Note 4 - Segment Reporting Level 3 (Tables)

12 Months Ended

Dec. 31, 2015

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:



	December 31, 2015
(In thousands)	Mortgage Insurance				Services				Total
Net premiums written—insurance	$	968,505			$	—			$	968,505
Increase in unearned premiums	(52,597		)		—				(52,597		)
Net premiums earned—insurance	915,908				—				915,908
Services revenue	—				157,416				157,416
Net investment income	81,537				—				81,537
Other income	6,300				—				6,300
Total	1,003,745				157,416			(1)	1,161,161			(2)

Provision for losses	198,433				—				198,433
Policy acquisition costs	22,424				—				22,424
Direct cost of services	—				93,504				93,504
Other operating expenses before corporate allocations	149,941				43,622				193,563
Total	370,798			(1)	137,126				507,924
Adjusted pretax operating income before corporate allocations	632,947				20,290				653,237
Allocation of corporate operating expenses	46,418				4,823				51,241
Allocation of interest expense	73,402				17,700				91,102
Adjusted pretax operating income (loss)	$	513,127			$	(2,233	)		$	510,894

Total assets	$	5,281,597			$	360,503			$	5,642,100

NIW (in millions)	$	41,411

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(1)	Includes inter-segment expenses and revenues as follows:



	December 31, 2015
(In thousands)	Mortgage Insurance		Services
Inter-segment revenues	$	—	$	3,601
Inter-segment expenses	3,601		—


(2)	Excludes net gains on investments and other financial instruments of $35.7 million, not included in adjusted pretax operating income.



	December 31, 2014
(In thousands)	Mortgage Insurance				Services (1)			Total
Net premiums written—insurance	$	925,181			$	—		$	925,181
Increase in unearned premiums	(80,653		)		—			(80,653		)
Net premiums earned—insurance	844,528				—			844,528
Services revenue	—				76,709			76,709
Net investment income	65,655				—			65,655
Other income	5,321				1,265			6,586
Total	915,504				77,974		(2)	993,478			(3)

Provision for losses	246,865				—			246,865
Change in expected economic loss or recovery for consolidated VIEs	113				—			113
Policy acquisition costs	24,446				—			24,446
Direct cost of services	—				43,605			43,605
Other operating expenses before corporate allocations	170,390				18,915			189,305
Total	441,814			(2)	62,520			504,334
Adjusted pretax operating income before corporate allocations	473,690				15,454			489,144
Allocation of corporate operating expenses	55,154				1,144			56,298
Allocation of interest expense	81,600				8,864			90,464
Adjusted pretax operating income	$	336,936			$	5,446		$	342,382

Assets held for sale (4)	$	—			$	—		$	1,736,444
Total assets	4,769,014				336,878			6,842,336

NIW (in millions)	$	37,349

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(1)	Includes the acquisition of Clayton, effective June 30, 2014.


(2)	Includes inter-segment expenses and revenues as follows:



	December 31, 2014
(In thousands)	Mortgage Insurance		Services
Inter-segment revenues	$	—	$	782
Inter-segment expenses	782		—


(3)	Excludes net gains on investments and other financial instruments of $80.0 million, not included in adjusted pretax operating income.


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



	December 31, 2013
	Mortgage Insurance
(In thousands)
Net premiums written—insurance	$	950,998
Increase in unearned premiums	(169,578		)
Net premiums earned—insurance	781,420
Net investment income	68,121
Other income	6,255
Total (1)	855,796

Provision for losses	562,747
Change in expected economic loss or recovery for consolidated VIEs	(21		)
Policy acquisition costs	28,485
Other operating expenses before corporate allocations	160,327
Total	751,538
Adjusted pretax operating income before corporate allocations	104,258
Allocation of corporate operating expenses	97,075
Allocation of interest expense	74,618
Adjusted pretax operating loss	$	(67,435	)

Total assets (2)	$	3,837,889

NIW (in millions)	$	47,255

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(1)	Excludes the following revenue items not included in adjusted pretax operating loss: (i) net losses on investments and other financial instruments of $106.5 million; (ii) change in fair value of derivative instruments of $0.6 million.


(2)	Does not include assets held for sale of $1.8 billion which are not a part of the Mortgage Insurance segmen

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

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



	December 31,
(In thousands)	2015			2014			2013
Adjusted pretax operating income (loss):
Mortgage insurance (1)	$	513,127		$	336,936		$	(67,435	)
Services (1)	(2,233		)	5,446			—
Total adjusted pretax operating income (loss)	$	510,894		$	342,382		$	(67,435	)

Net gains (losses) on investments and other financial instruments (2)	35,693			80,102			(105,911		)
Loss on induced conversion and debt extinguishment	(94,207		)	—			—
Acquisition-related expenses	(1,565		)	(6,680		)	—
Amortization and impairment of intangible assets	(12,986		)	(8,648		)	—
Consolidated pretax income (loss) from continuing operations	$	437,829		$	407,156		$	(173,346	)

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

(2)

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 $0.1 million and $0.6 million for the years ended December 31, 2014 and 2013, respectively, to reverse this item.

On a