Delaware | 23-2691170 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1601 Market Street, Philadelphia, PA | 19103 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered |
Common Stock, $.001 par value per share | New York Stock Exchange |
Preferred Stock Purchase Rights | New York Stock Exchange |
Large accelerated filer x | Accelerated filer | o | |
Non-accelerated filer o | (Do not check if a smaller reporting company) | Smaller reporting company | o |
Form 10-K Reference Document | |
Definitive Proxy Statement for the Registrant's 2012 Annual Meeting of Stockholders | Part III (Items 10 through 14) |
Radian Group Inc. | |
By: | /s/ C. Robert Quint |
C. Robert Quint, Executive Vice President and Chief Financial Officer |
Exhibit Number | Exhibit |
3.1 | Third Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated May 11, 2004 and filed on May 12, 2004) |
3.2 | Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated May 22, 2008 and filed on May 29, 2008) |
3.3 | Second Amendment to the Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated May 12, 2010 and filed on May 18, 2010) |
3.4 | Certificate of Change of Registered Agent and Registered Office of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 10, 2010 and filed on November 16, 2010) |
3.5 | Certificate of Designation of Series A Junior Participating Preferred Stock (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated October 9, 2009 and filed on October 13, 2009) |
3.6 | Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 9. 2011 and filed on November 15, 2011) |
4.1 | Specimen certificate for Common Stock (incorporated by reference to Exhibit 4.1 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 1999) |
4.2 | Amended and Restated Tax Benefit Preservation Plan, dated as of February 12, 2010, between the Registrant and The Bank of New York Mellon (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated February 12, 2010 and filed on February 17, 2010) |
4.3 | First Amendment to the Amended and Restated Tax Benefit Preservation Plan, dated as of May 3, 2010, between the Registrant and The Bank of New York Mellon (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated May 3, 2010 and filed on May 4, 2010) |
4.4 | Indenture dated May 29, 2001, between the Registrant and First Union National Bank, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Registration Statement on Form S-4 (file no. 333-52762) filed on July 19, 2001) |
4.5 | Form of 7.75% Debentures Due 2011 (included within Exhibit 4.4) |
4.6 | Indenture dated as of February 14, 2003, between the Registrant and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended March 31, 2003) |
4.7 | Form of 5.625% Senior Notes Due 2013 (included within Exhibit 4.6) |
4.8 | Registration Rights Agreement dated February 14, 2003, among the Registrant, Banc of America Securities LLC, Lehman Brothers Inc., Wachovia Securities, Inc., Bear Stearns & Co. Inc. and Deutsche Bank Securities Inc. (incorporated by reference to Exhibit 4.3 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended March 31, 2003) |
4.9 | Senior Indenture, dated as of June 7, 2005, between the Registrant and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated June 2, 2005 and filed on June 7, 2005) |
Exhibit Number | Exhibit |
4.10 | Officers' Certificate, dated as of June 7, 2005, including the terms of the Registrant's 5.375% Senior Notes due 2015, as Attachment A, and including the form of the Notes as Exhibit A-1 to Attachment A (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated June 2, 2005 and filed on June 7, 2005) |
4.11 | Senior Indenture, dated as of November 15, 2010, between the Registrant and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K dated November 10, 2010 and filed on November 16, 2010) |
4.12 | First Supplemental Indenture, dated as of November 15, 2010, between the Registrant and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 10, 2010 and filed on November 16, 2010) |
4.13 | Form of 3.00% Convertible Senior Notes Due 2017 (included within Exhibit 4.12) |
+10.1 | Employment Agreement between the Registrant and Sanford A. Ibrahim, dated as of April 5, 2011(incorporated by reference to Exhibit 99.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated April 5, 2011 and filed on April 7, 2011) |
+10.2 | Stock Appreciation Right Agreement under 2008 Equity Compensation Plan, dated as of May 13, 2009, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.25 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009) |
+10.3 | Restricted Stock Award Agreement under 2008 Equity Compensation Plan, dated as of May 13, 2009, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.26 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009) |
+10.4 | Restricted Stock Award Agreement under 2008 Equity Compensation Plan, dated as of May 16, 2009, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.27 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009) |
+10.5 | Amendments to Restricted Stock and Stock Option Grants between the Registrant and Sanford A. Ibrahim, dated as of February 10, 2010 (incorporated by reference to Exhibit 10.11 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009) |
+10.6 | 2010 Performance-Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan, dated May 12, 2010 between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010) |
+10.7 | 2010 Stock Option Agreement under the 2008 Equity Compensation Plan, dated May 12, 2010 between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010) |
+10.8 | Change of Control Agreement between the Registrant and Teresa A. Bryce, dated November 14, 2006 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated December 12, 2005 and filed on December 16, 2005) |
+10.9 | Amendment to Change of Control Agreement-Section 409A between the Registrant and Teresa A. Bryce, dated December 8, 2008 (incorporated by reference to Exhibit 10.4 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009) |
+10.10 | Form of Severance Agreement (including for Richard I. Altman, Robert H. Griffith, Edward J. Hoffman, C. Robert Quint and H. Scott Theobald) (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated December 30, 2010 and filed on January 6, 2011) |
+10.11 | Employment Agreement between the Registrant and Robert H. Griffith, dated as of February 11, 2010 (incorporated by reference to Exhibit 10.12 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009) |
Exhibit Number | Exhibit |
+10.12 | Radian Group Inc. Amended and Restated Benefit Restoration Plan (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 6, 2007 and filed on November 13, 2007) |
+10.13 | Amendment No. 1 to the Radian Group Inc. Amended and Restated Benefit Restoration Plan, effective January 1, 2008 (incorporated by reference to Exhibit 10.16 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2008) |
+10.14 | Radian Group Inc. Savings Incentive Plan (Amended and Restated Effective January 1, 2008) (incorporated by reference to Exhibit 10.17 to the Registrant's Annual Report on Form 10-K (file no. 1-11356)for the year ended December 31, 2008) |
+10.15 | Amendment No. 1 to the Radian Group Inc. Savings Incentive Plan, effective January 1, 2010 (incorporated by reference to Exhibit 10.16 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009) |
+10.16 | Amendment No. 2 to the Radian Group Inc. Savings Incentive Plan, dated November 30, 2010 (incorporated by reference to Exhibit 10.16 to the Registrant's Annual Report on form 10-K (file no. 1-11356) for the year ended December 31, 2010) |
+10.17 | Radian Group Inc. 1995 Equity Compensation Plan (Amended and Restated May 9, 2006) (incorporated by reference to Appendix A to the Registrant's Definitive Proxy Statement for the 2006 Annual Meeting of Stockholders (file no. 1-11356), as filed with the Securities and Exchange Commission on April 18, 2006). |
+10.18 | Amendment to Radian Group Inc. 1995 Equity Compensation Plan (Amended and Restated May 9, 2006) dated February 5, 2007 (incorporated by reference to Exhibit 10.17 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2006) |
+10.19 | Amendment No. 2 to Radian Group Inc. 1995 Equity Compensation Plan, dated November 6, 2007 (incorporated by reference to Exhibit 10.23 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2007) |
+10.20 | Form of Stock Option Grant Letter under 1995 Equity Compensation Plan (incorporated by reference to Exhibit 10 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended September 30, 2004) |
+10.21 | Form of Restricted Stock Award Agreement for awards granted before February 5, 2007 under 1995 Equity Compensation Plan (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2005) |
+10.22 | Form of Restricted Stock Award Agreement for awards granted on or after February 5, 2007 under 1995 Equity Compensation Plan (incorporated by reference to Exhibit 10.20 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2006) |
+10.23 | Form of Phantom Stock Agreement for Non-Employee Directors under 1995 Equity Compensation Plan (incorporated by reference to Exhibit 10.6 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated February 8, 2005 and filed on February 14, 2005) |
+10.24 | Radian Group Inc. Amended and Restated 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.1 to the Registrant's Registration Statement on Form S-8 (file no. 333-174428) filed on May 23, 2011) |
+10.25 | Form of Stock Option Grant Letter under 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.6 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended September 30, 2008) |
+10.26 | Form of Restricted Stock Award Agreement under 2008 Equity (file no. 1-11356) Compensation Plan (incorporated by reference to Exhibit 10.7 to the Registrant's Quarterly Report on Form 10-Q for the period ended September 30, 2008) |
Exhibit Number | Exhibit |
+10.27 | Form of Phantom Stock Agreement for Non-Employee Directors under 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.8 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended September 30, 2008) |
+10.28 | Amendment to Form of 2008 Phantom Stock Agreement for Non-Employee Directors under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009) |
+10.29 | Form of 2009 Restricted Stock Award Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009) |
+10.30 | Form of 2009 Stock Appreciation Right Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009) |
+10.31 | Form of Restricted Stock Unit Award Agreement for Employees under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.34 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2010) |
+10.32 | Form of 2009 Restricted Stock Unit Award Agreement for Non-Employee Directors under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.4 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009) |
+10.33 | Amended and Restated Radian Group Inc. 2008 Executive Long-Term Incentive Cash Plan (incorporated by reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended March 31, 2011) |
+10.34 | Form of 2008 Executive Long-Term Incentive Cash Plan Award (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended September 30, 2008) |
+10.35 | Form of 2009 Executive Long-Term Incentive Cash Plan Award (incorporated by reference to Exhibit 10.8 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009) |
+10.36 | Form of 2010 Performance-Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010) |
+10.37 | Form of 2010 Stock Option Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.4 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010) |
+10.38 | Form of 2010 Executive Long-Term Incentive Cash Plan Award (incorporated by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010) |
+10.39 | Radian Group Inc. Amended and Restated Performance Share Plan (incorporated by reference to Exhibit 10.2 to the Registrant's Amended Current Report on Form 8-K (file no 1-11356) dated February 8, 2005 and filed on February 14, 2005) |
+10.40 | Amended and Restated Radian Group Inc. Voluntary Deferred Compensation Plan for Directors (incorporated by reference to Exhibit 10.40 to the Registrant's Annual Report on Form 10-K (file no. 1-11356)for the year ended December 31, 2009) |
+10.41 | Amended and Restated Radian Voluntary Deferred Compensation Plan for Officers (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 12, 2009 and filed on November 18, 2009) |
+10.42 | Radian Group Inc. 2008 Employee Stock Purchase Plan (incorporated by reference to Appendix B to the Registrant's Schedule 14A filed on April 13, 2009) |
Exhibit Number | Exhibit |
+10.43 | Radian Group Inc. STI/MTI Incentive Plan for Executive Employees (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 12, 2009 and filed on November 18, 2009) |
+10.44 | Enhance Financial Services Group Inc. 1997 Long-Term Incentive Plan for Key Employees (As Amended Through June 3, 1999) (incorporated by reference to Exhibit 10.2.2 to the Quarterly Report on Form 10-Q (file no. 1-10967) for the period ended June 30, 1999, of Enhance Financial Services Group Inc.) |
+10.45 | Enhance Reinsurance Company Supplemental Pension Plan (incorporated by reference to Exhibit 10.4 to the Annual Report on Form 10-K (file 1-10967) for the year ended December 31, 1999, of Enhance Financial Services Group Inc.) |
+10.46 | Amendment to Enhance Reinsurance Company Supplemental Pension Plan, effective January 1, 2008 (incorporated by reference to Exhibit 10.40 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2008) |
+10.47 | Certain Compensation Arrangements with Directors (Effective May, 2008) (incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2008) |
10.48 | Form of Radian Guaranty Inc. Master Policy, effective June 1, 1995 (incorporated by reference to Exhibit 10.21 to the Registrant's Registration Statement on Form S-4 (file no. 333-65440) filed on July 19, 2001) |
10.49 | Net Worth and Liquidity Maintenance Agreement, dated as of October 10, 2000, between Radian Guaranty Inc. and Radian Insurance Inc. (incorporated by reference to Exhibit 10.26 to the Registrant's Annual Report on Form 10-K (file 1-11356) for the year ended December 31, 2002) |
10.50 | Form of Expense Allocation and Services Agreement between the Registrant and each of Radian Guaranty Inc., Radian Insurance Inc, Radian Asset Assurance Inc. and Amerin Guaranty Corporation (incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2005) |
10.51 | Form Amendment to Expense Allocation and Services Agreement between the Registrant and each of Radian Guaranty Inc. Radian Insurance Inc., Radian Asset Assurance Inc. and Amerin Guaranty Corporation (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on form 10-Q (file no. 1-11356) for the period ended March 31, 2009) |
10.52 | Radian Group Inc. Allocation of Consolidated Tax Liability Agreement between the Registrant and each of its subsidiaries, dated January 1, 2002, including Addendums 1 through 6 dated between January 1, 2002 and July 10, 2008 (incorporated by reference to Exhibit 10.49 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2008) |
10.53 | Capped Call Confirmation (Reference No. 99AMQGZY8) dated as of November 8, 2010 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 8, 2010 and filed on November 10, 2010) |
10.54 | Capped Call Confirmation (Reference No. 99AMQM627) dated as of November 10, 2010 (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 8, 2010 and filed on November 10, 2010) |
10.55 | Securities Purchase Agreement, dated as of May 3, 2010, by and between Radian Guaranty Inc. and Sherman Financial Group LLC (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated April 30, 2010 and filed on May 4, 2010) |
+10.56 | Amendment to Incentive Awards under 2008 Executive Long-Term Incentive Cash Plan, dated April 5, 2011 (incorporated by reference to Exhibit 99.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated April 5, 2011 and filed on April 7, 2011) |
+10.57 | Form of 2011 Performance Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011) |
Exhibit Number | Exhibit |
+10.58 | Form of 2011 Stock Option Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.6 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011) |
+10.59 | 2011 Performance Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan, dated June 9, 2011, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.7 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011) |
+10.60 | 2011 Performance Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan, dated June 9, 2011, between the Registrant and C. Robert Quint (incorporated by reference to Exhibit 10.8 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011) |
+10.61 | 2011 Stock Option Agreement under the 2008 Equity Compensation Plan, dated June 9, 2011, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.9 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011) |
+10.62 | 2011 Stock Option Agreement under the 2008 Equity Compensation Plan, dated June 9, 2011, between the Registrant and C. Robert Quint (incorporated by reference to Exhibit 10.10 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011) |
+10.63 | Severance Agreement, dated December 23, 2011, between Teresa Bryce Bazemore and the Registrant (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) filed December 29, 2011) |
10.64 | Commutation, Reassumption and Release Agreement, effective as of January 1, 2012 (signed January 24, 2012), between Assured Guaranty Municipal Corp. (formerly Financial Security Assurance Inc.), Assured Guaranty (Europe) Ltd. (formerly Financial Security Assurance (U.K.) Limited), and Radian Asset Assurance Inc. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) filed January 30, 2012) |
*10.65 | Letter Agreement dated February 27, 2012, by and between Radian Guaranty Inc., Radian Mortgage Assurance, Inc., Radian Group Inc. and Federal National Mortgage Association |
*10.66 | Letter dated February 28, 2012 from Freddie Mac to Radian Guaranty Inc. and Radian Mortgage Assurance Inc. |
*12 | Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends |
*21 | Subsidiaries of the Registrant |
*23.1 | Consent of PricewaterhouseCoopers LLP |
*31 | Rule 13a-14(a) Certifications |
*32 | Section 1350 Certifications |
**101 | The following financial information from Radian Group Inc's Annual Report on Form 10-K for the year ended December 31, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2011 and 2010, (ii) Consolidated Statements of Operations for the years ended December 31, 2011, 2010 and 2009, (iii) Consolidated Statements of Changes in Common Stockholders' Equity for the years ended December 31, 2011, 2010 and 2009, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009, and (v) Notes to Consolidated Financial Statements |
Note 9 - Reinsurance (Tables)
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Dec. 31, 2011
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Reinsurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance, Premiums Written And Earned [Table Text Block] | The effect of reinsurance on net premiums written and earned is as follows:
_____________
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Capitve And Smart Home Transactions [Table Text Block] | The following tables present information related to our captive and Smart Home transactions as of the dates indicated:
Approximately 25.6% of our total ceded losses recoverable at December 31, 2011, were related to two captive reinsurers.
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Note 19 - Quarterly Financial Data (Tables)
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Dec. 31, 2011
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Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] |
______________
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Note 18 - Commitments and Contingencies Guarantor Obligations (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2011
Guaranteed Structured Transactions [Member]
|
Dec. 31, 2010
Foreign Holding Company [Member]
|
---|---|---|
Guarantor Obligations [Line Items] | ||
Number of Guaranteed Structured Transactions For Radian Guaranty | 2 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 166.8 | $ 103.4 |
Percentage Investment Interest In Foreign Holding Company | 45.00% |
Note 7 - Investments Realized Gain (Loss) on Sale of Available For Sale Securities (Details) (USD $)
|
12 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2011
years
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Jun. 30, 2011
Categories of Investments, Marketable Securities, Available-for-sale Securities [Member]
|
|
Gain (Loss) on Investments [Line Items] | ||||
Numer Of States Included In The Master Settlement Agreement With Domestic Tobacco Manufacturers | 46 | |||
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 53,700,000 | |||
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | $ 136,217,000 | $ 1,218,460,000 | $ 2,463,626,000 | $ 94,300,000 |
Number Of Classes Of Tobacco Bonds Moodys Took Rating Actions On | 67 | |||
Number Of Transactions Within The Classes Of Tobacco Bonds Moodys Took Rating Actions On | 19 | |||
Number Of Years Since April 2011 That Master Settlement Agreement Payments Have Been At Their Lowest Levels | 5 |
Note 18 - Commitments and Contingencies Employee Related Obligations (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2011
|
---|---|
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Total Incentive Retention And Severance Agreement Expenses Expected To Be Incurred | $ 9.0 |
Unrecorded Incentive Retention And Severance Agreement Expenses | $ 3.4 |
Note 4 - Derivative Instruments Fair Values Derivatives, Balance Sheet Location by Derivative Contract Type (Details) (USD $)
|
Dec. 31, 2011
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Dec. 31, 2010
|
Dec. 31, 2009
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|||
---|---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | ||||||
Derivative Assets | $ 17,212,000 | $ 26,212,000 | ||||
Derivative liabilities | 126,006,000 | 723,579,000 | 238,697,000 | |||
Financial Guaranty Credit Derivatives [Member]
|
||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Assets | 15,400,000 | 14,500,000 | ||||
Derivative liabilities | 106,500,000 | 704,400,000 | ||||
Financial Guaranty VIE Derivative Liabilities [Member]
|
||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liabilities | 19,500,000 | 19,200,000 | ||||
Derivative liabilities, net | (19,500,000) | [1] | ||||
Net Interest Margin Securities [Member]
|
||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Assets | 1,600,000 | 10,900,000 | ||||
Other Contract [Member]
|
||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Assets | 200,000 | 800,000 | ||||
Radian Group Consolidated [Member]
|
||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Assets | 17,200,000 | 26,200,000 | ||||
Derivative liabilities | 126,000,000 | 723,600,000 | ||||
Derivative liabilities, net | $ (108,800,000) | $ (697,400,000) | ||||
|
Note 9 - Reinsurance Captive and Smart Home Transactions (Details) (USD $)
|
12 Months Ended | 12 Months Ended | 72 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2011
Government [Member]
|
Dec. 31, 2011
Captives [Member]
|
Dec. 31, 2010
Captives [Member]
|
Dec. 31, 2009
Captives [Member]
|
Dec. 31, 2011
Smart Home [Member]
|
Dec. 31, 2010
Smart Home [Member]
|
Dec. 31, 2009
Smart Home [Member]
|
Dec. 31, 2011
Terminated Transactions [Member]
|
|
Ceded Credit Risk [Line Items] | |||||||||||
Contracts in Force Ceded Under Captive Reinsurance Arrangements | $ 340,800,000 | $ 420,600,000 | |||||||||
Captive Reinsurers Minimum Capitalization Percentage To Risk Assumed | 10.00% | ||||||||||
Number of Reinsurance Transactions Terminated | 2 | ||||||||||
Percentage of Ceded Losses Recoverable Attributable To Two Captive Reinsurers | 25.60% | ||||||||||
Number Of Captive Reinsurers Accounting For Largest Combined Percentage Of Ceded Losses Recoverable | 2 | ||||||||||
Contracts in Force Subject to Participation Through Reinsurance, Percentage | 2.70% | 3.20% | |||||||||
Contracts in Force Subject to Participation Through Reinsurance, Terminations, Value | 6,000,000,000 | 41,000,000 | |||||||||
Reinsurance recoverables | 157,985,000 | 244,894,000 | 90,100,000 | 151,700,000 | 67,900,000 | 93,200,000 | |||||
Ceded Premiums Written | 37,349,000 | 89,855,000 | 139,130,000 | 28,600,000 | 80,100,000 | 128,300,000 | 8,800,000 | 9,800,000 | 10,900,000 | ||
Ceded Premiums Earned, Property and Casualty | 28,800,000 | 83,400,000 | 129,800,000 | 8,800,000 | 9,800,000 | 10,900,000 | |||||
Reinsurance Costs and Recoveries, Net | 84,500,000 | 134,700,000 | 31,300,000 | ||||||||
Maximum Regulatory Risk To Capital Ratio | 25.0 | 0.25 | |||||||||
Net Cash Received (Paid) For Commutations, Terminations And Recaptures | $ 92,599,000 | $ (85,657,000) | $ 369,926,000 | $ 321,000,000 | $ 673,200,000 |
Note 15 - Statutory Information Risk To Capital Calculation (Details) (Radian Guaranty [Member], USD $)
In Millions, unless otherwise specified |
Dec. 31, 2011
|
Dec. 31, 2010
|
||||
---|---|---|---|---|---|---|
Radian Guaranty [Member]
|
||||||
Statutory Accounting Practices [Line Items] | ||||||
Risk In Force | $ 18,095.7 | [1] | $ 22,177.7 | [1] | ||
Statutory policyholers' surplus | 843.2 | 1,295.7 | ||||
Contingency Reserve | 0 | 19.6 | ||||
Statutory policyholders' position | $ 843.2 | $ 1,315.3 | ||||
Risk To Capital Ratio | 21.5 | 16.8 | ||||
|
Note 16 - Share-Based and Other Compensation Plans (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of outstanding awards and compensation expense recognized for each type of share-based award | The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the periods indicated:
______________
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Schedule of additional information regarding all share-based awards | The following table reflects additional information regarding all share-based awards for the years indicated:
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Schedule of information with regard to stock options | Information with regard to stock options for the periods indicated is as follows:
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Schedule of fully vested share options | The table below summarizes information regarding fully vested share options as of December 31, 2011:
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Schedule of outstanding and exercisable options | The following table summarizes information concerning outstanding and exercisable options at December 31, 2011:
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Schedule of valuation assumptions of stock options granted | We use the Black-Scholes valuation model in determining the grant date fair value of stock options issued to employees and non-employee directors. This model was used to estimate the fair value of the stock options granted on the date of grant, using the assumptions noted in the following table:
______________
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Schedule of valuation assumptions of performance based RSU | The grant date fair value of performance-based RSUs is determined using the Monte Carlo valuation model. The following are assumptions used in our calculation of the 2010 grant date fair value of performance-based RSUs to be settled in common stock:
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Schedule of changes in RSU to be settled under 2008 Equity Plan | Information with regard to RSUs to be settled in stock for the periods indicated is as follows:
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Schedule of restricted stock under Equity Plans | Information with regard to restricted stock for the periods indicated is as follows:
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Schedule of valuation assumptions of ESPP | The following are assumptions used in our calculation of ESPP compensation expense during 2011:
|
Note 3 - Segment Reporting Level 3 (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Summarized financial information concerning our current and previous operating segments, as of and for the periods indicated, are as follows:
|
Note 10 - Losses and LAE Losses and LAE for Mortgage Insurance (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
||||
---|---|---|---|---|---|---|---|
Reserve for losses and loss adjustment expenses | |||||||
Reserve for Losses and Loss Adjustment Expenses | $ 3,310,902 | $ 3,596,735 | $ 3,578,982 | ||||
Total Reserve for Losses and LAE [Member]
|
|||||||
Reserve for losses and loss adjustment expenses | |||||||
Reserve for Losses and Loss Adjustment Expenses | 3,310,902 | 3,596,735 | |||||
Mortgage Insurance Segment
|
|||||||
Reserve for losses and loss adjustment expenses | |||||||
Reserve for Losses and Loss Adjustment Expenses | 3,247,900 | 3,524,971 | |||||
Financial Guaranty Segment
|
|||||||
Reserve for losses and loss adjustment expenses | |||||||
Reserve for Losses and Loss Adjustment Expenses | 63,002 | [1] | 71,764 | [1] | |||
Trade Credit Reinsurance and Surety Insurance [Member]
|
|||||||
Reserve for losses and loss adjustment expenses | |||||||
Reserve for Losses and Loss Adjustment Expenses | $ 2,500 | [1] | $ 4,300 | [1] | |||
|
Note 16 - Share-Based and Other Compensation Plans (Other Compensation Programs) (Details) (USD $)
|
12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2011
Cash Settled [Member]
|
Dec. 31, 2010
Cash Settled [Member]
|
Dec. 31, 2009
Cash Settled [Member]
|
Dec. 31, 2011
Officer LTI Plan Cash Based [Member]
|
Dec. 31, 2010
Officer LTI Plan Cash Based [Member]
|
Dec. 31, 2009
Officer LTI Plan Cash Based [Member]
|
Feb. 28, 2011
Officer LTI Plan Cash Based [Member]
Cash Settled [Member]
|
Dec. 31, 2011
Officer LTI Plan Cash Based [Member]
Cash Settled [Member]
|
Dec. 31, 2010
Officer LTI Plan Cash Based [Member]
Cash Settled [Member]
|
Dec. 31, 2009
Officer LTI Plan Cash Based [Member]
Cash Settled [Member]
|
Feb. 28, 2011
Officer LTI Plan Cash Based [Member]
Minimum [Member]
Cash Settled [Member]
|
Dec. 31, 2011
Officer LTI Plan Cash Based [Member]
Minimum [Member]
Cash Settled [Member]
|
Feb. 28, 2011
Officer LTI Plan Cash Based [Member]
Maximum [Member]
Cash Settled [Member]
|
Dec. 31, 2011
Officer LTI Plan Cash Based [Member]
Maximum [Member]
Cash Settled [Member]
|
Dec. 31, 2011
Officer LTI Plan Cash Based [Member]
Measurement over three-year performance period [Member]
|
Dec. 31, 2011
Officer LTI Plan Cash Based [Member]
Measurement over four-year performance period [Member]
|
Dec. 31, 2011
Executive LTI Plan [Member]
|
Dec. 31, 2010
Executive LTI Plan [Member]
|
Dec. 31, 2009
Executive LTI Plan [Member]
|
Aug. 31, 2011
Executive LTI Plan [Member]
Cash Settled [Member]
|
Dec. 31, 2011
Executive LTI Plan [Member]
Cash Settled [Member]
|
Dec. 31, 2011
Executive LTI Plan [Member]
Minimum [Member]
|
Aug. 31, 2011
Executive LTI Plan [Member]
Minimum [Member]
Cash Settled [Member]
|
Dec. 31, 2011
Executive LTI Plan [Member]
Maximum [Member]
|
Aug. 31, 2011
Executive LTI Plan [Member]
Maximum [Member]
Cash Settled [Member]
|
||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||
Share-based Compensation, Cash Payout Amount as Percentage of Participants' Base Salaries | 45.00% | 300.00% | |||||||||||||||||||||||||||||||||||||
Performance target weight as percentage of total performance target | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||
Performance period | 3 years | 4 years | 3 years | ||||||||||||||||||||||||||||||||||||
Cash payout range amount as percentage of target award | 147.00% | 0.00% | 172.00% | 200.00% | 0.00% | 144.00% | 400.00% | 300.00% | |||||||||||||||||||||||||||||||
Compensation cost recognized related to non-share-based awards | $ (969,000) | [1] | $ 20,369,000 | [1] | $ 15,160,000 | [1] | $ (4,717,000) | [1] | $ 11,343,000 | [1] | $ 7,202,000 | [1] | $ 500,000 | $ 1,100,000 | $ 3,000,000 | $ 32,000 | [1] | $ 5,618,000 | [1] | $ 2,322,000 | [1] | $ 5,500,000 | $ 3,100,000 | $ 2,700,000 | |||||||||||||||
Cash used to settle awards | $ 8,400,000 | $ 8,200,000 | |||||||||||||||||||||||||||||||||||||
|
Note 20 - Net Income (Loss) Per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income (loss) | $ 302,150 | $ (1,805,867) | $ (147,879) |
Average common shares outstanding | 132,372,000 | 114,697,000 | 81,937,000 |
Increase in shares due to potential exercise of common stock equivalents-diluted basis | 1,491,000 | 0 | 0 |
Adjusted shares outstanding-diluted | 133,863,000 | 114,697,000 | 81,937,000 |
Net income (loss) per share-basic | $ 2.28 | $ (15.74) | $ (1.80) |
Net income (loss) per share-diluted | $ 2.26 | $ (15.74) | $ (1.80) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,490,462 | 4,366,342 | 4,635,530 |
Note 12 - Financial Guaranty Insurance Contracts Adjustments To Premiums Earned For Financial Guaranty Contracts (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Adjustments To Premiums Earned For Financial Guaranty Contracts [Line Items] | ||
Refundings | $ 27.2 | $ 35.8 |
Recaptures/commutations | 2.8 | 0 |
Adjustments to installment premiums, gross of commissions | 0.4 | 0.4 |
Unearned premium acceleration upon establishment of case reserves | 3.2 | 1.4 |
Adjustment To Premiums Earned Foreign Exchange Revaluation Gross of Commission | 1.1 | (1.4) |
Policy cancellations | 0 | 2.3 |
Total Adjustment To Premiums Earned For Financial Guaranty Contracts | $ 34.7 | $ 38.5 |
Note 16 - Share-Based and Other Compensation Plans (SARs - Cash Settled) (Details) (2008 Equity Plan [Member], Cash Settled [Member], USD $)
|
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
years
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Stock Appreciation Rights (SARs) [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants by Compensation Committee | 1,623,500 | 192,100 | |
Grant Price | $ 10.42 | $ 2.68 | |
Contractual term (in years) | 5 | ||
Stock Appreciation Rights (SARs) 2010 Grant [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value | $ 1.43 | ||
Stock Appreciation Rights (SARs) 2009 Grants [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value | $ 0.96 |
Note 8 - Investments in Affiliates (Details) (USD $)
|
12 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Jun. 30, 2010
Sherman [Member]
|
Dec. 31, 2010
Sherman [Member]
|
Dec. 31, 2009
Sherman [Member]
|
|
Equity Method Investment, Realized Gain (Loss) on Disposal [Abstract] | ||||||
Equity Method Investment, Ownership Percentage | 28.70% | |||||
Proceeds from Sale of Equity Method Investments | $ 172,000,000 | |||||
Gain on sale of affiliate | 0 | 34,815,000 | 0 | 34,800,000 | ||
Related Party Transaction, Expenses from Transactions with Related Party | 1,300,000 | |||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 29,700,000 | |||||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||||||
Investments in and Advances to Affiliates, at Fair Value | 121,424,000 | 99,656,000 | ||||
Income (Loss) from Equity Method Investments | 65,000 | 14,668,000 | 33,226,000 | 14,590,000 | 33,226,000 | |
Investments in and Advances to Affiliates, at Fair Value, Dividends Received | (29,498,000) | (11,040,000) | ||||
Investments in and Advances to Affiliates, at Fair Value, Other Comprehensive Loss | (381,000) | (418,000) | ||||
Investments in and Advances to Affiliates, at Fair Value, Sale of Ownership Interest | (106,135,000) | 0 | ||||
Investments in and Advances to Affiliates, at Fair Value | 0 | 121,424,000 | ||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||||
Equity Method Investment, Summarized Financial Information, Assets | 1,913,296,000 | |||||
Equity Method Investment, Summarized Financial Information, Liabilities | 1,461,076,000 | |||||
Equity Method Investment, Summarized Financial Information, Revenue From Receivable Portfolios Net of Amortization | 1,216,742,000 | |||||
Equity Method Investment, Summarized Financial Information, Other Income | 16,873,000 | |||||
Equity Method Investment, Summarized Financial Information, Derivative Mark to Market | 12,071,000 | |||||
Equity Method Investment, Summarized Financial Information, Revenue | 1,245,686,000 | |||||
Equity Method Investment, Summarized Financial Information, Operating and Servicing Expenses | 515,125,000 | |||||
Equity Method Investment, Summarized Financial Information, Provision for Loan Losses | 446,917,000 | |||||
Equity Method Investment, Summarized Financial Information, Interest Expense | 105,537,000 | |||||
Equity Method Investment, Summarized Financial Information, Other Expenses | 42,542,000 | |||||
Equity Method Investment, Summarized Financial Information, Total Expenses | 1,110,121,000 | |||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 135,565,000 |
Note 12 - Financial Guaranty Insurance Contracts Premium Receivable and Unearned Premium NPV and Accretion (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2011
Premiums Written Accretion
|
Dec. 31, 2010
Premiums Written Accretion
|
Dec. 31, 2011
Premiums Earned Accretion
|
Dec. 31, 2010
Premiums Earned Accretion
|
Dec. 31, 2011
Policy Acquisition Costs Accretion
|
Dec. 31, 2010
Policy Acquisition Costs Accretion
|
|
Premiums receivable | $ 34.3 | $ 44.0 | $ 54.4 | ||||||
Unearned premiums | 39.8 | 60.5 | |||||||
Financial Guarantee Insurance Contracts, Premium Received over Contract Period, Premium Receivable, Accretion [Abstract] | |||||||||
Accretion of Premium Receivable and Unearned Premium | $ 1.2 | $ 1.5 | $ 1.2 | $ 1.5 | $ 0.3 | $ 0.3 | |||
Premium Receivable, Weighted Average Risk Free Discount Rate | 2.60% |
Note 10 - Losses and LAE Rescissions And Denials (Details) (USD $)
In Millions, unless otherwise specified |
36 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2011
Q1 2009 [Member]
|
Dec. 31, 2011
Q2 2009 [Member]
|
Dec. 31, 2011
Q3 2009 [Member]
|
Dec. 31, 2011
Q4 2009 [Member]
|
Dec. 31, 2011
Q1 2010 [Member]
|
Dec. 31, 2011
Q2 2010 [Member]
|
Dec. 31, 2011
Q3 2010 [Member]
|
Dec. 31, 2011
Q4 2010 [Member]
|
Dec. 31, 2011
Q1 2011 [Member]
|
Dec. 31, 2011
Q2 2011 [Member]
|
Dec. 31, 2011
First Lien Claims First Loss Position [Member]
|
Dec. 31, 2010
First Lien Claims First Loss Position [Member]
|
Dec. 31, 2009
First Lien Claims First Loss Position [Member]
|
Dec. 31, 2011
First Lien Claims Second Loss Position [Member]
|
Dec. 31, 2010
First Lien Claims Second Loss Position [Member]
|
Dec. 31, 2009
First Lien Claims Second Loss Position [Member]
|
Dec. 31, 2011
Mortgage Insurance Segment
|
Dec. 31, 2010
Mortgage Insurance Segment
|
Dec. 31, 2009
Mortgage Insurance Segment
|
Dec. 31, 2011
Mortgage Insurance Segment
|
Dec. 31, 2010
Mortgage Insurance Segment
|
||||||||||||||||||||||||||||||
Rescissions And Denials [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease To Our Loss Reserves Due To Estimated Rescissions And Denials | $ 631 | $ 922 | |||||||||||||||||||||||||||||||||||||||||||||||||
Impact To Loss Reserves Based On One Percentage Change In Primary Claim Severity | 96 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Claims Rescissions and Denials [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Claim rescissions | 360.0 | 339.2 | 330.7 | 114.2 | 199.1 | 372.9 | |||||||||||||||||||||||||||||||||||||||||||||
Claim denials | 133.9 | 200.2 | 67.4 | 37.0 | 61.5 | 54.6 | |||||||||||||||||||||||||||||||||||||||||||||
Total rescissions and denials | 493.9 | [1] | 539.4 | [1] | 398.1 | [1] | 151.2 | [2] | 260.6 | [2] | 427.5 | [2] | |||||||||||||||||||||||||||||||||||||||
Total First Lien Claims Rescinded Or Denied | 645.1 | [3] | 800.0 | [3] | 825.6 | [3] | |||||||||||||||||||||||||||||||||||||||||||||
Non Overturned Rebuttals on Rescinded First Lien Claims [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Non Overturned Rebuttals On Rescinded First Lien Claims First Loss Position | 460.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Non Overturned Rebuttals On Rescinded First Lien Claims Second Loss Position | 191.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Non Overturned Rebuttals On Rescinded First Lien Claims | 652.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liability For Premiums Expected To Be Refunded From Rescissions | $ 57.2 | $ 43.5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Denial And Rescission Rates Net Of Reinstatements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Claim Received Quarter | Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | Q1 2011 | Q2 2011 | |||||||||||||||||||||||||||||||||||||||||
Cummulative Rescission Rate For Each Quarter | 23.80% | [4] | 25.60% | [4] | 22.70% | [4] | 20.80% | [4] | 18.90% | [4] | 18.30% | [4] | 16.60% | [4] | 18.20% | [4] | 21.40% | [4] | 22.60% | [4] | |||||||||||||||||||||||||||||||
Percentage Of Claims Resolved | 100.00% | [5] | 100.00% | [5] | 100.00% | [5] | 100.00% | [5] | 99.00% | [5] | 99.00% | [5] | 98.00% | [5] | 97.00% | [5] | 92.00% | [5] | 79.00% | [5] | |||||||||||||||||||||||||||||||
|
Note 12 - Financial Guaranty Insurance Contracts Future Premiums Net of Commission on Financial Guaranty Contracts (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2011
|
---|---|
Future Expected Premium Payments Net To Be Recognized [Line Items] | |
First quarter 2012 | $ 1.1 |
Second quarter 2012 | 1.8 |
Third quarter 2012 | 1.4 |
Fourth quarter 2012 | 0.7 |
2012 Total | 5.0 |
2013 | 3.9 |
2014 | 1.5 |
2015 | 2.9 |
2016 | 2.6 |
2012-2016 Total | 15.9 |
2017-2021 | 10.1 |
2022-2026 | 6.8 |
2027-2031 | 4.4 |
After 2031 | 5.9 |
Total | $ 43.1 |
Note 9 - Reinsurance Reinsurance Text (Details) (USD $)
|
12 Months Ended | 1 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2011
Reinsurance Premiums for Insurance Companies, by Product Segment [Domain]
|
Dec. 31, 2010
Reinsurance Premiums for Insurance Companies, by Product Segment [Domain]
|
Dec. 31, 2009
Reinsurance Premiums for Insurance Companies, by Product Segment [Domain]
|
Dec. 31, 2011
Reinsurance Premiums for Insurance Companies [Member]
|
Dec. 31, 2010
Reinsurance Premiums for Insurance Companies [Member]
|
Dec. 31, 2009
Reinsurance Premiums for Insurance Companies [Member]
|
Dec. 31, 2009
Commuted or Ceded [Member]
|
Jan. 24, 2012
January 2012 Assured Guaranty Reinsurance Commutation [Member]
|
Jan. 24, 2012
January 2012 Assured Guaranty Ceded Public Finance Transaction [Member]
|
Jan. 24, 2012
January 2012 Assured Guaranty Ceded Public Finance Transaction [Member]
Commuted or Ceded [Member]
|
||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount | $ 756,025,000 | $ 825,733,000 | $ 825,901,000 | |||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Ceded to Other Companies | (38,740,000) | (94,497,000) | (139,626,000) | |||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Assumed from Other Companies | 32,337,000 | 29,063,000 | 45,749,000 | |||||||||||||
Prepaid Reinsurance Premiums | 800,000 | 1,000,000 | ||||||||||||||
Net Par Outstanding Commuted in 2009 | 9,800,000,000 | |||||||||||||||
Assumed Reinsurance Exposure Commuted In January 2012 | 13,800,000,000 | 1,800,000,000 | 1,800,000,000 | |||||||||||||
Premiums Written, Net, Consolidated [Abstract] | ||||||||||||||||
Direct Premiums Written | 755,758,000 | 788,321,000 | 790,052,000 | 755,758,000 | 788,321,000 | 790,052,000 | ||||||||||
Assumed Premiums Written | 11,162,000 | 6,585,000 | 207,074,000 | 11,162,000 | 6,585,000 | 207,074,000 | [1] | 185,600,000 | ||||||||
Ceded Premiums Written | (37,349,000) | (89,855,000) | (139,130,000) | (37,349,000) | (89,855,000) | (139,130,000) | ||||||||||
Net premiums written | 707,247,000 | 691,881,000 | 443,848,000 | 707,247,000 | 691,881,000 | 443,848,000 | ||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Gross Amount | 762,428,000 | 891,167,000 | 919,778,000 | |||||||||||||
Premiums Earned, Net, Property and Casualty [Abstract] | ||||||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Gross Amount | 762,428,000 | 891,167,000 | 919,778,000 | |||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Assumed from Other Companies | 32,337,000 | 29,063,000 | 45,749,000 | |||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Ceded to Other Companies | (38,740,000) | (94,497,000) | (139,626,000) | |||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount | $ 756,025,000 | $ 825,733,000 | $ 825,901,000 | |||||||||||||
|
Note 7 - Investments Available For Sale Securities, Proceeds and Gains (Losses) (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds received from redemptions | $ 32,214 | $ 50,846 | $ 199,551 |
Proceeds from sales of fixed-maturity investments available for sale | 136,217 | 1,218,460 | 2,463,626 |
Proceeds received from sales | 52,014 | 15,033 | 33,807 |
Fixed Maturities [Member]
|
|||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds received from redemptions | 32,214 | 50,846 | 199,551 |
Proceeds from sales of fixed-maturity investments available for sale | 136,217 | 1,218,460 | 2,463,626 |
Gross investment gains from sales and redemptions | 1,577 | 23,363 | 94,974 |
Gross investment losses from sales and redemptions | (54,050) | (31,024) | (3,397) |
Equity Securities [Member]
|
|||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds received from sales | 52,014 | 15,033 | 33,807 |
Gross investment gains from sales and redemptions | 6,238 | 2,006 | 1,077 |
Gross investment losses from sales and redemptions | $ (10) | $ (5) | $ (313) |
Note 18 - Commitments and Contingencies Level 1 (Notes)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
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Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies On June 26, 2008, we filed a complaint for declaratory judgment in the U.S. District Court for the Eastern District of Pennsylvania, naming IndyMac Bank (“IndyMac”), Deutsche Bank National Trust Company (“Deutsche Bank”), Financial Guaranty Insurance Company (“FGIC”), Ambac Assurance Corporation (“Ambac”) and MBIA Insurance Corporation (“MBIA”) as defendants. The suit involved three of our pool policies covering second-lien mortgages entered into in late 2006 and early 2007, with respect to loans originated by IndyMac. We were in a second loss position behind IndyMac and in front of three defendant financial guaranty companies. We alleged that the representations and warranties made to us to induce us to issue the policies were materially false, and that as a result, the policies should be void. The total amount of our claim liability for all three pool policies was approximately $77 million and represented the aggregate risk in force related to these policies. In March 2009, FGIC, Ambac, and MBIA served us with demands to arbitrate certain issues relating to the same three pool policies that were the subject of our declaratory judgment complaint. In July 2009, the court declined to dismiss our declaratory judgment action, but stayed the action to permit the arbitrations to proceed first. As previously disclosed, between August 2009 and June 2011, we settled our disputes with Ambac, Deutsche Bank, MBIA and FGIC with respect to all three of the pool policies. In the aggregate, we settled our $77 million of total claim liability under the three pool policies for approximately $44 million. Following these settlements, in July 2011, the declaratory judgment action against IndyMac, Ambac, MBIA, FGIC and Deutsche Bank, and the arbitrations commenced by Ambac, MBIA and FGIC were dismissed with prejudice. On August 13, 2010, American Home Mortgage Servicing, Inc. ("AHMSI") filed a complaint against Radian Guaranty in the United States District Court for the Central District of California, on its own behalf and as servicer for certain RMBS insured by Radian Guaranty under27 separate bulk primary mortgage insurance policies. AHMSI contends that in 2008, it mistakenly sent cancellation notices to Radian Guaranty for certain loans covered under these policies, and that Radian Guaranty wrongfully refused to reinstate coverage for these loans after AHMSI discovered the error. We believe that approximately 271 loans were affected by this error. According to AHMSI, Radian Guaranty's refusal to reinstate coverage was in breach of its contractual duties under the policies and in bad faith. AHMSI is seeking money damages and injunctive relief requiring Radian Guaranty to reinstate full coverage on all loans insured under the policies. On October 18, 2010, Radian Guaranty filed a motion to dismiss this case, which the court granted on December 16, 2010, stating that AHMSI failed to establish that it is the real party in interest. On January 5, 2011, AHMSI filed an amended complaint that included the trustees of the securities as additional plaintiffs to the complaint. On May 31, 2011, Radian answered the amended complaint and, subsequently, filed a counterclaim seeking a declaratory judgment that, among other things, it is not in breach of its contractual duties. Radian also filed, and the court subsequently dismissed, a third party complaint against Sand Canyon Corporation, the servicer who allegedly made the error that led to the cancellation of the certificates of insurance, seeking indemnity and/or contribution. On August 1, 2011, Radian Guaranty filed a lawsuit against Quicken Loans Inc. ("Quicken") in the United States District Court for the Eastern District of Pennsylvania. Radian Guaranty's complaint seeks a declaratory judgment that it properly rescinded mortgage insurance coverage under Radian Guaranty's master policy and delegated underwriting endorsement for approximately140 home mortgage loans originated by Quicken based upon deficiencies and improprieties in the underwriting process. On August 24, 2011, Quicken filed a motion to dismiss the complaint. On September 12, 2011, Radian Guaranty filed a response to Quicken's motion to dismiss, and on September 29, 2011, Quicken filed its reply. On December 9, 2011, an action titled Samp v. JPMorgan Chase Bank, N.A., was filed in the United States District Court for the Central District of California. The defendants are JPMorgan Chase Bank, N.A., its affiliates (collectively, “JPMorgan”), and several mortgage insurers, including Radian Guaranty. The plaintiffs purport to represent a class of borrowers whose loans supposedly were referred to mortgage insurers by JPMorgan in exchange for reinsurance agreements between the mortgage insurers and JPMorgan's captive reinsurer. Plaintiffs assert violations of Real Estate Settlement Practices Act of 1974 ("RESPA"). The mortgage insurer defendants have demanded that the plaintiffs voluntarily dismiss from the lawsuit any mortgage insurer, such as Radian Guaranty, that did not insure any of the plaintiffs' loans. If that demand is not met, Radian Guaranty and others of the mortgage insurers intend to move to dismiss the claims against them. On December 30, 2011, a putative class action under RESPA titled White v. PNC Financial Services Group was filed in the United States District Court for the Eastern District of Pennsylvania. The facts of this case are substantially similar to those of the Samp case discussed above; however, in this case, Radian Guaranty has insured the loan of one of the plaintiffs. Radian Guaranty intends to move to dismiss the complaint on a number of grounds. The elevated levels of our rate of rescissions and denials have led to an increased risk of litigation by lenders and policyholders challenging our right to rescind coverage or deny claims. Under our master insurance policy, any suit or action arising from any right of the insured under the policy must be commenced within two years after such right first arose and within three years for certain other policies, including certain pool insurance policies. Recently, we have faced an increasing number of challenges from certain lender customers regarding our insurance rescissions and claim denials, which have resulted in some reversals of our decisions regarding rescissions or denials. We are currently in discussions with these customers regarding rescissions or denials, which if not resolved, could result in arbitration or additional judicial proceedings. Although we believe that our rescissions and denials are justified under our policies, if we are not successful in defending the rescissions or denials in any potential legal actions, we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. See Note 10 for further information. In addition to the above litigation, we are involved in litigation that has arisen in the normal course of our business. We are contesting the allegations in each such pending action and believe, based on current knowledge and after consultation with counsel, that the outcome of such litigation will not have a material adverse effect on our consolidated financial position and results of operations. Securities regulations became effective in 2005 that impose enhanced disclosure requirements on issuers of ABS (including mortgage-backed securities ("MBS"). To allow our customers to comply with these regulations, we typically were required, depending on the amount of credit enhancement we were providing, to provide (1) audited financial statements for the insurance subsidiary participating in the transaction, or (2) a full and unconditional holding-company-level guarantee for our insurance subsidiaries' obligations in such transactions. Radian Group has guaranteed two structured transactions for Radian Guaranty involving approximately $166.8 million of remaining credit exposure as of December 31, 2011. On March 1, 2011, EFSG sold its 45% interest in the holding company of a Brazilian insurance company, which specializes in surety and agricultural insurance, to another owner for a nominal purchase price. This holding company and its subsidiaries are subject to regulation by The Superintendence of Private Insurance, the regulatory agency responsible for the supervision and control of the insurance market in Brazil. Although EFSG wrote off its entire interest in this company in 2005 and has sold its ownership interest, under Brazilian law, it is possible that EFSG could become liable for its proportionate share of the liabilities of the company related to the period in which EFSG was a significant shareholder, if the company was to become insolvent and had insufficient capital to satisfy its outstanding liabilities. EFSG's share of the liabilities of the company attributable to this period was approximately $103.4 million as of December 31, 2010. As part of the non-investment grade component of our investment portfolio, we had unfunded commitments of $9.6 million at December 31, 2011, related to alternative investments that are primarily private equity structures. These commitments have capital calls expected through 2015, with the possibility of additional calls through 2017, and certain fixed expiration dates or other termination clauses. Our mortgage insurance business provides an outsourced underwriting service to its customers known as contract underwriting. Typically, we agree that if we make a material error in underwriting a loan, we will provide a remedy to the customer, by purchasing the loan or placing additional mortgage insurance coverage on the loan, or by indemnifying the customer against loss up to a maximum specified amount. By providing these remedies, we assume some credit risk and interest-rate risk if an error is found during the limited remedy period in the agreements governing our provision of contract underwriting services. Recently, we limited the recourse available to our contract underwriting customers to apply only to those loans that we are simultaneously underwriting for compliance with secondary market compliance and for potential mortgage insurance. In 2011, we paid losses related to contract underwriting remedies of approximately $7.2 million. Rising mortgage interest rates or further economic uncertainty may expose the mortgage insurance business to an increase in such costs. In 2011, our provision for contract underwriting expenses was approximately $9.3 million and our reserve for contract underwriting obligations at December 31, 2011, was $4.5 million. We monitor this risk and negotiate our underwriting fee structure and recourse agreements on a client-by-client basis. We also routinely audit the performance of our contract underwriters. We have incentive, retention and severance agreements with certain employees in our financial guaranty business. The total cost expected to be incurred under these agreements is $9.0 million, of which $3.4 million has not been recorded as of December 31, 2011. The remaining cost for these agreements is expected to be recorded by the second quarter of 2013. We lease office space for use in our operations. The lease agreements, which expire periodically through August 2017, contain provisions for scheduled periodic rent increases. Net rental expense in connection with these leases totaled $5.0 million in 2011, $4.9 million in 2010, and $7.5 million in 2009. The commitment for non-cancelable operating leases in future years is as follows:
The commitment for non-cancelable operating leases in future years has not been reduced by future minimum sublease rental payments aggregating approximately $13.5 million at December 31, 2011. |
Note 21 - Subsequent Events (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Subsequent Events [Table Text Block] | The following table provides the expected impact on our consolidated financial statements prepared under GAAP in the first quarter of 2012, for the Assured Transaction described in Note 1. While we expect a statutory capital benefit as a result of this transaction as discussed in Note 1, under GAAP this transaction will result in a reduction in net income, and therefore, a reduction in retained earnings.
|
Note 12 - Financial Guaranty Insurance Contracts Level 3 (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Financial Guaranty Insurance Contracts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Insured Financial Obligations with Credit Deterioration [Table Text Block] | The following table includes information as of December 31, 2011, regarding our financial guaranty claim liabilities, segregated by the surveillance categories that we use in monitoring the risks related to these contracts:
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Schedule of Premium Receivable and Unearned with Accretion Detail and Weighted Average Risk-Free Rate [Table Text Block] | The present values of premiums receivable and unearned premiums that are received on an installment basis as of December 31, 2011 and 2010 are as follows:
The accretion of these balances is included either in premiums written and premiums earned for premiums receivable or policy acquisition costs for commissions on our consolidated statements of operations. The amount of the accretion included in premiums written, premiums earned and policy acquisition costs for the years ended December 31, 2011 and 2010 was as follows:
The weighted-average risk-free rate used to discount the premiums receivable and premiums to be collected was 2.6% at December 31, 2011. |
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Future Premiums To Be Collected On Financial Guaranty Contracts [Table Text Block] | The following table shows the nominal (non-discounted) premiums, net of commissions that are expected to be collected on financial guaranty contracts with installment premiums, included in premiums receivable as of December 31, 2011. See Note 21 for the financial impact of the Assured Transaction executed in January 2012.
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Rollforward of Financial Guaranty NPV of Premiums Receivable [Table Text Block] | The following table shows the rollforward of the net present value of premiums receivable as of December 31, 2011 and 2010:
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Adjustments to Premiums Earned Financial Guaranty Contracts [Table Text Block] | Premiums earned were affected by the following for the years ended December 31, 2011 and 2010:
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Financial Guarantee Insurance Contracts Future Premium Revenue to be Recognized [Table Text Block] | The following table shows the expected contractual premium revenue from our existing financial guaranty portfolio, assuming no prepayments or refundings of any financial guaranty obligations, as of December 31, 2011. See Note 21 for the financial impact of the Assured Transaction executed in January 2012.
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Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | The following table shows the significant components of changes in our financial guaranty claim liability for the years ended December 31, 2011, 2010 and 2009, excluding $2.5 million, $4.3 million and $6.6 million, respectively, related to our trade credit reinsurance and surety business, which is excluded from the accounting standard regarding accounting for financial guaranty insurance contracts by insurance enterprises.
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Schedule or Description of Weighted Average Discount Rate [Table Text Block] | The weighted-average risk-free rates used to discount the gross claim liability and gross potential recoveries were as follows, as of the dates indicated:
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Note 7 - Investments Investments In Any Person And Its Affiliates That Exceed 10% of Total Stockholders' Equity (Details) (USD $)
|
Dec. 31, 2011
|
Dec. 31, 2010
|
---|---|---|
Investment Holdings [Line Items] | ||
Trading Securities | $ 4,211,059,000 | $ 4,562,821,000 |
Short-term Investments | 1,261,703,000 | 1,537,498,000 |
Total | 5,783,559,000 | 6,628,883,000 |
BlackRock Liquidity Funds T-Fund Money Market [Member] [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
|
||
Investment Holdings [Line Items] | ||
Trading Securities | 0 | |
Short-term Investments | 173,378,000 | |
Total | 173,378,000 | |
Fidelity Treasury Only Money Market [Member] [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
|
||
Investment Holdings [Line Items] | ||
Trading Securities | 0 | |
Short-term Investments | 167,631,000 | |
Total | 167,631,000 | |
Federated Treasury Only Obligations Money Market [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
|
||
Investment Holdings [Line Items] | ||
Trading Securities | 0 | |
Short-term Investments | 139,000,000 | |
Total | 139,000,000 | |
State of Illinois [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
|
||
Investment Holdings [Line Items] | ||
Trading Securities | 129,672,000 | |
Short-term Investments | 0 | |
Total | 129,672,000 | |
Invesco-AIM Advisors STIT Treasury PTF Money Market [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
|
||
Investment Holdings [Line Items] | ||
Trading Securities | 0 | |
Short-term Investments | 129,000,000 | |
Total | 129,000,000 | |
Total Investments in Any Person and Its Affiliates That Exceed 10% of Total Stockholders Equity [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
|
||
Investment Holdings [Line Items] | ||
Trading Securities | 129,672,000 | |
Short-term Investments | 609,009,000 | |
Total | $ 738,681,000 |
Note 14 - Income Taxes Reconciliation of Taxes from Statutory Rate to Provision (Benefit) for Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Reconciliation from Statutory Rate to Provision (Benefit) for Income Taxes [Line Items] | |||
Provision (benefit) for income taxes computed at the statutory tax rate | $ 128,979 | $ (552,887) | $ (84,798) |
Tax-exempt municipal bond interest and dividends received deduction (net of proration) | (5,237) | (15,592) | (31,539) |
Foreign tax (benefit) provision | (13,496) | (10,397) | (4,766) |
State Tax Benefit | (6,224) | (15,692) | (7,353) |
Income Tax Reconciliation, Tax Contingencies | 17,860 | (25,915) | 28,192 |
Valuation allowance | (50,582) | 844,975 | 6,882 |
Other, net | (4,938) | 1,697 | (1,019) |
Provision (benefit) for income taxes | $ 66,362 | $ 226,189 | $ (94,401) |
Note 7 - Investments Level 3 (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Debt And Equity Securities [Table Text Block] | Our held to maturity and available for sale securities within our investment portfolio consisted of the following as of the dates indicated:
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Trading Securities (and Certain Trading Assets) [Table Text Block] | The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated:
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Investment Income [Table Text Block] | Net investment income consisted of:
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Gain (Loss) on Investments [Table Text Block] | Net realized and unrealized gains (losses) on investments consisted of:
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Available-for-sale Securities, Proceeds and Gains (Losses) [Table Text Block] | The sources of our proceeds and related investment gains (losses) on our available for sale securities are as follows:
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Unrealized Gain (Loss) on Investments [Table Text Block] | The change in unrealized gains (losses) recorded in accumulated other comprehensive loss consisted of the following:
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Schedule Of Unrealized Losses [Table Text Block] | The following tables show the gross unrealized losses and fair value of our available for sale and held to maturity investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated:
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Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturities of fixed-maturity investments are as follows:
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Investment Holdings, Schedule of Investments [Table Text Block] | At December 31, 2011, investments in any person and its affiliates that exceeded 10% of total stockholders' equity were as follows (in thousands):
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Note 1 - Description of Business and Recent Developments Capital and Liquidity (Details) (USD $)
|
1 Months Ended | 12 Months Ended | 48 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
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Jan. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2011
Radian Guaranty [Member]
|
Dec. 31, 2011
CMAC Of Texas [Member]
|
Dec. 31, 2011
Radian Asset Assurance [Member]
|
Dec. 31, 2011
Radian Asset Assurance [Member]
|
Dec. 31, 2011
Parent Company
|
Sep. 30, 2003
Parent Company
|
Dec. 31, 2011
Subsidiary of Common Parent [Member]
|
Dec. 31, 2011
Five Point Three Seven Five Percent Senior Notes due 2015 [Member]
|
Jun. 01, 2005
Five Point Three Seven Five Percent Senior Notes due 2015 [Member]
|
Feb. 15, 2013
Five Point Three Seven Five Percent Senior Notes due 2015 [Member]
Parent Company
|
Dec. 31, 2010
Three Percent Convertible Senior Notes due 2017 [Member]
|
Dec. 31, 2011
Three Percent Convertible Senior Notes due 2017 [Member]
|
Nov. 01, 2010
Three Percent Convertible Senior Notes due 2017 [Member]
|
Dec. 31, 2011
Five Point Six Two Five Percent Senior Notes due 2013 [Member]
|
Feb. 01, 2003
Five Point Six Two Five Percent Senior Notes due 2013 [Member]
|
Feb. 15, 2013
Five Point Six Two Five Percent Senior Notes due 2013 [Member]
Parent Company
|
Mar. 31, 2012
Five Point Six Two Five Percent Senior Notes due 2013 [Member]
Parent Company
|
Dec. 31, 2010
Seven Point Seven Five Percent Debentures due 2011 [Member]
|
Dec. 31, 2009
Seven Point Seven Five Percent Debentures due 2011 [Member]
|
Dec. 31, 2011
Seven Point Seven Five Percent Debentures due 2011 [Member]
|
May 01, 2001
Seven Point Seven Five Percent Debentures due 2011 [Member]
|
Jan. 24, 2012
January 2012 Assured Guaranty Reinsurance Commutation [Member]
|
Jan. 24, 2012
January 2012 Assured Guaranty Ceded Public Finance Transaction [Member]
|
Jan. 24, 2012
January 2012 Assured Guaranty Transaction [Member]
|
Mar. 31, 2012
January 2012 Assured Guaranty Transaction [Member]
|
Feb. 29, 2012
January 2012 Assured Guaranty Transaction [Member]
|
Feb. 29, 2012
February 2012 CDO Termination [Member]
|
Dec. 31, 2011
CDO Of ABS Interest Shortfall [Member]
Radian Asset Assurance [Member]
|
Dec. 31, 2011
Freddie Mac Approval [Member]
Radian Guaranty [Member]
|
Dec. 31, 2011
Scenario, Forecast [Member]
|
Dec. 31, 2012
Scenario, Forecast [Member]
Parent Company
|
Dec. 31, 2011
Scenario, Forecast [Member]
Parent Company
|
Dec. 31, 2011
Scenario, Forecast [Member]
Corporate Expenses [Member]
|
Dec. 31, 2011
Scenario, Forecast [Member]
Corporate Expenses Due For The Next 12 Months [Member]
|
Dec. 31, 2011
Scenario, Forecast [Member]
Performance Based Corporate Expenses [Member]
|
Mar. 31, 2012
Minimum [Member]
February 2012 Quota Share Reinsurance Agreement [Member]
Radian Guaranty [Member]
|
Dec. 31, 2011
Minimum [Member]
Freddie Mac Approval [Member]
|
Dec. 31, 2011
Required Upon RBC Breach Per Freddie Mac Approval [Member]
Freddie Mac Approval [Member]
|
Mar. 31, 2012
Maximum [Member]
February 2012 Quota Share Reinsurance Agreement [Member]
Radian Guaranty [Member]
|
Dec. 31, 2011
Maximum [Member]
Freddie Mac Approval [Member]
|
Dec. 31, 2011
Requirement Per Fannie Mae Approval [Member]
Fannie Mae Approval [Member]
|
Dec. 31, 2011
Required Upon RBC Breach Per Fannie Mae Approval [Member]
Fannie Mae Approval [Member]
|
|
Risk to Capital Line Items [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||
Unrestricted Cash And Liquid Investments Including Activity After The Balance Sheet Date | $ 482,800,000 | |||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction, Due from (to) Related Party | (100,000,000) | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 950,000,000 | 250,000,000 | 250,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | |||||||||||||||||||||||||||||||||||||
Percentage of New Insurance Written Attributable To States With Statutory Or Regulatory Risk Based Capital Requirements | 50.50% | |||||||||||||||||||||||||||||||||||||||||||||
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement | 16 | |||||||||||||||||||||||||||||||||||||||||||||
States Which Have A Risk To Capital Ratio Limit of 25 To 1 | 11 | |||||||||||||||||||||||||||||||||||||||||||||
Risk To Capital Ratio, Regulatory Maximum | 25.0 | |||||||||||||||||||||||||||||||||||||||||||||
Risk To Capital Ratio | 21.5 | 20.00 | ||||||||||||||||||||||||||||||||||||||||||||
Number Of States That Have Granted Waivers To Risk Based Capital Requirements | 6 | |||||||||||||||||||||||||||||||||||||||||||||
Number Of States From Which We Are Pursuing Risk Based Capital Requirement Waivers | 5 | |||||||||||||||||||||||||||||||||||||||||||||
Consolidation, Wholly Owned Subsidiary, Parent Ownershi Interest Changes, Transfer of Interest by Parent | 17,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Dividends, Per Share | $ 0.0025 | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Outstanding | 133,199,159 | 133,049,213 | 133,199,159 | |||||||||||||||||||||||||||||||||||||||||||
Dividends Payable, Amount | 1,300,000 | |||||||||||||||||||||||||||||||||||||||||||||
Contingency Reserve Release | 215,500,000 | |||||||||||||||||||||||||||||||||||||||||||||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 329,800,000 | |||||||||||||||||||||||||||||||||||||||||||||
Statutory Incurred Losses | 99,200,000 | |||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of affiliate | 0 | 34,815,000 | 0 | 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Number Of Our Credit Derivative Counterparties That Excercised Their Termination Rights | 3 | |||||||||||||||||||||||||||||||||||||||||||||
Number of Corporate CDOs Terminated | 14 | |||||||||||||||||||||||||||||||||||||||||||||
Reduction In Net Par Outstanding | 13,800,000,000 | 1,800,000,000 | 5,800,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Number Of States In Which New York Is Licensed To Conduct Business | 37 | |||||||||||||||||||||||||||||||||||||||||||||
New Insurance Written | 2,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
First Lien Primary Mortgage Insurance Risk In Force | 32,800,000,000 | 1,200,000,000 | 1,500,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Percentage Reduction On Net Par Outstanding | 22.50% | |||||||||||||||||||||||||||||||||||||||||||||
(Increase) Decrease To Statutory Capital And Surplus | (100,000,000) | 91,800,000 | ||||||||||||||||||||||||||||||||||||||||||||
Net par outstanding on CDO of ABS transaction | 450,600,000 | |||||||||||||||||||||||||||||||||||||||||||||
Interest Shortfall On CDO Of ABS | 36,000 | |||||||||||||||||||||||||||||||||||||||||||||
Net Cash Received (Paid) For Commutations, Terminations And Recaptures | 92,599,000 | (85,657,000) | 369,926,000 | |||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | 3.00% | 3.00% | 5.625% | 5.625% | 5.625% | 7.75% | 7.75% | |||||||||||||||||||||||||||||||||||||
Amount Approved For Repurchase Of Long Term Debt | 100,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Principal Amount of Note Used as Basis for Determining Tender Cap Range of Purchase | 1,000 | |||||||||||||||||||||||||||||||||||||||||||||
Income Taxes, Parent Refund To Subsidiary | 77,000,000 | 7,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Committed Preferred Custodial Trust Securities | 150,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 31,900,000 | 57,700,000 | ||||||||||||||||||||||||||||||||||||||||||||
Amount Per Dollar of Principal of Debt Repurchased | $ 0.92 | $ 0.79 | ||||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) on Extinguishment of Debt | 2,500,000 | 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | 0 | 525,887,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Debt | 0 | 391,310,000 | 0 | 391,300,000 | ||||||||||||||||||||||||||||||||||||||||||
Capital Contributions | 30,000,000 | 20,600,000 | 50,600,000 | 50,000,000 | 100,000,000 | 50,000,000 | ||||||||||||||||||||||||||||||||||||||||
Capital Contribution Receivable | 100,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Other Cost and Expense, Operating | 175,810,000 | 191,942,000 | 203,770,000 | 59,600,000 | ||||||||||||||||||||||||||||||||||||||||||
Interest Expense, Long-term Debt | 41,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Contributions from Affiliates | 30,700,000 | 16,700,000 | 15,800,000 | |||||||||||||||||||||||||||||||||||||||||||
Liquid Assets Minimum Threshold Per Freddie Mac Provision | 700,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Unrestricted Cash and Liquid Investments | $ 1,200,000,000 |
Note 7 - Investments Investments Trading Securities (Details) (USD $)
|
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | $ 4,211,059,000 | $ 4,562,821,000 | |||||
Trading Securities, Change in Unrealized Holding Gain (Loss) | 126,539,000 | 78,637,000 | 56,352,000 | ||||
Securities (Assets)
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities, Change in Unrealized Holding Gain (Loss) | 112,100,000 | 27,000,000 | |||||
US government and agency securities
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 710,006,000 | 703,636,000 | |||||
State and municipal obligations
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 964,748,000 | 983,680,000 | |||||
Corporate bonds and notes
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 683,864,000 | 1,034,206,000 | |||||
RMBS
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 928,887,000 | 953,416,000 | |||||
CMBS
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 224,180,000 | 193,244,000 | |||||
CDO
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 5,467,000 | 2,406,000 | |||||
Other ABS
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 98,729,000 | 132,149,000 | |||||
Foreign government securities
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 102,851,000 | [1] | 83,508,000 | [1] | |||
Portugal, Ireland, Italy, Greece and Spain Government Securities [Member]
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 0 | ||||||
Number Of Stressed Eurozone Countries | 5 | ||||||
Italian Government Securities [Member]
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 15,500,000 | ||||||
German foreign government securities [Member]
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 42,600,000 | ||||||
Japanese foreign government securities [Member]
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 28,000,000 | ||||||
Convertible Debt Securities [Member]
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 346,338,000 | 318,940,000 | |||||
Equity securities
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | 140,764,000 | 155,636,000 | |||||
Other investments
|
|||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading Securities | $ 5,225,000 | $ 2,000,000 | |||||
|
Note 16 - Share-Based and Other Compensation Plans (Non-Qualified Stock Options) (Details) (2008 Equity Plan [Member], USD $)
|
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
years
|
Dec. 31, 2010
years
|
Dec. 31, 2009
|
|||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||||||
Available for grant | 3,271,288 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Third Anniversary | 50.00% | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Fourth Anniversary | 50.00% | ||||||||||
Stock Options [Member]
|
|||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||||||
Outstanding, Beginning of Period, Number of Shares | 3,227,411 | ||||||||||
Outstanding, Beginning of Period, Weighted Average Exercise Price Per Share | $ 28.63 | ||||||||||
Granted, Number of Shares | 667,586 | 0 | |||||||||
Granted, Weighted Average Exercise Price Per Share | $ 4.05 | ||||||||||
Exercised, Number of Shares | 0 | 0 | |||||||||
Exercised, Weighted Average Exercise Price Per Share | $ 0.00 | ||||||||||
Forfeited, Number of Shares | (77,347) | ||||||||||
Forfeited, Weighted Average Exercise Price Per Share | $ 6.17 | ||||||||||
Expired, Number of Shares | (344,888) | ||||||||||
Expired, Weighted Average Exercise Price Per Share | $ 33.00 | ||||||||||
Outstanding, End of Period, Number of Shares | 3,472,762 | 3,227,411 | |||||||||
Outstanding, Beginning of Period, Weighted Average Exercise Price Per Share | $ 23.97 | $ 28.63 | |||||||||
Exercisable, Number of Shares | 2,410,123 | ||||||||||
Exercisable, Weighted Average Exercise Price Per Share | $ 32.33 | ||||||||||
Available for grant | 3,271,288 | ||||||||||
Weighted average fair value per share of stock options granted | $ 3.33 | $ 8.70 | |||||||||
Total intrinsic value of options outstanding | $ 0 | $ 2,500,000 | $ 2,200,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |||||||||||
Number of options vested | 2,410,123 | ||||||||||
Fair value of options vested during the year | 300,000 | ||||||||||
Aggregate intrinsic value (excess market price over exercise price) | 0 | ||||||||||
Weighted-average remaining contractual term of options (in years) | 2 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||||||
Expected life (years) | 6.00 | [1] | 6.00 | [1] | |||||||
Risk-free interest rate | 1.88% | [2] | 2.85% | [2] | |||||||
Volatility | 114.51% | [3] | 110.83% | [3] | |||||||
Dividend yield | 0.28% | 0.10% | |||||||||
Vesting period (in years) | 4 years | ||||||||||
Share-based Compensation Arragements, Windfall Tax Benefit, Threshold Amount | $ 20,200,000 | ||||||||||
|
Note 5 - Fair Value of Financial Instruments Rollforward of Level III Assets and Liabilities Fair Value Disclosure (Details) (USD $)
|
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Total Level III Assets | 4.90% | ||||||||||||
Total Level III Liabilities | 100.00% | ||||||||||||
Fair Value, Measurements, Recurring
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Fair Value, Transfers Between Level 1 And Level 2, Amount | $ 0 | ||||||||||||
Derivative liabilities net [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Liabilities | 709,100,000 | 214,900,000 | |||||||||||
VIE Consolidation, Liabilities | 51,800,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Included in Earnings Level III Liabilities | (629,000,000) | 551,200,000 | [2] | ||||||||||
Purchases Level III Liabilities | 0 | 0 | |||||||||||
Sales Level III Liabilities | 0 | 0 | |||||||||||
Issuances Level III Liabilities | 0 | 0 | |||||||||||
Settlements Level III Liabilities | 30,500,000 | (5,200,000) | |||||||||||
Transfers Into (Out of) Level III Liabilities | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Liabilities | 110,600,000 | 709,100,000 | |||||||||||
Unrealized Gains (Losses) Recorded in Earnings on Level III Liabilities Still Held | 579,100,000 | (588,100,000) | |||||||||||
VIE debt | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Liabilities | 520,100,000 | 296,100,000 | |||||||||||
VIE Consolidation, Liabilities | 253,500,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Included in Earnings Level III Liabilities | (138,500,000) | 213,500,000 | [2] | ||||||||||
Purchases Level III Liabilities | 0 | 0 | |||||||||||
Sales Level III Liabilities | 0 | 0 | |||||||||||
Issuances Level III Liabilities | 0 | 0 | |||||||||||
Settlements Level III Liabilities | (153,400,000) | (243,000,000) | [4] | ||||||||||
Transfers Into (Out of) Level III Liabilities | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Liabilities | 228,200,000 | 520,100,000 | |||||||||||
Unrealized Gains (Losses) Recorded in Earnings on Level III Liabilities Still Held | 158,500,000 | (165,700,000) | |||||||||||
VIE debt | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Financial Guaranty Segment
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Settlements Level III Liabilities | 36,300,000 | [4] | |||||||||||
Total Level III liabilities net [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Liabilities | 1,229,200,000 | 511,000,000 | |||||||||||
VIE Consolidation, Liabilities | 201,700,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Included in Earnings Level III Liabilities | (767,500,000) | 764,700,000 | [2] | ||||||||||
Purchases Level III Liabilities | 0 | 0 | |||||||||||
Sales Level III Liabilities | 0 | 0 | |||||||||||
Issuances Level III Liabilities | 0 | 0 | |||||||||||
Settlements Level III Liabilities | (122,900,000) | (248,200,000) | |||||||||||
Transfers Into (Out of) Level III Liabilities | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Liabilities | 338,800,000 | 1,229,200,000 | |||||||||||
Committed Preferred Securities CPS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Settlements Level III Liabilities | 31,200,000 | [4] | |||||||||||
Committed Preferred Securities CPS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Consolidated VIEs [Member]
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Settlements Level III Liabilities | 11,100,000 | [4] | |||||||||||
NIMS VIEs [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Settlements Level III Liabilities | 186,600,000 | [4] | |||||||||||
State and municipal obligations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 23,200,000 | 24,400,000 | |||||||||||
VIE Consolidation, Assets | 0 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | 1,200,000 | 100,000 | [2] | ||||||||||
Purchases Level III Assets | 39,100,000 | 1,400,000 | |||||||||||
Sales Level III Assets | 600,000 | 0 | |||||||||||
Issuances Level III Assets | 0 | 0 | |||||||||||
Settlements Level III Assets | 400,000 | 2,700,000 | |||||||||||
Transfers Into (Out of) Level III Assets | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Assets | 62,500,000 | 23,200,000 | |||||||||||
RMBS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 52,500,000 | 0 | |||||||||||
VIE Consolidation, Assets | 44,300,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | (3,100,000) | 19,600,000 | [2] | ||||||||||
Purchases Level III Assets | 0 | 0 | |||||||||||
Sales Level III Assets | 0 | 0 | |||||||||||
Issuances Level III Assets | 0 | 0 | |||||||||||
Settlements Level III Assets | 3,900,000 | 11,400,000 | |||||||||||
Transfers Into (Out of) Level III Assets | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Assets | 45,500,000 | 52,500,000 | |||||||||||
CMBS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 23,000,000 | 0 | |||||||||||
VIE Consolidation, Assets | 23,800,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | 12,400,000 | (800,000) | [2] | ||||||||||
Purchases Level III Assets | 0 | 0 | |||||||||||
Sales Level III Assets | 0 | 0 | |||||||||||
Issuances Level III Assets | 0 | 0 | |||||||||||
Settlements Level III Assets | 0 | 0 | |||||||||||
Transfers Into (Out of) Level III Assets | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Assets | 35,400,000 | 23,000,000 | |||||||||||
CDO | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 2,400,000 | 0 | |||||||||||
VIE Consolidation, Assets | 3,800,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | 2,700,000 | (1,800,000) | [2] | ||||||||||
Purchases Level III Assets | 0 | 0 | |||||||||||
Sales Level III Assets | 0 | (400,000) | |||||||||||
Issuances Level III Assets | 0 | 0 | |||||||||||
Settlements Level III Assets | (400,000) | 0 | |||||||||||
Transfers Into (Out of) Level III Assets | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Assets | 5,500,000 | 2,400,000 | |||||||||||
Other ABS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 3,300,000 | 0 | |||||||||||
VIE Consolidation, Assets | 3,500,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | (400,000) | (200,000) | [2] | ||||||||||
Purchases Level III Assets | 0 | 0 | |||||||||||
Sales Level III Assets | 0 | 0 | |||||||||||
Issuances Level III Assets | 0 | 0 | |||||||||||
Settlements Level III Assets | 0 | 0 | |||||||||||
Transfers Into (Out of) Level III Assets | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Assets | 2,900,000 | 3,300,000 | |||||||||||
Hybrid securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 0 | 600,000 | |||||||||||
VIE Consolidation, Assets | 0 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | (100,000) | 0 | [2] | ||||||||||
Purchases Level III Assets | 700,000 | 0 | |||||||||||
Sales Level III Assets | 0 | 0 | |||||||||||
Issuances Level III Assets | 0 | 0 | |||||||||||
Settlements Level III Assets | 0 | 0 | |||||||||||
Transfers Into (Out of) Level III Assets | 4,200,000 | (600,000) | [3] | ||||||||||
Ending Balance Level III Assets | 4,800,000 | 0 | |||||||||||
Equity securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 2,900,000 | 1,700,000 | |||||||||||
VIE Consolidation, Assets | 0 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | (1,200,000) | 200,000 | [2] | ||||||||||
Purchases Level III Assets | 3,700,000 | 400,000 | |||||||||||
Sales Level III Assets | 1,000,000 | 100,000 | |||||||||||
Issuances Level III Assets | 0 | 0 | |||||||||||
Settlements Level III Assets | 0 | 0 | |||||||||||
Transfers Into (Out of) Level III Assets | (3,600,000) | 700,000 | [3] | ||||||||||
Ending Balance Level III Assets | 800,000 | 2,900,000 | |||||||||||
Other investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 4,600,000 | 3,800,000 | |||||||||||
VIE Consolidation, Assets | 3,700,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | 3,200,000 | (1,600,000) | [2] | ||||||||||
Purchases Level III Assets | 0 | 0 | |||||||||||
Sales Level III Assets | 700,000 | 1,000,000 | |||||||||||
Issuances Level III Assets | 0 | (300,000) | |||||||||||
Settlements Level III Assets | 300,000 | 0 | |||||||||||
Transfers Into (Out of) Level III Assets | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Assets | 6,800,000 | 4,600,000 | |||||||||||
Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 111,900,000 | 30,500,000 | |||||||||||
VIE Consolidation, Assets | 79,100,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | 14,700,000 | 15,500,000 | [2] | ||||||||||
Purchases Level III Assets | 43,500,000 | 1,800,000 | |||||||||||
Sales Level III Assets | 2,300,000 | 700,000 | |||||||||||
Issuances Level III Assets | 0 | (300,000) | |||||||||||
Settlements Level III Assets | 4,200,000 | 14,100,000 | |||||||||||
Transfers Into (Out of) Level III Assets | 600,000 | 100,000 | [3] | ||||||||||
Ending Balance Level III Assets | 164,200,000 | 111,900,000 | |||||||||||
Unrealized Gains (Losses) Recorded in Earnings on Level III Assets Still Held | 12,000,000 | 12,600,000 | |||||||||||
NIMS and CPS Derivative Assets [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 44,700,000 | ||||||||||||
VIE Consolidation, Assets | 0 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | (7,700,000) | [2] | |||||||||||
Purchases Level III Assets | 1,300,000 | ||||||||||||
Sales Level III Assets | 100,000 | ||||||||||||
Issuances Level III Assets | (100,000) | ||||||||||||
Settlements Level III Assets | 26,400,000 | [5] | |||||||||||
Transfers Into (Out of) Level III Assets | 0 | [3] | |||||||||||
Ending Balance Level III Assets | 11,700,000 | ||||||||||||
NIMS derivative assets | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 11,700,000 | ||||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | (2,200,000) | ||||||||||||
Purchases Level III Assets | 300,000 | ||||||||||||
Sales Level III Assets | 0 | ||||||||||||
Issuances Level III Assets | 0 | ||||||||||||
Settlements Level III Assets | 7,700,000 | ||||||||||||
Transfers Into (Out of) Level III Assets | (500,000) | ||||||||||||
Ending Balance Level III Assets | 1,600,000 | 11,700,000 | |||||||||||
Unrealized Gains (Losses) Recorded in Earnings on Level III Assets Still Held | (1,400,000) | ||||||||||||
NIMS and CPS Derivative Assets | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Settlements Level III Assets | 27,100,000 | [5] | |||||||||||
Other assets | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
|
|||||||||||||
Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 109,700,000 | 0 | |||||||||||
VIE Consolidation, Assets | 119,700,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | 21,500,000 | 18,300,000 | [2] | ||||||||||
Purchases Level III Assets | 0 | 0 | |||||||||||
Sales Level III Assets | 0 | 0 | |||||||||||
Issuances Level III Assets | 0 | 0 | |||||||||||
Settlements Level III Assets | 27,200,000 | 28,300,000 | |||||||||||
Transfers Into (Out of) Level III Assets | 0 | 0 | [3] | ||||||||||
Ending Balance Level III Assets | 104,000,000 | 109,700,000 | |||||||||||
Unrealized Gains (Losses) Recorded in Earnings on Level III Assets Still Held | 9,400,000 | 4,000,000 | |||||||||||
Total Level III Assets | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
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Fair Value Level III Assets and Liabilities [Roll Forward] | |||||||||||||
Beginning Balance Level III Assets | 233,300,000 | 75,200,000 | |||||||||||
VIE Consolidation, Assets | 198,800,000 | [1] | |||||||||||
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings | 34,000,000 | 26,100,000 | [2] | ||||||||||
Purchases Level III Assets | 43,800,000 | 3,100,000 | |||||||||||
Sales Level III Assets | 2,300,000 | 800,000 | |||||||||||
Issuances Level III Assets | 0 | (400,000) | |||||||||||
Settlements Level III Assets | 39,100,000 | 68,800,000 | |||||||||||
Transfers Into (Out of) Level III Assets | 100,000 | 100,000 | [3] | ||||||||||
Ending Balance Level III Assets | $ 269,800,000 | $ 233,300,000 | |||||||||||
Total Level III Assets | 4.90% | 3.70% | |||||||||||
Total Level III Liabilities | 100.00% | 100.00% | |||||||||||
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Note 18 - Commitments and Contingencies Schedule of Commitment for Non-Cancellable Operating Leases in Future Years (Tables)
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Dec. 31, 2011
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Schedule of Commitment for Non-Cancellable Operating Leases Future Years [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The commitment for non-cancelable operating leases in future years is as follows:
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Note 2 - Significant Accounting Policies
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12 Months Ended | ||||||||||||||||||||||||
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Dec. 31, 2011
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Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | Significant Accounting Policies Basis of Presentation Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of all wholly-owned subsidiaries. Companies in which we, or one of our subsidiaries, exercises significant influence (generally ownership interests ranging from 20% to 50%), are accounted for in accordance with the equity method of accounting. VIEs where we are the primary beneficiary are consolidated, as described in Note 6. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. Certain prior period balances have been reclassified to conform to the current period presentation. We have reflected in Note 5 the additional disclosures required by the accounting standard update of fair value measurements, including the disclosures that were effective January 1, 2011. The 2010 information has been updated to be consistent with the 2011 disclosure. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our consolidated financial statements include our best estimates and assumptions, actual results may vary materially. Reserve for Losses and LAE We establish reserves to provide for losses and LAE and the estimated costs of settling claims in both our mortgage insurance and financial guaranty segments, in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, it does not provide any other specific guidance. Therefore, because of the lack of specific guidance, we establish reserves for mortgage insurance using the guidance contained in this standard, supplemented with other accounting guidance as described below. Estimating the loss reserves in both our mortgage insurance and financial guaranty business segments involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss. The models, assumptions and estimates we use to establish loss reserves may not prove to be accurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty such as currently exists. As such, we cannot be certain that our established reserves will be adequate to cover ultimate losses on incurred defaults. Commutations, recaptures and other negotiated terminations of our insured risks in both our mortgage insurance and financial guaranty segments provide us with an opportunity to exit exposures to entire policies with insureds and reinsureds for an agreed upon payment, or payments, often at a discount to the previously estimated ultimate liability. As a result of exiting all exposures to such policies, all reserves for losses and LAE and other balances relating to the insured or reinsured policy are eliminated. Upon completion of a commutation, recapture or other negotiated termination, all such related balances, including deferred policy acquisition costs and unearned premiums, are reversed, with any remaining net gain or loss typically recorded through provision for losses. We take into consideration the specific contractual and economic terms for each individual agreement when accounting for our commutations, recaptures, or other negotiated terminations, which may result in differences in the accounting between transactions, or between our statutory financial statements and financial statements presented on a GAAP basis. Mortgage Insurance In the mortgage insurance segment, reserves for losses are established upon receipt of notification by servicers that a borrower has missed two monthly payments. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We maintain an extensive database of claim payment history and use models, based on a variety of loan characteristics, including the status of the loan as reported by its servicer and the type of loan product to determine the likelihood that a default will reach claim status. Our process includes forecasting the impact of our loss mitigation efforts in protecting us against fraud, underwriting negligence, breach of representation and warranties, inadequate documentation and other items that may give rise to insurance rescissions and claim denials, to help determine the default to claim rate. Lastly, we project the amount that we will pay if a default becomes a claim (referred to as "claim severity"). Based on these estimates, we arrive at our estimate of loss reserves at a given point in time. The default and claim cycle in our mortgage insurance business begins with our receipt of a default notice from the servicer. For financial statement reporting and internal tracking purposes, we do not consider a loan to be in default until the borrower has missed two monthly payments. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. Loss reserves are increased as defaulted loans age, because they are considered to be closer to foreclosure and more likely to result in a claim payment. In the past, as the default proceeded towards foreclosure, there was generally more certainty around these estimates. However, in light of existing foreclosure backlogs and efforts to increase loan modifications among defaulted borrowers, significantly more uncertainty remains regarding current estimates with respect to the later stage defaults than was historically typical. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. If a default cures, the reserve for that loan is removed from the reserve for losses and LAE. We also establish reserves for defaults that we estimate have been incurred but have not been reported ("IBNR") to us on a timely basis by the servicer, and for defaults related to previously rescinded policies and denied claims which are likely to be reinstated (in the case of previously rescinded policies) or resubmitted (in the case of previously denied claims). Our estimates of amounts related to reinstatements and resubmissions are included in IBNR. Due to the period of time (generally up to 90 days) that we give the insured to rebut our decision to rescind coverage before we consider a policy to be rescinded and removed from our default inventory, we currently expect only a limited percentage of policies that were rescinded to ultimately be reinstated. We currently expect a greater percentage of claims that were denied to ultimately be resubmitted as a perfected claim and paid. Most often, a claim denial is the result of the servicer's inability to provide the loan origination file or other servicing documents for review. Under the terms of our Master Policy, our insureds have up to one year after foreclosure to provide to us the necessary documents to perfect a claim. All estimates are periodically reviewed and adjustments are made as they become necessary. We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default. For example, for those defaults in which we are in a second loss position, we initially calculate the reserve for defaulted loans in the transaction as if there were no deductible. If the existing deductible for a given structured transaction is greater than the reserve amount for the defaults contained within the transaction, we do not establish a reserve for the defaults, or if appropriate, we record only a partial reserve. We do not establish loss reserves for expected future claims on insured mortgages that are not in default. See "Reserve for Premium Deficiency" below for an exception to this general principle. For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. The attributes used to define the groups include, but are not limited to, the default status of the loans (i.e., number of days in default), product type (i.e., Prime, Alternative-A ("Alt-A"), or Subprime), type of insurance (i.e., primary or pool), vintage year, loss position (i.e., with or without a deductible), and the state where the property is located (segregated into three state groups in order to adjust for differences in foreclosure timing). We use an actuarial projection methodology referred to as a "roll rate" analysis that uses historical claim frequency information to determine the projected ultimate default to claim rates for each product and default status. The default to claim rate also includes our estimates with respect to expected insurance rescissions and claim denials, which have the effect of reducing our default to claim rates. In recent years, we have experienced an elevated level of insurance rescissions and claim denials for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties, and inadequate documentation, reflecting the poor underwriting periods of 2005 through 2008. After estimating the default to claim rate, we estimate the severity of each product type, type of insurance, and state grouping based on the average of recently observed severity rates. These average severity estimates are then applied to individual loan coverage amounts to determine reserves. Our aggregate weighted average default to claim rate assumption (net of denials and rescissions) used in estimating our reserve for losses was 43% at December 31, 2011, compared to 40% at December 31, 2010. Our default to claim rate estimate varies depending on the age of the underlying defaulted loans, as measured by the number of monthly payments missed. As of December 31, 2011, our default to claim rate estimate, net of our estimate for insurance rescissions and claim denials, ranged from 19% for insured loans that had missed two to three monthly payments, to 52% for such loans that had missed 12 or more monthly payments. A key assumption affecting our reserving methodology is that our default to claim rates and severities will be consistent with our recent experience. Our estimate of expected insurance rescissions and claim denials embedded in our default to claim rate is generally based on our experience over the past year, with consideration given for differences in characteristics between those rescinded policies and denied claims and the remaining default inventory. We expect our rescission and denial rates to remain at elevated levels as long as defaults related to the poor underwriting periods of 2005 through 2008 represent a significant percentage of our total default portfolio. The percentage of defaults associated with our defaulted loans originated in 2005 through 2008 as a percentage of total defaults was 76.2% and 78.3% at December 31, 2011 and 2010, respectively. The elevated levels in the rate of rescissions and denials since 2009 have led to an increased risk of litigation by lenders and policyholders challenging our right to rescind coverage or deny claims. Under our master insurance policy, any suit or action arising from any right of the insured under the policy must be commenced within two years after such right first arose and within three years for certain other policies, including certain pool insurance policies. Recently, we have faced an increasing number of challenges from certain lender customers regarding our insurance rescissions and claim denials, which have resulted in some reversals of our decisions regarding rescissions and denials. Although we believe that our rescissions and denials are justified under our policies, if we are not successful in defending the rescissions and denials in any potential legal or other actions, we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. The assumptions embedded in our estimated default to claim rate on our in-force default inventory includes an adjustment to our estimated rescission and denial rate, to account for the fact that we expect a certain number of policies for which an initial intent to rescind letter has been sent to our lender customers to remain in-force and ultimately to be paid, as a result of valid challenges by such policy holders during the limited period specified in such letters. As discussed above, we also establish reserves for IBNR defaults related to previously rescinded policies and denied claims which we believe are likely to be reinstated (in the case of previously rescinded policies), or resubmitted (in the case of previously denied claims). We make regular adjustments to the underlying assumptions in our model as discussed above, and believe the amount generated by our model at December 31, 2011, represents our best estimate of our future losses and LAE on existing defaults. Financial Guaranty In our financial guaranty segment, we recognize a claim liability on our non-derivative transactions prior to an event of default (insured event) when there is evidence that credit deterioration has occurred for a particular policy and the present value of the expected claim loss exceeds the unearned premium revenue. The expected claim loss is based on the probability-weighted present value of expected net cash outflows to be paid under, or in connection with, the policy. In measuring the claim liability, we develop the present value of expected net cash outflows by using our own assumptions about the likelihood of possible outcomes, including potential settlements or commutations, based on information currently available. We determine the existence of credit deterioration on directly insured policies based on periodic reporting from the insured party, indenture trustee or servicer, and based on our surveillance efforts. These expected cash outflows are discounted using a risk-free rate. Our assumptions about the likelihood of outcomes, expected cash outflows and the appropriate risk-free rate are updated each reporting period. For assumed policies, we use information provided by the ceding company, as well as our specific knowledge of the credit for determining expected loss. The risk management function in our financial guaranty business is responsible for the identification, analysis, measurement and surveillance of credit, market, legal and operational risk associated with our financial guaranty insurance contracts. Risk management is also primarily responsible for claims prevention and loss mitigation strategies. This discipline is applied during the ongoing monitoring and surveillance of each exposure in the portfolio. See Note 12 for further information. Reserve for Premium Deficiency ("PDR") Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product exceeds the net present value of expected future premiums and existing reserves for that product. We reassess our expectations for premiums, losses and expenses for our financial guaranty and mortgage insurance businesses at least quarterly and update our premium deficiency analysis accordingly. Expected future expenses include consideration of maintenance costs associated with maintaining records relating to insurance contracts and with the processing of premium collections. We also consider investment income in the premium deficiency calculation, and utilize our pre-tax investment yield to discount certain cash flows for this analysis. For our financial guaranty business, in order to determine whether a premium deficiency charge is necessary, we compare projected earned premiums and investment income to projected future losses, LAE, unamortized deferred acquisition costs and maintenance costs. If the sum of the costs exceeds the amount of the revenues, the excess is first charged against deferred acquisition costs and is referred to as a premium deficiency charge. For purposes of our premium deficiency analysis, we group our mortgage insurance products into two categories, first-lien and second-lien. Numerous factors affect our ultimate default to claim rates, including home price changes, unemployment and the impact of our loss mitigation efforts and interest rates, as well as potential benefits associated with lender and governmental initiatives to modify loans and ultimately reduce foreclosures. To assess the need for a PDR on our first-lien insurance portfolio, we develop loss projections based on modeled loan defaults related to our current RIF. This projection is based on recent trends in default experience, severity, and rates of defaulted loans moving to claim (such default to claim rates are net of our estimates of rescissions and denials), as well as recent trends in the rate at which loans are prepaid. For our second-lien mortgage insurance business, we project future premiums and losses for this business on a transaction-by-transaction basis, using historical results to help determine future performance for both repayments and claims. An estimated expense factor is then applied, and the result is discounted using a rate of return that approximates our investment yield. This net present value, less any existing reserves, is recorded as a premium deficiency and the reserve is updated at least quarterly based on actual results for that quarter, along with updated transaction level projections. Derivative Instruments Derivative instruments are recorded at fair value, and changes in fair value are recorded in change in fair value of derivative instruments in the statement of operations. All of our derivative instruments are recognized in our consolidated balance sheets as either derivative assets or derivative liabilities, depending on the rights or obligations under the contracts. Our credit protection in the form of CDSs within our mortgage insurance segment (prior to their termination) and financial guaranty segment, derivative liabilities related to consolidated VIEs, NIMS derivative assets and financial guaranty contracts on NIMS that were not consolidated, and put options on money market CPS that were not consolidated, are all recorded at fair value, with changes in their fair value (prior to their consolidation) included in change in fair value of derivative instruments in our consolidated statements of operations. See Note 4 for further information. We record premiums and origination costs related to our CDSs and certain other derivative contracts in change in fair value of derivative instruments and policy acquisition costs, respectively, on our consolidated statements of operations. Our classification of these contracts is the same whether we are a direct insurer or we reinsure these contracts. VIEs Effective January 1, 2010, we adopted the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs. As a provider of credit enhancement, we have entered into insurance contracts with VIEs and derivative contracts with counterparties where we have provided credit protection directly on variable interests and, in some cases, obtained the contractual rights of our counterparties with respect to the VIEs. As defined by the accounting standard, VIEs include corporations, trusts or partnerships in which equity investors do not have a controlling financial interest or do not have sufficient equity at risk to finance activities without additional subordinated financial support. In addition, as a result of the update to the standard regarding accounting for transfers of financial assets, effective January 1, 2010, special purpose entities that were previously considered qualifying special purpose entities (“QSPEs”) are to be considered in the VIE accounting framework as prescribed by the standard regarding financial reporting by enterprises involved with VIEs. An entity is considered the primary beneficiary and is required to consolidate a VIE if its variable interest (i) gives it the power to most significantly impact the economic performance of the VIE, and (ii) has the obligation to absorb losses or the right to receive residual benefits that could potentially be significant to the VIE. For all VIEs in which we have a variable interest, we determine whether we are the primary beneficiary. In determining whether we are the primary beneficiary, a number of factors are considered, including the structure of the entity, provisions in our contracts that grant us additional rights to influence or control the economic performance of the VIE upon the occurrence of an event of default or a servicer termination event or the breach of a performance trigger, and our obligation to absorb significant losses. Due to the continued deterioration of the performance of many of our financial guaranty transactions, the breach of these performance tests or other events giving rise to our right to influence or control the economic performance of the VIE could occur. When we obtain control rights, we perform an analysis to reassess our involvement with these VIEs to determine whether we have become the primary beneficiary. When evaluating whether we are the primary beneficiary of a VIE, we determine which activities most significantly impact the economic performance of the VIE. As part of our qualitative analysis, we consider whether we have any contractual rights that would allow us to direct those activities. As of December 31, 2011, we have determined that we are the primary beneficiary of our NIMS transactions, our CPS transactions and certain financial guaranty structured transactions, and we did not identify any new VIEs to be consolidated in 2011. Our control rights in these VIEs, which we obtained due to an event of default or breach of a performance trigger as defined in the transaction, generally provide us with either a right to replace the VIE servicer, or, in some cases, the right to direct the sale of the VIE assets. In those instances where we have determined that we are the primary beneficiary, we consolidate the assets and liabilities of the VIE. We have elected to carry the financial assets and financial liabilities of these VIEs at fair value. Fair Value of Financial Instruments Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and declines in the value of underlying collateral, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the event that our investments or derivative contracts were sold, commuted, terminated or settled with a counterparty, or transferred in a forced liquidation, the amounts received or paid may be materially different from those determined in accordance with the accounting standard regarding fair value measurements. Differences may arise between our recorded fair value and the settlement or termination value with a counterparty based upon consideration of information that may not be available to another market participant. Those differences, which may be material, are recorded as transaction realized gains/(losses) in our consolidated statements of operations in the period in which the transaction occurs. We have included the additional disclosures required by the update to the accounting standard regarding fair value measurements and disclosures pertaining to the reconciliation of Level III fair value measurements. See Note 5 for additional information. When determining the fair value of our liabilities, we are required to incorporate into the fair value of those liabilities an adjustment that reflects our own non-performance risk. Our CDS spread is an observable quantitative measure of our non-performance risk and is used by typical market participants to determine the likelihood of our default. As our CDS spread tightens or widens, it has the effect of increasing or decreasing, respectively, the fair value of our liabilities. We established a fair value hierarchy by prioritizing the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The three levels of the fair value hierarchy under this standard are described below:
The level of market activity used in determining the fair value hierarchy is based on the availability of observable inputs market participants would use to price an asset or a liability, including market value price observations. For markets in which inputs are not observable or limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At December 31, 2011, our total Level III assets were approximately 4.9% of total assets measured at fair value and total Level III liabilities accounted for 100% of total liabilities measured at fair value. Available for sale securities, trading securities, VIE debt, derivative instruments, and certain other assets are recorded at fair value as described in Note 5. All derivative instruments and contracts are recognized in our consolidated balance sheets as either derivative assets or derivative liabilities. All changes in fair value of trading securities, VIE debt, derivative instruments, and certain other assets are included in our consolidated statements of operations. All changes in the fair value of available for sale securities are recorded in accumulated other comprehensive income (loss). Insurance Premiums-Revenue Recognition Mortgage insurance premiums written on an annual and multi-year basis are initially recorded as unearned premiums and earned over the policy term. Premiums written on a monthly basis are earned over the period that coverage is provided. Annual premiums are amortized on a monthly, straight-line basis. Multi-year premiums are amortized over the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Ceded premiums written are initially set up as prepaid reinsurance and are amortized in a manner consistent with how direct premiums are earned. Premiums on certain structured transactions in our mortgage insurance business are recognized over the period that coverage is provided. In our financial guaranty business, insurance premiums are earned in proportion to the level of amortization of insured principal over the contract period or over the period that coverage is provided. Unearned premiums represent that portion of premiums that will be earned over the remainder of the contract period. We record the initial unearned premium liability on installment policies equal to the present value of the premiums due or expected to be collected over either the period of the policy or the expected period of risk. In determining the present value of premiums due, we use a discount rate that reflects the risk-free rate. Premiums paid in full at inception are recorded as unearned premiums. In addition, we recognize the remaining unearned premium revenue when bonds issued are redeemed or otherwise retired (“refundings”) that results in the extinguishment of the financial guaranty policies insuring such bonds. A refunding that is effected through the deposit of cash or permitted securities into an irrevocable trust for repayment, when permitted under the applicable bond indenture (a “legal defeasance”), does not qualify for immediate revenue recognition since the defeased obligation legally remains outstanding and covered by our insurance. See Note 12 for further information. Assumed premiums are based on information reported by ceding companies. When insured obligations are refunded or called, the remaining premiums are generally earned at that time. Credit enhancement fees earned on derivative contracts are included in the change in fair value of derivative instruments. Deferred Policy Acquisition Costs Costs associated with the acquisition of mortgage insurance business, consisting of compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Amortization of these costs for each underwriting year book of business is charged against revenue in proportion to estimated gross profits over the estimated life of the policies. This includes accruing interest on the unamortized balance of deferred policy acquisition costs. Estimates of expected gross profit including persistency and loss development assumptions for each underwriting year used as a basis for amortization are evaluated regularly, and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that earlier estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions would have a significant effect on the amortization of deferred policy acquisition costs. We amortized $36.1 million of deferred policy acquisition costs in our mortgage insurance business in both 2011 and 2010, and $27.6 million during 2009. Deferred policy acquisition costs in the financial guaranty business are comprised of those expenses that vary with, and are principally related to, the production of insurance premiums, including: commissions paid on reinsurance assumed, salaries and related costs of underwriting and marketing personnel, rating agency fees, premium taxes and certain other underwriting expenses, offset by commission income on premiums ceded to reinsurers. Acquisition costs are deferred and amortized over the period in which the related premiums are earned for each underwriting year. The estimation of installment-based premiums requires considerable judgment, and different assumptions could produce different results. We amortized $16.7 million, $17.4 million and $35.5 million of deferred policy acquisition costs in our financial guaranty business during 2011, 2010 and 2009, respectively. As a result of the commutation of $9.8 billion of net par outstanding in 2009, we wrote off $8.9 million of deferred policy acquisition costs at that time. Origination costs of derivative contracts were expensed as incurred. In October 2010, the Financial Accounting Standards Board (“FASB”) issued an update to the accounting standard regarding accounting for costs associated with acquiring or renewing insurance contracts. This update is effective for fiscal years beginning after December 15, 2011, and redefines acquisition costs as costs that are related directly to the successful acquisition of new, or the renewal of existing, insurance contracts. Previously, acquisition costs were defined as costs that vary with and are primarily related to the acquisition of insurance contracts. The effect of this revised definition of acquisition costs will result in additional expenses in our mortgage insurance business being charged to earnings when incurred, rather than being deferred. There is no change to the amortization requirements due to this update. We have adopted this update on a prospective basis as of January 1, 2012. Since we have discontinued writing any new financial guaranty business, there will be no impact to our financial guaranty segment from this update. However, while we are currently still evaluating the impact this new guidance will have on our consolidated financial statements and disclosures, we expect that the implementation of this new guidance will materially reduce the amount of policy acquisition costs that we defer associated with acquiring new mortgage insurance contracts, which totaled $46.2 million and $42.2 million in initial deferred costs for the years ended December 31, 2011 and 2010, respectively. The update will result in accelerating the recognition of certain expenses associated with these contracts. The lower amount of deferred acquisition costs will also result in decreased amortization expense, which should partially offset the effect to our net income. While the timing of when certain costs are reflected in our results of operations will change as a result of the adoption of this update, there will be no effect to the total acquisition costs to be recognized over time or to our cash flows. Income Taxes We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our deferred tax assets and liabilities are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled. In 2010, we were required to establish a valuation allowance against our deferred tax asset ("DTA") as it was more likely than not that all or some portion of our DTA would not be realized. At each balance sheet date, we re-assess our need for a valuation allowance and this assessment is based on all available evidence, both positive and negative, and requires management to exercise judgment and make assumptions regarding whether such DTA will be realized in future periods. Future realization of our DTA will ultimately depend on the existence of sufficient taxable income of the appropriate character (ordinary income versus capital gains) within the applicable carryback and carryforward periods provided under the tax law. The primary sources of negative evidence that we considered are our cumulative losses in recent years, and the continued uncertainty around our future operating results. We also considered several sources of positive evidence when assessing the need for a valuation allowance such as future reversals of existing taxable temporary differences, future projections of taxable income, taxable income within the applicable carryback periods, and potential tax planning strategies. In making our assessment of the more likely than not standard, the weight assigned to the effect of both negative and positive evidence is commensurate with the extent to which such evidence can be objectively verified. In 2010, in accordance with the accounting standard regarding the accounting and disclosure of income taxes in interim periods, we used an annualized effective tax rate to compute our tax expense each quarter. We adjusted this annualized effective tax rate each quarter by the following discrete items: (i) net gains or losses resulting from the change in fair value of our derivatives and other financial instruments, (ii) investment gains or losses, (iii) the liabilities recorded under the accounting standard regarding accounting for uncertainty in income taxes, and (iv) prior year provision-to-filed tax return adjustments. Given the impact on our pre-tax results of net gains or losses resulting from our derivative transactions and our investment portfolio, and the continued uncertainty around our ability to rely on short-term financial projections, which directly affects our ability to estimate an effective tax rate for the full year of 2011, we booked our income tax expense (benefit) in interim periods based on actual results of operations. Foreign Currency Revaluation/Translation Assets and liabilities denominated in foreign currencies are revalued or translated at year-end exchange rates. Operating results are translated at average rates of exchange prevailing during the year. Unrealized gains and losses, net of deferred taxes, resulting from translation are included in accumulated other comprehensive income in stockholders’ equity. Realized gains and losses resulting from transactions in foreign currency are recorded in our statements of operations. Cash and Restricted Cash Included in our restricted cash balances are funds for a mortgage insurance reserve policy held in escrow for any future duties, rights and liabilities, funds held as collateral under our insurance trust agreements for our previous and current health care provider, and funds held in trust for the benefit of certain policyholders. Within our consolidated statements of cash flows, we classify cash receipts and cash payments related to items measured at fair value according to their nature and purpose. During most of 2009, our trading securities activity reflected active and frequent buying and selling, as market prices of our investments strengthened as a result of the improving domestic and global economic environment, and we made the decision to opportunistically realize gains in the investment portfolio. As such, this activity was reflected as cash flows from operating activities within our consolidated statements of cash flows during most of 2009. Beginning in the fourth quarter of 2009, we began classifying purchases of trading securities within cash flows from investing activities, since those purchases are more consistent with our overall investment strategy. While our 2011 and 2010 trading securities activity was significant, it was primarily driven by strategic repositioning of the portfolio in order to: (1) shorten duration for liquidity purposes, and (2) increase our allocation to taxable bonds to maximize our after-tax yields. Because this activity relates to overall strategic initiatives and is not trading related, it is reflected as cash flows from investing activities. Investments We group assets in our investment portfolio into one of three main categories: held to maturity, available for sale or trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity are classified as held to maturity and are reported at amortized cost. Investments in securities not classified as held to maturity or trading securities are classified as available for sale and are reported at fair value, with unrealized gains and losses (net of tax) reported as a separate component of stockholders' equity as accumulated other comprehensive income. Investments classified as trading securities are reported at fair value, with unrealized gains and losses reported as a separate component of income. Beginning in the second quarter of 2009, we classified all security purchases as trading securities. Short-term investments consist of assets invested in money market instruments, certificates of deposit and highly liquid, interest bearing instruments with an original maturity of three months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Note 5 for further discussion on the fair value of investments. For certain hybrid financial instruments that would be required to be separated into a host contract and a derivative instrument, the accounting standard regarding derivatives and hedging permits an entity to irrevocably elect to initially and subsequently measure that hybrid financial instrument in its entirety at fair value (with changes in fair value recognized in earnings). We elected to record our convertible securities meeting these criteria at fair value with changes in the fair value recorded as net gains or losses on investments. All hybrid financial instruments are classified as trading securities. On April 1, 2009, we adopted a new accounting standard regarding recognition and presentation of OTTI. In accordance with this new standard, we record an OTTI on a security if we intend to sell the impaired security or if it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the present value of cash flows we expect to collect is less than the amortized cost basis of the security. If a sale is likely, the security is classified as other-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, losses on securities that are other-than-temporarily impaired are separated into: (i) the portion of loss that represents the credit loss, and (ii) the portion that is due to other factors. The credit loss portion is recognized as a loss in the statement of operations, while the loss due to other factors is recognized in accumulated other comprehensive income (loss), net of taxes. A credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less than the cost basis of the security. The present value of discounted cash flows is determined using the original yield of the security. For securities held as of April 1, 2009, that had previously been other-than-temporarily impaired, an after-tax transition adjustment of $21.5 million was booked to reclassify the non-credit loss portion of these impairments from retained earnings to accumulated other comprehensive income (loss). In evaluating whether a decline in value is other-than-temporary, we consider several factors in addition to the above, including, but not limited to, the following:
Accounts and Notes Receivable Accounts and notes receivable consist primarily of accrued premiums receivable due from our mortgage insurance and financial guaranty customers. Accounts and notes receivable are carried at their estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability based on past payment history and current economic conditions. Company-Owned Life Insurance We are the beneficiary of insurance policies on the lives of certain of our current and past officers and employees. We have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our consolidated balance sheets. At December 31, 2011 and 2010, the cash surrender value of company-owned life insurance totaled $73.7 million and $71.6 million, respectively. Property and Equipment Property and equipment is carried at cost net of depreciation. For financial statement reporting purposes, computer hardware and software is depreciated over three years, and furniture, fixtures and office equipment is depreciated over seven years. Leasehold improvements are depreciated over the lesser of the life of the asset improved or the life of the lease. For income tax purposes, we use accelerated depreciation methods. Accounting for Stock-Based Compensation The stock-based compensation cost related to share-based liability awards is based on the fair value as of the measurement date. The compensation cost for equity instruments is measured based on the grant-date fair value at the date of issuance. Compensation cost is recognized over the periods that an employee provides service in exchange for the award. See Note 16 for further information. Recent Accounting Pronouncements In May 2011, the FASB issued an update to the accounting standard regarding fair value measurements and disclosure. This update changes the language used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The amendments: (i) clarify the FASB's intent about the application of existing fair value measurement and disclosure requirements, and (ii) change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in this update do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. This update is effective for fiscal years beginning after December 15, 2011. We are currently evaluating the impact this new guidance will have on our consolidated financial statements and disclosures In June 2011, the FASB issued an update to the accounting standard regarding comprehensive income. This update eliminates the current presentation options related to comprehensive income and provides an entity with the option to present the components of net income, other comprehensive income and total comprehensive income, either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Regardless of which option an entity chooses, the entity is required to present, on the face of the consolidated financial statements, reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) in which the components of net income and the components of other comprehensive income are presented. In December 2011, the FASB issued another update to the accounting standard regarding comprehensive income, which defers the effective date for the requirement noted above to present, on the face of the consolidated financial statements, the reclassification of items out of accumulated other comprehensive income. This update is effective for fiscal years beginning after December 15, 2011. We are currently evaluating the impact this new guidance will have on our consolidated financial statements and disclosures. |
Note 16 - Share-Based and Other Compensation Plans (Employee Stock Purchase Plan) (Details) (Employee Stock Purchase Plan [Member])
|
6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2011
months
|
Jun. 30, 2011
months
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Employee Stock Purchase Plan [Member]
|
||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares of common stock authorized for issuance | 2,000,000 | |||||
Shares sold to employees under ESPP Plans | 158,676 | 99,781 | 172,192 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected life (months) | 6 | 6 | ||||
Risk-free interest rate | 0.39% | 0.45% | ||||
Volatility | 79.68% | 69.96% | ||||
Dividend yield | 0.12% | 0.06% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% |
Note 5 - Fair Value of Financial Instruments Other Fair Value Disclosure (Details) (USD $)
|
Dec. 31, 2011
|
Dec. 31, 2010
|
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed-maturities held to maturity | $ 2,748,000 | $ 11,416,000 |
Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed-maturities held to maturity | 2,600,000 | 10,800,000 |
Short Term Investments (Carried at Cost) Fair Value Disclosure | 0 | 1,600,000 |
Other invested assets fair value disclosure | 61,000,000 | 59,600,000 |
Long-term Debt, Fair Value | 818,600,000 | 964,800,000 |
Non Derivative Financial Guaranty liabilities | 342,300,000 | 406,100,000 |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed-maturities held to maturity | 2,700,000 | 11,400,000 |
Short Term Investments (Carried at Cost) Fair Value Disclosure | 0 | 1,600,000 |
Other invested assets fair value disclosure | 62,800,000 | 58,400,000 |
Long-term Debt, Fair Value | 471,300,000 | 1,082,500,000 |
Non Derivative Financial Guaranty liabilities | $ 425,700,000 | $ 531,100,000 |
Note 21 - Subsequent Events (Details) (USD $)
|
12 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Mar. 31, 2012
January 2012 Assured Guaranty Transaction [Member]
|
|
Subsequent Event [Line Items] | ||||
Impact of Subsequent Event on Assumed Premiums Written | $ (119,800,000) | |||
Impact of Subsequent Event on Net Premiums Earned | (22,200,000) | |||
Impact of Subsequent Event on Change in Fair Value of Derivatives | 100,000 | |||
Impact of Subsequent Event on Policy Acquisition Costs | (15,700,000) | |||
Gain on sale of affiliate | 0 | 34,815,000 | 0 | 9,000,000 |
Impact of Subsequent Event on Pre-Tax Income | (28,800,000) | |||
Impact of Subsequent Event, Decrease to Cash | 92,300,000 | |||
Impact of Subsequent Event, Decrease to Deferred Policy Acquisition Costs | 26,200,000 | |||
Impact of Subsequent Event, Decrease to Accounts and Notes Receivable | 1,100,000 | |||
Impact of Subsequent Event, Decrease To Derivative Assets | 600,000 | |||
Impact of Subsequent Event, Decrease to Unearned Premiums | 71,600,000 | |||
Impact of Subsequent Event, Decrease to Derivative Liabilities | 900,000 | |||
Impact of Subsequent Event, Increase to Other Assets | $ 19,000,000 |