
Details of fixed income securities by category as of June 30, 2021
Table	7.1a
(In thousands)		Amortized Cost		Allowance for Expected Credit Loss		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	235,822	$	—	$	647	$	(149)	$	236,320
Obligations of U.S. states and political subdivisions		2,339,194		—		161,787		(2,087)		2,498,894
Corporate debt securities		2,847,402		—		114,625		(5,966)		2,956,061
ABS		154,031		—		1,803		(101)		155,733
RMBS		377,315		—		4,284		(2,396)		379,203
CMBS		318,470		—		9,899		(934)		327,435
CLOs		396,070		—		952		(65)		396,957
Foreign government debt		13,748		—		64		(6)		13,806

Total fixed income securities		$	6,682,052	$	—	$	294,061	$	(11,704)	$	6,964,409


Details of fixed income securities by category as of December 31, 2020
Table	7.1b

(In thousands)		Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized (Losses) (1)		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	264,531	$	—	$	1,164	$	(2)	$	265,693
Obligations of U.S. states and political subdivisions		2,083,568		—		166,557		(256)		2,249,869
Corporate debt securities		2,690,860		—		155,156		(1,728)		2,844,288
ABS		203,807		(49)		2,946		(18)		206,686
RMBS		425,532		—		6,472		(838)		431,166
CMBS		312,572		—		16,055		(1,125)		327,502
CLOs		310,616		—		566		(692)		310,490
Foreign government debt		4,485		—		224		—		4,709
Commercial paper		21,193		—		—		—		21,193
Total fixed income securities		$	6,317,164	$	(49)	$	349,140	$	(4,659)	$	6,661,596

We had $13.9 million and $14.1 million of investments at fair value on deposit with various states as of June 30, 2021 and December 31, 2020, respectively, due to regulatory requirements of those state insurance departments. In connection with our insurance and reinsurance activities within MAC and MIC, insurance subsidiaries of MGIC, we are required to maintain assets in trusts for the benefit of contractual counterparties, which had investments at fair value of $185.6 million and $160.3 million at June 30, 2021 and December 31, 2020, respectively.

The amortized cost and fair values of fixed income securities at June 30, 2021, by contractual maturity, are shown in table 7.2 below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most ABS, RMBS, CMBS, and CLOs provide for periodic payments throughout their lives, they are listed in separate categories.


Fixed income securities maturity schedule
Table	7.2
		June 30, 2021
(In thousands)		Amortized cost		Fair Value
Due in one year or less		$	449,359	$	453,780
Due after one year through five years		1,870,031		1,939,373
Due after five years through ten years		1,586,713		1,690,066
Due after ten years		1,530,063		1,621,862
		5,436,166		5,705,081

ABS		154,031		155,733
RMBS		377,315		379,203
CMBS		318,470		327,435
CLOs		396,070		396,957
Total as of June 30, 2021		$	6,682,052	$	6,964,409

Proceeds from sales of fixed income securities classified as available-for-sale were $140.1 million and $448.5 million during the six months ended June 30, 2021 and 2020, respectively. Gross gains of $2.3 million and $5.3 million and gross losses of $0.4 million and $0.7 million were realized during the three and six months ended June 30, 2021. We did not record any realized losses for the three and six months ended June 30, 2021 related to our intent to sell certain securities. During the three and six months ended June 30, 2020 gross gains of $7.3 million and $12.4 million and gross losses of $3.7 million and $5.0 million, respectively, were realized. We did not record any realized losses for the three months ended June 30, 2020 and recorded realized losses of $0.3 million for the six months ended June 30, 2020 related to our intent to sell certain securities.

During the six months ended June 30, 2021, we reduced our expected credit loss on securities where a credit loss was previously recognized by $49 thousand. There was no allowance for credit losses at June 30, 2020.


Details of equity security investments as of December 31, 2020
Table	7.3b

(In thousands)		Cost		Gross Gains		Gross Losses		Fair Value
Equity securities		$	17,522	$	695	$	(2)	$	18,215

For the three and six months ended June 30, 2021, we recognized $0.2 million of net gains and $0.2 million of net losses on equity securities still held as of June 30, 2021. For the three and six months ended June 30, 2020, we recognized $1.2 million and $0.3 million of net gains, respectively, on equity securities still held as of June 30, 2020.

Other invested assets include an investment in Federal Home Loan Bank ("FHLB") stock that is carried at cost, which due to its nature approximates fair value. Ownership of FHLB stock provides access to a secured lending facility, and our current FHLB Advance amount is secured by eligible collateral whose fair value is maintained at a minimum of 102% of the outstanding principal balance of the FHLB Advance. As of June 30, 2021 and December 31, 2020, that collateral consisted of fixed income securities included in our total investment portfolio, and cash and cash equivalents, with a total fair value of $163.3 million and $163.9 million, respectively.

Tables 7.4a and 7.4b below summarize, for all available-for-sale investments in an unrealized loss position at June 30, 2021 and December 31, 2020, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in tables 7.4a and 7.4b are estimated using the process described in Note 8 - “Fair Value Measurements” to these consolidated financial statements and in Note 3 - “Significant Accounting Policies” to the consolidated financial statements in our 2020 Annual Report on Form 10-K.


Unrealized loss aging for securities by type and length of time as of June 30, 2021
Table	7.4a

		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	68,299	$	(149)	$	—	$	—	$	68,299	$	(149)
Obligations of U.S. states and political subdivisions		153,214		(2,087)		—		—		153,214		(2,087)
Corporate debt securities		358,140		(5,966)		—		—		358,140		(5,966)
ABS		32,548		(101)		—		—		32,548		(101)
RMBS		222,192		(2,271)		10,056		(125)		232,248		(2,396)
CMBS		81,828		(866)		4,000		(68)		85,828		(934)
CLOs		124,739		(27)		21,973		(38)		146,712		(65)
Foreign government debt		4,479		(6)		—		—		4,479		(6)
Total		$	1,045,439	$	(11,473)	$	36,029	$	(231)	$	1,081,468	$	(11,704)


Unrealized loss aging for securities by type and length of time as of December 31, 2020
Table	7.4b

		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	2,690	$	(2)	$	—	$	—	$	2,690	$	(2)
Obligations of U.S. states and political subdivisions		31,416		(256)		—		—		31,416		(256)
Corporate debt securities		44,968		(1,728)		—		—		44,968		(1,728)
ABS		14,929		(18)		—		—		14,929		(18)
RMBS		98,409		(773)		3,566		(65)		101,975		(838)
CMBS		13,212		(789)		2,799		(336)		16,011		(1,125)
CLOs		95,287		(261)		73,904		(431)		169,191		(692)
Total		$	300,911	$	(3,827)	$	80,269	$	(832)	$	381,180	$	(4,659)

Based on current facts and circumstances, we believe the unrealized losses as of June 30, 2021 presented in table 7.4a above are not indicative of the ultimate collectability of the current amortized cost of the securities. The unrealized losses in all categories of our investments at June 30, 2021 were primarily caused by changes in interest rates between the time of purchase and the respective fair value measurement date. We also rely upon estimates of several credit and non-credit factors in our review and evaluation of individual investments to determine whether a credit impairment exists.