(47

)

 

 

(93

)

Net unrealized gains (losses) on investments still held (1)

 

 

642

 

 

 

2,004

 

Total net gains (losses) on investments (1)

 

 

(1,708

)

 

 

(1,671

)

Net gains (losses) on residential mortgage loans held for sale (Note 7) (2)

 

 

1,287

 

 

 

384

 

Net gains (losses) on other financial instruments (1) (3)

 

 

(302

)

 

 

1,777

 

Net gains (losses) on investments and other financial instruments

 

$

(723

)

 

$

490

 

 

(1)
Does not include activities related to our residential mortgage loans held for sale. See Note 7 for additional information.
(2)
Includes realized and unrealized net gains (losses) on residential mortgage loans held for sale and related activities, including interest rate hedges. See Note 7 for additional details.
(3)
Includes changes in the fair value of embedded derivatives associated with our XOL Program. See Note 8 for additional information.

Loaned Securities

We participate in a securities lending program whereby we loan certain securities in our investment portfolio to third-party borrowers for short periods of time. Under this program, we had loaned $155 million and $139 million of our investment securities to third parties as of March 31, 2025, and December 31, 2024, respectively, including fixed-maturities, equity securities and short-term investments. Although we report such securities at fair value within other assets on our condensed consolidated balance sheets, rather than within investments, the detailed information we provide in this Note 6 includes these securities.

All of our securities lending agreements are classified as overnight and revolving. Securities collateral on deposit with us from third-party borrowers totaling $23 million and $18 million as of March 31, 2025, and December 31, 2024, respectively, may not be transferred or re-pledged unless the third-party borrower is in default, and is therefore not reflected in our condensed consolidated financial statements.

See Note 5 herein for additional detail on the loaned securities and see Note 6 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional information about our accounting policies with respect to our securities lending agreements and the collateral requirements thereunder.

Other

Our investments include securities totaling $15 million and $14 million at March 31, 2025, and December 31, 2024, respectively, that are on deposit and serving as collateral with various state regulatory authorities. Our fixed-maturities available for sale also include securities serving as collateral for our FHLB advances. See Note 12 for additional information about our FHLB advances.