Note 3 - Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Summarized operating results for our segments as of and for the periods indicated, are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2015			2014			2015			2014
Mortgage Insurance
Net premiums written—insurance	$	242,168		$	245,775		$	735,158		$	680,675
Increase in unearned premiums	(14,735		)	(27,948		)	(45,693		)	(60,440		)
Net premiums earned—insurance	227,433			217,827			689,465			620,235
Net investment income (1)	22,091			17,143			58,704			49,124
Other income (1)	1,711			1,037			4,785			3,653
Total	251,235			236,007			752,954			673,012
Provision for losses	64,128			48,942			141,616			163,216
Change in expected economic loss or recovery for consolidated VIEs	—			(190		)	—			129
Policy acquisition costs	2,880			4,240			17,593			18,003
Other operating expenses before corporate allocations	36,632			33,679			112,535			107,799
Total (2)	103,640			86,671			271,744			289,147
Adjusted pretax operating income before corporate allocations	147,595			149,336			481,210			383,865
Allocation of corporate operating expenses (1)	14,893			8,520			37,167			41,425
Allocation of interest expense (1)	16,797			19,565			56,820			61,840
Adjusted pretax operating income	$	115,905		$	121,251		$	387,223		$	280,600

____________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations, as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2014		2015		2014
Net investment income	$	1,239	$	882	$	3,928
Other income	32		26		214
Allocation of corporate operating expenses	1,626		2,074		10,187
Allocation of interest expense	11,629		9,918		42,127

(2) Includes inter-segment expenses as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2015		2014		2015		2014
Inter-segment expenses	$	925	$	—	$	2,919	$	—

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2015			2014		2015			2014
Services
Services revenue	$	43,114		$	42,243	$	119,241		$	42,243
Other income	—			125		—			374
Total (1)	43,114			42,368		119,241			42,617
Direct cost of services	25,870			23,896		70,624			23,896
Other operating expenses before corporate allocations	11,533			9,054		31,912			10,555
Total	37,403			32,950		102,536			34,451
Adjusted pretax operating income before corporate allocations	5,711			9,418		16,705			8,166
Allocation of corporate operating expenses	1,567			404		3,855			404
Allocation of interest expense	4,423			4,424		13,286			4,424
Adjusted pretax operating (loss) income	$	(279	)	$	4,590	$	(436	)	$	3,338

____________

(1) Includes inter-segment revenues as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2015		2014		2015		2014
Inter-segment revenues	$	925	$	—	$	2,919	$	—

Selected balance sheet information for our segments as of the periods indicated, is as follows:

	At September 30, 2015
(In thousands)	Mortgage Insurance		Services		Total
Total assets	$	5,408,200	$	352,716	$	5,760,916

	At December 31, 2014
(In thousands)	Mortgage Insurance		Services		Total
Assets held for sale (1)	$	—	$	—	$	1,736,444
Total assets	4,769,014		336,878		6,842,336

________________

(1) Assets held for sale are not part of the Mortgage Insurance or Services segments.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

The reconciliation of adjusted pretax operating income to consolidated pretax income from continuing operations is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2015			2014			2015			2014
Adjusted pretax operating income (loss):
Mortgage Insurance (1) (2)	$	115,905		$	121,251		$	387,223		$	280,600
Services (2)	(279		)	4,590			(436		)	3,338
Total adjusted pretax operating income	115,626			125,841			386,787			283,938
Net gains (losses) on investments and other financial instruments (3)	3,868			(6,484		)	49,095			62,135
Loss on induced conversion and debt extinguishment	(11		)	—			(91,887		)	—
Acquisition-related expenses	(525		)	432			(1,299		)	(6,300		)
Amortization and impairment of intangible assets	(3,273		)	(3,294		)	(9,577		)	(3,294		)
Consolidated pretax income from continuing operations	$	115,685		$	116,495		$	333,119		$	336,479

______________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment, as listed in the preceding tables. These amounts represent items that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations.

(2) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables.

(3) The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains (losses) on investments and other financial instruments has been adjusted by income of $0.2 million and a loss of $0.1 million for the three and nine months ended September 30, 2014, respectively, to reverse this item.