Note 3 - Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

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

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

	Three Months Ended March 31,
(In thousands)	2018		2017
Mortgage Insurance
Net premiums written—insurance (1)	$	237,980	$	224,665
(Increase) decrease in unearned premiums	4,570		(2,865		)
Net premiums earned—insurance	242,550		221,800
Net investment income	33,956		31,032
Other income	807		746
Total (2)	277,313		253,578
Provision for losses	37,391		47,232
Policy acquisition costs	7,117		6,729
Other operating expenses before corporate allocations	31,888		39,289
Total (3)	76,396		93,250
Adjusted pretax operating income before corporate allocations	200,917		160,328
Allocation of corporate operating expenses	18,577		14,186
Allocation of interest expense	10,629		11,509
Adjusted pretax operating income	$	171,711	$	134,633

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(1) Net of ceded premiums written under the QSR Transactions and the Single Premium QSR Transactions. See Note 7 for additional information.

(2) Excludes net losses on investments and other financial instruments of $18.9 million for the three months ended March 31, 2018, and net losses on investments and other financial instruments of $2.9 million for the three months ended March 31, 2017, not included in adjusted pretax operating income.

(3)Includes inter-segment expenses as follows:

	Three Months Ended March 31,
(In thousands)	2018		2017
Inter-segment expenses	$	1,002	$	2,062

	Three Months Ended March 31,
(In thousands)	2018			2017
Services
Services revenue (1)	$	34,166		$	40,089
Cost of services	23,270			28,690
Other operating expenses before corporate allocations	10,744			12,604
Restructuring and other exit costs (2)	525			—
Total	34,539			41,294
Adjusted pretax operating income (loss) before corporate allocations	(373		)	(1,205		)
Allocation of corporate operating expenses	2,784			3,718
Allocation of interest expense	4,451			4,429
Adjusted pretax operating income (loss)	$	(7,608	)	$	(9,352	)

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(1)Includes inter-segment revenues as follows:

	Three Months Ended March 31,
(In thousands)	2018		2017
Inter-segment revenues	$	1,002	$	2,062

(2) Primarily includes employee severance and related benefit costs. Does not include impairment of long-lived assets, which is not a component of adjusted pretax operating income.

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

	At March 31, 2018
(In thousands)	Mortgage Insurance		Services		Total
Total assets	$	5,843,685	$	166,564	$	6,010,249
	At December 31, 2017
(In thousands)	Mortgage Insurance		Services		Total
Total assets	$	5,733,918	$	166,963	$	5,900,881

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

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

	Three Months Ended March 31,
(In thousands)	2018			2017
Adjusted pretax operating income (loss):
Mortgage Insurance (1)	$	171,711		$	134,633
Services (1)	(7,608		)	(9,352		)
Total adjusted pretax operating income	164,103			125,281
Net losses on investments and other financial instruments	(18,887		)	(2,851		)
Loss on induced conversion and debt extinguishment	—			(4,456		)
Acquisition-related expenses (2)	—			(8		)
Amortization and impairment of other intangible assets	(2,748		)	(3,296		)
Impairment of other long-lived assets and loss from the sale of a business line (3)	(26		)	—
Consolidated pretax income	$	142,442		$	114,670

______________________

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

(2) Acquisition-related expenses represent expenses incurred to effect the acquisition of a business, net of adjustments to accruals previously recorded for acquisition expenses.

(3) Included within restructuring and other exit costs. See Note 1.