UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 2, 2011
Radian Group Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-11356 | 23-2691170 | |
(Commission File Number) | (IRS Employer Identification No.) | |
1601 Market Street, Philadelphia, Pennsylvania | 19103 | |
(Address of principal executive offices) | (Zip Code) |
(215) 231 - 1000
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
On August 2, 2011, Radian Group Inc. issued a news release announcing its financial results for the quarter ended June 30, 2011. A copy of this news release is furnished as Exhibit 99.1 to this report.
The information included in, or furnished with, this report shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (the Exchange Act), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
99.1* | Radian Group Inc. News Release dated August 2, 2011. |
* | Furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RADIAN GROUP INC. | ||||
Date: August 2, 2011 | By: | /s/ C. Robert Quint | ||
C. Robert Quint | ||||
Chief Financial Officer |
EXHIBIT INDEX
Exhibit |
Description | |
99.1* | Radian Group Inc. News Release dated August 2, 2011. |
* | Furnished herewith. |
|
Exhibit 99.1
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1
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2
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3
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4
Radian Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
Exhibit A
Quarter Ended |
Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands, except per-share data) | ||||||||||||||||
Revenues: |
||||||||||||||||
Net premiums written - insurance |
$ | 152,778 | $ | 159,901 | $ | 335,527 | $ | 315,402 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net premiums earned - insurance |
$ | 188,934 | $ | 203,446 | $ | 391,957 | $ | 401,714 | ||||||||
Net investment income |
43,823 | 48,619 | 86,063 | 93,977 | ||||||||||||
Net gains on investments |
44,236 | 57,262 | 81,671 | 115,210 | ||||||||||||
Net impairment losses recognized in earnings |
(11 | ) | (38 | ) | (11 | ) | (56 | ) | ||||||||
Change in fair value of derivative instruments |
188,726 | (524,606 | ) | 432,618 | (602,560 | ) | ||||||||||
Net gains (losses) on other financial instruments |
5,047 | (63,200 | ) | 80,298 | (164,764 | ) | ||||||||||
Gain on sale of affiliate |
| 34,815 | | 34,815 | ||||||||||||
Other income |
1,196 | (2,072 | ) | 2,644 | 3,703 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
471,951 | (245,774 | ) | 1,075,240 | (117,961 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Expenses: |
||||||||||||||||
Provision for losses |
263,566 | 435,166 | 690,939 | 979,046 | ||||||||||||
Change in reserve for premium deficiency |
(3,102 | ) | (7,354 | ) | (4,485 | ) | (8,585 | ) | ||||||||
Policy acquisition costs |
14,387 | 16,797 | 28,518 | 31,665 | ||||||||||||
Other operating expenses |
45,954 | 35,165 | 92,173 | 100,221 | ||||||||||||
Interest expense |
16,079 | 8,245 | 33,103 | 19,049 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
336,884 | 488,019 | 840,248 | 1,121,396 | ||||||||||||
|
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|
|
|
|
|
|
|||||||||
Equity in net income of affiliates |
| 6,570 | 65 | 14,668 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Pretax income (loss) |
135,067 | (727,223 | ) | 235,057 | (1,224,689 | ) | ||||||||||
Income tax benefit |
(2,048 | ) | (252,143 | ) | (5,064 | ) | (439,254 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ | 137,115 | $ | (475,080 | ) | $ | 240,121 | $ | (785,435 | ) | ||||||
|
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|
|
|
|
|
|
|||||||||
Diluted net income (loss) per share (1) |
$ | 1.03 | $ | (4.31 | ) | $ | 1.80 | $ | (8.15 | ) | ||||||
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|||||||||
(1) Weighted average shares outstanding (In thousands) |
||||||||||||||||
Weighted average common shares outstanding |
132,185 | 110,282 | 132,185 | 96,420 | ||||||||||||
Increase in weighted average shares-common stock equivalents-diluted basis |
1,429 | | 1,539 | | ||||||||||||
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|
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|||||||||
Weighted average shares outstanding |
133,614 | 110,282 | 133,724 | 96,420 | ||||||||||||
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For Trend Information, refer to our Quarterly Financial Statistics on Radians (RDN) website.
Page 1
Radian Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
Exhibit B
(In thousands, except per-share data) | June 30 2011 |
December 31 2010 |
June 30 2010 |
|||||||||
Assets: |
||||||||||||
Cash and investments |
$ | 6,038,529 | $ | 6,680,630 | $ | 7,277,607 | ||||||
Deferred policy acquisition costs |
138,926 | 148,326 | 148,623 | |||||||||
Deferred income taxes, net |
27,531 | 27,531 | 815,674 | |||||||||
Reinsurance recoverables |
179,573 | 244,894 | 585,938 | |||||||||
Derivative assets |
27,266 | 26,212 | 21,977 | |||||||||
Other assets |
516,971 | 493,294 | 498,669 | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
$ | 6,928,796 | $ | 7,620,887 | $ | 9,348,488 | ||||||
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|
|
|
|
|||||||
Liabilities and stockholders equity: |
||||||||||||
Unearned premiums |
$ | 629,813 | $ | 686,364 | $ | 736,675 | ||||||
Reserve for losses and loss adjustment expenses |
3,343,624 | 3,596,735 | 3,781,240 | |||||||||
Reserve for premium deficiency |
6,251 | 10,736 | 16,772 | |||||||||
Long-term debt |
811,319 | 964,788 | 665,381 | |||||||||
VIE debt |
393,740 | 520,114 | 627,638 | |||||||||
Derivative liabilities |
313,708 | 723,579 | 748,094 | |||||||||
Payable for securities purchased |
48,707 | 9,112 | 660,805 | |||||||||
Other liabilities |
252,324 | 249,679 | 332,254 | |||||||||
|
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|
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|
|||||||
Total liabilities |
5,799,486 | 6,761,107 | 7,568,859 | |||||||||
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|
|||||||
Common stock |
151 | 150 | 150 | |||||||||
Additional paid-in capital |
1,073,703 | 1,071,080 | 1,002,501 | |||||||||
Retained earnings (deficit) |
34,861 | (204,926 | ) | 816,172 | ||||||||
Accumulated other comprehensive income (loss) |
20,595 | (6,524 | ) | (39,194 | ) | |||||||
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|
|||||||
Total common stockholders equity |
1,129,310 | 859,780 | 1,779,629 | |||||||||
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|
|||||||
Total liabilities and stockholders equity |
$ | 6,928,796 | $ | 7,620,887 | $ | 9,348,488 | ||||||
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|
|||||||
Book value per share |
$ | 8.48 | $ | 6.46 | $ | 13.40 |
Page 2
Radian Group Inc. and Subsidiaries
Segment Information
Quarter Ended June 30, 2011
Exhibit C
(In thousands) |
Mortgage Insurance |
Financial Guaranty |
Total | |||||||||
Revenues: |
||||||||||||
Net premiums written - insurance |
$ | 164,194 | $ | (11,416 | ) | $ | 152,778 | |||||
|
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|
|
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|
|||||||
Net premiums earned - insurance |
$ | 164,325 | $ | 24,609 | $ | 188,934 | ||||||
Net investment income |
24,853 | 18,970 | 43,823 | |||||||||
Net gains on investments |
27,425 | 16,811 | 44,236 | |||||||||
Net impairment losses recognized in earnings |
(11 | ) | | (11 | ) | |||||||
Change in fair value of derivative instruments |
258 | 188,468 | 188,726 | |||||||||
Net gains (losses) on other financial instruments |
(631 | ) | 5,678 | 5,047 | ||||||||
Other income |
1,124 | 72 | 1,196 | |||||||||
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|
|||||||
Total revenues |
217,343 | 254,608 | 471,951 | |||||||||
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|
|||||||
Expenses: |
||||||||||||
Provision for losses |
269,992 | (6,426 | ) | 263,566 | ||||||||
Change in reserve for premium deficiency |
(3,102 | ) | | (3,102 | ) | |||||||
Policy acquisition costs |
8,601 | 5,786 | 14,387 | |||||||||
Other operating expenses |
33,913 | 12,041 | 45,954 | |||||||||
Interest expense |
146 | 15,933 | 16,079 | |||||||||
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|
|
|
|||||||
Total expenses |
309,550 | 27,334 | 336,884 | |||||||||
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|
|||||||
Equity in net income of affiliates |
| | | |||||||||
|
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|
|||||||
Pretax income (loss) |
(92,207 | ) | 227,274 | 135,067 | ||||||||
Income tax (benefit) provision |
5,374 | (7,422 | ) | (2,048 | ) | |||||||
|
|
|
|
|
|
|||||||
Net income (loss) |
$ | (97,581 | ) | $ | 234,696 | $ | 137,115 | |||||
|
|
|
|
|
|
|||||||
Cash and investments |
$ | 3,334,789 | $ | 2,703,740 | $ | 6,038,529 | ||||||
Deferred policy acquisition costs |
44,509 | 94,417 | 138,926 | |||||||||
Total assets |
3,688,720 | 3,240,076 | 6,928,796 | |||||||||
Unearned premiums |
191,737 | 438,076 | 629,813 | |||||||||
Reserve for losses and loss adjustment expenses |
3,268,582 | 75,042 | 3,343,624 | |||||||||
VIE debt |
56,239 | 337,501 | 393,740 | |||||||||
Derivative liabilities |
| 313,708 | 313,708 |
Page 3
Radian Group Inc. and Subsidiaries
Segment Information
Quarter Ended June 30, 2010
Exhibit D
(In thousands) |
Mortgage Insurance |
Financial Guaranty |
Financial Services |
Total | ||||||||||||
Revenues: |
||||||||||||||||
Net premiums written - insurance |
$ | 167,909 | $ | (8,008 | ) | $ | | $ | 159,901 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Net premiums earned - insurance |
$ | 179,992 | $ | 23,454 | $ | | $ | 203,446 | ||||||||
Net investment income |
28,544 | 20,075 | | 48,619 | ||||||||||||
Net gains on investments |
34,441 | 22,821 | | 57,262 | ||||||||||||
Net impairment losses recognized in earnings |
(38 | ) | | | (38 | ) | ||||||||||
Change in fair value of derivative instruments |
(1,310 | ) | (523,296 | ) | | (524,606 | ) | |||||||||
Net losses on other financial instruments |
(7,973 | ) | (55,227 | ) | | (63,200 | ) | |||||||||
Gain on sale of affiliate |
| | 34,815 | 34,815 | ||||||||||||
Other income |
1,623 | (3,695 | ) | | (2,072 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
235,279 | (515,868 | ) | 34,815 | (245,774 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Expenses: |
||||||||||||||||
Provision for losses |
427,622 | 7,544 | | 435,166 | ||||||||||||
Change in reserve for premium deficiency |
(7,354 | ) | | | (7,354 | ) | ||||||||||
Policy acquisition costs |
12,113 | 4,684 | | 16,797 | ||||||||||||
Other operating expenses |
25,639 | 9,476 | 50 | 35,165 | ||||||||||||
Interest expense |
1,549 | 6,696 | | 8,245 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
459,569 | 28,400 | 50 | 488,019 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Equity in net income of affiliates |
| | 6,570 | 6,570 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Pretax (loss) income |
(224,290 | ) | (544,268 | ) | 41,335 | (727,223 | ) | |||||||||
Income tax (benefit) provision |
(71,763 | ) | (194,848 | ) | 14,468 | (252,143 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income |
$ | (152,527 | ) | $ | (349,420 | ) | $ | 26,867 | $ | (475,080 | ) | |||||
|
|
|
|
|
|
|
|
|||||||||
Cash and investments |
$ | 3,886,819 | $ | 3,390,788 | $ | | $ | 7,277,607 | ||||||||
Deferred policy acquisition costs |
35,220 | 113,403 | | 148,623 | ||||||||||||
Total assets |
5,367,065 | 3,981,423 | | 9,348,488 | ||||||||||||
Unearned premiums |
207,354 | 529,321 | | 736,675 | ||||||||||||
Reserve for losses and loss adjustment expenses |
3,656,746 | 124,494 | | 3,781,240 | ||||||||||||
VIE debt |
253,178 | 374,460 | | 627,638 | ||||||||||||
Derivative liabilities |
358 | 747,736 | | 748,094 |
Page 4
Radian Group Inc. and Subsidiaries
Segment Information
Six Months Ended June 30, 2011
Exhibit E
(In thousands) |
Mortgage Insurance |
Financial Guaranty |
Total | |||||||||
Revenues: |
||||||||||||
Net premiums written - insurance |
$ | 345,040 | $ | (9,513) | $ | 335,527 | ||||||
|
|
|
|
|
|
|||||||
Net premiums earned - insurance |
$ | 350,459 | $ | 41,498 | $ | 391,957 | ||||||
Net investment income |
51,686 | 34,377 | 86,063 | |||||||||
Net gains on investments |
45,187 | 36,484 | 81,671 | |||||||||
Net impairment losses recognized in earnings |
(11 | ) | - | (11 | ) | |||||||
Change in fair value of derivative instruments |
(136 | ) | 432,754 | 432,618 | ||||||||
Net gains on other financial instruments |
1,835 | 78,463 | 80,298 | |||||||||
Other income |
2,524 | 120 | 2,644 | |||||||||
|
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|
|
|
|
|||||||
Total revenues |
451,544 | 623,696 | 1,075,240 | |||||||||
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|
|
|
|||||||
Expenses: |
||||||||||||
Provision for losses |
683,965 | 6,974 | 690,939 | |||||||||
Change in reserve for premium deficiency |
(4,485 | ) | | (4,485 | ) | |||||||
Policy acquisition costs |
18,817 | 9,701 | 28,518 | |||||||||
Other operating expenses |
68,050 | 24,123 | 92,173 | |||||||||
Interest expense |
9,935 | 23,168 | 33,103 | |||||||||
|
|
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|
|
|
|||||||
Total expenses |
776,282 | 63,966 | 840,248 | |||||||||
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|
|
|||||||
Equity in net income of affiliates |
| 65 | 65 | |||||||||
|
|
|
|
|
|
|||||||
Pretax income (loss) |
(324,738 | ) | 559,795 | 235,057 | ||||||||
Income tax (benefit) provision |
8,875 | (13,939 | ) | (5,064 | ) | |||||||
|
|
|
|
|
|
|||||||
Net income (loss) |
$ | (333,613 | ) | $ | 573,734 | $ | 240,121 | |||||
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|
|
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Page 5
Radian Group Inc. and Subsidiaries
Segment Information
Six Months Ended June 30, 2010
Exhibit F
(In thousands) |
Mortgage Insurance |
Financial Guaranty |
Financial Services |
Total | ||||||||||||
Revenues: |
||||||||||||||||
Net premiums written - insurance |
$ | 324,941 | $ | (9,539 | ) | $ | | $ | 315,402 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Net premiums earned - insurance |
$ | 357,331 | $ | 44,383 | $ | | $ | 401,714 | ||||||||
Net investment income |
54,903 | 39,074 | | 93,977 | ||||||||||||
Net gains on investments |
63,222 | 51,988 | | 115,210 | ||||||||||||
Net impairment losses recognized in earnings |
(56 | ) | | | (56 | ) | ||||||||||
Change in fair value of derivative instruments |
(1,033 | ) | (601,527 | ) | | (602,560 | ) | |||||||||
Net losses on other financial instruments |
(38,173 | ) | (126,591 | ) | | (164,764 | ) | |||||||||
Gain on sale of affiliate |
| | 34,815 | 34,815 | ||||||||||||
Other income |
3,422 | 218 | 63 | 3,703 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
439,616 | (592,455 | ) | 34,878 | (117,961 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Expenses: |
||||||||||||||||
Provision for losses |
956,713 | 22,333 | | 979,046 | ||||||||||||
Change in reserve for premium deficiency |
(8,585 | ) | | | (8,585 | ) | ||||||||||
Policy acquisition costs |
22,617 | 9,048 | | 31,665 | ||||||||||||
Other operating expenses |
71,872 | 28,149 | 200 | 100,221 | ||||||||||||
Interest expense |
3,669 | 15,380 | | 19,049 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
1,046,286 | 74,910 | 200 | 1,121,396 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Equity in net income of affiliates |
| 78 | 14,590 | 14,668 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Pretax (loss) income |
(606,670 | ) | (667,287 | ) | 49,268 | (1,224,689 | ) | |||||||||
Income tax (benefit) provision |
(217,610 | ) | (238,889 | ) | 17,245 | (439,254 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income |
$ | (389,060 | ) | $ | (428,398 | ) | $ | 32,023 | $ | (785,435 | ) | |||||
|
|
|
|
|
|
|
|
Page 6
Radian Group Inc.
Financial Guaranty Supplemental Information
Exhibit G
(In thousands) | Quarter Ended June 30 |
Six Months Ended June 30 |
||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net Premiums Earned: |
||||||||||||||||
Public finance direct |
$ | 11,580 | $ | 15,897 | $ | 19,416 | $ | 28,233 | ||||||||
Public finance reinsurance |
8,262 | 6,196 | 16,066 | 13,109 | ||||||||||||
Structured direct |
941 | 443 | 1,382 | 1,160 | ||||||||||||
Structured reinsurance |
955 | 932 | 1,764 | 1,847 | ||||||||||||
Trade credit reinsurance |
42 | 3 | 41 | 51 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Premiums Earned - insurance |
21,780 | 23,471 | 38,669 | 44,400 | ||||||||||||
Impact of commutations |
2,829 | (17 | ) | 2,829 | (17 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Net Premiums Earned - insurance |
$ | 24,609 | $ | 23,454 | $ | 41,498 | $ | 44,383 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Refundings included in earned premium |
$ | 9,300 | $ | 10,205 | $ | 14,131 | $ | 19,738 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net premiums earned - derivatives (1) |
$ | 10,473 | $ | 11,814 | $ | 21,356 | $ | 23,837 | ||||||||
Claims paid: |
||||||||||||||||
Trade credit reinsurance |
$ | 285 | $ | (2 | ) | $ | 261 | $ | 1,084 | |||||||
Financial Guaranty |
3,145 | 21,841 | 3,435 | 25,198 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 3,430 | $ | 21,839 | $ | 3,696 | $ | 26,282 | ||||||||
|
|
|
|
|
|
|
|
(1) | Included in change in fair value of derivative instruments. |
Page 7
Radian Group Inc.
Financial Guaranty Supplemental Information
Exhibit H
($ in thousands, except ratios) | June 30 2011 |
December 31 2010 |
June 30 2010 |
|||||||||
Statutory Information: |
||||||||||||
Capital and surplus |
$ | 1,002,337 | $ | 1,049,664 | $ | 974,174 | ||||||
Contingency reserve |
414,462 | 392,589 | 400,615 | |||||||||
|
|
|
|
|
|
|||||||
Qualified statutory capital |
1,416,799 | 1,442,253 | 1,374,789 | |||||||||
Unearned premium reserve |
486,589 | 517,516 | 550,952 | |||||||||
Loss and loss expense reserve |
80,378 | 70,129 | 102,831 | |||||||||
|
|
|
|
|
|
|||||||
Total statutory policyholders reserves |
1,983,766 | 2,029,898 | 2,028,572 | |||||||||
Present value of installment premiums |
171,397 | 202,386 | 227,634 | |||||||||
Soft capital facilities |
| | 150,000 | |||||||||
|
|
|
|
|
|
|||||||
Total statutory claims paying resources |
$ | 2,155,163 | $ | 2,232,284 | $ | 2,406,206 | ||||||
|
|
|
|
|
|
|||||||
Net debt service outstanding |
$ | 95,107,674 | $ | 101,168,759 | $ | 102,502,428 | ||||||
|
|
|
|
|
|
|||||||
Capital leverage ratio (1) |
67 | 70 | 75 | |||||||||
Claims paying leverage ratio (2) |
44 | 45 | 43 | |||||||||
Net par outstanding by product: |
||||||||||||
Public finance direct |
$ | 15,084,460 | $ | 15,727,252 | $ | 16,718,347 | ||||||
Public finance reinsurance |
20,548,760 | 21,907,290 | 22,774,238 | |||||||||
Structured direct |
37,351,096 | 39,315,801 | 39,902,271 | |||||||||
Structured reinsurance |
1,703,261 | 1,805,295 | 1,872,802 | |||||||||
|
|
|
|
|
|
|||||||
Total (3) |
$ | 74,687,577 | $ | 78,755,638 | $ | 81,267,658 | ||||||
|
|
|
|
|
|
(1) | The capital leverage ratio is derived by dividing net debt service outstanding by qualified statutory capital. |
(2) | The claims paying leverage ratio is derived by dividing net debt service outstanding by total statutory claims paying resources. |
(3) | Included in public finance net par outstanding is $1.8 billion, $1.9 billion and $2.0 billion at June 30, 2011, December 31, 2010 and June 30, 2010, respectively, for legally defeased bond issues where our financial guaranty policy has not been extinguished but cash or securities have been deposited in an escrow account for the benefit of bondholders. The accounting standard for financial guarantee insurance contracts requires that these contracts continue to be accounted for as outstanding contracts despite the elimination of substantially all risk. |
Page 8
Radian Group Inc.
Mortgage Insurance Supplemental Information
Exhibit I
($ in millions) | Quarter
Ended June 30 |
Six Months
Ended June 30 |
||||||||||||||||||||||||||||||
2011 | % | 2010 | % | 2011 | % | 2010 | % | |||||||||||||||||||||||||
Primary new insurance written |
||||||||||||||||||||||||||||||||
Prime |
$ | 2,280 | 100.0 | % | $ | 2,653 | 100.0 | % | $ | 4,863 | 99.9 | % | $ | 4,549 | 100.0 | % | ||||||||||||||||
A minus and below |
| | 1 | | 3 | 0.1 | % | 2 | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Flow |
$ | 2,280 | 100.0 | % | $ | 2,654 | 100.0 | % | $ | 4,866 | 100.0 | % | $ | 4,551 | 100.0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total primary new insurance written by FICO score |
|
|||||||||||||||||||||||||||||||
>=740 |
$ | 1,846 | 81.0 | % | $ | 2,100 | 79.1 | % | $ | 3,927 | 80.7 | % | $ | 3,561 | 78.2 | % | ||||||||||||||||
680-739 |
434 | 19.0 | % | 552 | 20.8 | % | 936 | 19.2 | % | 987 | 21.7 | % | ||||||||||||||||||||
620-679 |
| | 2 | 0.1 | % | 3 | 0.1 | % | 3 | 0.1 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Flow |
$ | 2,280 | 100.0 | % | $ | 2,654 | 100.0 | % | $ | 4,866 | 100.0 | % | $ | 4,551 | 100.0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Percentage of primary new insurance written |
|
|||||||||||||||||||||||||||||||
Refinances |
23 | % | 22 | % | 38 | % | 27 | % | ||||||||||||||||||||||||
95.01% LTV and above |
1.4 | % | 0.2 | % | 1.3 | % | 0.4 | % | ||||||||||||||||||||||||
ARMs |
||||||||||||||||||||||||||||||||
Less than 5 years |
0.1 | % | 0.2 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||||||||
5 years and longer |
6.9 | % | 7.0 | % | 5.8 | % | 6.2 | % |
Page 9
Radian Group Inc.
Mortgage Insurance Supplemental Information
Exhibit J
($ in millions) | June 30 | June 30 | ||||||||||||||
2011 | % | 2010 | % | |||||||||||||
Primary insurance in force |
||||||||||||||||
Flow |
$ | 111,510 | 89.1 | % | $ | 118,486 | 86.3 | % | ||||||||
Structured |
13,600 | 10.9 | % | 18,799 | 13.7 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Primary |
$ | 125,110 | 100.0 | % | $ | 137,285 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Prime |
$ | 103,860 | 83.0 | % | $ | 108,488 | 79.0 | % | ||||||||
Alt-A |
13,318 | 10.7 | % | 19,580 | 14.3 | % | ||||||||||
A minus and below |
7,932 | 6.3 | % | 9,217 | 6.7 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Primary |
$ | 125,110 | 100.0 | % | $ | 137,285 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Primary risk in force |
||||||||||||||||
Flow |
||||||||||||||||
Prime |
$ | 23,637 | 86.1 | % | $ | 24,615 | 84.3 | % | ||||||||
Alt-A |
2,374 | 8.7 | % | 2,873 | 9.9 | % | ||||||||||
A minus and below |
1,437 | 5.2 | % | 1,700 | 5.8 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Flow |
$ | 27,448 | 100.0 | % | $ | 29,188 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Structured |
||||||||||||||||
Prime |
$ | 1,702 | 58.4 | % | $ | 1,926 | 55.4 | % | ||||||||
Alt-A |
665 | 22.8 | % | 945 | 27.2 | % | ||||||||||
A minus and below |
546 | 18.8 | % | 606 | 17.4 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Structured |
$ | 2,913 | 100.0 | % | $ | 3,477 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
||||||||||||||||
Prime |
$ | 25,339 | 83.5 | % | $ | 26,541 | 81.2 | % | ||||||||
Alt-A |
3,039 | 10.0 | % | 3,818 | 11.7 | % | ||||||||||
A minus and below |
1,983 | 6.5 | % | 2,306 | 7.1 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Primary |
$ | 30,361 | 100.0 | % | $ | 32,665 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total primary risk in force by FICO score |
||||||||||||||||
Flow |
||||||||||||||||
>=740 |
$ | 11,196 | 40.8 | % | $ | 10,712 | 36.7 | % | ||||||||
680-739 |
9,327 | 34.0 | % | 10,354 | 35.5 | % | ||||||||||
620-679 |
5,865 | 21.4 | % | 6,878 | 23.6 | % | ||||||||||
<=619 |
1,060 | 3.8 | % | 1,244 | 4.2 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Flow |
$ | 27,448 | 100.0 | % | $ | 29,188 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Structured |
||||||||||||||||
>=740 |
$ | 776 | 26.6 | % | $ | 956 | 27.5 | % | ||||||||
680-739 |
848 | 29.1 | % | 1,061 | 30.5 | % | ||||||||||
620-679 |
781 | 26.8 | % | 901 | 25.9 | % | ||||||||||
<=619 |
508 | 17.5 | % | 559 | 16.1 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Structured |
$ | 2,913 | 100.0 | % | $ | 3,477 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
||||||||||||||||
>=740 |
$ | 11,972 | 39.4 | % | $ | 11,668 | 35.7 | % | ||||||||
680-739 |
10,175 | 33.5 | % | 11,415 | 35.0 | % | ||||||||||
620-679 |
6,646 | 21.9 | % | 7,779 | 23.8 | % | ||||||||||
<=619 |
1,568 | 5.2 | % | 1,803 | 5.5 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Primary |
$ | 30,361 | 100.0 | % | $ | 32,665 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Percentage of primary risk in force |
||||||||||||||||
Refinances |
31 | % | 31 | % | ||||||||||||
95.01% LTV and above |
19 | % | 20 | % | ||||||||||||
ARMs |
||||||||||||||||
Less than 5 years |
5 | % | 7 | % | ||||||||||||
5 years and longer |
7 | % | 8 | % | ||||||||||||
Pool risk in force |
||||||||||||||||
Prime |
$ | 1,676 | 75.6 | % | $ | 1,867 | 73.5 | % | ||||||||
Alt-A |
132 | 6.0 | % | 179 | 7.0 | % | ||||||||||
A minus and below |
408 | 18.4 | % | 495 | 19.5 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 2,216 | 100.0 | % | $ | 2,541 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
Page 10
Radian Group Inc.
Mortgage Insurance Supplemental Information
Exhibit K
($ in millions) | June 30 | June 30 | ||||||||||||||
2011 | % | 2010 | % | |||||||||||||
Total primary risk in force by LTV |
||||||||||||||||
85.00% and below |
$ | 2,753 | 9.1 | % | $ | 3,051 | 9.3 | % | ||||||||
85.01% to 90.00% |
11,722 | 38.6 | % | 12,355 | 37.8 | % | ||||||||||
90.01% to 95.00% |
10,268 | 33.8 | % | 10,737 | 32.9 | % | ||||||||||
95.01% and above |
5,618 | 18.5 | % | 6,522 | 20.0 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 30,361 | 100.0 | % | $ | 32,665 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total primary risk in force by policy year |
||||||||||||||||
2005 and prior |
$ | 7,519 | 24.7 | % | $ | 8,936 | 27.4 | % | ||||||||
2006 |
3,396 | 11.2 | % | 4,055 | 12.4 | % | ||||||||||
2007 |
7,435 | 24.5 | % | 8,867 | 27.1 | % | ||||||||||
2008 |
5,549 | 18.3 | % | 6,398 | 19.6 | % | ||||||||||
2009 |
2,915 | 9.6 | % | 3,363 | 10.3 | % | ||||||||||
2010 |
2,419 | 8.0 | % | 1,046 | 3.2 | % | ||||||||||
2011 |
1,128 | 3.7 | % | | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 30,361 | 100.0 | % | $ | 32,665 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total pool risk in force by policy year |
||||||||||||||||
2005 and prior |
$ | 1,894 | 85.5 | % | $ | 2,075 | 81.6 | % | ||||||||
2006 |
131 | 5.9 | % | 210 | 8.3 | % | ||||||||||
2007 |
154 | 6.9 | % | 206 | 8.1 | % | ||||||||||
2008 |
37 | 1.7 | % | 50 | 2.0 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total pool risk in force |
$ | 2,216 | 100.0 | % | $ | 2,541 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Other risk in force |
||||||||||||||||
Second-lien |
||||||||||||||||
1st loss |
$ | 109 | $ | 129 | ||||||||||||
2nd loss |
33 | 86 | ||||||||||||||
NIMs |
59 | 268 | ||||||||||||||
International |
||||||||||||||||
1st loss-Hong Kong primary mortgage insurance |
89 | 185 | ||||||||||||||
Credit default swaps |
| 109 | ||||||||||||||
|
|
|
|
|||||||||||||
Total other risk in force |
$ | 290 | $ | 777 | ||||||||||||
|
|
|
|
|||||||||||||
Risk to capital ratio-Radian Guaranty only |
19.8:1 | (1) | 17.9:1 |
(1) | Preliminary |
Page 11
Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Six Months Ended and as of June 30, 2011
Exhibit L
Quarter Ended | Six Months Ended | |||||||||||||||
($ in thousands) | June 30 | June 30 | ||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net claims paid |
||||||||||||||||
Prime |
$ | 256,020 | $ | 164,043 | $ | 464,215 | $ | 290,007 | ||||||||
Alt-A |
88,140 | 81,030 | 163,270 | 146,061 | ||||||||||||
A minus and below |
52,794 | 48,645 | 97,379 | 85,029 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total primary claims paid |
396,954 | 293,718 | 724,864 | 521,097 | ||||||||||||
Pool |
58,341 | 39,063 | 92,699 | 70,472 | ||||||||||||
Second-lien and other |
3,736 | 4,494 | 6,619 | 12,473 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal |
459,031 | 337,275 | 824,182 | 604,042 | ||||||||||||
Impact of first-lien terminations |
38,198 | 239 | 38,198 | 80,349 | ||||||||||||
Impact of captive terminations |
(1,166 | ) | (191 | ) | (1,166 | ) | (627 | ) | ||||||||
Impact of second-lien terminations |
16,550 | | 16,550 | 10,834 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net claims paid |
$ | 512,613 | $ | 337,323 | $ | 877,764 | $ | 694,598 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Average net claim paid (1) |
||||||||||||||||
Prime |
$ | 49.9 | $ | 44.2 | $ | 49.0 | $ | 44.9 | ||||||||
Alt-A |
62.0 | 56.9 | 60.9 | 58.1 | ||||||||||||
A minus and below |
40.8 | 36.9 | 39.0 | 38.1 | ||||||||||||
Total average net primary claim paid |
50.6 | 45.5 | 49.5 | 46.5 | ||||||||||||
Pool |
80.2 | 74.3 | 75.7 | 69.8 | ||||||||||||
Second-lien and other |
27.7 | 32.3 | 28.9 | 33.9 | ||||||||||||
Total average net claim paid |
$ | 52.7 | $ | 47.4 | $ | 51.2 | $ | 47.9 | ||||||||
Average direct primary claim paid (2) (3) |
$ | 55.3 | $ | 53.3 | $ | 54.8 | $ | 53.5 | ||||||||
Average total direct claim paid (2) (3) |
$ | 56.9 | $ | 54.4 | $ | 56.0 | $ | 54.2 | ||||||||
Loss ratio - GAAP Basis |
164.3 | % | 237.6 | % | 195.2 | % | 267.7 | % | ||||||||
Expense ratio - GAAP Basis |
25.9 | % | 21.0 | % | 24.8 | % | 26.4 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
190.2 | % | 258.6 | % | 220.0 | % | 294.1 | % | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Reserve for losses by category |
||||||||||||||||
Prime |
$ | 1,635,206 | $ | 1,386,271 | ||||||||||||
Alt-A |
652,577 | 815,055 | ||||||||||||||
A minus and below |
374,647 | 400,679 | ||||||||||||||
Reinsurance recoverable (4) |
160,664 | 565,737 | ||||||||||||||
|
|
|
|
|||||||||||||
Total primary reserves |
2,823,094 | 3,167,742 | ||||||||||||||
Pool insurance |
436,948 | 457,129 | ||||||||||||||
|
|
|
|
|||||||||||||
Total 1st lien reserves |
3,260,042 | 3,624,871 | ||||||||||||||
Second-lien |
8,522 | 31,795 | ||||||||||||||
Other |
18 | 80 | ||||||||||||||
|
|
|
|
|||||||||||||
Total reserves |
$ | 3,268,582 | $ | 3,656,746 | ||||||||||||
|
|
|
|
|||||||||||||
1st lien reserve per default (5) |
||||||||||||||||
Primary reserve per primary default |
$ | 25,334 | $ | 22,957 | ||||||||||||
Pool reserve per pool default (6) |
16,795 | 14,072 | ||||||||||||||
Total 1st lien reserve per default |
23,718 | 21,264 |
(1) | Calculated net of reinsurance recoveries. |
(2) | Calculated without giving effect to the impact of terminations of captive reinsurance transactions and first- and second-lien transactions. |
(3) | Before reinsurance recoveries. |
(4) | Represents ceded losses on captive transactions and Smart Home. |
(5) | Calculated as total reserves divided by total defaults. |
(6) | If calculated before giving effect to deductibles and stop losses in pool transactions, the pool reserve per default at June 30, 2011 and June 30, 2010 would be $28,277 and $24,082, respectively. |
Page 12
Radian Group Inc.
Mortgage Insurance Supplemental Information
Exhibit M
June 30 2011 |
December 31 2010 |
June 30 2010 |
||||||||||
Default Statistics |
||||||||||||
Primary insurance: |
||||||||||||
Flow |
||||||||||||
Prime |
||||||||||||
Number of insured loans |
564,839 | 584,213 | 599,909 | |||||||||
Number of loans in default |
64,143 | 71,196 | 74,800 | |||||||||
Percentage of loans in default |
11.36 | % | 12.19 | % | 12.47 | % | ||||||
Alt-A |
||||||||||||
Number of insured loans |
47,491 | 51,765 | 56,323 | |||||||||
Number of loans in default |
15,329 | 17,934 | 20,289 | |||||||||
Percentage of loans in default |
32.28 | % | 34.65 | % | 36.02 | % | ||||||
A minus and below |
||||||||||||
Number of insured loans |
43,597 | 47,044 | 50,719 | |||||||||
Number of loans in default |
14,098 | 16,401 | 18,100 | |||||||||
Percentage of loans in default |
32.34 | % | 34.86 | % | 35.69 | % | ||||||
Total Flow |
||||||||||||
Number of insured loans |
655,927 | 683,022 | 706,951 | |||||||||
Number of loans in default |
93,570 | 105,531 | 113,189 | |||||||||
Percentage of loans in default |
14.27 | % | 15.45 | % | 16.01 | % | ||||||
Structured |
||||||||||||
Prime |
||||||||||||
Number of insured loans |
43,429 | 42,131 | 45,201 | |||||||||
Number of loans in default |
6,248 | 6,735 | 6,548 | |||||||||
Percentage of loans in default |
14.39 | % | 15.99 | % | 14.49 | % | ||||||
Alt-A |
||||||||||||
Number of insured loans |
19,600 | 20,234 | 31,852 | |||||||||
Number of loans in default |
5,930 | 6,635 | 11,485 | |||||||||
Percentage of loans in default |
30.26 | % | 32.79 | % | 36.06 | % | ||||||
A minus and below |
||||||||||||
Number of insured loans |
16,159 | 16,716 | 17,593 | |||||||||
Number of loans in default |
5,686 | 6,569 | 6,793 | |||||||||
Percentage of loans in default |
35.19 | % | 39.30 | % | 38.61 | % | ||||||
Total Structured |
||||||||||||
Number of insured loans |
79,188 | 79,081 | 94,646 | |||||||||
Number of loans in default |
17,864 | 19,939 | 24,826 | |||||||||
Percentage of loans in default |
22.56 | % | 25.21 | % | 26.23 | % | ||||||
Total Primary Insurance |
||||||||||||
Prime |
||||||||||||
Number of insured loans |
608,268 | 626,344 | 645,110 | |||||||||
Number of loans in default |
70,391 | 77,931 | 81,348 | |||||||||
Percentage of loans in default |
11.57 | % | 12.44 | % | 12.61 | % | ||||||
Alt-A |
||||||||||||
Number of insured loans |
67,091 | 71,999 | 88,175 | |||||||||
Number of loans in default |
21,259 | 24,569 | 31,774 | |||||||||
Percentage of loans in default |
31.69 | % | 34.12 | % | 36.04 | % | ||||||
A minus and below |
||||||||||||
Number of insured loans |
59,756 | 63,760 | 68,312 | |||||||||
Number of loans in default |
19,784 | 22,970 | 24,893 | |||||||||
Percentage of loans in default |
33.11 | % | 36.03 | % | 36.44 | % | ||||||
Total Primary Insurance |
||||||||||||
Number of insured loans |
735,115 | 762,103 | 801,597 | |||||||||
Number of loans in default |
111,434 | 125,470 | 138,015 | |||||||||
Percentage of loans in default |
15.16 | % | 16.46 | % | 17.22 | % | ||||||
Pool insurance: |
||||||||||||
Number of loans in default |
26,016 | 32,456 | 32,486 |
Page 13
Radian Group Inc.
Mortgage Insurance Supplemental Information
For the Quarter and Six Months Ended and as of June 30, 2011
Exhibit N
Quarter
Ended June 30 |
Six Months
Ended June 30 |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net Premiums Written (In thousands) |
||||||||||||||||
Primary and Pool Insurance |
$ | 163,556 | $ | 167,250 | $ | 343,813 | $ | 324,663 | ||||||||
Second-lien (1) |
592 | 734 | 1,212 | 279 | ||||||||||||
International |
46 | (75 | ) | 15 | (1 | ) | ||||||||||
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|
|
|
|
|
|
|||||||||
Total Net Premiums Written - Insurance |
$ | 164,194 | $ | 167,909 | $ | 345,040 | $ | 324,941 | ||||||||
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|
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|
|
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Net Premiums Earned (In thousands) |
||||||||||||||||
Primary and Pool Insurance |
$ | 162,388 | $ | 176,622 | $ | 345,857 | $ | 350,734 | ||||||||
Second-lien |
592 | 734 | 1,212 | 1,245 | ||||||||||||
International |
1,345 | 2,636 | 3,390 | 5,352 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Net Premiums Earned - Insurance |
$ | 164,325 | $ | 179,992 | $ | 350,459 | $ | 357,331 | ||||||||
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|
|
|||||||||
SMART HOME (In millions) |
||||||||||||||||
Ceded Premiums Written and Earned |
$ | 2.2 | $ | 2.6 | $ | 4.4 | $ | 4.9 | ||||||||
Net premiums earned - derivatives (In thousands) (2) |
$ | | $ | 140 | $ | | $ | 279 | ||||||||
1st Lien Captives |
||||||||||||||||
Premiums ceded to captives (In thousands) |
$ | 7,266 | $ | 24,684 | $ | 14,853 | $ | 50,158 | ||||||||
% of total premiums |
4.2 | % | 12.1 | % | 4.1 | % | 12.4 | % | ||||||||
NIW subject to captives (In thousands) |
$ | | $ | (204 | ) | $ | | $ | 129 | |||||||
% of primary NIW |
| (< 1 | %) | | < 1 | % | ||||||||||
IIF included in captives (3) |
9.9 | % | 28.8 | % | ||||||||||||
RIF included in captives (3) |
9.7 | % | 30.5 | % | ||||||||||||
Persistency (twelve months ended June 30) |
82.5 | % | 81.7 | % | ||||||||||||
June 30 2011 |
June 30 2010 |
|||||||||||||||
SMART HOME |
||||||||||||||||
% of Primary RIF included in Smart Home Transactions (3) |
2.8 | % | 3.3 | % |
(1) | Reflects the impact of second-lien terminations. |
(2) | Included in change in fair value of derivative instruments. |
(3) | Radian reinsures the middle layer risk positions, while retaining a significant portion of the total risk comprising the first loss and most remote risk positions. |
Page 14
Radian Group Inc.
Mortgage Insurance Supplemental Information
Modified Pool (1)
Exhibit O
($ in millions) | June 30 | June 30 | ||||||||||||||
2011 | % | 2010 | % | |||||||||||||
Modified pool risk in force by policy year |
||||||||||||||||
2005 and prior |
$ | 200 | 69.4 | % | $ | 195 | 42.7 | % | ||||||||
2006 |
35 | 12.2 | % | 45 | 9.8 | % | ||||||||||
2007 |
46 | 16.0 | % | 210 | 46.0 | % | ||||||||||
2008 |
7 | 2.4 | % | 7 | 1.5 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 288 | 100.0 | % | $ | 457 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Modified pool risk in force by product |
||||||||||||||||
Prime |
$ | 85 | 29.5 | % | $ | 77 | 16.8 | % | ||||||||
Alt-A |
185 | 64.2 | % | 362 | 79.2 | % | ||||||||||
A minus and below |
18 | 6.3 | % | 18 | 4.0 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 288 | 100.0 | % | $ | 457 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Modified pool insurance in force by product |
||||||||||||||||
Prime |
$ | 1,021 | 31.6 | % | $ | 722 | 11.4 | % | ||||||||
Alt-A |
2,060 | 63.7 | % | 5,441 | 86.2 | % | ||||||||||
A minus and below |
151 | 4.7 | % | 152 | 2.4 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 3,232 | 100.0 | % | $ | 6,315 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Reserve for losses - modified pool (in thousands) |
$ | 73,187 | $ | 244,628 | ||||||||||||
Default Statistics: |
||||||||||||||||
Modified pool: |
||||||||||||||||
Total modified pool |
||||||||||||||||
Number of insured loans |
18,725 | 25,325 | ||||||||||||||
Number of loans in default |
3,714 | 7,759 | ||||||||||||||
Percentage of loans in default |
19.83 | % | 30.64 | % |
(1) | Included in primary insurance amounts. |
Page 15
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