Document and Entity Information (USD $) In Billions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Feb. 13, 2015	Jun. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	MGIC INVESTMENT CORP
Entity Central Index Key	0000876437
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3.1
Entity Common Stock, Shares Outstanding		338,920,963
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Securities, available-for-sale, at fair value:
Fixed maturities (amortized cost, 2014 - $4,602,514; 2013 - $4,948,543)	$ 4,609,614	$ 4,863,925
Equity securities	3,055	2,894
Total investment portfolio	4,612,669	4,866,819
Cash and cash equivalents	197,882	332,692
Restricted cash and cash equivalents (note 2)	17,212	17,440
Accrued investment income	30,518	31,660
Prepaid reinsurance premiums (note 11)	47,623	36,243
Reinsurance recoverable on loss reserves (note 11)	57,841	64,085
Reinsurance recoverable on paid losses (note 11)	6,424	10,425
Premiums receivable	57,442	62,301
Home office and equipment, net	28,693	26,185
Deferred insurance policy acquisition costs	12,240	9,721
Profit commission receivable (note 11)	91,500	2,368
Other assets	106,390	141,451
Total assets	5,266,434	5,601,390
Liabilities:
Loss reserves (notes 9 and 11)	2,396,807	3,061,401
Premium deficiency reserve (note 10)	23,751	48,461
Unearned premiums	203,414	154,479
Senior notes (note 8)	61,918	82,773
Convertible senior notes (note 8)	845,000	845,000
Convertible junior debentures (note 8)	389,522	389,522
Other liabilities	309,119	275,216
Total liabilities	4,229,531	4,856,852
Contingencies (note 20)
Shareholders' equity (note 15):
Common stock (one dollar par value, shares authorized 1,000,000; shares issued 2014 and 2013 - 340,047; outstanding 2014 - 338,560; 2013 - 337,758)	340,047	340,047
Paid-in capital	1,663,592	1,661,269
Treasury stock (shares at cost 2014, - 1,487; 2013 - 2,289)	(32,937)	(64,435)
Accumulated other comprehensive loss, net of tax (note 12)	(81,341)	(117,726)
Retained deficit	(852,458)	(1,074,617)
Total shareholders' equity	1,036,903	744,538
Total liabilities and shareholders' equity	$ 5,266,434	$ 5,601,390

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Apr. 30, 2012
Securities, available-for-sale, at fair value:
Fixed maturities, amortized cost	$ 4,602,514	$ 4,948,543
Shareholders' equity (note 15):
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	1,000,000	1,000,000	680,000	460,000
Common stock, shares issued (in shares)	340,047	340,047
Common stock, shares outstanding (in shares)	338,560	337,758
Treasury stock, shares at cost (in shares)	1,487	2,289

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Premiums written:
Direct	$ 999,943	$ 994,910	$ 1,049,549
Assumed	1,653	2,074	2,425
Ceded (note 11)	(119,634)	(73,503)	(34,142)
Net premiums written	881,962	923,481	1,017,832
(Increase) decrease in unearned premiums	(37,591)	19,570	15,338
Net premiums earned (note 11)	844,371	943,051	1,033,170
Investment income, net of expenses (note 6)	87,647	80,739	121,640
Net realized investment gains (losses) (note 6):
Total other-than-temporary impairment losses	(144)	(328)	(2,310)
Portion of losses recognized in other comprehensive income (loss), before taxes (note 12)	0	0	0
Net impairment losses recognized in earnings	(144)	(328)	(2,310)
Other realized investment gains	1,501	6,059	197,719
Net realized gains (losses) on securities	1,357	5,731	195,409
Other revenue	8,422	9,914	28,145
Total revenues	941,797	1,039,435	1,378,364
Losses and expenses:
Losses incurred, net (notes 9 and 11)	496,077	838,726	2,067,253
Change in premium deficiency reserve (note 10)	(24,710)	(25,320)	(61,036)
Amortization of deferred policy acquisition costs	7,618	10,641	7,452
Other underwriting and operating expenses, net (note 11)	138,441	181,877	193,995
Interest expense (note 8)	69,648	79,663	99,344
Total losses and expenses	687,074	1,085,587	2,307,008
Income (loss) before tax	254,723	(46,152)	(928,644)
Provision for (benefit from) income taxes (note 14)	2,774	3,696	(1,565)
Net income (loss)	$ 251,949	$ (49,848)	$ (927,079)
Income (loss) per share (note 3):
Basic (in dollars per share)	$ 0.74	$ (0.16)	$ (4.59)
Diluted (in dollars per share)	$ 0.64	$ (0.16)	$ (4.59)
Weighted average common shares outstanding - basic (note 3) (in shares)	338,523	311,754	201,892
Weighted average common shares outstanding - diluted (note 3) (in shares)	413,547	311,754	201,892
Dividends per share (in dollars per share)	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income (loss)	$ 74,428	$ 72,017	$ 45,522	$ 59,982	$ (1,407)	$ 12,114	$ 12,375	$ (72,930)	$ 251,949	$ (49,848)	$ (927,079)
Other comprehensive income (loss), net of tax (note 12):
Change in unrealized investment gains and losses (note 6)									91,139	(123,591)	(78,659)
Benefit plans adjustment (note 13)									(52,112)	68,038	(1,221)
Foreign currency translation adjustment									(2,642)	(14,010)	1,593
Other comprehensive income (loss), net of tax									36,385	(69,563)	(78,287)
Comprehensive income (loss)									$ 288,334	$ (119,411)	$ (1,005,366)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) In Thousands, unless otherwise specified	Total	Common Stock [Member]	Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings (Deficit) [Member]
Balance at Dec. 31, 2011	$ 1,196,815	$ 205,047	$ 1,135,821	$ (162,542)	$ 30,124	$ (11,635)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(927,079)	0	0	0	0	(927,079)
Change in unrealized investment gains and losses, net (note 6)	(78,659)	0	0	0	(78,659)	0
Reissuance of treasury stock, net (note 15)	(2,733)	0	(8,749)	57,583	0	(51,567)
Equity compensation (note 18)	8,224	0	8,224	0	0	0
Benefit plans adjustments, net (note 13)	(1,221)	0	0	0	(1,221)	0
Unrealized foreign currency translation adjustment, net	1,593	0	0	0	1,593	0
Balance at Dec. 31, 2012	196,940	205,047	1,135,296	(104,959)	(48,163)	(990,281)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(49,848)	0	0	0	0	(49,848)
Change in unrealized investment gains and losses, net (note 6)	(123,591)	0	0	0	(123,591)	0
Common stock issuance (note 15)	663,335	135,000	528,335	0	0	0
Reissuance of treasury stock, net (note 15)	(1,856)	0	(7,892)	40,524	0	(34,488)
Equity compensation (note 18)	5,530	0	5,530	0	0	0
Benefit plans adjustments, net (note 13)	68,038	0	0	0	68,038	0
Unrealized foreign currency translation adjustment, net	(14,010)	0	0	0	(14,010)	0
Balance at Dec. 31, 2013	744,538	340,047	1,661,269	(64,435)	(117,726)	(1,074,617)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	251,949	0	0	0	0	251,949
Change in unrealized investment gains and losses, net (note 6)	91,139	0	0	0	91,139	0
Reissuance of treasury stock, net (note 15)	(4,972)	0	(6,680)	31,498	0	(29,790)
Equity compensation (note 18)	9,003	0	9,003	0	0	0
Benefit plans adjustments, net (note 13)	(52,112)	0	0	0	(52,112)	0
Unrealized foreign currency translation adjustment, net	(2,642)	0	0	0	(2,642)	0
Balance at Dec. 31, 2014	$ 1,036,903	$ 340,047	$ 1,663,592	$ (32,937)	$ (81,341)	$ (852,458)

- Definition

This element represents the amount of recognized equity-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Alternate captions include the words "stock-based compensation".

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- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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- Definition

Value of stock (or other type of equity) issued during the period as a result of any equity-based compensation plan other than an employee stock ownership plan (ESOP), net of stock value of such awards forfeited. Stock issued could result from the issuance of restricted stock, the exercise of stock options, stock issued under employee stock purchase plans, and/or other employee benefit plans.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income (loss)	$ 251,949	$ (49,848)	$ (927,079)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and other amortization	48,365	68,716	100,135
Deferred tax provision (benefit)	312	590	(34)
Realized investment gains, net	(1,501)	(6,059)	(197,719)
Net investment impairment losses	144	328	2,310
Loss (gain) on repurchase on senior notes	837	0	(17,775)
Other	(5,084)	30,077	(21,802)
Change in certain assets and liabilities:
Accrued investment income	1,142	(4,417)	28,423
Prepaid reinsurance premium	(11,380)	(35,402)	776
Reinsurance recoverable on loss reserves	6,244	40,763	49,759
Reinsurance recoverable on paid losses	4,001	5,180	4,286
Premiums receivable	4,859	5,527	3,245
Deferred insurance policy acquisition costs	(2,519)	1,524	(3,740)
Profit commission receivable	(89,132)	(2,368)	0
Real estate	622	(9,817)	(1,842)
Loss reserves	(664,594)	(995,442)	(500,669)
Premium deficiency reserve	(24,710)	(25,320)	(61,036)
Unearned premiums	48,935	15,639	(16,026)
Return premium accrual	22,200	(11,800)	(11,700)
Income taxes payable (current)	(674)	598	1,888
Net cash used in operating activities	(409,984)	(971,531)	(1,568,600)
Purchases of investments:
Fixed maturities	(1,979,917)	(3,248,602)	(5,025,204)
Equity securities	(94)	(111)	(132)
Proceeds from sales of fixed maturities	1,147,624	1,054,985	5,216,934
Proceeds from maturity of fixed maturities	1,129,087	1,357,028	1,461,955
Net increase (decrease) in payable for securities	13	13	(20)
Net decrease (increase) in restricted cash	228	(17,440)	0
Net cash provided by (used in) investing activities	296,941	(854,127)	1,653,533
Cash flows from financing activities:
Net proceeds from convertible senior notes	0	484,625	0
Common stock shares issued	0	663,335	0
Repayment of long-term debt	(21,767)	(17,235)	(53,107)
Net cash (used in) provided by financing activities	(21,767)	1,130,725	(53,107)
Net (decrease) increase in cash and cash equivalents	(134,810)	(694,933)	31,826
Cash and cash equivalents at beginning of year	332,692	1,027,625	995,799
Cash and cash equivalents at end of year	$ 197,882	$ 332,692	$ 1,027,625

Nature of Business

12 Months Ended

Dec. 31, 2014

Nature of Business [Abstract]

Nature of Business

1.	Nature of Business

MGIC Investment Corporation is a holding company which, through Mortgage Guaranty Insurance Corporation (“MGIC”), MGIC Indemnity Corporation (“MIC”) and several other subsidiaries, is principally engaged in the mortgage insurance business. We provide mortgage insurance to lenders throughout the United States and to government sponsored entities to protect against loss from defaults on low down payment residential mortgage loans. Our principal product is primary mortgage insurance. Primary insurance provides mortgage default protection on individual loans and covers unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure or sale approved by us. Prior to 2009, we also wrote pool mortgage insurance. Pool insurance generally covers the excess of the loss on a defaulted mortgage loan which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan which did not require primary insurance. Through certain other non-insurance subsidiaries, we also provide various services for the mortgage finance industry, such as contract underwriting and portfolio analysis and retention. We began our international operations in Australia, where we started to write business in June 2007. Since 2008, we are no longer writing new business in Australia. Our Australian operations are included in our consolidated financial statements; however they are not material to our consolidated results.

At December 31, 2014, our direct domestic primary insurance in force was $164.9 billion, which represents the principal balance in our records of all mortgage loans that we insure, and our direct domestic primary risk in force was $42.9 billion, which represents the insurance in force multiplied by the insurance coverage percentage. Our direct pool risk in force at December 31, 2014 was approximately $0.8 billion ($0.3 billion on pool policies with aggregate loss limits and $0.5 billion on pool policies without aggregate loss limits). Our risk in force in Australia at December 31, 2014 was approximately $346 million which represents the risk associated with 100% coverage on the insurance in force. The mortgage insurance we provided in Australia only covers the unpaid loan balance after the sale of the underlying property.

Capital - GSEs

Substantially all of our insurance written has been for loans sold to Fannie Mae and Freddie Mac (the “GSEs”), each of which has mortgage insurer eligibility requirements. The existing eligibility requirements include a minimum financial strength rating of Aa3/AA-. Because MGIC does not meet the financial strength rating requirement (its financial strength rating from Moody’s is Ba3 (with a stable outlook) and from Standard & Poor’s is BB+ (with a stable outlook)), MGIC is currently operating with each GSE as an eligible insurer under a remediation plan.

On July 10, 2014, the conservator of the GSEs, the Federal Housing Finance Agency (“FHFA”), released draft Private Mortgage Insurer Eligibility Requirements (“draft PMIERs”). The draft PMIERs include revised financial requirements for mortgage insurers (the “GSE Financial Requirements”) that require a mortgage insurer’s “Available Assets” (generally only the most liquid assets of an insurer) to meet or exceed “Minimum Required Assets” (which are based on an insurer's book and calculated from tables of factors with several risk dimensions and are subject to a floor amount).

The public input period for the draft PMIERs ended September 8, 2014. We currently expect the PMIERs to be published in final form no earlier than late in the first quarter of 2015 and the “effective date” to occur 180 days thereafter. Under the draft PMIERs mortgage insurers would have up to two years after the final PMIERs are published to meet the GSE Financial Requirements (the “transition period”). A mortgage insurer that fails to certify by the effective date that it meets the GSE Financial Requirements would be subject to a transition plan having milestones for actions to achieve compliance. The transition plan would be submitted for the approval of each GSE within 90 days after the effective date, and if approved, the GSEs would monitor the insurer’s progress. During the transition period for an insurer with an approved transition plan, an insurer would be in remediation (a status similar to the one under which MGIC has been operating with the GSEs for over five years) and eligible to provide mortgage insurance on loans owned or guaranteed by the GSEs.

Shortly after the draft PMIERs were released, we estimated that we would have a shortfall in Available Assets of approximately $600 million on December 31, 2014, which was when the final PMIERs were expected to be published. We also estimated that the shortfall would be reduced to approximately $300 million through operations over a two year period. Those shortfall projections assumed the risk in force and capital of MGIC’s MIC subsidiary would be repatriated to MGIC, and full credit would be given in the calculation of Minimum Required Assets for our existing reinsurance agreement (approximately $500 million of credit at December 31, 2014, increasing to $600 million of credit over two years). However, we do not expect our existing reinsurance agreement would be given full credit under the PMIERs. Applying the same assumptions, but considering the delay in publication of the final PMIERs, our shortfall projections have improved modestly. Also, we have been in discussions with the participating reinsurers regarding modifications to the agreement so that we would receive additional PMIERs credit.

In addition to modifying our reinsurance agreement, we believe we will be able to use a combination of the alternatives outlined below so that MGIC will meet the GSE Financial Requirements of the draft PMIERs even if they are implemented as released. As of December 31, 2014, we had approximately $491 million of cash and investments at our holding company, a portion of which we believe may be available for future contribution to MGIC. Furthermore, there are regulated insurance affiliates of MGIC that have approximately $100 million of assets as of December 31, 2014. We expect that, subject to regulatory approval, we would be able to use a material portion of these assets to increase the Available Assets of MGIC. Additionally, if the draft PMIERs are implemented as released, we would consider seeking non-dilutive debt capital to mitigate the shortfall. Factors that may negatively impact MGIC’s ability to comply with the GSE Financial Requirements within the transition period include the following:

Changes in the actual PMIERs adopted from the draft PMIERs may increase the amount of MGIC’s Minimum Required Assets or reduce its Available Assets, with the result that the shortfall in Available Assets could increase;

We may not obtain regulatory approval to transfer assets from MGIC’s regulated insurance affiliates to the extent we are assuming because regulators project higher losses than we project or require a level of capital be maintained in these companies higher than we are assuming;

We may not be able to access the non-dilutive debt markets due to market conditions, concern about our creditworthiness, or other factors, in a manner sufficient to provide the funds we are assuming;

We may not be able to achieve modifications in our existing reinsurance agreements necessary to minimize the reduction in the credit for reinsurance under the draft PMIERs;

We may not be able to obtain additional reinsurance necessary to further reduce the Minimum Required Assets due to market capacity, pricing or other reasons (including disapproval of the proposed transaction by a GSE); and

Our future operating results may be negatively impacted by the matters discussed throughout the financial statement footnotes. Such matters could decrease our revenues, increase our losses or require the use of assets, thereby increasing our shortfall in Available Assets.

There also can be no assurance that the GSEs would not make the GSE Financial Requirements more onerous in the future; in this regard, the draft PMIERs provide that the tables of factors that determine Minimum Required Assets may be updated to reflect changes in risk characteristics and the macroeconomic environment. If MGIC ceases to be eligible to insure loans purchased by one or both of the GSEs, it would significantly reduce the volume of our new business writings.

If we are required to increase the amount of Available Assets we hold in order to continue to insure GSE loans, the amount of capital we hold may increase. If we increase the amount of capital we hold with respect to insured loans, our returns may decrease unless we increase premiums. An increase in premium rates may not be feasible for a number of reasons, including competition from other private mortgage insurers, the Federal Housing Administration (“FHA”), the Veteran’s Administration (“VA”) or other credit enhancement products.

See additional disclosure regarding statutory capital in Note 17 – “Statutory Capital.”

Basis of Presentation

12 Months Ended

Dec. 31, 2014

Basis of Presentation [Abstract]

Basis of Presentation

2.	Basis of Presentation

The accompanying consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States of America (“GAAP”), as codified in the Accounting Standards Codification. In accordance with GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Principles of Consolidation

The consolidated financial statements include the accounts of MGIC Investment Corporation and its majority-owned subsidiaries. All intercompany transactions have been eliminated.

Cash and Cash Equivalents

We consider money market funds and investments with original maturities of three months or less to be cash equivalents.

Restricted cash and cash equivalents

During the second quarter of 2013, approximately $60.3 million was placed in escrow in connection with the two agreements we entered into to resolve our dispute with Countrywide Home Loans (“CHL”) and its affiliate, Bank of America, N.A., as successor to Countrywide Home Loans Servicing LP (“BANA” and collectively with CHL, “Countrywide”) regarding rescissions. In the fourth quarter of 2013, approximately $42.9 million was released from escrow in connection with the BANA agreement. At December 31, 2014, approximately $17.2 million remains in escrow in connection with the CHL agreement. See additional discussion of these settlement agreements in Note 20 – “Litigation and contingencies.”

Reclassifications

Certain reclassifications have been made in the accompanying consolidated financial statements to 2013 and 2012 amounts to conform to the 2014 presentation.

Subsequent Events

We have considered subsequent events through the date of this filing.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

3.	Summary of Significant Accounting Policies

Fair value measurements

In accordance with fair value guidance, we applied the following fair value hierarchy in order to measure fair value for assets and liabilities:

Level 1 – Quoted prices for identical instruments in active markets that we can access. Financial assets utilizing Level 1 inputs primarily include U.S. Treasury securities, equity securities, and Australian government and semi government securities.

Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and inputs, other than quoted prices, that are observable in the marketplace for the financial instrument. The observable inputs are used in valuation models to calculate the fair value of the financial instruments. Financial assets utilizing Level 2 inputs primarily include obligations of U.S. government corporations and agencies and certain municipal and corporate bonds.

Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. Level 3 inputs reflect our own assumptions about the assumptions a market participant would use in pricing an asset or liability. Financial assets utilizing Level 3 inputs primarily include certain state premium tax credit investments. Our non-financial assets that are classified as Level 3 securities consist of real estate acquired through claim settlement. The fair value of real estate acquired is the lower of our acquisition cost or a percentage of the appraised value. The percentage applied to the appraised value is based upon our historical sales experience adjusted for current trends.

To determine the fair value of securities available-for-sale in Level 1 and Level 2 of the fair value hierarchy, independent pricing sources have been utilized. One price is provided per security based on observable market data. To ensure securities are appropriately classified in the fair value hierarchy, we review the pricing techniques and methodologies of the independent pricing sources and believe that their policies adequately consider market activity, either based on specific transactions for the issue valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. A variety of inputs are utilized by the independent pricing sources including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers and reference data including data published in market research publications. Inputs may be weighted differently for any security, and not all inputs are used for each security evaluation. Market indicators, industry and economic events are also considered. This information is evaluated using a multidimensional pricing model. Quality controls are performed by the independent pricing sources throughout this process, which include reviewing tolerance reports, trading information and data changes, and directional moves compared to market moves. This model combines all inputs to arrive at a value assigned to each security. In addition, on a quarterly basis, we perform quality controls over values received from the pricing sources which include reviewing tolerance reports, trading information and data changes, and directional moves compared to market moves. We have not made any adjustments to the prices obtained from the independent pricing sources.

Investments

Our entire investment portfolio is classified as available-for-sale and is reported at fair value. The related unrealized gains or losses are, after considering the related tax expense or benefit, recognized as a component of accumulated other comprehensive income (loss) in shareholders' equity. Realized investment gains and losses are reported in income based upon specific identification of securities sold. (See Note 6 – “Investments.”)

Each quarter we perform reviews of our investments in order to determine whether declines in fair value below amortized cost were considered other-than-temporary in accordance with applicable guidance. In evaluating whether a decline in fair value is other-than-temporary, we consider several factors including, but not limited to:

§	our intent to sell the security or whether it is more likely than not that we will be required to sell the security before recovery;

§	extent and duration of the decline;

§	failure of the issuer to make scheduled interest or principal payments;

§	change in rating below investment grade; and

§	adverse conditions specifically related to the security, an industry, or a geographic area.

Based on our evaluation, we will record an other-than-temporary impairment adjustment on a security if we intend to sell the impaired security, 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 the cash flows we expect to collect is less than the amortized cost basis of the security. If the fair value of a security is below its amortized cost at the time of our intent to sell, 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, when a security is considered to be other-than-temporarily impaired, the losses are separated into the portion of the loss that represents the credit loss; and 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 the discounted cash flows, using the security’s original yield, expected to be collected from the security are less than the cost basis of the security.

Home office and equipment

Home office and equipment is carried at cost net of depreciation. For financial statement reporting purposes, depreciation is determined on a straight-line basis for the home office, equipment and data processing hardware over estimated lives of 45, 5 and 3 years, respectively. For income tax purposes, we use accelerated depreciation methods.

Home office and equipment is shown net of accumulated depreciation of $54.9 million, $53.0 million and $51.3 million at December 31, 2014, 2013 and 2012, respectively. Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $2.2 million, $1.8 million and $1.9 million, respectively.

Deferred Insurance Policy Acquisition Costs

Costs directly associated with the successful acquisition of mortgage insurance business, consisting of employee compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred insurance policy acquisition costs (“DAC”). The deferred costs are net of any ceding commissions received associated with our reinsurance agreements. For each underwriting year of business, these costs are amortized to income in proportion to estimated gross profits over the estimated life of the policies. We utilize anticipated investment income in our calculation. This includes accruing interest on the unamortized balance of DAC. The estimates for each underwriting year are reviewed quarterly and updated when necessary to reflect actual experience and any changes to key variables such as persistency or loss development. If a premium deficiency exists (in other words, no gross profit is expected), we reduce the related DAC by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than the related DAC balance, we then establish a premium deficiency reserve equal to the excess, by means of a charge to current period earnings.

Loss Reserves

Reserves are established for reported insurance losses and loss adjustment expenses based on when we receive notices of default on insured mortgage loans. We consider a loan in default when it is two or more payments past due. Even though the accounting standard, Accounting Standards Codification (“ASC”) 944, regarding accounting and reporting by insurance entities specifically excludes mortgage insurance from its guidance relating to loss reserves, we establish loss reserves using the general principles contained in the insurance standard. However, consistent with industry standards for mortgage insurers, we do not establish loss reserves for future claims on insured loans which are not currently in default. Loss reserves are established by estimating the number of loans in our inventory of delinquent loans that will result in a claim payment, which is referred to as the claim rate, and further estimating the amount of the claim payment, which is referred to as claim severity. Our loss estimates are established based upon historical experience, including rescission and loan modification activity. Adjustments to reserve estimates are reflected in the financial statements in the years in which the adjustments are made. The liability for reinsurance assumed is based on information provided by the ceding companies.

Reserves are also established for estimated losses from defaults occurring prior to the close of an accounting period on notices of default not yet reported to us. These incurred but not reported (“IBNR”) reserves are also established using estimated claim rates and claim severities.

Reserves also provide for the estimated costs of settling claims, including legal and other expenses and general expenses of administering the claims settlement process. Reserves are also ceded to reinsurers under our reinsurance agreements. (See Note 9 – “Loss Reserves” and Note 11 – “Reinsurance.”)

Premium Deficiency Reserve

After our loss reserves are initially established, we perform premium deficiency tests using our best estimate assumptions as of the testing date. Premium deficiency reserves are established, if necessary, when the present value of expected future losses and expenses exceeds the present value of expected future premium and already established reserves. The discount rate used in the calculation of the premium deficiency reserve is based upon our pre-tax investment yield at year-end. Products are grouped for premium deficiency purposes based on similarities in the way the products are acquired, serviced and measured for profitability.

Calculations of premium deficiency reserves require the use of significant judgments and estimates to determine the present value of future premium and present value of expected losses and expenses on our business. The present value of future premium relies on, among other factors, assumptions about persistency and repayment patterns on underlying loans. The present value of expected losses and expenses depends on assumptions relating to severity of claims and claim rates on current defaults, and expected defaults in future periods. These assumptions also include an estimate of expected rescission activity. Assumptions used in calculating the deficiency reserves can be affected by volatility in the current housing and mortgage lending industries and these effects could be material. To the extent premium patterns and actual loss experience differ from the assumptions used in calculating the premium deficiency reserves, the differences between the actual results and our estimate will affect future period earnings. (See Note 10 - “Premium Deficiency Reserve.”)

Revenue Recognition

We write policies which are guaranteed renewable contracts at the insured's option on a monthly, single, or annual premium basis. We have no ability to reunderwrite or reprice these contracts. Premiums written on monthly policies are earned as coverage is provided. Premiums written on a single premium basis and an annual premium basis are initially deferred as unearned premium reserve and earned over the policy life. Premiums written on policies covering more than one year are amortized over the policy life in relationship to the anticipated incurred loss pattern based on historical experience. Premiums written on annual policies are earned on a monthly pro rata basis. When a policy is cancelled for a reason other than rescission or claim payment, all premium that is non-refundable is immediately earned. Any refundable premium is returned to the servicer or borrower. Cancellations also include rescissions and policies cancelled due to claim payment. When a policy is rescinded, all previously collected premium is returned to the lender and when a claim is paid we return any premium received since the date of default. The liability associated with our estimate of premium to be returned is accrued for separately and separate components of this liability are included in “Other liabilities” and “Premium deficiency reserves” on our consolidated balance sheet. Changes in these liabilities affect premiums written and earned and change in premium deficiency reserve, respectively. The actual return of premium for all periods affects premiums written and earned. Policy cancellations also lower the persistency rate which is a variable used in calculating the rate of amortization of deferred insurance policy acquisition costs.

Fee income of our non-insurance subsidiaries is earned and recognized as the services are provided and the customer is obligated to pay. Fee income consists primarily of contract underwriting and related fee-based services provided to lenders and is included in “Other revenue” on the consolidated statements of operations.

Income Taxes

Deferred income taxes are provided under the liability method, which recognizes the future tax effects of temporary differences between amounts reported in the financial statements and the tax bases of these items. The expected tax effects are computed at the enacted regular federal tax rate. Using this method, we have recorded a net deferred tax asset, before valuation allowance, in large part due to net operating losses incurred in prior years. On a quarterly basis, we review the need to maintain a deferred tax asset valuation allowance as an offset to the net deferred tax asset, before valuation allowance. We analyze several factors, among which are the severity and frequency of operating losses, our capacity for the carryback or carryforward of any losses, the existence and current level of taxable operating income, the expected occurrence of future income or loss, the expiration dates of the carryforwards, the cyclical nature of our operating results, and available tax planning strategies. As discussed in Note 14 –“Income Taxes,” we continue to reduce our benefit from income tax through the recognition of a valuation allowance.

We provide for uncertain tax positions and the related interest and penalties based on our assessment of whether a tax benefit is more likely than not to be sustained under any examination by taxing authorities.

Benefit Plans

We have a non-contributory defined benefit pension plan covering substantially all employees, as well as a supplemental executive retirement plan. Retirement benefits are based on compensation and years of service. We recognize these retirement benefit costs over the period during which employees render the service that qualifies them for benefits. Our policy is to fund pension cost as required under the Employee Retirement Income Security Act of 1974.

We offer both medical and dental benefits for retired domestic employees, their eligible spouses and dependents until the retiree reaches the age of 65. Under the plan retirees pay a premium for these benefits. We accrue the estimated costs of retiree medical and dental benefits over the period during which employees render the service that qualifies them for benefits. (See Note 13 – “Benefit Plans.”)

Reinsurance

Loss reserves and unearned premiums are reported before taking credit for amounts ceded under reinsurance agreements. Ceded loss reserves are reflected as "Reinsurance recoverable on loss reserves." Ceded unearned premiums are reflected as “Prepaid reinsurance premiums.” Amounts due from reinsurers on paid claims are reflected as “Reinsurance recoverable on paid losses.” Ceded premiums payable are included in “Other liabilities.” Any profit commissions are included with “Premiums written – Ceded” and any ceding commissions are included with “Other underwriting and operating expenses, net.” We remain liable for all reinsurance ceded. (See Note 11 – “Reinsurance.”)

Foreign Currency Translation

Assets and liabilities denominated in a foreign currency are translated at the 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 (loss) in shareholders’ equity. Gains and losses resulting from transactions in a foreign currency are recorded in current period net income (loss) at the rate on the transaction date.

Share-Based Compensation

We have certain share-based compensation plans. Under the fair value method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period which generally corresponds to the vesting period. The fair value of awards classified as liabilities is remeasured at each reporting period until the award is settled. Awards under our plans generally vest over periods ranging from one to three years. (See Note 18 – “Share-based Compensation Plans.”)

Earnings per Share

Basic earnings per share (“EPS”) is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted EPS includes the components of basic EPS and also gives effect to dilutive common stock equivalents. We calculate diluted EPS using the treasury stock method and if-converted method. Under the treasury stock method, diluted EPS reflects the potential dilution that could occur if unvested restricted stock or granted stock options result in the issuance of common stock. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our convertible debt instruments result in the issuance of common stock. The determination of potentially issuable shares does not consider the satisfaction of the conversion requirements and the shares are included in the determination of diluted EPS as of the beginning of the period, if dilutive. We have several debt issuances that could potentially result in contingently issuable shares and consider each potential issuance of shares separately to reflect the maximum potential dilution. Accordingly, our dilutive common stock equivalents may not reflect all of the potential contingently issuable shares that could be required to be issued upon any debt conversion. For purposes of calculating basic and diluted EPS, vested restricted stock awards are considered outstanding.

GAAP requires unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, to be treated as participating securities and included in the computation of EPS pursuant to the two-class method. Our participating securities are composed of unvested restricted stock with non-forfeitable rights to dividends. There have been no dividends declared by us since the issuance of these participating securities and there has been no reduction to net income available to common shareholders. For the year ended December 31, 2014, participating securities of 0.1 million have been included in basic EPS and 0.1 million and 1.1 million have been excluded for the years ended December 31, 2013 and 2012, respectively, as they are anti-dilutive due to our net losses.

The computation of diluted EPS for the year ended December 31, 2014 includes the weighted average unvested restricted stock units outstanding of 3.1 million. During 2013 and 2012 we reported a consolidated net loss. As a result of the net loss, unvested restricted stock awards were anti-dilutive for the year and were not included in the computation of diluted weighted average shares.

For the year ended December 31, 2014, the outstanding Convertible Senior Notes due in 2020 are reflected in diluted earnings per share using the “if-converted” method. Under this method, if dilutive, the common stock is assumed issued as of the beginning the reporting period and included in calculating diluted EPS. In addition, if dilutive, interest expense, net of tax, related to the outstanding Convertible Senior Notes due in 2020 is added back to earnings in calculating diluted EPS. For the year ended December 31, 2014, 2013, and 2012, common stock equivalents under our convertible debt instruments of 54.5 million, 126.4 million, and 60.7 million, respectively, were excluded from weighted average shares as they were anti-dilutive.

The following table reconciles basic and diluted EPS amounts:

	Years Ended December 31,

	2014		2013			2012
	(In thousands, except per share data)

Basic earnings (loss) per share:

Net income (loss)	$	251,949	$	(49,848	)	$	(927,079	)
Average common shares outstanding		338,523		311,754			201,892
Basic income (loss) per share	$	0.74	$	(0.16	)	$	(4.59	)

Diluted earnings (loss) per share:

Net income (loss)	$	251,949	$	(49,848	)	$	(927,079	)

Interest expense, net of tax:
2% Convertible Senior Notes due 2020		12,197		-			-

Diluted income available to common shareholders	$	264,146	$	(49,848	)	$	(927,079	)

Weighted-average shares - Basic		338,523		311,754			201,892
Effect of dilutive securities:
Unvested restricted stock		3,082		-			-
Convertible debt common stock equivalents		71,942		-			-

Weighted-average shares - Diluted		413,547		311,754			201,892

Diluted income (loss) per share	$	0.64	$	(0.16	)	$	(4.59	)

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

New Accounting Policies

12 Months Ended

Dec. 31, 2014

New Accounting Policies [Abstract]

New Accounting Policies

4.	New Accounting Policies

In August 2014, the FASB issued an update that requires management to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The guidance is effective for annual periods ending after December 15, 2016 and for interim and annual periods thereafter. We do not expect the adoption of this update to have a material effect on the presentation of our consolidated financial statements and disclosures.

In June 2014, the FASB issued updated guidance to resolve diversity in practice concerning employee shared-based payments that contain performance targets that could be achieved after the requisite service period. The updated guidance requires that a performance target that affects vesting and that can be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which service has been rendered. If the performance target becomes probable of being achieved before the end of the service period, the remaining unrecognized compensation cost for which requisite service has not yet been rendered is recognized prospectively over the remaining service period. The total amount of compensation cost recognized during and after the service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. This updated guidance is effective for annual and interim periods beginning after December 15, 2015. The adoption of this guidance is not expected to have a significant impact on our consolidated financial statements and disclosures.

In May 2014, the FASB issued updated guidance to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, our fee income related to contract underwriting and other fee-based services provided to lenders will be subject to this guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for the quarter ending March 31, 2017. The adoption of this guidance is not expected to have a significant impact on our consolidated financial statements and disclosures.

In July 2013, the FASB issued an update to the accounting standard regarding income taxes. This update provides guidance concerning the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward (the “Carryforwards”) is available. This accounting standard requires an entity to net its liability related to unrecognized tax benefits against the related deferred tax assets for the Carryforwards. A gross presentation will be required when the Carryforwards are not available under the tax law of the applicable jurisdiction or when the Carryforwards would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax position. This update is effective for fiscal years and interim periods within such years beginning after December 15, 2013. We are currently in compliance with this new guidance. It did not have a significant impact on our consolidated financial statements and disclosures.

Related Party Transactions

12 Months Ended

Dec. 31, 2014

Related Party Transactions

5.	Related Party Transactions

There were no related party transactions during 2014, 2013 or 2012.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

Investments

12 Months Ended

Dec. 31, 2014

Investments [Abstract]

Investments

6.	Investments

The amortized cost, gross unrealized gains and losses and fair value of the investment portfolio at December 31, 2014 and 2013 are shown below:

December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Fair Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	349,153	$	2,752	$	(5,130	)	$	346,775
Obligations of U.S. states and political subdivisions		844,942		12,961		(2,761	)		855,142
Corporate debt securities		2,418,991		16,325		(10,035	)		2,425,281
Asset-backed securities		286,260		535		(140	)		286,655
Residential mortgage-backed securities		329,983		254		(9,000	)		321,237
Commercial mortgage-backed securities		276,215		1,221		(2,158	)		275,278
Collateralized loan obligations		61,340		-		(1,264	)		60,076
Debt securities issued by foreign sovereign governments		35,630		3,540		-			39,170
Total debt securities		4,602,514		37,588		(30,488	)		4,609,614
Equity securities		3,003		61		(9	)		3,055

Total investment portfolio	$	4,605,517	$	37,649	$	(30,497	)	$	4,612,669

December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Fair Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	663,642	$	1,469	$	(25,521	)	$	639,590
Obligations of U.S. states and political subdivisions		932,922		5,865		(17,420	)		921,367
Corporate debt securities		2,190,095		6,313		(24,993	)		2,171,415
Asset-backed securities		399,839		1,100		(453	)		400,486
Residential mortgage-backed securities		383,368		146		(24,977	)		358,537
Commercial mortgage-backed securities		277,920		131		(6,668	)		271,383
Collateralized loan obligations		61,337		-		(1,042	)		60,295
Debt securities issued by foreign sovereign governments		39,420		1,722		(290	)		40,852
Total debt securities		4,948,543		16,746		(101,364	)		4,863,925
Equity securities		2,908		9		(23	)		2,894

Total investment portfolio	$	4,951,451	$	16,755	$	(101,387	)	$	4,866,819

(1)	There were no other-than-temporary impairment losses recorded in other comprehensive income (loss) at December 31, 2014 and 2013.

Our foreign investments primarily consist of the investment portfolio supporting our Australian domiciled subsidiary. In December 2013, our Australian subsidiary liquidated a portion of its investment portfolio and repatriated, with regulatory approval, $89.5 million to its parent MGIC. The remaining portfolio is comprised of Australian government and semi government securities, representing 86% of the market value of our foreign investments with the remaining 10% invested in corporate securities and 4% in cash equivalents. Eighty-three percent of the Australian portfolio is rated AAA, by one or more of Moody’s, Standard & Poor’s and Fitch Ratings, and the remaining 17% is rated AA. At December 31, 2014 the investment portfolio fair value in our Australian operations was approximately $46 million.

The amortized cost and fair values of debt securities at December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because most asset-backed and mortgage-backed securities and collateralized loan obligations provide for periodic payments throughout their lives, they are listed below in separate categories.

December 31, 2014	Amortized Cost		Fair Value
	(In thousands)

Due in one year or less	$	330,602	$	330,982
Due after one year through five years		1,903,661		1,909,422
Due after five years through ten years		1,063,679		1,069,433
Due after ten years		350,774		356,531
		3,648,716		3,666,368

Asset-backed securities		286,260		286,655
Residential mortgage-backed securities		329,983		321,237
Commercial mortgage-backed securities		276,215		275,278
Collateralized loan obligations		61,340		60,076

Total at December 31, 2014	$	4,602,514	$	4,609,614

At December 31, 2014 and 2013, the investment portfolio had gross unrealized losses of $30.5 million and $101.4 million, respectively. For those securities in an unrealized loss position, the length of time the securities were in such a position, as measured by their month-end fair values, is as follows:

	Less Than 12 Months				12 Months or Greater				Total
December 31, 2014	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	58,166	$	138	$	232,351	$	4,992	$	290,517	$	5,130
Obligations of U.S. states and political subdivisions		166,408		1,066		114,465		1,695		280,873		2,761
Corporate debt securities		816,555		5,259		243,208		4,776		1,059,763		10,035
Asset-backed securities		54,491		80		11,895		60		66,386		140
Residential mortgage-backed securities		24,168		34		263,002		8,966		287,170		9,000
Commercial mortgage-backed securities		89,301		810		110,652		1,348		199,953		2,158
Collateralized loan obligations		-		-		60,076		1,264		60,076		1,264
Debt securities issued by foreign sovereign governments		-		-		-		-		-		-
Equity securities		167		1		235		8		402		9
Total investment portfolio	$	1,209,256	$	7,388	$	1,035,884	$	23,109	$	2,245,140	$	30,497

	Less Than 12 Months				12 Months or Greater				Total
December 31, 2013	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	465,975	$	24,980	$	4,103	$	541	$	470,078	$	25,521
Obligations of U.S. states and political subdivisions		503,967		17,370		4,226		50		508,193		17,420
Corporate debt securities		1,238,211		20,371		81,593		4,622		1,319,804		24,993
Asset-backed securities		126,991		387		7,114		66		134,105		453
Residential mortgage-backed securities		91,534		3,886		265,827		21,091		357,361		24,977
Commercial mortgage-backed securities		192,440		6,239		43,095		429		235,535		6,668
Collateralized loan obligations		60,295		1,042		-		-		60,295		1,042
Debt securities issued by foreign sovereign governments		7,203		290		-		-		7,203		290
Equity securities		1,012		18		75		5		1,087		23
Total investment portfolio	$	2,687,628	$	74,583	$	406,033	$	26,804	$	3,093,661	$	101,387

The unrealized losses in all categories of our investments at December 31, 2014 were primarily caused by the difference in interest rates at December 31, 2014 compared to interest rates at the time of purchase. There were 423 and 571 securities in an unrealized loss position at December 31, 2014 and 2013, respectively. At December 31, 2014, the fair value as a percent of amortized cost of the securities in an unrealized loss position was 99% and approximately half of the securities in an unrealized loss position were backed by the U.S. Government.

We recognized other-than-temporary impairment (“OTTI”) losses in earnings of $0.1 million and $0.3 million during 2014 and 2013, respectively. During 2012 we recognized OTTI losses in earnings of $2.3 million, related to impairments on certain auction rate securities.

For the years ended December 31, 2014, 2013, and 2012, there were no credit losses recognized in earnings for which a portion of an OTTI loss was recognized in accumulated other comprehensive income (loss).

Net investment income is comprised of the following:

	2014			2013			2012
	(In thousands)

Fixed maturities	$	89,437		$	82,168		$	122,886
Equity securities		227			229			200
Cash equivalents		179			353			333
Other		711			675			782

Investment income		90,554			83,425			124,201
Investment expenses		(2,907	)		(2,686	)		(2,561	)

Net investment income	$	87,647		$	80,739		$	121,640

The net realized investment gains (losses), including impairment losses, and change in net unrealized gains (losses) of investments are as follows:

	2014		2013			2012
	(In thousands)
Net realized investment gains (losses) on investments:
Fixed maturities	$	1,000	$	3,274		$	195,652
Equity securities		356		1,068			487
Other		1		1,389			(730	)

Total net realized investment gains	$	1,357	$	5,731		$	195,409

Change in net unrealized gains (losses):
Fixed maturities	$	91,718	$	(126,020	)	$	(78,604	)
Equity securities		66		(153	)		58
Other		-		-			-
Total increase (decrease) in net unrealized gains/losses	$	91,784	$	(126,173	)	$	(78,546	)

The gross realized gains, gross realized losses and impairment losses are as follows:

	2014			2013			2012
	(In thousands)


Gross realized gains	$	4,966		$	11,043		$	213,827
Gross realized losses		(3,465	)		(4,984	)		(16,108	)
Impairment losses		(144	)		(328	)		(2,310	)

Net realized gains on securities	$	1,357		$	5,731		$	195,409

We had $20.2 million and $20.3 million of investments at fair value on deposit with various states at December 31, 2014 and 2013, respectively, due to regulatory requirements of those state insurance departments.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-URI http://asc.fasb.org/extlink&oid=6511694

+ Details

Fair Value Measurements

12 Months Ended

Dec. 31, 2014

Fair Value Measurements [Abstract]

Fair Value Measurements

7.	Fair Value Measurements

Assets measured at fair value included those listed, by hierarchy level, in the following tables as of December 31, 2014 and 2013:

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2014

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	346,775	$	188,824	$	157,951	$	-
Obligations of U.S. states and political subdivisions		855,142		-		853,296		1,846
Corporate debt securities		2,425,281		-		2,425,281		-
Asset-backed securities		286,655		-		286,655		-
Residential mortgage-backed securities		321,237		-		321,237		-
Commercial mortgage-backed securities		275,278		-		275,278		-
Collateralized loan obligations		60,076		-		60,076		-
Debt securities issued by foreign sovereign governments		39,170		39,170		-		-
Total debt securities		4,609,614		227,994		4,379,774		1,846
Equity securities		3,055		2,734		-		321
Total investments	$	4,612,669	$	230,728	$	4,379,774	$	2,167
Real estate acquired (1)	$	12,658	$	-	$	-	$	12,658

(1)	Real estate acquired through claim settlement, which is held for sale, is reported in Other Assets on the consolidated balance sheets.

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2013

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	639,590	$	347,273	$	292,317	$	-
Obligations of U.S. states and political subdivisions		921,367		-		918,944		2,423
Corporate debt securities		2,171,415		-		2,171,415		-
Asset-backed securities		400,486		-		400,486		-
Residential mortgage-backed securities		358,537		-		358,537		-
Commercial mortgage-backed securities		271,383		-		271,383		-
Collateralized loan obligations		60,295		-		60,295		-
Debt securities issued by foreign sovereign governments		40,852		40,852		-		-
Total debt securities		4,863,925		388,125		4,473,377		2,423
Equity securities		2,894		2,573		-		321
Total investments	$	4,866,819	$	390,698	$	4,473,377	$	2,744
Real estate acquired (1)	$	13,280	$	-	$	-	$	13,280

(1)	Real estate acquired through claim settlement, which is held for sale, is reported in Other Assets on the consolidated balance sheets.

During the third quarter of 2014, we changed the classification of our U.S. government corporations and agencies securities from Level 1 to Level 2 within the fair value hierarchy. The fair value of our U.S. government corporations and agencies securities, in current market conditions, is determined from quoted prices for similar instruments in active markets, which is in accordance with our policy for determining fair value for Level 2 securities. The classification within the fair value table as of December 31, 2013 has been revised to conform to the 2014 presentation, as we believe the most appropriate classification for these securities was Level 2 as of that date.

For assets and liabilities measured at fair value using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances for the years ended December 31, 2014 and 2013 is as follows:

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities		Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at December 31, 2013	$	2,423		$	-	$	321	$	2,744		$	13,280
Total realized/unrealized gains (losses):
Included in earnings and reported as losses incurred, net		-			-		-		-			(4,129	)
Purchases		30			-		-		30			42,247
Sales		(607	)		-		-		(607	)		(38,740	)
Transfers into Level 3		-			-		-		-			-
Transfers out of Level 3		-			-		-		-			-
Balance at December 31, 2014	$	1,846		$	-	$	321	$	2,167		$	12,658

Amount of total losses included in earnings for the year ended December 31, 2014 attributable to the change in unrealized losses on assets still held at December 31, 2014	$	-		$	-	$	-	$	-		$	-

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities			Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at December 31, 2012	$	3,130		$	17,114		$	321	$	20,565		$	3,463
Total realized/unrealized gains (losses):
Included in earnings and reported as realized investment gains (losses), net		-			(225	)		-		(225	)		-
Included in earnings and reported as losses incurred, net		-			-			-		-			(4,959	)
Purchases		30			-			-		30			39,188
Sales		(737	)		(16,889	)		-		(17,626	)		(24,412	)
Transfers into Level 3		-			-			-		-			-
Transfers out of Level 3		-			-			-		-			-
Balance at December 31, 2013	$	2,423		$	-		$	321	$	2,744		$	13,280

Amount of total losses included in earnings for the year ended December 31, 2013 attributable to the change in unrealized losses on assets still held at December 31, 2013	$	-		$	-		$	-	$	-		$	-

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities			Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at December 31, 2011	$	114,226		$	60,228		$	321	$	174,775		$	1,621
Total realized/unrealized gains (losses):
Included in earnings and reported as realized investment gains (losses), net		(8,669	)		(3,129	)		-		(11,798	)		-
Included in earnings and reported as net impairment losses recognized in earnings		-			(2,310	)		-		(2,310	)
Included in earnings and reported as losses incurred, net		-			-			-		-			(1,126	)
Included in other comprehensive income		5,630			733			-		6,363			-
Purchases		27			-			-		27			11,991
Sales		(108,084	)		(38,408	)		-		(146,492	)		(9,023	)
Transfers into Level 3		-			-			-		-			-
Transfers out of Level 3		-			-			-		-			-
Balance at December 31, 2012	$	3,130		$	17,114		$	321	$	20,565		$	3,463

Amount of total losses included in earnings for the year ended December 31, 2012 attributable to the change in unrealized losses on assets still held at December 31, 2012	$	-		$	-		$	-	$	-		$	-

Authoritative guidance over disclosures about the fair value of financial instruments requires additional disclosure for financial instruments not measured at fair value. Certain financial instruments, including insurance contracts, are excluded from these fair value disclosure requirements. The carrying values of cash and cash equivalents (Level 1) and accrued investment income (Level 2) approximated their fair values.

During 2013 we sold our remaining auction rate securities. At December 31, 2014, the majority of the $2 million balance of Level 3 securities is state premium tax credit investments. The state premium tax credit investments have an average maturity of less than 5 years, credit ratings of AA+ or higher, and their balance reflects their remaining scheduled payments discounted at an average annual rate of 7.3%.

Additional fair value disclosures related to our investment portfolio are included in Note 6 – “Investments.” Fair value disclosures related to our debt are included in Note 8 – “Debt.”

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

Debt

12 Months Ended

Dec. 31, 2014

Debt [Abstract]

Debt

5.375% Senior Notes – due November 2015

At December 31, 2014 and 2013 we had outstanding $61.9 million and $82.9 million, respectively, of 5.375% Senior Notes due in November 2015. Interest on these notes is payable semi-annually in arrears on May 1 and November 1 each year. During the second quarter of 2013 we repurchased $17.2 million of those Senior Notes at par value. In addition, in February 2014, we repurchased an additional $20.9 million in par value at a cost slightly above par. Covenants in the Senior Notes include the requirement that there be no liens on the stock of the designated subsidiaries unless the Senior Notes are equally and ratably secured; that there be no disposition of the stock of designated subsidiaries unless all of the stock is disposed of for consideration equal to the fair market value of the stock; and that we and the designated subsidiaries preserve our corporate existence, rights and franchises unless we or any such subsidiary determines that such preservation is no longer necessary in the conduct of its business and that the loss thereof is not disadvantageous to the Senior Notes. A designated subsidiary is any of our consolidated subsidiaries which has shareholders’ equity of at least 15% of our consolidated shareholders’ equity. Further, the notes are subject to the indenture between us and the trustee that, among other terms, include provisions that would constitute an event of default under the indenture. Upon such a default, the trustee could accelerate the maturity of the notes independent of any action by holders of the Senior Notes. This description is not intended to be complete in all respect and is qualified in its entirety by the terms of the Senior Notes, including their covenants and events of default. We were in compliance with all covenants at December 31, 2014.

Interest payments on the Senior Notes were $3.6 million and $5.1 million for the years ended December 31, 2014 and 2013, respectively.

5% Convertible Senior Notes – due May 2017

At December 31, 2014 and 2013 we had outstanding $345 million principal amount of 5% Convertible Senior Notes due in May 2017. Interest on the 5% Notes is payable semi-annually in arrears on May 1 and November 1 of each year. The 5% Notes will mature on May 1, 2017. The 5% Notes are convertible, at the holder's option, at an initial conversion rate, which is subject to adjustment, of 74.4186 shares per $1,000 principal amount at any time prior to the maturity date. This represents an initial conversion price of approximately $13.44 per share. These 5% Notes will be equal in right of payment to our other senior debt and will be senior in right of payment to our Convertible Junior Debentures. Debt issuance costs are being amortized to interest expense over the contractual life of the 5% Notes.

The provisions of the 5% Notes are complex. Covenants in the 5% Notes include a requirement to notify holders in advance of certain events and that we and the designated subsidiaries (defined above) preserve our corporate existence, rights and franchises unless we or any such subsidiary determines that such preservation is no longer necessary in the conduct of its business and that the loss thereof is not disadvantageous to the 5% Notes. Further, the notes are subject to the indenture between us and the trustee that, among other terms, include provisions that would constitute an event of default under the indenture. Upon such a default, the trustee could accelerate the maturity of the notes independent of any action by holders of the 5% Notes. This description is not intended to be complete in all respect and is qualified in its entirety by the terms of the 5% Notes, including their covenants and events of default. We were in compliance with all covenants at December 31, 2014.

Interest payments on the 5% Notes were $17.3 million in each of the years ended December 31, 2014 and 2013.

2% Convertible Senior Notes – due April 2020

At December 31, 2014 and 2013, we had outstanding $500 million principal amount of 2% Convertible Senior Notes due in 2020 which we issued in March 2013. We received net proceeds of approximately $484.6 million after deducting underwriting discount and offering expenses. See Note 15 – “Shareholders’ Equity” for information regarding the use of such proceeds. Interest on the 2% Notes is payable semi-annually in arrears on April 1 and October 1 of each year. The 2% Notes will mature on April 1, 2020, unless earlier repurchased by us or converted. Prior to January 1, 2020, the 2% Convertible Senior Notes are convertible only upon satisfaction of one or more conditions. One such condition is that during any calendar quarter commencing after March 31, 2014, the last reported sale price of our common stock for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter be greater than or equal to 130% of the applicable conversion price on each applicable trading day. The 2% Notes are convertible at an initial conversion rate, which is subject to adjustment, of 143.8332 shares per $1,000 principal amount. This represents an initial conversion price of approximately $6.95 per share. 130% of such conversion price is $9.03. On or after January 1, 2020, holders may convert their notes irrespective of satisfaction of the conditions. These 2% Notes will be equal in right of payment to our other senior debt and will be senior in right of payment to our Convertible Junior Debentures. Debt issuance costs will be amortized to interest expense over the contractual life of the 2% Notes. Prior to April 10, 2017, the notes will not be redeemable. On any business day on or after April 10, 2017 we may redeem for cash all or part of the notes, at our option, at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus any accrued and unpaid interest, if the closing sale price of our common stock exceeds 130% of the then prevailing conversion price of the notes for at least 20 of the 30 trading days preceding notice of the redemption.

The provisions of the 2% Notes are complex. Covenants in the 2% Notes include a requirement to notify holders in advance of certain events and that we and the designated subsidiaries (defined above) preserve our corporate existence, rights and franchises unless we or any such subsidiary determines that such preservation is no longer necessary in the conduct of its business and that the loss thereof is not disadvantageous to the 2% Notes. Further, the notes are subject to the indenture between us and the trustee that, among other terms, include provisions that would constitute an event of default under the indenture. Upon such a default, the trustee could accelerate the maturity of the notes independent of any action by holders of the 2% Notes. This description is not intended to be complete in all respect and is qualified in its entirety by the terms of the 2% Notes, including their covenants and events of default. We were in compliance with all covenants at December 31, 2014.

Interest payments on the 2% Notes were $10.0 million and $5.5 million for the years ended December 31, 2014 and 2013, respectively.

9% Convertible Junior Subordinated Debentures – due April 2063

At December 31, 2014 and 2013 we had outstanding $389.5 million principal amount of 9% Convertible Junior Subordinated Debentures due in 2063 (the “debentures”). The debentures are currently convertible, at the holder's option, at an initial conversion rate, which is subject to adjustment, of 74.0741 common shares per $1,000 principal amount of debentures at any time prior to the maturity date. This represents an initial conversion price of approximately $13.50 per share. If a holder elects to convert their debentures, deferred interest owed on the debentures being converted is also converted into shares of our common stock. The conversion rate for any deferred interest is based on the average price that our shares traded at during a 5-day period immediately prior to the election to convert. In lieu of issuing shares of common stock upon conversion of the debentures, we may, at our option, make a cash payment to converting holders for all or some of the shares of our common stock otherwise issuable upon conversion. The debentures rank junior to all of our existing and future senior indebtedness.

Interest on the debentures is payable semi-annually in arrears on April 1 and October 1 of each year. As long as no event of default with respect to the debentures has occurred and is continuing, we may defer interest, under an optional deferral provision, for one or more consecutive interest periods up to ten years without giving rise to an event of default. Deferred interest will accrue additional interest at the rate then applicable to the debentures. During an optional deferral period we may not pay or declare dividends on our common stock.

When interest on the debentures is deferred, we are required, not later than a specified time, to use reasonable commercial efforts to begin selling qualifying securities to persons who are not our affiliates. The specified time is one business day after we pay interest on the debentures that was not deferred, or if earlier, the fifth anniversary of the scheduled interest payment date on which the deferral started. Qualifying securities are common stock, certain warrants and certain non-cumulative perpetual preferred stock. The requirement to use such efforts to sell such securities is called the Alternative Payment Mechanism.

The net proceeds of Alternative Payment Mechanism sales are to be applied to the payment of deferred interest, including the compound portion. We cannot pay deferred interest other than from the net proceeds of Alternative Payment Mechanism sales, except at the final maturity of the debentures or at the tenth anniversary of the start of the interest deferral. The Alternative Payment Mechanism does not require us to sell common stock or warrants before the fifth anniversary of the interest payment date on which that deferral started if the net proceeds (counting any net proceeds of those securities previously sold under the Alternative Payment Mechanism) would exceed the 2% cap. The 2% cap is 2% of the average closing price of our common stock times the number of our outstanding shares of common stock. The average price is determined over a specified period ending before the issuance of the common stock or warrants being sold, and the number of outstanding shares is determined as of the date of our most recent publicly released financial statements.

We are not required to issue under the Alternative Payment Mechanism a total of more than 10 million shares of common stock, including shares underlying qualifying warrants. In addition, we may not issue under the Alternative Payment Mechanism qualifying preferred stock if the total net proceeds of all issuances would exceed 25% of the aggregate principal amount of the debentures.

The Alternative Payment Mechanism does not apply during any period between scheduled interest payment dates if there is a “market disruption event” that occurs over a specified portion of such period. Market disruption events include any material adverse change in domestic or international economic or financial conditions.

On April 1, 2013 we paid a deferred interest payment, including the compound interest that had accrued on a semi-annual basis at an annual rate of 9%, from an installment initially due October 1, 2012. The interest payment, totaling approximately $18.3 million, was made from the net proceeds of our March 2013 common stock offering. We also paid the regular April 1, 2013 interest payment due on the debentures of approximately $17.5 million, and we remain current on all interest payments due. We continue to have the right to defer interest that is payable on subsequent scheduled interest payment dates. Any deferral of such interest would be on terms equivalent to those described above.

The provisions of the debentures are complex. The description above is not intended to be complete in all respects. Moreover, that description is qualified in its entirety by the terms of the debentures, including their covenants and events of default. We were in compliance with all covenants at December 31, 2014.

We may redeem the debentures in whole or in part from time to time, at our option, at a redemption price equal to 100% of the principal amount of the debentures being redeemed, plus any accrued and unpaid interest, if the closing sale price of our common stock exceeds 130% of the then prevailing conversion price of the debentures for at least 20 of the 30 trading days preceding notice of the redemption.

Interest payments on the debentures were $35.1 million and $53.4 million for the years ended December 31, 2014 and 2013, respectively.

All debt

The par value and fair value of our debt at December 31, 2014 and 2013 appears in the table below.

	Par Value		Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2014
Debt:
Senior Notes	$	61,953	$	63,618	$	-	$	63,618	$	-
Convertible Senior Notes due 2017		345,000		387,997		-		387,997		-
Convertible Senior Notes due 2020		500,000		735,075		-		735,075		-
Convertible Junior Subordinated Debentures		389,522		500,201		-		500,201		-
Total Debt	$	1,296,475	$	1,686,891	$	-	$	1,686,891	$	-

December 31, 2013
Debt:
Senior Notes	$	82,883	$	85,991	$	85,991	$	-	$	-
Convertible Senior Notes due 2017		345,000		388,988		388,988		-		-
Convertible Senior Notes due 2020		500,000		685,625		685,625		-		-
Convertible Junior Subordinated Debentures		389,522		439,186		-		439,186		-
Total Debt	$	1,317,405	$	1,599,790	$	1,160,604	$	439,186	$	-

The fair values of our Senior Notes, Convertible Senior Notes, and Convertible Junior Debentures were determined using available pricing for these notes, debentures or similar instruments and they are considered Level 2 securities as described in Note 3 – “Summary of Significant Accounting Policies - Fair Value Measurements.” As of December 31, 2013, the fair values of our Senior Notes and Convertible Senior Notes were determined using publicly available trade information and they were considered Level 1 securities as described in Note 3 – “Summary of Significant Accounting Policies - Fair Value Measurements.”

The Senior Notes, Convertible Senior Notes and Convertible Junior Debentures are obligations of our holding company, MGIC Investment Corporation, and not of its subsidiaries. At December 31, 2014, we had approximately $491 million in cash and investments at our holding company. The net unrealized losses on our holding company investment portfolio were approximately $2.5 million at December 31, 2014. The modified duration of the holding company investment portfolio, excluding cash and cash equivalents, was 2.9 years at December 31, 2014.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Loss Reserves

12 Months Ended

Dec. 31, 2014

Loss Reserves [Abstract]

Loss Reserves

9.	Loss Reserves

As described in Note 3 – “Summary of Significant Accounting Policies – Loss Reserves,” we establish reserves to recognize the estimated liability for losses and loss adjustment expenses related to defaults on insured mortgage loans. Loss reserves are established by estimating the number of loans in our inventory of delinquent loans that will result in a claim payment, which is referred to as the claim rate, and further estimating the amount of the claim payment, which is referred to as claim severity.

Estimation of losses is inherently judgmental. The conditions that affect the claim rate and claim severity include the current and future state of the domestic economy, including unemployment, and the current and future strength of local housing markets. The actual amount of the claim payments may be substantially different than our loss reserve estimates. Our estimates could be adversely affected by several factors, including a deterioration of regional or national economic conditions, including unemployment, leading to a reduction in borrowers’ income and thus their ability to make mortgage payments, and a drop in housing values which may affect borrower willingness to continue to make mortgage payments when the value of the home is below the mortgage balance. Changes to our estimates could result in a material impact to our results of operations and capital position, even in a stable economic environment.

The following table provides a reconciliation of beginning and ending loss reserves for each of the past three years:

	2014			2013			2012
	(In thousands)

Reserve at beginning of year	$	3,061,401		$	4,056,843		$	4,557,512
Less reinsurance recoverable		64,085			104,848			154,607
Net reserve at beginning of year		2,997,316			3,951,995			4,402,905

Losses incurred:
Losses and LAE incurred in respect of default notices received in:
Current year		596,436			898,413			1,494,133
Prior years (1)		(100,359	)		(59,687	)		573,120
Subtotal		496,077			838,726			2,067,253

Losses paid:
Losses and LAE paid in respect of default notices received in:
Current year		32,919			73,470			134,509
Prior years		1,121,508			1,722,923			2,389,985
Reinsurance terminations (2)		-			(2,988	)		(6,331	)
Subtotal		1,154,427			1,793,405			2,518,163
Net reserve at end of year		2,338,966			2,997,316			3,951,995
Plus reinsurance recoverables		57,841			64,085			104,848

Reserve at end of year	$	2,396,807		$	3,061,401		$	4,056,843

(1)	A negative number for prior year losses incurred indicates a redundancy of prior year loss reserves, and a positive number for prior year losses incurred indicates a deficiency of prior year loss reserves. See table below regarding prior year loss development.

(2)

In a termination, the reinsurance agreement is cancelled, with no future premium ceded and funds for any incurred but unpaid losses transferred to us. The transferred funds result in an increase in our investment portfolio (including cash and cash equivalents) and a decrease in net losses paid (reduction to losses incurred). In addition, there is an offsetting decrease in the reinsurance recoverable (increase in losses incurred), and thus there is no net impact to losses incurred. (See Note 11 – “Reinsurance”)

The “Losses incurred” section of the table above shows losses incurred on default notices received in the current year and in prior years. The amount of losses incurred relating to default notices received in the current year represents the estimated amount to be ultimately paid on such default notices. The amount of losses incurred relating to default notices received in prior years represents the actual claim rate and severity associated with those defaults notices resolved in the current year differing from the estimated liability at the prior year-end, as well as a re-estimation of amounts to be ultimately paid on defaults remaining in inventory from the end of the prior year. This re-estimation of the estimated claim rate and estimated severity is the result of our review of current trends in the default inventory, such as percentages of defaults that have resulted in a claim, the amount of the claims, changes in the relative level of defaults by geography and changes in average loan exposure.

Losses incurred on default notices received in the current year decreased in 2014 compared to 2013, and in 2013 compared to 2012, primarily due to a decrease in the number of new default notices received, net of cures, as well as a decrease in the estimated claim rate on recently reported delinquencies.

The prior year development of the reserves in 2014, 2013 and 2012 is reflected in the table below.

	2014			2013			2012
	(In millions)
Prior year loss development:

Pool policy settlement (1)	$	-		$	-		$	267

(Decrease) increase in estimated claim rate on primary defaults		(43	)		10			260
Decrease in estimated severity on primary defaults		(35	)		(50	)		(70	)
Change in estimates related to pool reserves, LAE reserves, reinsurance and other (2)		(22	)		(20	)		116
Total prior year loss development	$	(100	)	$	(60	)	$	573

(1)	See below for a discussion of our settlement with Freddie Mac.

(2)	Includes approximately $100 million related to probable settlements regarding our claims paying practices in 2012

The prior year loss development was based on the resolution of approximately 58%, 59% and 55% for the years ended December 31, 2014, 2013 and 2012, respectively of the prior year default inventory, as well as a re-estimation of amounts to be ultimately paid on defaults remaining in inventory and estimated incurred but not reported items from the end of the prior year. In 2014, we recognized favorable development on our estimated claim rate as we experienced a higher cure rate on prior year default inventory. In 2012, lower estimated rescission rates, as well as our experience on defaults that were 12 months or more delinquent increased our estimate of the claim rate. The decrease in the estimated severity in 2014, 2013 and 2012 was based on the resolution of the prior year default inventory.

The “Losses paid” section of the table above shows the breakdown between claims paid on default notices received in the current year, claims paid on default notices received in prior years and the decrease in losses paid related to terminated reinsurance agreements as noted in footnote (2) of that table. Until a few years ago, it took, on average, approximately twelve months for a default that is not cured to develop into a paid claim. Over the past several years, the average time it takes to receive a claim associated with a default has increased. This is, in part, due to new loss mitigation protocols established by servicers and to changes in some state foreclosure laws that may include, for example, a requirement for additional review and/or mediation processes. It is difficult to estimate how long it may take for current and future defaults that do not cure to develop into paid claims.

MGIC and Freddie Mac disagreed on the amount of the aggregate loss limit under certain pool insurance policies (the “Disputed Policies”). On December 1, 2012, an Agreement of Settlement, Compromise and Release (the “Settlement Agreement”) between MGIC, Freddie Mac and the FHFA became effective, settling their dispute regarding the Disputed Policies. Under the Settlement Agreement, MGIC is to pay Freddie Mac a total of $267.5 million in satisfaction of all obligations under the Disputed Policies. Of the total, $100 million was paid in December 2012, as required by the Settlement Agreement, and the remaining $167.5 million is being paid out in 48 equal monthly installments that began on January 2, 2013.

The liability associated with our estimate of premiums to be refunded on expected claim payments is accrued for separately at December 31, 2014 and 2013 and approximated $115 million and $131 million, respectively. Separate components of this liability are included in “Other liabilities” and “Premium deficiency reserve” on our consolidated balance sheet.

A rollforward of our primary default inventory for the years ended December 31, 2014, 2013 and 2012 appears in the table below. The information concerning new notices and cures is compiled from monthly reports received from loan servicers. The level of new notice and cure activity reported in a particular month can be influenced by, among other things, the date on which a servicer generates its report, the number of business days in a month and by transfers of servicing between loan servicers.

	2014			2013			2012


Default inventory at beginning of year		103,328			139,845			175,639
New Notices		88,844			106,823			133,232
Cures		(87,278	)		(104,390	)		(120,248	)
Paids (including those charged to a deductible or captive)		(23,494	)		(34,738	)		(45,741	)
Rescissions and denials		(1,306	)		(1,939	)		(3,037	)
Items removed from inventory resulting from the Countrywide settlement on GSE loans		(193	)		(2,273	)		-
Default inventory at end of year		79,901			103,328			139,845

Pool insurance default inventory decreased from 6,563 at December 31, 2013 to 3,797 at December 31, 2014. The pool insurance notice inventory was 8,594 at December 31, 2012.

The decrease in the primary default inventory experienced during 2014 and 2013 was generally across all markets and all book years. In 2014 and 2013, the percentage of loans in the inventory that had been in default for 12 or more consecutive months had decreased compared to the prior years. In 2014, the level of loans in inventory that had been in default for 12 or more consecutive months also decreased in relation to the total primary default inventory. Historically as a default ages it becomes more likely to result in a claim. The percentage of loans that have been in default for 12 or more consecutive months has been affected by our suspended rescissions discussed below.

Aging of the Primary Default Inventory

	December 31,
	2014				2013				2012

Consecutive months in default		15,319	19	%		18,941	18	%		23,282	17	%
3 months or less
4 - 11 months		19,710	25	%		24,514	24	%		34,688	25	%
12 months or more		44,872	56	%		59,873	58	%		81,875	58	%

Total primary default inventory		79,901	100	%		103,328	100	%		139,845	100	%

Primary claims received inventory included in ending default inventory (1)		4,746	6	%		6,948	7	%		11,731	8	%

(1)

Our claims received inventory includes suspended rescissions, as we have voluntarily suspended rescissions of coverage related to loans that we believed would be included in a potential resolution. As of December 31, 2014, rescissions of coverage on approximately 1,425 loans had been voluntarily suspended.

The length of time a loan is in the default inventory can differ from the number of payments that the borrower has not made or is considered delinquent. These differences typically result from a borrower making monthly payments that do not result in the loan becoming fully current. The number of payments that a borrower is delinquent is shown in the table below.

Number of Primary Payments Delinquent

	December 31,
	2014				2013				2012

3 payments or less		23,253	29	%		28,095	27	%		34,245	24	%
4 - 11 payments		19,427	24	%		24,605	24	%		34,458	25	%
12 payments or more		37,221	47	%		50,628	49	%		71,142	51	%


Total primary default inventory		79,901	100	%		103,328	100	%		139,845	100	%

Claims paying practices

Our loss reserving methodology incorporates our estimates of future rescissions. A variance between ultimate actual rescission rates and our estimates, as a result of the outcome of litigation, settlements or other factors, could materially affect our losses.

The liability associated with our estimate of premiums to be refunded on expected future rescissions is accrued for separately. At December 31, 2014 and 2013 the estimate of this liability totaled $28 million and $15 million, respectively. Separate components of this liability are included in “Other liabilities” and “Premium deficiency reserve” on our consolidated balance sheets. Changes in the liability affect premiums written and earned and change in premium deficiency reserve.

For information about discussions and legal proceedings with customers with respect to our claims paying practices, including settlements that we believe are probable, as defined in ASC 450-20, see Note 20 – “Litigation and Contingencies.”

Premium Deficiency Reserve

12 Months Ended

Dec. 31, 2014

Premium Deficiency Reserve [Abstract]

Premium Deficiency Reserve

10.	Premium Deficiency Reserve

Beginning in 2007, when we stopped writing Wall Street bulk business, we began to separately measure the performance of these transactions and established a premium deficiency reserve related to this business. The premium deficiency reserve reflects the present value of expected future losses and expenses that exceed the present value of expected future premiums and already established loss reserves.

The components of the premium deficiency reserve at December 31, 2014, 2013 and 2012 appear in the table below.

	December 31,
	2014			2013			2012
	(In millions)
Present value of expected future premium	$	387		$	432		$	445

Present value of expected future paid losses and expenses		(941	)		(1,101	)		(1,285	)

Net present value of future cash flows		(554	)		(669	)		(840	)

Established loss reserves		530			621			766

Net deficiency	$	(24	)	$	(48	)	$	(74	)

Discount rate utilized at December 31,		2.1	%		1.6	%		1.3	%

Each quarter, we re-estimate the premium deficiency reserve on the remaining Wall Street bulk insurance in force. The premium deficiency reserve primarily changes from quarter to quarter as a result of two factors. First, it changes as the actual premiums, losses and expenses that were previously estimated are recognized. Each period such items are reflected in our financial statements as earned premium, losses incurred and expenses. The difference between the amount and timing of actual earned premiums, losses incurred and expenses and our previous estimates used to establish the premium deficiency reserves has an effect (either positive or negative) on that period’s results. Second, the premium deficiency reserve changes as our assumptions relating to the present value of expected future premiums, losses and expenses on the remaining Wall Street bulk insurance in force change. Changes to these assumptions also have an effect on that period’s results.

The decrease in the premium deficiency reserve for the years ended December 31, 2014, 2013 and 2012 was $24 million, $26 million, and $61 million, respectively, as shown in the tables below. The decrease represents the net result of actual premiums, losses and expenses as well as a net change in assumptions for these periods. The change in assumptions for 2014 and 2013 is primarily related to higher estimated ultimate premiums resulting principally from an increase in the projected persistency rate, offset in part by higher estimated ultimate losses resulting principally from an increase in the number of projected claims that will ultimately be paid. The change in assumptions for 2012 is primarily related to higher estimated ultimate losses resulting principally from an increase in the number of projected claims that will ultimately be paid.

The decrease in the premium deficiency reserve for the years ended December 31, 2014, 2013 and 2012 appears in the table below.

	Years ended December 31,
	2014						2013						2012
	(In millions)

Premium Deficiency Reserve at beginning of year				$	(48	)				$	(74	)				$	(135	)

Paid claims and loss adjustment expenses	$	169					$	214					$	279
Decrease in loss reserves		(91	)					(145	)					(60	)
Premium earned		(79	)					(96	)					(102	)
Effects of present valuing on future premiums, losses and expenses		(2	)					(1	)					(1	)

Change in premium deficiency reserve to reflect actual premium, losses and expenses recognized					(3	)					(28	)					116

Change in premium deficiency reserve to reflect change in assumptions relating to future premiums, losses, expenses and discount rate (1)					27						54						(55	)

Premium Deficiency Reserve at end of year				$	(24	)				$	(48	)				$	(74	)

(1)	A positive (negative) number for changes in assumptions relating to premiums, losses, expenses and discount rate indicates a redundancy (deficiency) of prior premium deficiency reserves.

Each quarter we perform a premium deficiency analysis on the portion of our book of business not covered by the premium deficiency reserve described above. As of December 31, 2014, the analysis concluded that there was no premium deficiency on such portion of our book of business. For the reasons discussed below, our analysis of any potential deficiency reserve is subject to inherent uncertainty and requires significant judgment by management. To the extent, in a future period, expected losses are higher or expected premiums are lower than the assumptions we used in our analysis, and we estimate that the present value of the expected future losses and expenses exceed the present value of expected future premiums and already established loss reserves, we could be required to record a premium deficiency reserve on this portion of our book of business in such period.

The calculation of premium deficiency reserves requires the use of significant judgments and estimates to determine the present value of future premium and present value of expected losses and expenses on our business. The calculation of future premium depends on, among other things, assumptions about persistency and repayment patterns on underlying loans. The calculation of expected losses and expenses depends on assumptions relating to severity of claims and claim rates on current defaults, and expected defaults in future periods. These assumptions also include an estimate of expected rescission activity. Similar to our loss reserve estimates, our estimates for premium deficiency reserves could be adversely affected by several factors, including a deterioration of regional or economic conditions leading to a reduction in borrowers’ income and thus their ability to make mortgage payments, and a drop in housing values that could expose us to greater losses. Assumptions used in calculating the deficiency reserves can also be affected by volatility in the current housing and mortgage lending industries. To the extent premium patterns and actual loss experience differ from the assumptions used in calculating the premium deficiency reserves, the differences between the actual results and our estimates will affect future period earnings and could be material.

Reinsurance

12 Months Ended

Dec. 31, 2014

Reinsurance [Abstract]

Reinsurance

11.	Reinsurance

MGIC has obtained both captive and non-captive reinsurance in the past. In a captive reinsurance agreement, the reinsurer is affiliated with the lender for whom MGIC provides mortgage insurance.

Since June 2005, various state and federal regulators have conducted investigations or requested information regarding captive mortgage reinsurance arrangements in which we participated, in part, in order to consider compliance with the Real Estate Settlement Procedures Act (“RESPA”) or similar state laws. In April 2013, the U.S. District Court for the Southern District of Florida approved a settlement between MGIC and the Consumer Financial Protection Bureau (“CFPB”) that resolved a federal investigation of MGIC’s participation in captive reinsurance arrangements in the mortgage insurance industry. The settlement concludes the investigation with respect to MGIC without the CFPB or the court making any findings of wrongdoing. Three other mortgage insurers agreed to similar settlements. As part of the settlements, MGIC and the other mortgage insurers agreed that they would not enter into any new captive reinsurance agreement or reinsure any new loans under any existing captive reinsurance agreement for a period of ten years. In accordance with this settlement, all of our active captive agreements have been placed into run-off.

Captive agreements were written on an annual book of business and the captives are required to maintain a separate trust account to support the combined reinsured risk on all annual books. MGIC is the sole beneficiary of the trust, and the trust account is made up of capital deposits by the lender captive, premium deposits by MGIC, and investment income earned. These amounts are held in the trust account and are available to pay reinsured losses. The reinsurance recoverable on loss reserves related to captive agreements was $45 million at December 31, 2014 which was supported by $198 million of trust assets, while at December 31, 2013 the reinsurance recoverable on loss reserves related to captives was $64 million which was supported by $226 million of trust assets. At December 31, 2014 and December 31, 2013 there was an additional $9 million and $23 million, respectively, of trust assets in captive agreements where there was no related reinsurance recoverable on loss reserves. Trust fund assets of $3.0 million were transferred to us as a result of captive terminations during 2013.

In April 2013, we entered into a quota share reinsurance agreement with a group of unaffiliated reinsurers that are not captive reinsurers. These reinsurers primarily have a rating of A or better by Moody’s Investors Service, Standard & Poor’s Rating Services or both. This reinsurance agreement applies to new insurance written between April 1, 2013 and December 31, 2015 (with certain exclusions) and covers incurred losses, with renewal premium through December 31, 2018. Early termination is possible under specified scenarios. The structure of the reinsurance agreement is a 30% quota share, with a 20% ceding commission as well as a profit commission. In December 2013, we entered into an Addendum to the quota share reinsurance agreement that applies to certain insurance written before April 1, 2013 that had never been delinquent. The structure of the quota share reinsurance agreement remains the same, with the exception that the business written before April 1, 2013 has a 40% quota share. Under the Addendum, policies for which premium was received but unearned as of December 31, 2013 were ceded, which generated “Prepaid reinsurance premiums” of $23.9 million which has been reduced to $16.8 million at December 31, 2014.

We have accrued a profit commission receivable of $91.5 million and $2.4 million as of December 31, 2014 and 2013, respectively. This receivable could continue to increase materially through the term of the agreement, but the ultimate amount of the commission will depend on the ultimate level of premiums earned and losses incurred under the agreement. Any profit commission would be paid to us upon termination of the reinsurance agreement. Recoverables under the agreement are supported by trust funds or letters of credit.

A summary of the combined quota share reinsurance agreement for 2014 and 2013 appears below.

	2014		2013
	(In thousands)

Ceded premiums written, net of profit commission	$	100,031	$	49,672

Ceded premiums earned, net of profit commission		88,528		13,821

Ceded losses incurred		15,163		176

Ceding commissions (1)		37,833		10,408

(1)	Ceding commissons are reported within Other underwriting and operating expenses, net on the consolidated statements of operations.

The effect of all reinsurance agreements on premiums earned and losses incurred is as follows:

	Years ended December 31,
	2014			2013			2012
	(In thousands)
Premiums earned:
Direct	$	950,973		$	979,078		$	1,065,663
Assumed		1,653			2,074			2,425
Ceded		(108,255	)		(38,101	)		(34,918	)

Net premiums earned	$	844,371		$	943,051		$	1,033,170

Losses incurred:
Direct	$	524,051		$	863,871		$	2,115,974
Assumed		2,012			2,645			6,912
Ceded		(29,986	)		(27,790	)		(55,633	)

Net losses incurred	$	496,077		$	838,726		$	2,067,253

Generally, reinsurance recoverables on primary loss reserves, paid losses and prepaid reinsurance premiums are supported by trust funds or letters of credit. As such, we have not established an allowance against these recoverables.

See Note 20 – “Litigation and Contingencies” for a discussion of requests or subpoenas for information regarding captive mortgage reinsurance arrangements.

- Definition

The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts.

+ References

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+ Details

Other Comprehensive Income

12 Months Ended

Dec. 31, 2014

Other Comprehensive Income [Abstract]

Other Comprehensive Income

12.	Other Comprehensive Income

Our other comprehensive income for the years ended December 31, 2014, 2013 and 2012 was as follows:

	2014
	Before tax			Tax effect			Valuation allowance			Net of tax
	(In thousands)

Other comprehensive income (loss):
Change in unrealized gains and losses on investments	$	91,782		$	(32,017	)	$	31,374		$	91,139

Benefit plans adjustments		(52,112	)		18,239			(18,239	)		(52,112	)

Unrealized foreign currency translation adjustment		(4,067	)		1,425			-			(2,642	)

Other comprehensive income (loss)	$	35,603		$	(12,353	)	$	13,135		$	36,385

	2013
	Before tax			Tax effect			Valuation allowance			Net of tax
	(In thousands)

Other comprehensive income (loss):
Change in unrealized gains and losses on investments	$	(126,175	)	$	43,732		$	(41,148	)	$	(123,591	)

Benefit plans adjustments		68,038			(23,813	)		23,813			68,038

Unrealized foreign currency translation adjustment		(21,563	)		7,553			-			(14,010	)

Other comprehensive income (loss)	$	(79,700	)	$	27,472		$	(17,335	)	$	(69,563	)

	2012
	Before tax			Tax effect			Valuation allowance			Net of tax
	(In thousands)

Other comprehensive income (loss):
Change in unrealized gains and losses on investments	$	(78,546	)	$	27,510		$	(27,623	)	$	(78,659	)

Benefit plan adjustments		(1,221	)		428			(428	)		(1,221	)

Unrealized foreign currency translation adjustment		2,452			(859	)		-			1,593

Other comprehensive income (loss)	$	(77,315	)	$	27,079		$	(28,051	)	$	(78,287	)

See Note 14 – “Income Taxes” for a discussion of the valuation allowance.

A rollforward of accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013, and 2012 , including amounts reclassified from accumulated other comprehensive income (loss), are included in the table below.

	2014
	Unrealized gains and losses on available- for-sale securities			Defined benefit plans			Foreign currency translation			Total
	(In thousands)

Balance at December 31, 2013, before tax	$	(84,634	)	$	(3,766	)	$	11,184		$	(77,216	)

Other comprehensive income (loss) before reclassifications		78,294			(45,182	)		(4,067	)		29,045
Less: Amounts reclassified from accumulated other comprehensive income (loss)		(13,488	)(1)		6,930	(2)		-			(6,558	)
Net current period other comprehensive income (loss)		91,782			(52,112	)		(4,067	)		35,603

Balance at December 31, 2014, before tax		7,148			(55,878	)		7,117			(41,613	)

Tax effect (3)		(64,699	)		26,940			(1,969	)		(39,728	)

Balance at December 31, 2014, net of tax	$	(57,551	)	$	(28,938	)	$	5,148		$	(81,341	)

	2013
	Unrealized gains and losses on available- for-sale securities				Defined benefit plans				Foreign currency translation			Total
	(In thousands)

Balance at December 31, 2012, before tax	$	41,541			$	(71,804	)		$	32,747		$	2,484

Other comprehensive income (loss) before reclassifications		(112,667	)			68,039				(21,563	)		(66,191	)
Less: Amounts reclassified from accumulated other comprehensive income (loss)		13,508		(1)		1		(2)		-			13,509
Net current period other comprehensive income (loss)		(126,175	)			68,038				(21,563	)		(79,700	)

Balance at December 31, 2013, before tax		(84,634	)			(3,766	)			11,184			(77,216	)

Tax effect (3)		(64,056	)			26,940				(3,394	)		(40,510	)

Balance at December 31, 2013, net of tax	$	(148,690	)		$	23,174			$	7,790		$	(117,726	)

	2012
	Unrealized gains and losses on available- for-sale securities				Defined benefit plans				Foreign currency translation			Total
	(In thousands)

Balance at December 31, 2011, before tax	$	120,087			$	(70,582	)		$	30,294		$	79,799

Other comprehensive income (loss) before reclassifications		22,710				(2,296	)			2,453			22,867
Less: Amounts reclassified from accumulated other comprehensive income (loss)		101,256		(1)		(1,074	)	(2)		-			100,182
Net current period other comprehensive income (loss)		(78,546	)			(1,222	)			2,453			(77,315	)

Balance at December 31, 2012, before tax		41,541				(71,804	)			32,747			2,484

Tax effect (3)		(66,640	)			26,940				(10,947	)		(50,647	)

Balance at December 31, 2012, net of tax	$	(25,099	)		$	(44,864	)		$	21,800		$	(48,163	)

(1)	During 2014, 2013 and 2012, net unrealized (losses) gains of ($13.5) million, $13.5 million and $101.3 million, respectively, were reclassified to the Consolidated Statement of Operations and included in Realized investment gains.

(2)	For the years ended December 31, 2014, 2013 and 2012, other comprehensive income (loss) related to benefit plans of $6.9 million, $1 thousand, and ($1.1) million, respectively, was reclassified to the Consolidated Statements of Operations and included in Underwriting and other expenses, net.

(3)	Tax effect does not approximate 35% due to amounts of tax benefits not provided in various periods due to our tax valuation allowance.

Benefit Plans

12 Months Ended

Dec. 31, 2014

Benefit Plans [Abstract]

Benefit Plans

13.	Benefit Plans

We have a non-contributory defined benefit pension plan covering substantially all domestic employees, as well as a supplemental executive retirement plan. We also offer both medical and dental benefits for retired domestic employees and their eligible spouses under a postretirement benefit plan. The following tables provide the components of aggregate annual net periodic benefit cost, changes in the benefit obligation and the funded status of the pension, supplemental executive retirement and other postretirement benefit plans as recognized in the consolidated balance sheets:

	Pension and Supplemental Executive Retirement Plans									Other Postretirement Benefits
Components of Net Periodic Benefit Cost for fiscal year ending
	12/31/2014			12/31/2013			12/31/2012			12/31/2014			12/31/2013			12/31/2012
	(In thousands)
1. Company Service Cost	$	8,565		$	11,338		$	9,662		$	659		$	812		$	1,226
2. Interest Cost		15,987			15,289			16,481			653			618			1,144
3. Expected Return on Assets		(21,030	)		(20,144	)		(18,211	)		(4,648	)		(3,679	)		(3,162	)
4. Other Adjustments		-			-			-			-			-			-
Subtotal		3,522			6,483			7,932			(3,336	)		(2,249	)		(792	)
5. Amortization of :
a. Net Transition Obligation/(Asset)		-			-			-			-			-			-
b. Net Prior Service Cost/(Credit)		(930	)		503			665			(6,649	)		(6,649	)		(6,217	)
c. Net Losses/(Gains)		1,083			6,145			5,829			(435	)		-			797
Total Amortization		153			6,648			6,494			(7,084	)		(6,649	)		(5,420	)
6. Net Periodic Benefit Cost		3,675			13,131			14,426			(10,420	)		(8,898	)		(6,212	)
7. Cost of settlements or curtailments		302			-			-			-			-			-
8. Total Expense for Year	$	3,977		$	13,131		$	14,426		$	(10,420	)	$	(8,898	)	$	(6,212	)

Development of Funded Status
	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)

Actuarial Value of Benefit Obligations
1.Measurement Date	12/31/2014			12/31/2013			12/31/2014			12/31/2013
2. Accumulated Benefit Obligation	$	366,440		$	304,825		$	18,225		$	15,764

Funded Status/Asset (Liability) on the Consolidated Balance Sheet
1. Projected Benefit Obligation	$	(379,324	)	$	(317,606	)	$	(18,225	)	$	(15,764	)
2. Plan Assets at Fair Value		378,701			355,704			66,940			62,298
3. Funded Status - Overfunded/Asset		N/A		$	38,098		$	48,715		$	46,534
4. Funded Status - Underfunded/Liability		(623	)		N/A			N/A			N/A

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Accumulated Other Comprehensive Income
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)
1. Net Actuarial (Gain)/Loss	$	93,243		$	49,925		$	(8,222	)	$	(9,439	)
2. Net Prior Service Cost/(Credit)		(3,853	)		(4,782	)		(25,289	)		(31,938	)
3. Net Transition Obligation/(Asset)		-			-			-			-
4. Total at Year End	$	89,390		$	45,143		$	(33,511	)	$	(41,377	)

The amortization of gains and losses resulting from actual experience different from assumed experience or changes in assumptions including discount rates is included as a component of Net Periodic Benefit Cost/(Income) for the year. The gain or loss in excess of a 10% corridor is amortized by the average remaining service period of participating employees expected to receive benefits under the plan.

The changes in the projected benefit obligation are as follows:

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Change in Projected Benefit/Accumulated Benefit Obligation
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)
1. Benefit Obligation at Beginning of Year	$	317,606		$	362,657		$	15,764		$	16,284
2. Company Service Cost		8,565			11,338			659			812
3. Interest Cost		15,987			15,289			653			618
4. Plan Participants' Contributions		-			-			336			299
5. Net Actuarial (Gain)/Loss due to Assumption Changes		59,901			(44,205	)		2,276			(1,414	)
6. Net Actuarial (Gain)/Loss due to Plan Experience		(55	)		1,353			(855	)		101
7. Benefit Payments from Fund (1)		(21,539	)		(22,497	)		(645	)		(871	)
8. Benefit Payments Directly by Company		(1,404	)		(275	)		-			(65	)
9. Plan Amendments		(1	)		(6,054	)		-			-
10. Other Adjustment		264			-			37			-
11. Benefit Obligation at End of Year	$	379,324		$	317,606		$	18,225		$	15,764

(1) In 2014, includes lump sum payments of $11.8 million from our pension plan to eligible participants, which were former employees with vested benefits. In 2013, includes lump sum payments of $13.8 million from our pension plan to eligible participants, which were former employees with vested benefits of $200 thousand or less.

In the fourth quarter of 2014, the Society of Actuaries released new mortality tables as a result of their detailed study on the future life expectancies of pension plan participants. We have used these new mortality tables in calculating our year-end 2014 retirement program obligations. If all pension plan participants elected to receive their pension benefits in monthly payments, the new tables would have increased year-end obligations by $23.2 million. However, based on our experience, we estimate that 75% of our active pension plan participants will elect to receive their pension benefits in a lump sum, which under the terms of the pension plan, are calculated based on mortality assumptions prescribed by the IRS, not the Society of Actuaries. The combined effect of the new Society of Actuaries mortality tables and the 75% lump-sum election assumption was a net increase in year-end obligations of $14.6 million. In addition, the benefit obligation will also change due to changes in the actuarial assumptions applied, as shown in the table below, to determine the outstanding liability.

The changes in the fair value of the net assets available for plan benefits are as follows:

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Change in Plan Assets
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)
1. Fair Value of Plan Assets at Beginning of Year	$	355,704		$	340,335		$	62,298		$	49,391
2. Company Contributions		9,504			10,275			-			-
3. Plan Participants' Contributions		-			-			336			299
4. Benefit Payments from Fund		(21,539	)		(22,497	)		(645	)		(871	)
5. Benefit Payments paid directly by Company		(1,404	)		(275	)		-			(65	)
6. Actual Return on Assets		36,436			27,866			5,250			13,778
7. Other Adjustment		-			-			(299	)		(234	)
8. Fair Value of Plan Assets at End of Year	$	378,701		$	355,704		$	66,940		$	62,298

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Change in Accumulated Other Comprehensive Income (AOCI)
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)
1. AOCI in Prior Year	$	45,143		$	108,436		$	(41,377	)	$	(36,602	)
2. Increase/(Decrease) in AOCI
a. Recognized during year - Prior Service (Cost)/Credit		930			(503	)		6,649			6,649
b. Recognized during year - Net Actuarial (Losses)/Gains		(1,083	)		(6,145	)		435			-
c. Occurring during year - Prior Service Cost		(1	)		(6,054	)		-			-
d. Occurring during year - Net Actuarial Losses/(Gains)		44,703			(50,574	)		782			(11,411	)
f. Occuring during year - Net Settlement Losses/(Gains)		(302	)		-			-			-
e. Other adjustments		-			(17	)		-			(13	)
3. AOCI in Current Year	$	89,390		$	45,143		$	(33,511	)	$	(41,377	)

Amortizations Expected to be Recognized During Next Fiscal Year Ending
	12/31/2015			12/31/2015
	(In thousands)
1. Amortization of Net Transition Obligation/(Asset)	$	-		$	-
2. Amortization of Prior Service Cost/(Credit)		(846	)		(6,649	)
3. Amortization of Net Losses/(Gains)		4,837			(142	)

The projected benefit obligations, net periodic benefit costs and accumulated postretirement benefit obligation for the plans were determined using the following weighted average assumptions.

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Actuarial Assumptions
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
Weighted-Average Assumptions Used to Determine
Benefit Obligations at year end
1. Discount Rate		4.25	%		5.15	%		4.00	%		4.75	%
2. Rate of Compensation Increase		3.00	%		3.00	%		N/A			N/A

Weighted-Average Assumptions Used to Determine
Net Periodic Benefit Cost for Year
1. Discount Rate		5.15	%		4.25	%		4.75	%		3.85	%
2. Expected Long-term Return on Plan Assets		6.00	%		6.00	%		7.50	%		7.50	%
3. Rate of Compensation Increase		3.00	%		3.00	%		N/A			N/A

Assumed Health Care Cost Trend Rates at year end
1. Health Care Cost Trend Rate Assumed for Next Year		N/A			N/A			7.00	%		7.00	%
2. Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate)		N/A			N/A			5.00	%		5.00	%
3. Year That the Rate Reaches the Ultimate Trend Rate		N/A			N/A			2019			2018

In selecting a discount rate, we performed a hypothetical cash flow bond matching exercise, matching our expected pension plan and postretirement medical plan cash flows, respectively, against a selected portfolio of high quality corporate bonds. The modeling was performed using a bond portfolio of noncallable bonds with at least $50 million outstanding. The average yield of these hypothetical bond portfolios was used as the benchmark for determining the discount rate. In selecting the expected long-term rate of return on assets, we considered the average rate of earnings expected on the classes of funds invested or to be invested to provide for the benefits of these plans. This included considering the trusts' targeted asset allocation for the year and the expected returns likely to be earned over the next 20 years.

The year-end asset allocations of the plans are as follows:

	Pension Plan						Other Postretirement Benefits
Plan Assets
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
Allocation of Assets at year end
1. Equity Securities		22	%		43	%		100	%		100	%
2. Debt Securities		78	%		57	%		0	%		0	%
3. Total		100	%		100	%		100	%		100	%

In accordance with fair value guidance, we applied the following fair value hierarchy in order to measure fair value of our benefit plan assets:

Level 1 – Quoted prices for identical instruments in active markets that we have the ability to access. Financial assets utilizing Level 1 inputs include equity securities, mutual funds, money market funds, certain U.S. Treasury securities and ETF’s.

Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and inputs, other than quoted prices, that are observable in the marketplace for the financial instrument. The observable inputs are used in valuation models to calculate the fair value of the financial instruments. Financial assets utilizing Level 2 inputs include certain municipal, corporate and foreign bonds, obligations of U.S. government corporations and agencies, and pooled equity accounts.

To determine the fair value of securities in Level 1 and Level 2 of the fair value hierarchy, independent pricing sources have been utilized. One price is provided per security based on observable market data. To ensure securities are appropriately classified in the fair value hierarchy, we review the pricing techniques and methodologies of the independent pricing sources and believe that their policies adequately consider market activity, either based on specific transactions for the issue valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. A variety of inputs are utilized by the independent pricing sources including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers and reference data including market research publications. Inputs may be weighted differently for any security, and not all inputs are used for each security evaluation. Market indicators, industry and economic events are also considered. This information is evaluated using a multidimensional pricing model. In addition, on a quarterly basis, we perform quality controls over values received from the pricing source (the “Trustee”) which include comparing values to other independent pricing sources. In addition, we review annually the Trustee’s auditor’s report on internal controls in order to determine that their controls around valuing securities are operating effectively. We have not made any adjustments to the prices obtained from the independent sources.

The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2014 and 2013.

Assets at Fair Value as of December 31, 2014

Pension Plan	Level 1		Level 2		Level 3		Total
	(In thousands)
Domestic Mutual Funds	$	9,913	$	-	$	-	$	9,913
Corporate Bonds		-		200,732		-		200,732
U.S. Government Securities		5,327		1,234		-		6,561
Municipals		-		65,214		-		65,214
Foreign Bonds		-		23,028		-		23,028
ETF's		5,636		-		-		5,636
Pooled Equity Accounts		-		67,617		-		67,617
Total Assets at fair value	$	20,876	$	357,825	$	-	$	378,701

Assets at Fair Value as of December 31, 2013

Pension Plan	Level 1		Level 2		Level 3		Total
	(In thousands)
Domestic Mutual Funds	$	51,240	$	-	$	-	$	51,240
International Mutual Funds		39,814		-		-		39,814
Common Stocks		60,332		-		-		60,332
Corporate Bonds		-		134,012		-		134,012
U.S. Government Securities		9,574		9,245		-		18,819
Municipals		-		33,402		-		33,402
Foreign Bonds		-		15,961		-		15,961
Foreign Stocks		2,124		-		-		2,124
Total Assets at fair value	$	163,084	$	192,620	$	-	$	355,704

During the year ended December 31, 2014, we changed the classification of our U.S. government corporation and agency securities from Level 1 to Level 2 in the fair value hierarchy. The fair value of our U.S. government corporations and agencies, in current market conditions, is determined from quoted prices for similar instruments in active markets, which is in accordance with our policy for determining fair value for Level 2 securities. The classification of these securities in the fair value table as of December 31, 2013 has been revised to conform to the 2014 presentation, as we believe the most appropriate classification for these securities was Level 2 at that date. There were no other transfers between Level 1 and Level 2 during the year ended December 31, 2014.

The pension plan has implemented a strategy to reduce risk through the use of a targeted funded ratio. The liability driven component is key to the asset allocation. The liability driven component seeks to align the duration of the fixed income asset allocation with the expected duration of the plan liabilities or benefit payments. Overall asset allocation is dynamic and specifies target allocation weights and ranges based on the funded status.

An improvement in funding status results in the de-risking of the portfolio, allocating more funds to fixed income and less to equity. A decline in funding status would result in a higher allocation to equity. The maximum equity allocation is 40%.

The equity investments utilize combinations of mutual funds, ETFs, and pooled equity account structures. Within the equity investments; return seeking growth investments allocate to global quality growth and global low volatility investments and return seeking bridge investments allocate to enduring asset investments and durable company investments.

The fixed income objective is to preserve capital and to provide monthly cash flows for the payment of plan liabilities. Fixed income investments can include government, government agencies, corporate, mortgage backed, asset backed, municipal securities, and other classes of bonds. The duration of the fixed income portfolio has an objective of being within one year of the duration of the accumulated benefit obligation. The fixed income investments have an objective of a weighted average credit of A3/A-/A- by Moody’s, S&P, and Fitch, respectively.

The following table sets forth by level, within the fair value hierarchy, the postretirement plan assets at fair value as of December 31, 2014 and 2013.

Assets at Fair Value as of December 31, 2014

Postretirement Plan	Level 1		Level 2		Level 3		Total
	(In thousands)
Domestic Mutual Funds	$	50,710	$	-	$	-	$	50,710
International Mutual Funds		16,230		-		-		16,230
Total Assets at fair value	$	66,940	$	-	$	-	$	66,940

Assets at Fair Value as of December 31, 2013

Postretirement Plan	Level 1		Level 2		Level 3		Total
	(In thousands)
Domestic Mutual Funds	$	45,585	$	-	$	-	$	45,585
International Mutual Funds		16,713		-		-		16,713
Total Assets at fair value	$	62,298	$	-	$	-	$	62,298

Our postretirement plan portfolio is designed to achieve the following objectives over each market cycle and for at least 5 years:

·	Total return should exceed growth in the Consumer Price Index by 5.75% annually

·	Achieve competitive investment results

The primary focus in developing asset allocation ranges for the portfolio is the assessment of the portfolio's investment objectives and the level of risk that is acceptable to obtain those objectives. To achieve these goals the minimum and maximum allocation ranges for fixed income securities and equity securities are:

	Minimum			Maximum
Equities (long only)		70	%		100	%
Real estate		0	%		15	%
Commodities		0	%		10	%
Fixed income/Cash		0	%		10	%

Given the long term nature of this portfolio and the lack of any immediate need for significant cash flow, it is anticipated that the equity investments will consist of growth stocks and will typically be at the higher end of the allocation ranges above.

Investment in international oriented funds is limited to a maximum of 30% of the equity range. The current international allocation is invested in two mutual funds with 4% of the equity allocation in a fund which has the objective of investing primarily in equity securities of emerging market countries, and 21% of the equity allocation in a fund investing in securities of companies based outside the United States. It invests in companies primarily based in Europe and the Pacific Basin, and primarily in equity investments although it may also hold cash, money market instruments, and fixed income securities depending on market conditions.

The following tables show the current and estimated future contributions and benefit payments.

	Pension and Supplemental Executive Retirement Plans		Other Postretirement Benefits
Company Contributions
	12/31/2014		12/31/2014
	(In thousands)
Company Contributions for the Year Ending:
1. Current	$	9,504	$	-
2. Current + 1		17,000		-

	Pension and Supplemental Executive Retirement Plans		Other Postretirement Benefits
Benefit Payments (Total)
	12/31/2014		12/31/2014
	(In thousands)
Actual Benefit Payments for the Year Ending:
1. Current	$	22,942	$	272
Expected Benefit Payments for the Year Ending:
2. Current + 1		22,966		781
3. Current + 2		23,159		837
4. Current + 3		24,356		912
5. Current + 4		25,683		1,136
6. Current + 5		27,217		1,238
7. Current + 6 - 10		135,585		8,138

Health care sensitivities

For measurement purposes, a 7.0% health care trend rate was used for benefits for retirees before they reach age 65 for 2014. In 2015, the rate is assumed to be 7.0%, decreasing to 5.0% by 2019 and remaining at this level beyond.

Assumed health care cost trend rates have a significant effect on the amounts reported for the postretirement plan. A 1% point change in the health care trend rate assumption would have the following effects on other postretirement benefits:

	1-Percentage Point Increase			1-Percentage Point Decrease
	(In thousands)

Effect on total service and interest cost components		$	259	$	(201	)
Effect on postretirement benefit obligation			2,963		(2,466	)

We have a profit sharing and 401(k) savings plan for employees. At the discretion of the Board of Directors, we may make a contribution of up to 5% of each participant's eligible compensation. We provide a matching 401(k) savings contribution for employees' on their before-tax contributions at a rate of 80% of the first $1,000 contributed and 40% of the next $2,000 contributed. For employees hired after January 1, 2014, the match is 100% up to 4% contributed. We recognized expenses related to these plans of $5.0 million, $5.3 million and $3.1 million in 2014, 2013 and 2012, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References+ Details

Income Taxes

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Income Taxes

14.	Income Taxes

Net deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows:

	2014			2013
	(In thousands)

Total deferred tax assets	$	933,576		$	1,043,477
Total deferred tax liabilities		(33,789	)		(42,158	)

Net deferred tax asset before valuation allowance		899,787			1,001,319
Valuation allowance		(902,289	)		(1,004,256	)
Net deferred tax liability	$	(2,502	)	$	(2,937	)

The components of the net deferred tax liability as of December 31, 2014 and 2013 are as follows:

	2014			2013
	(In thousands)

Unearned premium reserves	$	12,296		$	(1,073	)
Benefit plans		(13,900	)		(26,111	)
Net operating loss		845,616			915,378
Loss reserves		23,069			36,236
Unrealized (appreciation) depreciation in investments		(2,800	)		29,230
Mortgage investments		15,346			13,450
Deferred compensation		11,955			15,994
Premium deficiency reserves		8,313			16,961
Other, net		(108	)		1,254

Net deferred tax asset before valuation allowance		899,787			1,001,319
Valuation allowance		(902,289	)		(1,004,256	)
Net deferred tax liability	$	(2,502	)	$	(2,937	)

We review the need to maintain the deferred tax asset valuation allowance on a quarterly basis. We analyze several factors, among which are the severity and frequency of operating losses, our capacity for the carryback or carryforward of any losses, the existence and current level of taxable operating income, the expected occurrence of future income or loss, the expiration dates of the carryforwards, the cyclical nature of our operating results, and available tax planning strategies. Based on our analysis and the current level of cumulative operating losses, we continue to reduce our benefit from income tax through the recognition of a valuation allowance.

It is reasonably possible that the valuation allowance will be reversed in the foreseeable future. Specifically, if we continue to recognize meaningful levels of sustainable pre-tax income, it is likely that the valuation allowance would be reversed during 2015. In the period in which the valuation allowance is reversed, we would recognize a tax benefit which will increase our earnings for that period. In future years, after the valuation allowance has been reversed and until such time as our net operating loss carryforwards are exhausted or expired, our provision for income tax would substantially exceed the amount of cash tax payments.

The effect of the change in valuation allowance on the provision for (benefit from) income taxes was as follows:

	2014			2013			2012
	(In thousands)

Provision for (benefit from) income taxes before valuation allowance	$	91,607		$	(17,239	)	$	(330,740	)
Change in valuation allowance		(88,833	)		20,935			329,175

Provision for (benefit from) income taxes	$	2,774		$	3,696		$	(1,565	)

The change in the valuation allowance that was included in other comprehensive income was a decrease of $13.1 million, an increase of $17.3 million, and an increase of $28.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. The total valuation allowance as of December 31, 2014, December 31, 2013 and December 31, 2012 was $902.3 million, $1,004.2 million, and $966.0 million, respectively.

Giving full effect to the carryback of net operating losses for federal income tax purposes, we have approximately $2,417 million of net operating loss carryforwards on a regular tax basis and $1,529 million of net operating loss carryforwards for computing the alternative minimum tax as of December 31, 2014. Any unutilized carryforwards are scheduled to expire at the end of tax years 2029 through 2033.

The following summarizes the components of the provision for (benefit from) income taxes:

	2014		2013		2012
	(In thousands)

Current	$	2,391	$	916	$	(4,251	)
Deferred		1		7		90
Other		382		2,773		2,596

Provision for (benefit from) income taxes	$	2,774	$	3,696	$	(1,565	)

We paid (received) $1.3 million, $0.1 million, and ($7.0) million in federal income tax in 2014, 2013 and 2012, respectively.

The reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows:

	2014			2013			2012


Federal statutory income tax rate		35.0	%		(35.0	)%		(35.0	) %
Valuation allowance		(34.9	)		45.4			35.4
Tax exempt municipal bond interest		(0.4	)		(3.7	)		(0.8	)
Other, net		1.4			1.3			0.2

Effective income tax rate		1.1	%		8.0	%		(0.2	)%

As previously disclosed, the Internal Revenue Service (“IRS”) completed examinations of our federal income tax returns for the years 2000 through 2007 and issued proposed assessments for taxes, interest and penalties related to our treatment of the flow-through income and loss from an investment in a portfolio of residual interests of Real Estate Mortgage Investment Conduits (“REMICs”). The IRS indicated that it did not believe that, for various reasons, we had established sufficient tax basis in the REMIC residual interests to deduct the losses from taxable income. We appealed these assessments within the IRS and in August 2010, we reached a tentative settlement agreement with the IRS which was not finalized.

On September 10, 2014, we received Notices of Deficiency (commonly referred to as “90 day letters”) covering the 2000-2007 tax years. The Notices of Deficiency reflect taxes and penalties related to the REMIC matters of $197.5 million and at December 31, 2014, there would also be interest related to these matters of approximately $168.4 million. In 2007, we made a payment of $65.2 million to the United States Department of the Treasury which will reduce any amounts we would ultimately owe. The Notices of Deficiency also reflect additional amounts due of $261.4 million, which are primarily associated with the disallowance of the carryback of the 2009 net operating loss to the 2004-2007 tax years. We believe the IRS included the carryback adjustments as a precaution to keep open the statute of limitations on collection of the tax that was refunded when this loss was carried back, and not because the IRS actually intends to disallow the carryback permanently.

We filed a petition with the U.S. Tax Court contesting most of the IRS' proposed adjustments reflected in the Notices of Deficiency and the IRS has filed an answer to our petition which continues to assert their claim. Litigation to resolve our dispute with the IRS could be lengthy and costly in terms of legal fees and related expenses. We can provide no assurance regarding the outcome of any such litigation or whether a compromised settlement with the IRS will ultimately be reached and finalized. Depending on the outcome of this matter, additional state income taxes and state interest may become due when a final resolution is reached. As of December 31, 2014, those state taxes and interest would approximate $47.4 million. In addition, there could also be state tax penalties. Our total amount of unrecognized tax benefits as of December 31, 2014 is $106.2 million, which represents the tax benefits generated by the REMIC portfolio included in our tax returns that we have not taken benefit for in our financial statements, including any related interest. We continue to believe that our previously recorded tax provisions and liabilities are appropriate. However, we would need to make appropriate adjustments, which could be material, to our tax provision and liabilities if our view of the probability of success in this matter changes, and the ultimate resolution of this matter could have a material negative impact on our effective tax rate, results of operations, cash flows, available assets and statutory capital. In this regard, see Note 1 – “Nature of Business – Capital-GSEs.”

In March 2012, we received a Revenue Agent’s Report from the IRS related to the examination of our federal income tax returns for the years 2008 and 2009. In January 2013, we received a Revenue Agent’s Report from the IRS related to the examination of our federal income tax return for the year 2010. In October 2014, we received a Revenue Agent’s Report from the IRS related to the examination of our federal income tax returns for the years 2011 and 2012. The results of these examinations had no material effect on the financial statements.

Under current guidance, when evaluating a tax position for recognition and measurement, an entity shall presume that the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The interpretation adopts a benefit recognition model with a two-step approach, a more-likely-than-not threshold for recognition and derecognition, and a measurement attribute that is the greatest amount of benefit that is cumulatively greater than 50% likely of being realized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2014		2013		2012
			(In thousands)

Balance at beginning of year	$	105,366	$	104,550	$	110,080
Additions based on tax positions related to the current year		-		-		-
Additions for tax positions of prior years		864		816		511
Reductions for tax positions of prior years		-		-		(4,041	)
Settlements		-		-		(2,000	)
Balance at end of year	$	106,230	$	105,366	$	104,550

The total amount of the unrecognized tax benefits, related to our aforementioned REMIC issue, that would affect our effective tax rate is $93.6 million. We recognize interest accrued and penalties related to unrecognized tax benefits in income taxes. During 2014, we recognized $0.8 million in interest. As of December 31, 2014 and 2013, we had $26.9 million and $26.1 million of accrued interest related to uncertain tax positions, respectively. The statute of limitations related to the consolidated federal income tax return is closed for all years prior to 2000. It is reasonably possible that our 2000-2007 federal tax case will be resolved, other than through litigation. If it is resolved under terms similar to our previous settlement agreement, our total unrecognized tax benefits would be reduced by $106.2 million during 2015. After taking into account prior payments and the effect of available net operating loss carrybacks, any net cash outflows would approximate $25 million.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

Shareholders' Equity

12 Months Ended

Dec. 31, 2014

Shareholders' Equity [Abstract]

Shareholders' Equity

15.	Shareholders' Equity

In June 2013, we amended our Articles of Incorporation to increase our authorized common stock from 680 million shares to 1.0 billion shares. In April 2012, we amended our Articles of Incorporation to increase our authorized common stock from 460 million shares to 680 million shares.

In March 2013 we completed the public offering and sale of 135 million shares of our common stock at a price of $5.15 per share. We received net proceeds of approximately $663.3 million, after deducting underwriting discount and offering expenses. The shares of common stock sold were newly issued shares.

In March 2013 we also concurrently completed the sale of $500 million principal amount of 2% Convertible Senior Notes due in 2020. For more information, see Note 8 – “Debt.”

In March 2013 we contributed $800 million to MGIC to increase its capital as discussed in Note 17 – “Statutory Capital.” We intend to use the remaining net proceeds from the offerings for general corporate purposes, which may include further increasing the capital of MGIC and other subsidiaries and improving liquidity by providing funds for debt service.

We have a Shareholders Rights Agreement which was approved by shareholders (the “Agreement”) dated July 25, 2012, as amended through March 11, 2013, that seeks to diminish the risk that our ability to use our net operating losses (“NOLs”) to reduce potential future federal income tax obligations may become substantially limited and to deter certain abusive takeover practices. The benefit of the NOLs would be substantially limited, and the timing of the usage of the NOLs could be substantially delayed, if we were to experience an “ownership change” as defined by Section 382 of the Internal Revenue Code.

Under the Agreement each outstanding share of our Common Stock is accompanied by one Right. The Distribution Date occurs on the earlier of ten days after a public announcement that a person has become an Acquiring Person, or ten business days after a person announces or begins a tender offer in which consummation of such offer would result in a person becoming an Acquiring Person. An Acquiring Person is any person that becomes, by itself or together with its affiliates and associates, a beneficial owner of 5% or more of the shares of our Common Stock then outstanding, but excludes, among others, certain exempt and grandfathered persons as defined in the Agreement. The Rights are not exercisable until the Distribution Date. Each Right will initially entitle shareholders to buy one-tenth of one share of our Common Stock at a Purchase Price of $14 per full share (equivalent to $1.40 for each one-tenth share), subject to adjustment. Each exercisable Right (subject to certain limitations) will entitle its holder to purchase, at the Rights’ then-current Purchase Price, a number of our shares of Common Stock (or if after the Shares Acquisition Date, we are acquired in a business combination, common shares of the acquiror) having a market value at the time equal to twice the Purchase Price. The Rights will expire on August 1, 2015, or earlier as described in the Agreement. The Rights are redeemable at a price of $0.001 per Right at any time prior to the time a person becomes an Acquiring Person. Other than certain amendments, the Board of Directors may amend the Rights in any respect without the consent of the holders of the Rights.

We have 28.9 million authorized shares reserved for conversion under our convertible debentures and 97.6 million authorized shares reserved for conversion under our convertible senior notes. (See Note 8 – “Debt”)

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Dividend Restrictions

12 Months Ended

Dec. 31, 2014

Dividend Restrictions [Abstract]

Dividend Restrictions

16.	Dividend Restrictions

In the fourth quarter of 2008, our holding company suspended the payment of dividends to shareholders.

The senior notes, convertible senior notes and convertible debentures, discussed in Note 8 – “Debt”, are obligations of MGIC Investment Corporation, our holding company, and not of its subsidiaries. Our holding company has no material sources of cash inflows other than investment income, dividends from subsidiaries and capital raised in the public markets. MGIC is the principal source of dividend-paying capacity. Since 2008, MGIC has not paid any dividends to our holding company. Through 2015, MGIC cannot pay any dividends to our holding company without approval from the OCI and the GSEs.

Our insurance subsidiaries are subject to state insurance regulations as to maintenance of policyholders' surplus and payment of dividends. The maximum amount of dividends that the insurance subsidiaries may pay in any twelve-month period without regulatory approval by the Office of the Commissioner of Insurance of the State of Wisconsin (the “OCI”) is the lesser of adjusted statutory net income or 10% of statutory policyholders' surplus as of the preceding calendar year end. Adjusted statutory net income is defined for this purpose to be the greater of statutory net income, net of realized investment gains, for the calendar year preceding the date of the dividend or statutory net income, net of realized investment gains, for the three calendar years preceding the date of the dividend less dividends paid within the first two of the preceding three calendar years.

Statutory Capital

12 Months Ended

Dec. 31, 2014

Statutory Capital [Abstract]

Statutory Capital

17.	Statutory Capital

Accounting Principles

The accounting principles used in determining statutory financial amounts differ from GAAP, primarily for the following reasons:

Under statutory accounting practices, including practice prescribed by the OCI, mortgage guaranty insurance companies are required to maintain contingency loss reserves equal to 50% of premiums earned. Such amounts cannot be withdrawn for a period of ten years except as permitted by insurance regulations. With regulatory approval a mortgage guaranty insurance company may make early withdrawals from the contingency reserve when incurred losses exceed 35% of net premiums earned in a calendar year. Changes in contingency loss reserves impact the statutory statement of operations. Contingency loss reserves are not reflected as liabilities under GAAP and changes in contingency loss reserves do not impact the GAAP statements of operations. A premium deficiency reserve that may be recorded on a GAAP basis when the present value of expected future losses and expenses exceeds the present value of expected future premiums and already established loss reserves, may not be recorded on a statutory basis if the present value of expected future premiums and already established loss reserves and statutory contingency reserves, exceeds the present value of expected future losses and expenses. On a GAAP basis, when calculating a premium deficiency reserve policies are grouped based on how they are acquired, serviced and measured. On a statutory basis, a premium deficiency reserve is calculated on all policies in force.

Under statutory accounting practices, insurance policy acquisition costs are charged against operations in the year incurred. Under GAAP, these costs are deferred and amortized as the related premiums are earned commensurate with the expiration of risk.

Under statutory accounting practices, purchases of tax and loss bonds are accounted for as investments. Under GAAP, purchases of tax and loss bonds are recorded as payments of current income taxes.

Under statutory accounting practices, changes in deferred tax assets and liabilities are recognized as a separate component of gains and losses in statutory surplus. Under GAAP, changes in deferred tax assets and liabilities are recorded on the statement of operations as a component of the (benefit) provision for income tax.

Under statutory accounting practices, fixed maturity investments are generally valued at amortized cost. Under GAAP, those investments which we do not have the ability and intent to hold to maturity are considered to be available-for-sale and are recorded at fair value, with the unrealized gain or loss recognized, net of tax, as an increase or decrease to shareholders' equity.

Under statutory accounting practices, certain assets, including certain deferred tax assets, designated as non-admitted assets, are charged directly against statutory surplus. Such assets are reflected on the GAAP financial statements.

The statutory net income, surplus and the contingency reserve liability of the insurance subsidiaries of our holding company, as well as the surplus contributions made to MGIC and other insurance subsidiaries and dividends paid by MGIC to us, are shown in the tables below. The surplus amounts included below are the combined surplus of our insurance operations as utilized in our risk-to-capital calculations.

Year Ended December 31,	Net income (loss)			Surplus		Contingency Reserve
	(In thousands)

2014	$	13,203		$	1,585,164	$	318,247
2013		(8,046	)		1,584,121		18,558
2012		(902,878	)		748,592		6,430

Year Ended December 31,		Additions to the surplus of MGIC from parent company funds		Additions to the surplus of other insurance subsidiaries from parent company funds			Dividends paid by MGIC to the parent company
	(In thousands)

2014		$	-		$	-	$	-
2013			800,000			-		-
2012			100,000			-		-

Statutory Capital Requirements

The insurance laws of 16 jurisdictions, including Wisconsin, our domiciliary state, require a mortgage insurer to maintain a minimum amount of statutory capital relative to the risk in force (or a similar measure) in order for the mortgage insurer to continue to write new business. We refer to these requirements as the “State Capital Requirements” and, together with the GSE Financial Requirements, the “Financial Requirements.” While they vary among jurisdictions, the most common State Capital Requirements allow for a maximum risk-to-capital ratio of 25 to 1. A risk-to-capital ratio will increase if (i) the percentage decrease in capital exceeds the percentage decrease in insured risk, or (ii) the percentage increase in capital is less than the percentage increase in insured risk. Wisconsin does not regulate capital by using a risk-to-capital measure but instead requires a minimum policyholder position (“MPP”). The “policyholder position” of a mortgage insurer is its net worth or surplus, contingency reserve and a portion of the reserves for unearned premiums.

At December 31, 2014, MGIC’s preliminary risk-to-capital ratio was 14.6 to 1, below the maximum allowed by the jurisdictions with State Capital Requirements and its policyholder position was $673 million above the required MPP of $1.0 billion. In 2013, we entered into a quota share reinsurance agreement with a group of unaffiliated reinsurers that reduced our risk-to-capital ratio. It is possible that under the revised State Capital Requirements discussed below, MGIC will not be allowed full credit for the risk ceded to the reinsurers. If MGIC is disallowed full credit, under either the State Capital Requirements or the GSE Financial Requirements, MGIC may terminate the reinsurance agreement, without penalty. At this time, we expect MGIC to continue to comply with the current State Capital Requirements; however, you should read the rest of these financial statement footnotes for information about matters that could negatively affect such compliance.

At December 31, 2014, the preliminary risk-to-capital ratio of our combined insurance operations (which includes reinsurance affiliates) was 16.4 to 1. Reinsurance agreements with affiliates permit MGIC to write insurance with a higher coverage percentage than it could on its own under certain state-specific requirements. A higher risk-to-capital ratio on a combined basis may indicate that, in order for MGIC to continue to utilize reinsurance agreements with its affiliates, unless a waiver of the State Capital Requirements of Wisconsin continues to be effective, additional capital contributions to the reinsurance affiliates could be needed.

The NAIC previously announced that it plans to revise the minimum capital and surplus requirements for mortgage insurers that are provided for in its Mortgage Guaranty Insurance Model Act. A working group of state regulators is considering this issue, although no date has been established by which the NAIC must propose revisions to such requirements. Depending on the scope of revisions made by the NAIC, MGIC may be prevented from writing new business in the jurisdictions adopting such revisions.

If MGIC fails to meet the State Capital Requirements of Wisconsin and is unable to obtain a waiver of them from the Office of the Commissioner of Insurance of the State of Wisconsin (“OCI”), MGIC could be prevented from writing new business in all jurisdictions. If MGIC fails to meet the State Capital Requirements of a jurisdiction other than Wisconsin and is unable to obtain a waiver of them, MGIC could be prevented from writing new business in that particular jurisdiction. It is possible that regulatory action by one or more jurisdictions, including those that do not have specific State Capital Requirements, may prevent MGIC from continuing to write new insurance in such jurisdictions. If we are unable to write business in all jurisdictions, lenders may be unwilling to procure insurance from us anywhere. In addition, a lender’s assessment of the future ability of our insurance operations to meet the Financial Requirements may affect its willingness to procure insurance from us. A possible future failure by MGIC to meet the Financial Requirements will not necessarily mean that MGIC lacks sufficient resources to pay claims on its insurance liabilities. While we believe MGIC has sufficient claims paying resources to meet its claim obligations on its insurance in force on a timely basis, you should read the rest of these financial statement footnotes for information about matters that could negatively affect MGIC’s claims paying resources.

Statement of Statutory Accounting Principles No. 101 (“SSAP No. 101”) became effective January 1, 2012 and prescribed new standards for determining the amount of deferred tax assets that can be recognized as admitted assets for determining statutory capital. Under a permitted practice effective September 30, 2012 and until further notice, the OCI has approved MGIC to report its net deferred tax asset as an admitted asset in an amount not to exceed 10% of surplus as regards policyholders, notwithstanding any contrary provisions of SSAP No. 101. Deferred tax assets of $138 million were included in MGIC’s statutory capital at December 31, 2014 and 2013 and deferred tax assets of $63 million were included in MGIC’s statutory capital at December 31, 2012.

See Note 1 – “Nature of Business – Capital” for additional information regarding the capital standards of the GSEs.

Share-based Compensation Plans

12 Months Ended

Dec. 31, 2014

Share-based Compensation Plans [Abstract]

Share-based Compensation Plans

18.	Share-based Compensation Plans

We have an omnibus incentive plan that was adopted in May 2011. The purpose of the plan is to motivate and incent performance by, and to retain the services of, key employees and non-employee directors through receipt of equity-based and other incentive awards under the plan. The maximum number of shares of stock that can be awarded under the plan is 7.0 million. Awards issued under the plan that are subsequently forfeited will not count against the limit on the maximum number of shares that may be issued under the plan. In addition, shares used for income tax withholding or used for payment of the exercise price of an option will not be counted against such limit. The plan provides for the award of stock options, stock appreciation rights, restricted stock and restricted stock units, as well as cash incentive awards. No awards may be granted after May 5, 2021 under the plan. The vesting provisions of options, restricted stock and restricted stock units are determined at the time of grant. Shares issued under the plan are treasury shares if available, otherwise they will be newly issued shares.

The compensation cost that has been charged against income for share-based plans was $9.2 million, $6.6 million, and $8.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. The related income tax benefit, before valuation allowance, recognized for share-based plans was $3.2 million, $2.3 million, and $3.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. See Note 14 – “Income Taxes” for a discussion of our valuation allowance.

There have been no options granted since 2004, and no options exercised since 2007. At December 31, 2013, all 529,800 options outstanding were exercisable at a price of $68.20 each. All of these options expired in January 2014 without being exercised.

A summary of restricted stock or restricted stock unit (collectively called “restricted stock”) activity during 2014 is as follows:

	Weighted Average Grant Date Fair Market Value		Shares

Restricted stock outstanding at December 31, 2013	$	5.15		3,622,707


Granted		8.43		1,804,800
Vested		5.66		(1,368,234	)
Forfeited		8.44		(206,882	)

Restricted stock outstanding at December 31, 2014	$	6.33		3,852,391

At December 31, 2014, the 3.9 million shares of restricted stock outstanding consisted of 2.9 million shares that are subject to performance conditions (“performance shares”) and 1.0 million shares that are subject only to service conditions (“time vested shares”). The weighted-average grant date fair value of restricted stock granted during 2013 and 2012 was $2.75 and $3.97, respectively. The fair value of restricted stock granted is the closing price of the common stock on the New York Stock Exchange on the date of grant. The total fair value of restricted stock vested during 2014, 2013 and 2012 was $12.1 million, $4.3 million, and $6.9 million, respectively.

As of December 31, 2014, there was $12.8 million of total unrecognized compensation cost related to non-vested share-based compensation agreements granted under the plans. Of this total, $9.9 million of unrecognized compensation costs relate to performance shares and $2.9 million relates to time vested shares. A portion of the unrecognized costs associated with the performance shares may or may not be recognized in future periods, depending upon whether or not the performance and service conditions are met. The cost associated with the time vested shares is expected to be recognized over a weighted-average period of 1.7 years.

In 2011, we granted 449,350 shares of restricted stock units that were to be settled as cash payments over the vesting period under our 2002 stock incentive plan. As of December 31, 2014, all shares granted under this award had either vested or been forfeited. A summary of activity related to these restricted share units for the years ended December 31, 2014, 2013 and 2012 is as follows:

	2014			2013			2012


Outstanding at beginning of year		144,146			294,782			443,950

Granted		-			-			-
Vested		(144,146	)		(147,368	)		(147,968	)
Forfeited		-			(3,268	)		(1,200	)

Outstanding at end of year		-			144,146			294,782

Cash payments at vesting (in millions)	$	1.2		$	0.4			0.6

At December 31, 2014, 2.3 million shares were available for future grant under the 2011 omnibus incentive plan.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details

Leases

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

Leases

19.

Leases

We lease certain office space as well as data processing equipment and autos under operating leases that expire during the next seven years. Generally, rental payments are fixed.

Total rental expense under operating leases was $2.8 million, $4.6 million, and $4.8 million in 2014, 2013 and 2012, respectively.

At December 31, 2014, minimum future operating lease payments are as follows (in thousands):

2015		1,041
2016		1,000
2017		467
2018		231
2019 and thereafter		497

Total	$	3,236

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References+ Details

Litigation and Contingencies

12 Months Ended

Dec. 31, 2014

Litigation and Contingencies [Abstract]

Litigation and Contingencies

20.	Litigation and Contingencies

Before paying a claim, we review the loan and servicing files to determine the appropriateness of the claim amount. All of our insurance policies provide that we can reduce or deny a claim if the servicer did not comply with its obligations under our insurance policy, including the requirement to mitigate our loss by performing reasonable loss mitigation efforts or, for example, diligently pursuing a foreclosure or bankruptcy relief in a timely manner. We call such reduction of claims submitted to us “curtailments.” In 2013 and 2014, curtailments reduced our average claim paid by approximately 5.8% and 6.7%, respectively. In addition, the claims submitted to us sometimes include costs and expenses not covered by our insurance policies, such as hazard insurance premiums for periods after the claim date and losses resulting from property damage that has not been repaired. These other adjustments reduced claim amounts by less than the amount of curtailments. After we pay a claim, servicers and insureds sometimes object to our curtailments and other adjustments. We review these objections if they are sent to us within 90 days after the claim was paid.

When reviewing the loan file associated with a claim, we may determine that we have the right to rescind coverage on the loan. Prior to 2008, rescissions of coverage on loans were not a material portion of our claims resolved during a year. However, beginning in 2008, our rescissions of coverage on loans have materially mitigated our paid losses. In 2009 through 2011, rescissions mitigated our paid losses in the aggregate by approximately $3.0 billion; and in 2012, 2013 and 2014, rescissions mitigated our paid losses by approximately $0.3 billion, $135 million and $97 million, respectively (in each case, the figure includes amounts that would have either resulted in a claim payment or been charged to a deductible under pool policy, and may have been charged to a captive reinsurer). In recent quarters, approximately 5% of claims received in a quarter have been resolved by rescissions, down from the peak of approximately 28% in the first half of 2009.

We estimate rescissions mitigated our incurred losses by approximately $2.5 billion in 2009 and $0.2 billion in 2010. These figures include the benefit of claims not paid in the period as well as the impact of changes in our estimated expected rescission activity on our loss reserves in the period. In 2012, we estimate that our rescission benefit in loss reserves was reduced by $0.2 billion due to probable rescission settlement agreements. We estimate that other rescissions had no significant impact on our losses incurred in 2011 through 2014. Our loss reserving methodology incorporates our estimates of future rescissions and reversals of rescissions. Historically, reversals of rescissions have been immaterial. A variance between ultimate actual rescission and reversal rates and our estimates, as a result of the outcome of litigation, settlements or other factors, could materially affect our losses.

If the insured disputes our right to rescind coverage, we generally engage in discussions in an attempt to settle the dispute. As part of those discussions, we may voluntarily suspend rescissions we believe may be part of a settlement. In 2011, Freddie Mac advised its servicers that they must obtain its prior approval for rescission settlements, Fannie Mae advised its servicers that they are prohibited from entering into such settlements and Fannie Mae notified us that we must obtain its prior approval to enter into certain settlements. Since those announcements, the GSEs have consented to our settlement agreements with two customers, one of which is Countrywide, as discussed below, and have rejected other settlement agreements. We have reached and implemented settlement agreements that do not require GSE approval, but they have not been material in the aggregate.

If we are unable to reach a settlement, the outcome of a dispute ultimately would be determined by legal proceedings. Under our policies in effect prior to October 1, 2014, legal proceedings disputing our right to rescind coverage may be brought up to three years after the lender has obtained title to the property (typically through a foreclosure) or the property was sold in a sale that we approved, whichever is applicable, and under our master policy effective October 1, 2014, such proceedings may be brought up to two years from the date of the notice of rescission. In a few jurisdictions there is a longer time to bring such proceedings.

Until a liability associated with a settlement agreement or litigation becomes probable and can be reasonably estimated, we consider our claim payment or rescission resolved for financial reporting purposes even though discussions and legal proceedings have been initiated and are ongoing. Under ASC 450-20, an estimated loss from such discussions and proceedings is accrued for only if we determine that the loss is probable and can be reasonably estimated.

Since December 2009, we have been involved in legal proceedings with Countrywide Home Loans, Inc. (“CHL”) and its affiliate, Bank of America, N.A., as successor to Countrywide Home Loans Servicing LP (“BANA” and collectively with CHL, “Countrywide”) in which Countrywide alleged that MGIC denied valid mortgage insurance claims. (In our SEC reports, we refer to insurance rescissions and denials of claims collectively as “rescissions” and variations of that term.) In addition to the claim amounts it alleged MGIC had improperly denied, Countrywide contended it was entitled to other damages of almost $700 million as well as exemplary damages. We sought a determination in those proceedings that we were entitled to rescind coverage on the applicable loans.

In April 2013, MGIC entered into separate settlement agreements with CHL and BANA, pursuant to which the parties will settle the Countrywide litigation as it relates to MGIC’s rescission practices (as amended, the “Agreements”). The Agreement with BANA covers loans purchased by the GSEs. That original Agreement was implemented beginning in November 2013 and we resolved all related suspended rescissions in November and December 2013 by paying the associated claim or processing the rescission. The pending arbitration proceedings concerning the loans covered by that agreement have been dismissed, the mutual releases between the parties regarding such loans have become effective and the litigation between the parties regarding such loans is to be dismissed.

The Agreement with CHL covers loans that were purchased by non-GSE investors, including securitization trusts (the “other investors”). That Agreement will be implemented only as and to the extent that it is consented to by or on behalf of the other investors. While there can be no assurance that the Agreement with CHL will be implemented, we have determined that its implementation is probable.

The estimated impact of the Agreements and other probable settlements have been recorded in our financial statements. The estimated impact that we recorded for probable settlements is our best estimate of our loss from these matters. We estimate that the maximum exposure above the best estimate provision we recorded is $626 million, of which about 60% is related to claims paying practices subject to the Agreement with CHL and the previously disclosed curtailment matters with Countrywide. If we are not able to implement the Agreement with CHL or the other settlements we consider probable, we intend to defend MGIC vigorously against any related legal proceedings.

The flow policies at issue with Countrywide are in the same form as the flow policies that we used with all of our customers during the period covered by the Agreements, and the bulk policies at issue vary from one another, but are generally similar to those used in the majority of our Wall Street bulk transactions.

We are involved in discussions and legal and consensual proceedings with customers with respect to our claims paying practices. Although it is reasonably possible that when these discussions or proceedings are completed we will not prevail in all cases, we are unable to make a reasonable estimate or range of estimates of the potential liability. We estimate the maximum exposure associated with these discussions and proceedings to be approximately $16 million, although we believe we will ultimately resolve these matters for significantly less than this amount.

The estimates of our maximum exposure referred to above do not include interest or consequential or exemplary damages.

Consumers continue to bring lawsuits against home mortgage lenders and settlement service providers. Mortgage insurers, including MGIC, have been involved in litigation alleging violations of the anti-referral fee provisions of the Real Estate Settlement Procedures Act, which is commonly known as RESPA, and the notice provisions of the Fair Credit Reporting Act, which is commonly known as FCRA. MGIC’s settlement of class action litigation against it under RESPA became final in October 2003. MGIC settled the named plaintiffs’ claims in litigation against it under FCRA in December 2004, following denial of class certification in June 2004. Since December 2006, class action litigation has been brought against a number of large lenders alleging that their captive mortgage reinsurance arrangements violated RESPA. Beginning in December 2011, MGIC, together with various mortgage lenders and other mortgage insurers, has been named as a defendant in twelve lawsuits, alleged to be class actions, filed in various U.S. District Courts. The complaints in all of the cases allege various causes of action related to the captive mortgage reinsurance arrangements of the mortgage lenders, including that the lenders’ captive reinsurers received excessive premiums in relation to the risk assumed by those captives, thereby violating RESPA. Seven of those cases had been dismissed prior to February 2015 without any further opportunity to appeal. Of the remaining five cases, three were dismissed with prejudice in February 2015 pursuant to stipulations of dismissal from the plaintiffs, and the remaining two cases are expected to be dismissed with prejudice in connection with plaintiffs' stipulations in such cases. There can be no assurance that we will not be subject to further litigation under RESPA (or FCRA) or that the outcome of any such litigation, including the lawsuits mentioned above, would not have a material adverse effect on us.

In 2013, the U.S. District Court for the Southern District of Florida approved a settlement with the CFPB that resolved a federal investigation of MGIC’s participation in captive reinsurance agreements in the mortgage insurance industry. The settlement concluded the investigation with respect to MGIC without the CFPB or the court making any findings of wrongdoing. As part of the settlement, MGIC agreed that it would not enter into any new captive reinsurance agreement or reinsure any new loans under any existing captive reinsurance agreement for a period of ten years. MGIC had voluntarily suspended most of its captive agreements in 2008 in response to market conditions and GSE requests. In connection with the settlement, MGIC paid a civil penalty of $2.65 million and the court issued an injunction prohibiting MGIC from violating any provisions of RESPA.

We received requests from the Minnesota Department of Commerce (the “MN Department”) beginning in February 2006 regarding captive mortgage reinsurance and certain other matters in response to which MGIC has provided information on several occasions, including as recently as May 2011. In August 2013, MGIC and several competitors received a draft Consent Order from the MN Department containing proposed conditions to resolve its investigation, including unspecified penalties. We are engaged in discussions with the MN Department regarding the draft Consent Order. We also received a request in June 2005 from the New York Department of Financial Services for information regarding captive mortgage reinsurance agreements and other types of arrangements in which lenders receive compensation. Other insurance departments or other officials, including attorneys general, may also seek information about, investigate, or seek remedies regarding captive mortgage reinsurance.

Various regulators, including the CFPB, state insurance commissioners and state attorneys general may bring actions seeking various forms of relief in connection with violations of RESPA. The insurance law provisions of many states prohibit paying for the referral of insurance business and provide various mechanisms to enforce this prohibition. While we believe our practices are in conformity with applicable laws and regulations, it is not possible to predict the eventual scope, duration or outcome of any such reviews or investigations nor is it possible to predict their effect on us or the mortgage insurance industry.

We are subject to comprehensive, detailed regulation by state insurance departments. These regulations are principally designed for the protection of our insured policyholders, rather than for the benefit of investors. Although their scope varies, state insurance laws generally grant broad supervisory powers to agencies or officials to examine insurance companies and enforce rules or exercise discretion affecting almost every significant aspect of the insurance business. State insurance regulatory authorities could take actions, including changes in capital requirements, that could have a material adverse effect on us. In addition, the CFPB may issue additional rules or regulations, which may materially affect our business.

In December 2013, the U.S. Treasury Department’s Federal Insurance Office released a report that calls for federal standards and oversight for mortgage insurers to be developed and implemented. It is uncertain what form the standards and oversight will take and when they will become effective.

We understand several law firms have, among other things, issued press releases to the effect that they are investigating us, including whether the fiduciaries of our 401(k) plan breached their fiduciary duties regarding the plan’s investment in or holding of our common stock or whether we breached other legal or fiduciary obligations to our shareholders. We intend to defend vigorously any proceedings that may result from these investigations. With limited exceptions, our bylaws provide that our officers and 401(k) plan fiduciaries are entitled to indemnification from us for claims against them.

A non-insurance subsidiary of our holding company is a shareholder of the corporation that operates the Mortgage Electronic Registration System (“MERS”). Our subsidiary, as a shareholder of MERS, has been named as a defendant (along with MERS and its other shareholders) in eight lawsuits asserting various causes of action arising from allegedly improper recording and foreclosure activities by MERS. Seven of these lawsuits have been dismissed without any further opportunity to appeal. The remaining lawsuit had also been dismissed by the U.S. District Court, however, the plaintiff in that lawsuit filed a motion for reconsideration by the U.S. District Court and to certify a related question of law to the Supreme Court of the State in which the U.S. District Court is located. That motion for reconsideration was denied, however, in May 2014, the plaintiff appealed the denial. The damages sought in this remaining case are substantial. We deny any wrongdoing and intend to defend ourselves vigorously against the allegations in the lawsuit.

In addition to the matters described above, we are involved in other legal proceedings in the ordinary course of business. In our opinion, based on the facts known at this time, the ultimate resolution of these ordinary course legal proceedings will not have a material adverse effect on our financial position or results of operations.

Through a non-insurance subsidiary, we utilize our underwriting skills to provide an outsourced underwriting service to our customers known as contract underwriting. As part of the contract underwriting activities, that subsidiary is responsible for the quality of the underwriting decisions in accordance with the terms of the contract underwriting agreements with customers. That subsidiary may be required to provide certain remedies to its customers if certain standards relating to the quality of our underwriting work are not met, and we have an established reserve for such future obligations. Claims for remedies may be made a number of years after the underwriting work was performed. Beginning in the second half of 2009, our subsidiary experienced an increase in claims for contract underwriting remedies, which continued throughout 2012. The related contract underwriting remedy expense was approximately $5 million and $27 million for the years ended December 31, 2013 and 2012, respectively. The underwriting remedy expense for 2014 was approximately $4 million, but may increase in the future.

See Note 14 – “Income Taxes” for a description of federal income tax contingencies.

Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2014

Unaudited Quarterly Financial Data [Abstract]

Unaudited Quarterly Financial Data

21.	Unaudited Quarterly Financial Data

		Quarter											Full
2014:		First			Second		Third			Fourth			Year
	(In thousands, except share data)

Net premiums earned		$	214,261		$	207,486	$	209,035		$	213,589		$	844,371
Investment income, net of expenses			20,156			21,180		22,355			23,956			87,647
Realized (losses) gains			(231	)		522		632			434			1,357
Other revenue			896			2,048		3,093			2,385			8,422
Loss incurred, net			122,608			141,141		115,254			117,074			496,077
Underwriting and other expenses, net			51,766			43,455		47,595			48,181			190,997
Provision for income tax			726			1,118		249			681			2,774
Net income			59,982			45,522		72,017			74,428			251,949
Income per share (a) (b):
Basic			0.18			0.13		0.21			0.22			0.74
Diluted			0.15			0.12		0.18			0.19			0.64

		Quarter											Full
2013:		First			Second		Third			Fourth			Year
	(In thousands, except share data)

Net premiums earned		$	247,059		$	237,777	$	231,857		$	226,358		$	943,051
Investment income, net of expenses			18,328			20,883		20,250			21,278			80,739
Realized gains (losses)			1,259			2,485		(139	)		2,126			5,731
Other revenue			2,539			2,715		2,481			2,179			9,914
Loss incurred, net			266,208			196,274		180,189			196,055			838,726
Underwriting and other expenses, net			74,768			54,221		61,810			56,062			246,861
Provision for income tax			1,139			990		336			1,231			3,696
Net (loss) income			(72,930	)		12,375		12,114			(1,407	)		(49,848	)
(Loss) income per share (a):
Basic			(0.31	)		0.04		0.04			(0.00	)		(0.16	)
Diluted			(0.31	)		0.04		0.04			(0.00	)		(0.16	)

(a)

Due to the use of weighted average shares outstanding when calculating earnings per share, the sum of the quarterly per share data may not equal the per share data for the year.

(b)

In periods where convertible debt instruments are dilutive to earnings per share the “if-converted” method of computing diluted EPS requires an interest expense adjustment, net of tax, to net income available to shareholders. This adjustment has not been reflected in the Unaudited Quarterly Financial Data presented. See Note 3 – “Summary of Significant Accounting Policies” for further discussion.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details

SCHEDULE I-SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES

12 Months Ended

Dec. 31, 2014

SCHEDULE I-SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES [Abstract]

SCHEDULE I-SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES

MGIC INVESTMENT CORPORATION

SCHEDULE I — SUMMARY OF INVESTMENTS -

OTHER THAN INVESTMENTS IN RELATED PARTIES

December 31, 2014

Type of Investment	Amortized Cost		Fair Value		Amount at which shown in the balance sheet
	(In thousands)
Fixed maturities:
Bonds:
United States Government and government agencies and authorities	$	349,153	$	346,775	$	346,775
States, municipalities and political subdivisions		844,942		855,142		855,142
Foreign governments		35,630		39,170		39,170
Public utilities		214,179		215,048		215,048
Asset-backed securities		286,260		286,655		286,655
Collateralized loan obligations		61,340		60,076		60,076
Mortgage-backed		606,198		596,515		596,515
All other corporate bonds		2,204,812		2,210,233		2,210,233

Total fixed maturities		4,602,514		4,609,614		4,609,614

Equity securities:
Common stocks:
Industrial, miscellaneous and all other		3,003		3,055		3,055

Total equity securities		3,003		3,055		3,055

Total investments	$	4,605,517	$	4,612,669	$	4,612,669

- Definition

The entire disclosure for the schedule applicable to insurance companies summarizing investments held as of the most recent audited balance sheet. At a minimum, such summary is by three major categories of investments including: (1) fixed maturities primarily consisting of bonds, including convertibles and bonds with warrants, and redeemable preferred stocks, (2) equity securities primarily consisting of common stocks and nonredeemable preferred stocks, and (3) other investments including mortgage loans on real estate, real estate held for investment, real estate acquired in satisfaction of debt, policy loans, other long-term investments, and short-term investments not otherwise categorized. The information provided with respect to each item within each category includes: (A) the original cost of equity securities and, as to fixed maturity securities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts, (B) fair value as of the reporting date, and (C) the amount at which the item within each category is shown in the statement of financial position; with respect to (C), if the amount at which shown in the statement of financial position is different from the items original [amortized] cost or fair value, an explanation of the difference may be included herein.

+ References+ Details

SCHEDULE II-CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2014

SCHEDULE II-CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

SCHEDULE II-CONDENSED FINANCIAL INFORMATION OF REGISTRANT

MGIC INVESTMENT CORPORATION

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED BALANCE SHEETS

PARENT COMPANY ONLY

December 31, 2014 and 2013

	2014			2013
	(In thousands)
ASSETS

Fixed maturities (amortized cost, 2014 – $482,629; 2013 – $548,528)	$	480,125		$	539,124
Cash and cash equivalents		10,507			20,725
Investment in subsidiaries, at equity in net assets		1,821,024			1,475,956
Accounts receivable - affiliates		312			380
Income taxes receivable		17,478			17,958
Accrued investment income		3,435			3,629
Other assets		15,156			18,943
Total assets	$	2,348,037		$	2,076,715

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Senior notes	$	61,918		$	82,773
Convertible senior notes		845,000			845,000
Convertible junior debentures		389,522			389,522
Accrued interest		14,694			14,882
Total liabilities		1,311,134			1,332,177

Shareholders’ equity
Common stock, (one dollar par value, shares authorized 1,000,000; shares issued 2014 and 2013 – 340,047; outstanding 2014 – 338,560; 2013 – 337,758)		340,047			340,047
Paid-in capital		1,663,592			1,661,269
Treasury stock (shares at cost, 2014 – 1,487; 2013 – 2,289)		(32,937	)		(64,435	)
Accumulated other comprehensive loss, net of tax		(81,341	)		(117,726	)
Retained deficit		(852,458	)		(1,074,617	)
Total shareholders’ equity		1,036,903			744,538
Total liabilities and shareholders’ equity	$	2,348,037		$	2,076,715

See accompanying supplementary notes to Parent Company condensed financial statements.

MGIC INVESTMENT CORPORATION

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED STATEMENTS OF OPERATIONS

PARENT COMPANY ONLY

Years Ended December 31, 2014, 2013 and 2012

	2014			2013			2012
	(In thousands)
Revenues:
Investment income, net of expenses	$	6,985		$	5,033		$	6,921
Net realized investment gains		395			830			9,895
Other revenue		-			-			17,775
Total revenues		7,380			5,863			34,591

Expenses:
Operating expenses and other		1,383			511			2,227
Interest expense		69,648			79,663			99,344
Total expenses		71,031			80,174			101,571
Loss before tax		(63,651	)		(74,311	)		(66,980	)
Provision for income taxes		-			-			-
Equity in undistributed net income (loss) of subsidiaries		315,600			24,463			(860,099	)
Net income (loss)		251,949			(49,848	)		(927,079	)
Other comprehensive income (loss), net of tax		36,385			(69,563	)		(78,287	)
Comprehensive income (loss)	$	288,334		$	(119,411	)	$	(1,005,366	)

See accompanying supplementary notes to Parent Company condensed financial statements.

MGIC INVESTMENT CORPORATION

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED STATEMENTS OF CASH FLOWS

PARENT COMPANY ONLY

Years Ended December 31, 2014, 2013 and 2012

	2014			2013			2012
	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	251,949		$	(49,848	)	$	(927,079	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in undistributed net (income) loss of subsidiaries		(315,600	)		(24,463	)		860,099
Other		14,862			21,693			23,765
Change in certain assets and liabilities:
Accounts receivable - affiliates		68			289			(753	)
Income taxes receivable		480			(3	)		5,909
Accrued investment income		194			(2,611	)		2,702
Accrued interest		(188	)		(15,577	)		17,288
Net cash used in operating activities		(48,235	)		(70,520	)		(18,069	)

Cash flows from investing activities:
Transactions with subsidiaries		-			(800,000	)		(100,000	)
Purchase of fixed maturities		(553,538	)		(563,968	)		(120,181	)
Sale of fixed maturities		613,322			148,608			409,601
Net cash provided by (used in) investing activities		59,784			(1,215,360	)		189,420

Cash flows from financing activities:
Repayment of long-term debt		(21,767	)		(17,235	)		(53,107	)
Net proceeds from convertible senior notes		-			484,625			-
Common stock shares issued		-			663,335			-
Net cash (used in) provided by financing activities		(21,767	)		1,130,725			(53,107	)

Net (decrease) increase in cash and cash equivalents		(10,218	)		(155,155	)		118,244
Cash and cash equivalents at beginning of year		20,725			175,880			57,636
Cash and cash equivalents at end of year	$	10,507		$	20,725		$	175,880

See accompanying supplementary notes to Parent Company condensed financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

PARENT COMPANY ONLY

SUPPLEMENTARY NOTES

Note A

The accompanying Parent Company financial statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements appearing in Item 8 of this annual report.

Note B

Our insurance subsidiaries are subject to statutory regulations as to maintenance of policyholders’ surplus and payment of dividends. The maximum amount of dividends that the insurance subsidiaries may pay in any twelve-month period without regulatory approval by the Office of the Commissioner of Insurance of the State of Wisconsin is the lesser of adjusted statutory net income or 10% of statutory policyholders’ surplus as of the preceding calendar year end. Adjusted statutory net income is defined for this purpose to be the greater of statutory net income, net of realized investment gains, for the calendar year preceding the date of the dividend or statutory net income, net of realized investment gains, for the three calendar years preceding the date of the dividend less dividends paid within the first two of the preceding three calendar years.

The senior notes, convertible senior notes and convertible debentures, discussed in Note 8 – “Debt” to our consolidated financial statements in Item 8, are obligations of MGIC Investment Corporation, our holding company, and not of its subsidiaries. The payment of dividends from our insurance subsidiaries, which other than raising capital in the public markets is the principal source of our holding company cash inflow, is restricted by insurance regulation. MGIC is the principal source of dividend-paying capacity. Since 2008, MGIC has not paid any dividends to our holding company. In 2015, MGIC cannot pay any dividends to our holding company without approval from the OCI.

In the fourth quarter of 2008, we suspended the payment of dividends to shareholders.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References+ Details

SCHEDULE IV-REINSURANCE

12 Months Ended

Dec. 31, 2014

SCHEDULE IV-REINSURANCE [Abstract]

SCHEDULE IV-REINSURANCE

MGIC INVESTMENT CORPORATION

SCHEDULE IV — REINSURANCE

MORTGAGE INSURANCE PREMIUMS EARNED

Years Ended December 31, 2014, 2013 and 2012

	Gross Amount		Ceded to Other Companies		Assumed From Other Companies		Net Amount		Percentage of Amount Assumed to Net
	(In thousands of dollars)
Year ended December 31,
2014	$	950,973	$	108,255	$	1,653	$	844,371		0.2	%

2013		979,078		38,101		2,074		943,051		0.2	%

2012		1,065,663		34,918		2,425		1,033,170		0.2	%

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies [Abstract]

Fair value measurements

In accordance with fair value guidance, we applied the following fair value hierarchy in order to measure fair value for assets and liabilities:

Investments

§	our intent to sell the security or whether it is more likely than not that we will be required to sell the security before recovery;

§	extent and duration of the decline;

§	failure of the issuer to make scheduled interest or principal payments;

§	change in rating below investment grade; and

§	adverse conditions specifically related to the security, an industry, or a geographic area.

Home office and equipment

Deferred Insurance Policy Acquisition Costs

Loss Reserves

Premium Deficiency Reserve

Foreign Currency Translation

Share-Based Compensation

Earnings per Share

The following table reconciles basic and diluted EPS amounts:

	Years Ended December 31,

	2014		2013			2012
	(In thousands, except per share data)

Basic earnings (loss) per share:

Net income (loss)	$	251,949	$	(49,848	)	$	(927,079	)
Average common shares outstanding		338,523		311,754			201,892
Basic income (loss) per share	$	0.74	$	(0.16	)	$	(4.59	)

Diluted earnings (loss) per share:

Net income (loss)	$	251,949	$	(49,848	)	$	(927,079	)

Interest expense, net of tax:
2% Convertible Senior Notes due 2020		12,197		-			-

Diluted income available to common shareholders	$	264,146	$	(49,848	)	$	(927,079	)

Weighted-average shares - Basic		338,523		311,754			201,892
Effect of dilutive securities:
Unvested restricted stock		3,082		-			-
Convertible debt common stock equivalents		71,942		-			-

Weighted-average shares - Diluted		413,547		311,754			201,892

Diluted income (loss) per share	$	0.64	$	(0.16	)	$	(4.59	)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies [Abstract]

Schedule of earnings per share

The following table reconciles basic and diluted EPS amounts:

	Years Ended December 31,

	2014		2013			2012
	(In thousands, except per share data)

Basic earnings (loss) per share:

Net income (loss)	$	251,949	$	(49,848	)	$	(927,079	)
Average common shares outstanding		338,523		311,754			201,892
Basic income (loss) per share	$	0.74	$	(0.16	)	$	(4.59	)

Diluted earnings (loss) per share:

Net income (loss)	$	251,949	$	(49,848	)	$	(927,079	)

Interest expense, net of tax:
2% Convertible Senior Notes due 2020		12,197		-			-

Diluted income available to common shareholders	$	264,146	$	(49,848	)	$	(927,079	)

Weighted-average shares - Basic		338,523		311,754			201,892
Effect of dilutive securities:
Unvested restricted stock		3,082		-			-
Convertible debt common stock equivalents		71,942		-			-

Weighted-average shares - Diluted		413,547		311,754			201,892

Diluted income (loss) per share	$	0.64	$	(0.16	)	$	(4.59	)

Investments (Tables)

12 Months Ended

Dec. 31, 2014

Investments [Abstract]

Amortized cost, gross unrealized gains and losses and fair value of investment portfolio

The amortized cost, gross unrealized gains and losses and fair value of the investment portfolio at December 31, 2014 and 2013 are shown below:

December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Fair Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	349,153	$	2,752	$	(5,130	)	$	346,775
Obligations of U.S. states and political subdivisions		844,942		12,961		(2,761	)		855,142
Corporate debt securities		2,418,991		16,325		(10,035	)		2,425,281
Asset-backed securities		286,260		535		(140	)		286,655
Residential mortgage-backed securities		329,983		254		(9,000	)		321,237
Commercial mortgage-backed securities		276,215		1,221		(2,158	)		275,278
Collateralized loan obligations		61,340		-		(1,264	)		60,076
Debt securities issued by foreign sovereign governments		35,630		3,540		-			39,170
Total debt securities		4,602,514		37,588		(30,488	)		4,609,614
Equity securities		3,003		61		(9	)		3,055

Total investment portfolio	$	4,605,517	$	37,649	$	(30,497	)	$	4,612,669

December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses (1)			Fair Value
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	663,642	$	1,469	$	(25,521	)	$	639,590
Obligations of U.S. states and political subdivisions		932,922		5,865		(17,420	)		921,367
Corporate debt securities		2,190,095		6,313		(24,993	)		2,171,415
Asset-backed securities		399,839		1,100		(453	)		400,486
Residential mortgage-backed securities		383,368		146		(24,977	)		358,537
Commercial mortgage-backed securities		277,920		131		(6,668	)		271,383
Collateralized loan obligations		61,337		-		(1,042	)		60,295
Debt securities issued by foreign sovereign governments		39,420		1,722		(290	)		40,852
Total debt securities		4,948,543		16,746		(101,364	)		4,863,925
Equity securities		2,908		9		(23	)		2,894

Total investment portfolio	$	4,951,451	$	16,755	$	(101,387	)	$	4,866,819

(1)	There were no other-than-temporary impairment losses recorded in other comprehensive income (loss) at December 31, 2014 and 2013.

Amortized cost and fair values of debt securities by contractual maturity

December 31, 2014	Amortized Cost		Fair Value
	(In thousands)

Due in one year or less	$	330,602	$	330,982
Due after one year through five years		1,903,661		1,909,422
Due after five years through ten years		1,063,679		1,069,433
Due after ten years		350,774		356,531
		3,648,716		3,666,368

Asset-backed securities		286,260		286,655
Residential mortgage-backed securities		329,983		321,237
Commercial mortgage-backed securities		276,215		275,278
Collateralized loan obligations		61,340		60,076

Total at December 31, 2014	$	4,602,514	$	4,609,614

Aging of the fair values of securities in an unrealized loss position

	Less Than 12 Months				12 Months or Greater				Total
December 31, 2014	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	58,166	$	138	$	232,351	$	4,992	$	290,517	$	5,130
Obligations of U.S. states and political subdivisions		166,408		1,066		114,465		1,695		280,873		2,761
Corporate debt securities		816,555		5,259		243,208		4,776		1,059,763		10,035
Asset-backed securities		54,491		80		11,895		60		66,386		140
Residential mortgage-backed securities		24,168		34		263,002		8,966		287,170		9,000
Commercial mortgage-backed securities		89,301		810		110,652		1,348		199,953		2,158
Collateralized loan obligations		-		-		60,076		1,264		60,076		1,264
Debt securities issued by foreign sovereign governments		-		-		-		-		-		-
Equity securities		167		1		235		8		402		9
Total investment portfolio	$	1,209,256	$	7,388	$	1,035,884	$	23,109	$	2,245,140	$	30,497

	Less Than 12 Months				12 Months or Greater				Total
December 31, 2013	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	465,975	$	24,980	$	4,103	$	541	$	470,078	$	25,521
Obligations of U.S. states and political subdivisions		503,967		17,370		4,226		50		508,193		17,420
Corporate debt securities		1,238,211		20,371		81,593		4,622		1,319,804		24,993
Asset-backed securities		126,991		387		7,114		66		134,105		453
Residential mortgage-backed securities		91,534		3,886		265,827		21,091		357,361		24,977
Commercial mortgage-backed securities		192,440		6,239		43,095		429		235,535		6,668
Collateralized loan obligations		60,295		1,042		-		-		60,295		1,042
Debt securities issued by foreign sovereign governments		7,203		290		-		-		7,203		290
Equity securities		1,012		18		75		5		1,087		23
Total investment portfolio	$	2,687,628	$	74,583	$	406,033	$	26,804	$	3,093,661	$	101,387

Net investment income

Net investment income is comprised of the following:

	2014			2013			2012
	(In thousands)

Fixed maturities	$	89,437		$	82,168		$	122,886
Equity securities		227			229			200
Cash equivalents		179			353			333
Other		711			675			782

Investment income		90,554			83,425			124,201
Investment expenses		(2,907	)		(2,686	)		(2,561	)

Net investment income	$	87,647		$	80,739		$	121,640

Net realized investment gains (losses), including impairment losses, and change in net unrealized appreciation (depreciation) of investments

The net realized investment gains (losses), including impairment losses, and change in net unrealized gains (losses) of investments are as follows:

	2014		2013			2012
	(In thousands)
Net realized investment gains (losses) on investments:
Fixed maturities	$	1,000	$	3,274		$	195,652
Equity securities		356		1,068			487
Other		1		1,389			(730	)

Total net realized investment gains	$	1,357	$	5,731		$	195,409

Change in net unrealized gains (losses):
Fixed maturities	$	91,718	$	(126,020	)	$	(78,604	)
Equity securities		66		(153	)		58
Other		-		-			-
Total increase (decrease) in net unrealized gains/losses	$	91,784	$	(126,173	)	$	(78,546	)

Gross realized gains, gross realized losses and impairment losses

The gross realized gains, gross realized losses and impairment losses are as follows:

	2014			2013			2012
	(In thousands)


Gross realized gains	$	4,966		$	11,043		$	213,827
Gross realized losses		(3,465	)		(4,984	)		(16,108	)
Impairment losses		(144	)		(328	)		(2,310	)

Net realized gains on securities	$	1,357		$	5,731		$	195,409

- Definition

Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments.

+ References+ Details

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Measurements [Abstract]

Fair value measurements for items measured at fair value

Assets measured at fair value included those listed, by hierarchy level, in the following tables as of December 31, 2014 and 2013:

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2014

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	346,775	$	188,824	$	157,951	$	-
Obligations of U.S. states and political subdivisions		855,142		-		853,296		1,846
Corporate debt securities		2,425,281		-		2,425,281		-
Asset-backed securities		286,655		-		286,655		-
Residential mortgage-backed securities		321,237		-		321,237		-
Commercial mortgage-backed securities		275,278		-		275,278		-
Collateralized loan obligations		60,076		-		60,076		-
Debt securities issued by foreign sovereign governments		39,170		39,170		-		-
Total debt securities		4,609,614		227,994		4,379,774		1,846
Equity securities		3,055		2,734		-		321
Total investments	$	4,612,669	$	230,728	$	4,379,774	$	2,167
Real estate acquired (1)	$	12,658	$	-	$	-	$	12,658

(1)	Real estate acquired through claim settlement, which is held for sale, is reported in Other Assets on the consolidated balance sheets.

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2013

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	639,590	$	347,273	$	292,317	$	-
Obligations of U.S. states and political subdivisions		921,367		-		918,944		2,423
Corporate debt securities		2,171,415		-		2,171,415		-
Asset-backed securities		400,486		-		400,486		-
Residential mortgage-backed securities		358,537		-		358,537		-
Commercial mortgage-backed securities		271,383		-		271,383		-
Collateralized loan obligations		60,295		-		60,295		-
Debt securities issued by foreign sovereign governments		40,852		40,852		-		-
Total debt securities		4,863,925		388,125		4,473,377		2,423
Equity securities		2,894		2,573		-		321
Total investments	$	4,866,819	$	390,698	$	4,473,377	$	2,744
Real estate acquired (1)	$	13,280	$	-	$	-	$	13,280

(1)	Real estate acquired through claim settlement, which is held for sale, is reported in Other Assets on the consolidated balance sheets.

Reconciliation of beginning and ending balance for assets and liabilities measured at fair value with significant unobservable inputs (level 3)

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities		Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at December 31, 2013	$	2,423		$	-	$	321	$	2,744		$	13,280
Total realized/unrealized gains (losses):
Included in earnings and reported as losses incurred, net		-			-		-		-			(4,129	)
Purchases		30			-		-		30			42,247
Sales		(607	)		-		-		(607	)		(38,740	)
Transfers into Level 3		-			-		-		-			-
Transfers out of Level 3		-			-		-		-			-
Balance at December 31, 2014	$	1,846		$	-	$	321	$	2,167		$	12,658

Amount of total losses included in earnings for the year ended December 31, 2014 attributable to the change in unrealized losses on assets still held at December 31, 2014	$	-		$	-	$	-	$	-		$	-

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities			Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at December 31, 2012	$	3,130		$	17,114		$	321	$	20,565		$	3,463
Total realized/unrealized gains (losses):
Included in earnings and reported as realized investment gains (losses), net		-			(225	)		-		(225	)		-
Included in earnings and reported as losses incurred, net		-			-			-		-			(4,959	)
Purchases		30			-			-		30			39,188
Sales		(737	)		(16,889	)		-		(17,626	)		(24,412	)
Transfers into Level 3		-			-			-		-			-
Transfers out of Level 3		-			-			-		-			-
Balance at December 31, 2013	$	2,423		$	-		$	321	$	2,744		$	13,280

Amount of total losses included in earnings for the year ended December 31, 2013 attributable to the change in unrealized losses on assets still held at December 31, 2013	$	-		$	-		$	-	$	-		$	-

	Obligations of U.S. States and Political Subdivisions			Corporate Debt Securities			Equity Securities		Total Investments			Real Estate Acquired
	(In thousands)
Balance at December 31, 2011	$	114,226		$	60,228		$	321	$	174,775		$	1,621
Total realized/unrealized gains (losses):
Included in earnings and reported as realized investment gains (losses), net		(8,669	)		(3,129	)		-		(11,798	)		-
Included in earnings and reported as net impairment losses recognized in earnings		-			(2,310	)		-		(2,310	)
Included in earnings and reported as losses incurred, net		-			-			-		-			(1,126	)
Included in other comprehensive income		5,630			733			-		6,363			-
Purchases		27			-			-		27			11,991
Sales		(108,084	)		(38,408	)		-		(146,492	)		(9,023	)
Transfers into Level 3		-			-			-		-			-
Transfers out of Level 3		-			-			-		-			-
Balance at December 31, 2012	$	3,130		$	17,114		$	321	$	20,565		$	3,463

Amount of total losses included in earnings for the year ended December 31, 2012 attributable to the change in unrealized losses on assets still held at December 31, 2012	$	-		$	-		$	-	$	-		$	-

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

Debt (Tables)

12 Months Ended

Dec. 31, 2014

Debt [Abstract]

Fair value of debt

The par value and fair value of our debt at December 31, 2014 and 2013 appears in the table below.

	Par Value		Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
December 31, 2014
Debt:
Senior Notes	$	61,953	$	63,618	$	-	$	63,618	$	-
Convertible Senior Notes due 2017		345,000		387,997		-		387,997		-
Convertible Senior Notes due 2020		500,000		735,075		-		735,075		-
Convertible Junior Subordinated Debentures		389,522		500,201		-		500,201		-
Total Debt	$	1,296,475	$	1,686,891	$	-	$	1,686,891	$	-

December 31, 2013
Debt:
Senior Notes	$	82,883	$	85,991	$	85,991	$	-	$	-
Convertible Senior Notes due 2017		345,000		388,988		388,988		-		-
Convertible Senior Notes due 2020		500,000		685,625		685,625		-		-
Convertible Junior Subordinated Debentures		389,522		439,186		-		439,186		-
Total Debt	$	1,317,405	$	1,599,790	$	1,160,604	$	439,186	$	-

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References+ Details

Loss Reserves (Tables)

12 Months Ended

Dec. 31, 2014

Loss Reserves [Abstract]

Reconciliation of beginning and ending loss reserves

The following table provides a reconciliation of beginning and ending loss reserves for each of the past three years:

	2014			2013			2012
	(In thousands)

Reserve at beginning of year	$	3,061,401		$	4,056,843		$	4,557,512
Less reinsurance recoverable		64,085			104,848			154,607
Net reserve at beginning of year		2,997,316			3,951,995			4,402,905

Losses incurred:
Losses and LAE incurred in respect of default notices received in:
Current year		596,436			898,413			1,494,133
Prior years (1)		(100,359	)		(59,687	)		573,120
Subtotal		496,077			838,726			2,067,253

Losses paid:
Losses and LAE paid in respect of default notices received in:
Current year		32,919			73,470			134,509
Prior years		1,121,508			1,722,923			2,389,985
Reinsurance terminations (2)		-			(2,988	)		(6,331	)
Subtotal		1,154,427			1,793,405			2,518,163
Net reserve at end of year		2,338,966			2,997,316			3,951,995
Plus reinsurance recoverables		57,841			64,085			104,848

Reserve at end of year	$	2,396,807		$	3,061,401		$	4,056,843

(1)	A negative number for prior year losses incurred indicates a redundancy of prior year loss reserves, and a positive number for prior year losses incurred indicates a deficiency of prior year loss reserves. See table below regarding prior year loss development.

(2)

Prior year development of the reserves

The prior year development of the reserves in 2014, 2013 and 2012 is reflected in the table below.

	2014			2013			2012
	(In millions)
Prior year loss development:

Pool policy settlement (1)	$	-		$	-		$	267

(Decrease) increase in estimated claim rate on primary defaults		(43	)		10			260
Decrease in estimated severity on primary defaults		(35	)		(50	)		(70	)
Change in estimates related to pool reserves, LAE reserves, reinsurance and other (2)		(22	)		(20	)		116
Total prior year loss development	$	(100	)	$	(60	)	$	573

(1)	See below for a discussion of our settlement with Freddie Mac.

(2)	Includes approximately $100 million related to probable settlements regarding our claims paying practices in 2012

Rollforward of primary default inventory

	2014			2013			2012


Default inventory at beginning of year		103,328			139,845			175,639
New Notices		88,844			106,823			133,232
Cures		(87,278	)		(104,390	)		(120,248	)
Paids (including those charged to a deductible or captive)		(23,494	)		(34,738	)		(45,741	)
Rescissions and denials		(1,306	)		(1,939	)		(3,037	)
Items removed from inventory resulting from the Countrywide settlement on GSE loans		(193	)		(2,273	)		-
Default inventory at end of year		79,901			103,328			139,845

Aging of the primary default inventory

Aging of the Primary Default Inventory

	December 31,
	2014				2013				2012

Consecutive months in default		15,319	19	%		18,941	18	%		23,282	17	%
3 months or less
4 - 11 months		19,710	25	%		24,514	24	%		34,688	25	%
12 months or more		44,872	56	%		59,873	58	%		81,875	58	%

Total primary default inventory		79,901	100	%		103,328	100	%		139,845	100	%

Primary claims received inventory included in ending default inventory (1)		4,746	6	%		6,948	7	%		11,731	8	%

(1)

Number of payments delinquent

Number of Primary Payments Delinquent

	December 31,
	2014				2013				2012

3 payments or less		23,253	29	%		28,095	27	%		34,245	24	%
4 - 11 payments		19,427	24	%		24,605	24	%		34,458	25	%
12 payments or more		37,221	47	%		50,628	49	%		71,142	51	%


Total primary default inventory		79,901	100	%		103,328	100	%		139,845	100	%

Premium Deficiency Reserve (Tables)

12 Months Ended

Dec. 31, 2014

Premium Deficiency Reserve [Abstract]

Components of premium deficiency reserve

The components of the premium deficiency reserve at December 31, 2014, 2013 and 2012 appear in the table below.

	December 31,
	2014			2013			2012
	(In millions)
Present value of expected future premium	$	387		$	432		$	445

Present value of expected future paid losses and expenses		(941	)		(1,101	)		(1,285	)

Net present value of future cash flows		(554	)		(669	)		(840	)

Established loss reserves		530			621			766

Net deficiency	$	(24	)	$	(48	)	$	(74	)

Discount rate utilized at December 31,		2.1	%		1.6	%		1.3	%

Reconciliation of beginning and ending balances in the premium deficiency reserve

The decrease in the premium deficiency reserve for the years ended December 31, 2014, 2013 and 2012 appears in the table below.

	Years ended December 31,
	2014						2013						2012
	(In millions)

Premium Deficiency Reserve at beginning of year				$	(48	)				$	(74	)				$	(135	)

Paid claims and loss adjustment expenses	$	169					$	214					$	279
Decrease in loss reserves		(91	)					(145	)					(60	)
Premium earned		(79	)					(96	)					(102	)
Effects of present valuing on future premiums, losses and expenses		(2	)					(1	)					(1	)

Change in premium deficiency reserve to reflect actual premium, losses and expenses recognized					(3	)					(28	)					116

Change in premium deficiency reserve to reflect change in assumptions relating to future premiums, losses, expenses and discount rate (1)					27						54						(55	)

Premium Deficiency Reserve at end of year				$	(24	)				$	(48	)				$	(74	)

(1)	A positive (negative) number for changes in assumptions relating to premiums, losses, expenses and discount rate indicates a redundancy (deficiency) of prior premium deficiency reserves.

Reinsurance (Tables)

12 Months Ended

Dec. 31, 2014

Reinsurance [Abstract]

Combined quota share reinsurance

A summary of the combined quota share reinsurance agreement for 2014 and 2013 appears below.

	2014		2013
	(In thousands)

Ceded premiums written, net of profit commission	$	100,031	$	49,672

Ceded premiums earned, net of profit commission		88,528		13,821

Ceded losses incurred		15,163		176

Ceding commissions (1)		37,833		10,408

(1)	Ceding commissons are reported within Other underwriting and operating expenses, net on the consolidated statements of operations.

Effect of reinsurance agreements on premiums earned and losses incurred

The effect of all reinsurance agreements on premiums earned and losses incurred is as follows:

	Years ended December 31,
	2014			2013			2012
	(In thousands)
Premiums earned:
Direct	$	950,973		$	979,078		$	1,065,663
Assumed		1,653			2,074			2,425
Ceded		(108,255	)		(38,101	)		(34,918	)

Net premiums earned	$	844,371		$	943,051		$	1,033,170

Losses incurred:
Direct	$	524,051		$	863,871		$	2,115,974
Assumed		2,012			2,645			6,912
Ceded		(29,986	)		(27,790	)		(55,633	)

Net losses incurred	$	496,077		$	838,726		$	2,067,253

Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2014

Other Comprehensive Income [Abstract]

Other comprehensive income

Our other comprehensive income for the years ended December 31, 2014, 2013 and 2012 was as follows:

	2014
	Before tax			Tax effect			Valuation allowance			Net of tax
	(In thousands)

Other comprehensive income (loss):
Change in unrealized gains and losses on investments	$	91,782		$	(32,017	)	$	31,374		$	91,139

Benefit plans adjustments		(52,112	)		18,239			(18,239	)		(52,112	)

Unrealized foreign currency translation adjustment		(4,067	)		1,425			-			(2,642	)

Other comprehensive income (loss)	$	35,603		$	(12,353	)	$	13,135		$	36,385

	2013
	Before tax			Tax effect			Valuation allowance			Net of tax
	(In thousands)

Other comprehensive income (loss):
Change in unrealized gains and losses on investments	$	(126,175	)	$	43,732		$	(41,148	)	$	(123,591	)

Benefit plans adjustments		68,038			(23,813	)		23,813			68,038

Unrealized foreign currency translation adjustment		(21,563	)		7,553			-			(14,010	)

Other comprehensive income (loss)	$	(79,700	)	$	27,472		$	(17,335	)	$	(69,563	)

	2012
	Before tax			Tax effect			Valuation allowance			Net of tax
	(In thousands)

Other comprehensive income (loss):
Change in unrealized gains and losses on investments	$	(78,546	)	$	27,510		$	(27,623	)	$	(78,659	)

Benefit plan adjustments		(1,221	)		428			(428	)		(1,221	)

Unrealized foreign currency translation adjustment		2,452			(859	)		-			1,593

Other comprehensive income (loss)	$	(77,315	)	$	27,079		$	(28,051	)	$	(78,287	)

Accumulated other comprehensive income (loss)

	2014
	Unrealized gains and losses on available- for-sale securities			Defined benefit plans			Foreign currency translation			Total
	(In thousands)

Balance at December 31, 2013, before tax	$	(84,634	)	$	(3,766	)	$	11,184		$	(77,216	)

Other comprehensive income (loss) before reclassifications		78,294			(45,182	)		(4,067	)		29,045
Less: Amounts reclassified from accumulated other comprehensive income (loss)		(13,488	)(1)		6,930	(2)		-			(6,558	)
Net current period other comprehensive income (loss)		91,782			(52,112	)		(4,067	)		35,603

Balance at December 31, 2014, before tax		7,148			(55,878	)		7,117			(41,613	)

Tax effect (3)		(64,699	)		26,940			(1,969	)		(39,728	)

Balance at December 31, 2014, net of tax	$	(57,551	)	$	(28,938	)	$	5,148		$	(81,341	)

	2013
	Unrealized gains and losses on available- for-sale securities				Defined benefit plans				Foreign currency translation			Total
	(In thousands)

Balance at December 31, 2012, before tax	$	41,541			$	(71,804	)		$	32,747		$	2,484

Other comprehensive income (loss) before reclassifications		(112,667	)			68,039				(21,563	)		(66,191	)
Less: Amounts reclassified from accumulated other comprehensive income (loss)		13,508		(1)		1		(2)		-			13,509
Net current period other comprehensive income (loss)		(126,175	)			68,038				(21,563	)		(79,700	)

Balance at December 31, 2013, before tax		(84,634	)			(3,766	)			11,184			(77,216	)

Tax effect (3)		(64,056	)			26,940				(3,394	)		(40,510	)

Balance at December 31, 2013, net of tax	$	(148,690	)		$	23,174			$	7,790		$	(117,726	)

	2012
	Unrealized gains and losses on available- for-sale securities				Defined benefit plans				Foreign currency translation			Total
	(In thousands)

Balance at December 31, 2011, before tax	$	120,087			$	(70,582	)		$	30,294		$	79,799

Other comprehensive income (loss) before reclassifications		22,710				(2,296	)			2,453			22,867
Less: Amounts reclassified from accumulated other comprehensive income (loss)		101,256		(1)		(1,074	)	(2)		-			100,182
Net current period other comprehensive income (loss)		(78,546	)			(1,222	)			2,453			(77,315	)

Balance at December 31, 2012, before tax		41,541				(71,804	)			32,747			2,484

Tax effect (3)		(66,640	)			26,940				(10,947	)		(50,647	)

Balance at December 31, 2012, net of tax	$	(25,099	)		$	(44,864	)		$	21,800		$	(48,163	)

(1)	During 2014, 2013 and 2012, net unrealized (losses) gains of ($13.5) million, $13.5 million and $101.3 million, respectively, were reclassified to the Consolidated Statement of Operations and included in Realized investment gains.

(2)	For the years ended December 31, 2014, 2013 and 2012, other comprehensive income (loss) related to benefit plans of $6.9 million, $1 thousand, and ($1.1) million, respectively, was reclassified to the Consolidated Statements of Operations and included in Underwriting and other expenses, net.

(3)	Tax effect does not approximate 35% due to amounts of tax benefits not provided in various periods due to our tax valuation allowance.

Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Benefit Plans [Abstract]

Components of net periodic benefit cost

The following tables provide the components of aggregate annual net periodic benefit cost, changes in the benefit obligation and the funded status of the pension, supplemental executive retirement and other postretirement benefit plans as recognized in the consolidated balance sheets:

	Pension and Supplemental Executive Retirement Plans									Other Postretirement Benefits
Components of Net Periodic Benefit Cost for fiscal year ending
	12/31/2014			12/31/2013			12/31/2012			12/31/2014			12/31/2013			12/31/2012
	(In thousands)
1. Company Service Cost	$	8,565		$	11,338		$	9,662		$	659		$	812		$	1,226
2. Interest Cost		15,987			15,289			16,481			653			618			1,144
3. Expected Return on Assets		(21,030	)		(20,144	)		(18,211	)		(4,648	)		(3,679	)		(3,162	)
4. Other Adjustments		-			-			-			-			-			-
Subtotal		3,522			6,483			7,932			(3,336	)		(2,249	)		(792	)
5. Amortization of :
a. Net Transition Obligation/(Asset)		-			-			-			-			-			-
b. Net Prior Service Cost/(Credit)		(930	)		503			665			(6,649	)		(6,649	)		(6,217	)
c. Net Losses/(Gains)		1,083			6,145			5,829			(435	)		-			797
Total Amortization		153			6,648			6,494			(7,084	)		(6,649	)		(5,420	)
6. Net Periodic Benefit Cost		3,675			13,131			14,426			(10,420	)		(8,898	)		(6,212	)
7. Cost of settlements or curtailments		302			-			-			-			-			-
8. Total Expense for Year	$	3,977		$	13,131		$	14,426		$	(10,420	)	$	(8,898	)	$	(6,212	)

Development of funded status

Development of Funded Status
	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)

Actuarial Value of Benefit Obligations
1.Measurement Date	12/31/2014			12/31/2013			12/31/2014			12/31/2013
2. Accumulated Benefit Obligation	$	366,440		$	304,825		$	18,225		$	15,764

Funded Status/Asset (Liability) on the Consolidated Balance Sheet
1. Projected Benefit Obligation	$	(379,324	)	$	(317,606	)	$	(18,225	)	$	(15,764	)
2. Plan Assets at Fair Value		378,701			355,704			66,940			62,298
3. Funded Status - Overfunded/Asset		N/A		$	38,098		$	48,715		$	46,534
4. Funded Status - Underfunded/Liability		(623	)		N/A			N/A			N/A

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Accumulated Other Comprehensive Income
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)
1. Net Actuarial (Gain)/Loss	$	93,243		$	49,925		$	(8,222	)	$	(9,439	)
2. Net Prior Service Cost/(Credit)		(3,853	)		(4,782	)		(25,289	)		(31,938	)
3. Net Transition Obligation/(Asset)		-			-			-			-
4. Total at Year End	$	89,390		$	45,143		$	(33,511	)	$	(41,377	)

Change in projected benefit obligation

The changes in the projected benefit obligation are as follows:

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Change in Projected Benefit/Accumulated Benefit Obligation
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)
1. Benefit Obligation at Beginning of Year	$	317,606		$	362,657		$	15,764		$	16,284
2. Company Service Cost		8,565			11,338			659			812
3. Interest Cost		15,987			15,289			653			618
4. Plan Participants' Contributions		-			-			336			299
5. Net Actuarial (Gain)/Loss due to Assumption Changes		59,901			(44,205	)		2,276			(1,414	)
6. Net Actuarial (Gain)/Loss due to Plan Experience		(55	)		1,353			(855	)		101
7. Benefit Payments from Fund (1)		(21,539	)		(22,497	)		(645	)		(871	)
8. Benefit Payments Directly by Company		(1,404	)		(275	)		-			(65	)
9. Plan Amendments		(1	)		(6,054	)		-			-
10. Other Adjustment		264			-			37			-
11. Benefit Obligation at End of Year	$	379,324		$	317,606		$	18,225		$	15,764

Change in plan assets

The changes in the fair value of the net assets available for plan benefits are as follows:

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Change in Plan Assets
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)
1. Fair Value of Plan Assets at Beginning of Year	$	355,704		$	340,335		$	62,298		$	49,391
2. Company Contributions		9,504			10,275			-			-
3. Plan Participants' Contributions		-			-			336			299
4. Benefit Payments from Fund		(21,539	)		(22,497	)		(645	)		(871	)
5. Benefit Payments paid directly by Company		(1,404	)		(275	)		-			(65	)
6. Actual Return on Assets		36,436			27,866			5,250			13,778
7. Other Adjustment		-			-			(299	)		(234	)
8. Fair Value of Plan Assets at End of Year	$	378,701		$	355,704		$	66,940		$	62,298

Change in accumulated other comprehensive income (AOCI)

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Change in Accumulated Other Comprehensive Income (AOCI)
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
	(In thousands)
1. AOCI in Prior Year	$	45,143		$	108,436		$	(41,377	)	$	(36,602	)
2. Increase/(Decrease) in AOCI
a. Recognized during year - Prior Service (Cost)/Credit		930			(503	)		6,649			6,649
b. Recognized during year - Net Actuarial (Losses)/Gains		(1,083	)		(6,145	)		435			-
c. Occurring during year - Prior Service Cost		(1	)		(6,054	)		-			-
d. Occurring during year - Net Actuarial Losses/(Gains)		44,703			(50,574	)		782			(11,411	)
f. Occuring during year - Net Settlement Losses/(Gains)		(302	)		-			-			-
e. Other adjustments		-			(17	)		-			(13	)
3. AOCI in Current Year	$	89,390		$	45,143		$	(33,511	)	$	(41,377	)

Amortizations expected to be recognized during next fiscal year

Amortizations Expected to be Recognized During Next Fiscal Year Ending
	12/31/2015			12/31/2015
	(In thousands)
1. Amortization of Net Transition Obligation/(Asset)	$	-		$	-
2. Amortization of Prior Service Cost/(Credit)		(846	)		(6,649	)
3. Amortization of Net Losses/(Gains)		4,837			(142	)

Actuarial assumptions

The projected benefit obligations, net periodic benefit costs and accumulated postretirement benefit obligation for the plans were determined using the following weighted average assumptions.

	Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
Actuarial Assumptions
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
Weighted-Average Assumptions Used to Determine
Benefit Obligations at year end
1. Discount Rate		4.25	%		5.15	%		4.00	%		4.75	%
2. Rate of Compensation Increase		3.00	%		3.00	%		N/A			N/A

Weighted-Average Assumptions Used to Determine
Net Periodic Benefit Cost for Year
1. Discount Rate		5.15	%		4.25	%		4.75	%		3.85	%
2. Expected Long-term Return on Plan Assets		6.00	%		6.00	%		7.50	%		7.50	%
3. Rate of Compensation Increase		3.00	%		3.00	%		N/A			N/A

Assumed Health Care Cost Trend Rates at year end
1. Health Care Cost Trend Rate Assumed for Next Year		N/A			N/A			7.00	%		7.00	%
2. Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate)		N/A			N/A			5.00	%		5.00	%
3. Year That the Rate Reaches the Ultimate Trend Rate		N/A			N/A			2019			2018

Weighted-average asset allocations

The year-end asset allocations of the plans are as follows:

	Pension Plan						Other Postretirement Benefits
Plan Assets
	12/31/2014			12/31/2013			12/31/2014			12/31/2013
Allocation of Assets at year end
1. Equity Securities		22	%		43	%		100	%		100	%
2. Debt Securities		78	%		57	%		0	%		0	%
3. Total		100	%		100	%		100	%		100	%

Minimum and maximum allocation ranges for fixed income securities and equity securities

	Minimum			Maximum
Equities (long only)		70	%		100	%
Real estate		0	%		15	%
Commodities		0	%		10	%
Fixed income/Cash		0	%		10	%

Actual and estimated future contributions and actual and estimated future benefit payments

The following tables show the current and estimated future contributions and benefit payments.

	Pension and Supplemental Executive Retirement Plans		Other Postretirement Benefits
Company Contributions
	12/31/2014		12/31/2014
	(In thousands)
Company Contributions for the Year Ending:
1. Current	$	9,504	$	-
2. Current + 1		17,000		-

	Pension and Supplemental Executive Retirement Plans		Other Postretirement Benefits
Benefit Payments (Total)
	12/31/2014		12/31/2014
	(In thousands)
Actual Benefit Payments for the Year Ending:
1. Current	$	22,942	$	272
Expected Benefit Payments for the Year Ending:
2. Current + 1		22,966		781
3. Current + 2		23,159		837
4. Current + 3		24,356		912
5. Current + 4		25,683		1,136
6. Current + 5		27,217		1,238
7. Current + 6 - 10		135,585		8,138

Effect of a 1% change in the health care trend rate assumption

A 1% point change in the health care trend rate assumption would have the following effects on other postretirement benefits:

	1-Percentage Point Increase			1-Percentage Point Decrease
	(In thousands)

Effect on total service and interest cost components		$	259	$	(201	)
Effect on postretirement benefit obligation			2,963		(2,466	)

Pension Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]

Fair value of plan assets

The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2014 and 2013.

Assets at Fair Value as of December 31, 2014

Pension Plan	Level 1		Level 2		Level 3		Total
	(In thousands)
Domestic Mutual Funds	$	9,913	$	-	$	-	$	9,913
Corporate Bonds		-		200,732		-		200,732
U.S. Government Securities		5,327		1,234		-		6,561
Municipals		-		65,214		-		65,214
Foreign Bonds		-		23,028		-		23,028
ETF's		5,636		-		-		5,636
Pooled Equity Accounts		-		67,617		-		67,617
Total Assets at fair value	$	20,876	$	357,825	$	-	$	378,701

Assets at Fair Value as of December 31, 2013

Pension Plan	Level 1		Level 2		Level 3		Total
	(In thousands)
Domestic Mutual Funds	$	51,240	$	-	$	-	$	51,240
International Mutual Funds		39,814		-		-		39,814
Common Stocks		60,332		-		-		60,332
Corporate Bonds		-		134,012		-		134,012
U.S. Government Securities		9,574		9,245		-		18,819
Municipals		-		33,402		-		33,402
Foreign Bonds		-		15,961		-		15,961
Foreign Stocks		2,124		-		-		2,124
Total Assets at fair value	$	163,084	$	192,620	$	-	$	355,704

Nature of Business (Details) (USD $)	12 Months Ended
Nature of Business (Details) (USD $)	Dec. 31, 2014
Nature of Business [Abstract]
Direct domestic primary insurance in force	$ 164,900,000,000
Direct domestic primary risk in force	42,900,000,000
Direct pool risk in force	800,000,000
Direct pool risk in force on pool policies with aggregate loss limits	300,000,000
Direct pool risk in force on pool policies with no aggregate loss limits	500,000,000
Risk in force in Australia	346,000,000
Coverage percentage on insurance in force in Australia (in hundredths)	100.00%
PMIERs effective days after publication	180 days
Mortgage Insurers transition period	2 years
Period for submission of transition plan to GSE	90 days
Shortfall in available assets under PMIERs	600,000,000
Shortfall In available assets under PMIERs after transition period	300,000,000
Estimate of credit for reinsurance in calculation of minimum required assets	500,000,000
Estimate of credit for reinsurance in calculation of minimum required assets after transition period	600,000,000
Holding company cash and investments	491,000,000
Assets of regulated insurance affiliates of MGIC	$ 100,000,000

Debt (Details) (USD $)	12 Months Ended													12 Months Ended									12 Months Ended
Debt (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014 Par Value [Member]	Dec. 31, 2013 Par Value [Member]	Dec. 31, 2014 Fair Value [Member]	Dec. 31, 2013 Fair Value [Member]	Dec. 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]	Dec. 31, 2013 Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]	Dec. 31, 2014 Significant Other Observable Inputs (Level 2) [Member]	Dec. 31, 2013 Significant Other Observable Inputs (Level 2) [Member]	Dec. 31, 2014 Significant Unobservable Inputs (Level 3) [Member]	Dec. 31, 2013 Significant Unobservable Inputs (Level 3) [Member]	Dec. 31, 2014 Senior Notes [Member]	Dec. 31, 2013 Senior Notes [Member]	Dec. 31, 2014 Senior Notes [Member] Senior Notes Due 2015 [Member]	Dec. 31, 2013 Senior Notes [Member] Senior Notes Due 2015 [Member]	Dec. 31, 2014 Convertible Senior Notes Due 2017 [Member]	Dec. 31, 2013 Convertible Senior Notes Due 2017 [Member]	Dec. 31, 2014 Convertible Senior Notes - Due April 2020 [Member]	Dec. 31, 2013 Convertible Senior Notes - Due April 2020 [Member]	Mar. 31, 2013 Convertible Senior Notes - Due April 2020 [Member]	Dec. 31, 2014 Convertible Junior Subordinated Debentures Due 2063 [Member] Period	Dec. 31, 2013 Convertible Junior Subordinated Debentures Due 2063 [Member]
Debt Instrument [Line Items]
Outstanding principal amount																$ 61,900,000	$ 82,900,000	$ 345,000,000	$ 345,000,000	$ 500,000,000	$ 500,000,000	$ 500,000,000	$ 389,500,000	$ 389,500,000
Repurchase of debt instrument														20,900,000	17,200,000
Minimum percentage of consolidated shareholders' equity that determines designated subsidiary status (in hundredths)														15.00%
Stated interest rate (in hundredths)	2.00%															5.375%	5.375%	5.00%	5.00%	2.00%	2.00%	2.00%	9.00%	9.00%
Maturity date																Nov. 01, 2015	Nov. 01, 2015	May 01, 2017	May 01, 2017	Apr. 01, 2020	Apr. 01, 2020		Apr. 01, 2063
Interest payments made														3,600,000	5,100,000			17,300,000	17,300,000	10,000,000	5,500,000		35,100,000	53,400,000
Conversion rate (in shares per $1,000 note)																		74.4186		143.8332			74.0741
Principal amount of notes used in determining conversion rate																		1,000		1,000			1,000
Initial conversion price (in dollars per share)																		$ 13.44		$ 6.95			$ 13.50
130% of conversion price (in dollars per share)																				$ 9.03
Net proceeds from convertible senior notes	0	484,625,000	0																		484,600,000
Redemption price, percentage (in hundredths)																				100.00%			100.00%
Percentage of conversion price (in hundredths)																				130.00%			130.00%
Minimum number of trading days																				20 days			20 days
Maximum number of trading days																				30 days			30 days
Minimum number of consecutive interest periods for which interest payments may be deferred																							1
Maximum period for which interest payments may be deferred without giving rise to an event of default																							10 years
Annual rate (in hundredths)	2.00%															5.375%	5.375%	5.00%	5.00%	2.00%	2.00%	2.00%	9.00%	9.00%
Interest payment deferred																								18,300,000
Interest payment due on the debentures																								17,500,000
Period in which reasonable commercial efforts must begin, maximum																							1 day
Anniversary payment release of the start of the interest deferral to the Alternative Payment Mechanism in lieu of the final maturity of the debentures																							tenth
Period in which reasonable commercial efforts must begin, minimum																							fifth anniversary of the interest payment date
Net proceeds cap (in hundredths)																							2.00%
Maximum number of shares of common stock issuable under the Alternative Payment Mechanism (in shares)																							10,000,000
Maximum percentage of aggregate principal amount of the debentures (in hundredths)																							25.00%
Period preceding election to convert																							5 days
Holding company cash and investments	491,000,000
Unrealized gain loss on holding company investments	2,500,000
Modified duration of holding company investments	2 years 10 months 24 days
Debt: [Abstract]
Senior Notes				61,953,000	82,883,000	63,618,000	85,991,000	0	85,991,000	63,618,000	0	0	0
Convertible Senior Notes due 2017				345,000,000	345,000,000	387,997,000	388,988,000	0	388,988,000	387,997,000	0	0	0
Convertible Senior Notes due 2020				500,000,000	500,000,000	735,075,000	685,625,000	0	685,625,000	735,075,000	0	0	0
Convertible Junior Subordinated Debentures				389,522,000	389,522,000	500,201,000	439,186,000	0	0	500,201,000	439,186,000	0	0
Total Debt				$ 1,296,475,000	$ 1,317,405,000	$ 1,686,891,000	$ 1,599,790,000	$ 0	$ 1,160,604,000	$ 1,686,891,000	$ 439,186,000	$ 0	$ 0

Income Taxes (Details) (USD $)	3 Months Ended								12 Months Ended
Income Taxes (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2007
Net deferred tax assets and liabilities [Abstract]
Total deferred tax assets	$ 933,576,000				$ 1,043,477,000				$ 933,576,000	$ 1,043,477,000
Total deferred tax liabilities	(33,789,000)				(42,158,000)				(33,789,000)	(42,158,000)
Net deferred tax asset before valuation allowance	899,787,000				1,001,319,000				899,787,000	1,001,319,000
Valuation allowance	(902,289,000)				(1,004,256,000)				(902,289,000)	(1,004,256,000)	966,000,000
Net deferred tax liability	(2,502,000)				(2,937,000)				(2,502,000)	(2,937,000)
Components of net deferred tax liability [Abstract]
Unearned premium reserves	12,296,000				(1,073,000)				12,296,000	(1,073,000)
Benefit plans	(13,900,000)				(26,111,000)				(13,900,000)	(26,111,000)
Net operating loss	845,616,000				915,378,000				845,616,000	915,378,000
Loss reserves	23,069,000				36,236,000				23,069,000	36,236,000
Unrealized (appreciation) depreciation in investments	(2,800,000)				29,230,000				(2,800,000)	29,230,000
Mortgage investments	15,346,000				13,450,000				15,346,000	13,450,000
Deferred compensation	11,955,000				15,994,000				11,955,000	15,994,000
Premium deficiency reserves	8,313,000				16,961,000				8,313,000	16,961,000
Other, net	(108,000)				1,254,000				(108,000)	1,254,000
Net deferred tax asset before valuation allowance	899,787,000				1,001,319,000				899,787,000	1,001,319,000
Valuation allowance	(902,289,000)				(1,004,256,000)				(902,289,000)	(1,004,256,000)	966,000,000
Net deferred tax liability	(2,502,000)				(2,937,000)				(2,502,000)	(2,937,000)
Tax provision (benefit) [Abstract]
Provision for (benefit from) income taxes before valuation allowance									91,607,000	(17,239,000)	(330,740,000)
Change in valuation allowance									(88,833,000)	20,935,000	329,175,000
Provision for (benefit from) income taxes (note 14)	681,000	249,000	1,118,000	726,000	1,231,000	336,000	990,000	1,139,000	2,774,000	3,696,000	(1,565,000)
Change in deferred tax valuation allowance, included in other comprehensive income									(13,100,000)	17,300,000	28,100,000
Net operating loss carryforwards, regular tax basis	2,417,000,000								2,417,000,000
Net operating loss carryforwards for computing the alternative minimum tax	1,529,000,000								1,529,000,000
Components of provisions for (benefit from) income taxes [Abstract]
Current									2,391,000	916,000	(4,251,000)
Deferred									1,000	7,000	90,000
Other									382,000	2,773,000	2,596,000
Provision for (benefit from) income taxes (note 14)	681,000	249,000	1,118,000	726,000	1,231,000	336,000	990,000	1,139,000	2,774,000	3,696,000	(1,565,000)
Federal income tax received											(7,000,000)
Federal income tax paid									1,300,000	100,000
Reconciliation of effective income tax rate [Abstract]
Federal statutory income tax rate (in hundredths)									35.00%	(35.00%)	(35.00%)
Valuation allowance (in hundredths)									(34.90%)	45.40%	35.40%
Tax exempt municipal bond interest (in hundredths)									(0.40%)	(3.70%)	(0.80%)
Other, net (in hundredths)									1.40%	1.30%	0.20%
Effective income tax rate (in hundredths)									1.10%	8.00%	(0.20%)
Information regarding income tax examinations [Abstract]
Amount of IRS assessment for unpaid taxes and penalties related to REMIC issue	197,500,000								197,500,000
Estimate of federal interest that may be due	168,400,000								168,400,000
Estimate of additional state income taxes and interest that may be due	47,400,000								47,400,000
Amount of payment made related to the IRS assessment on the REMIC issue												65,200,000
Amount of IRS assessment for unpaid taxes and penalties related to disallowance of carryback of 2009 net operating loss	261,400,000								261,400,000
Unrecognized tax benefits [Roll Forward]
Balance at beginning of year				105,366,000				104,550,000	105,366,000	104,550,000	110,080,000
Additions based on tax positions related to the current year									0	0	0
Additions for tax positions of prior years									864,000	816,000	511,000
Reductions for tax positions of prior years									0	0	(4,041,000)
Settlements									0	0	(2,000,000)
Balance at end of year	106,230,000				105,366,000				106,230,000	105,366,000	104,550,000
Unrecognized tax benefits [Abstract]
Total amount of unrecognized tax benefits that would affect effective tax rate	93,600,000								93,600,000
Unrecognized tax benefits, interest expense									800,000
Unrecognized tax benefits, accrued interest	26,900,000				26,100,000				26,900,000	26,100,000
Approximate net cash outflows upon resolution of IRS matters	25,000,000								25,000,000
Significant change in unrecognized tax benefits	$ 106,200,000								$ 106,200,000

Shareholders' Equity (Details) (USD $)	1 Months Ended	12 Months Ended
Shareholders' Equity (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2014 Right	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013	Apr. 30, 2012
Shareholders' Equity [Abstract]
Common stock, shares authorized (in shares)		1,000,000,000	1,000,000,000		680,000,000	460,000,000
Debt Instrument [Line Items]
Stated interest rate (in hundredths)		2.00%
Shareholder Rights Agreement [Abstract]
Shareholder rights accompanying each outstanding share of the company's common stock (in number of Rights)		1
Distribution date, description		The earlier of ten days after a public announcement that a person has become an Acquiring Person, or ten business days after a person announces or begins a tender offer in which consummation of such offer would result in a person becoming an Acquiring Person.
Common stock, beneficial ownership threshold to be considered an Acquiring Person (in hundredths)		5.00%
Common shares purchasable per Right (in shares)		0.1
Purchase price (in dollars per share)		$ 14
Purchase price (in dollars per one-tenth share)		$ 1.40
Redemption price (in dollars per Right)		$ 0.001
Sale of common stock (in shares)	135,000,000
Sale of common stock, price per share (in dollars per share)	$ 5.15
Sale of common stock, net proceeds	$ 663,300,000	$ 0	$ 663,335,000	$ 0
Mortgage Guaranty Insurance Corporation [Member]
Subsidiary or Equity Method Investee [Line Items]
Surplus contributions made to subsidiary by the parent company	800,000,000	0	800,000,000	100,000,000
Convertible Debentures [Member]
Debt Instrument [Line Items]
Outstanding principal amount		389,500,000	389,500,000
Stated interest rate (in hundredths)		9.00%	9.00%
Shares reserved for conversion under convertible debt (in shares)		28,900,000
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Outstanding principal amount		345,000,000	345,000,000
Stated interest rate (in hundredths)		5.00%	5.00%
Shares reserved for conversion under convertible debt (in shares)		97,600,000
Convertible Senior Notes - Due April 2020 [Member]
Debt Instrument [Line Items]
Outstanding principal amount	$ 500,000,000	$ 500,000,000	$ 500,000,000
Stated interest rate (in hundredths)	2.00%	2.00%	2.00%

Dividend Restrictions (Details)	12 Months Ended
Dividend Restrictions (Details)	Dec. 31, 2014
Dividend Restrictions [Abstract]
Dividend restrictions	The maximum amount of dividends that the insurance subsidiaries may pay in any twelve-month period without regulatory approval by the Office of the Commissioner of Insurance of the State of Wisconsin (the “OCI”) is the lesser of adjusted statutory net income or 10% of statutory policyholders' surplus as of the preceding calendar year end.
Percentage of statutory policyholders' surplus used to determine maximum allowable dividends (in hundredths)	10.00%

Related Party Transactions (Details) (USD $)	12 Months Ended
Related Party Transactions (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Related party transaction amount	$ 0	$ 0	$ 0

Statutory Capital (Details) (USD $)	1 Months Ended	12 Months Ended
Statutory Capital (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statutory Capital [Abstract]
Percentage of premiums earned required to be maintained as contingency loss reserves (in hundredths)		50.00%
Period that contingency loss reserves must be held (in years)		10 years
Percentage of net premiums earned that incurred losses must exceed to enable early withdrawals from contingency loss reserves (in hundredths)		35.00%
Percentage of surplus as regards policyholders (in hundredths)		10.00%
Statutory deferred tax assets admitted		$ 138,000,000	$ 138,000,000	$ 63,000,000
Net (loss) income		13,203,000	(8,046,000)	(902,878,000)
Surplus		1,585,164,000	1,584,121,000	748,592,000
Contingency Reserve		318,247,000	18,558,000	6,430,000
Statutory capital requirements [Abstract]
Maximum permitted risk-to-capital ratio commonly applied		25 to 1
Risk-to-capital ratio on a combined basis at end of period		16.4 to 1
Number of jurisdictions with risk-to-capital requirements		16
Mortgage Guaranty Insurance Corporation [Member]
Related Party Transaction [Line Items]
Surplus contributions made to subsidiary by the parent company	800,000,000	0	800,000,000	100,000,000
Dividends paid by MGIC to the parent company		0	0	0
Statutory capital requirements [Abstract]
Risk to capital ratio at end of period		14.6 to 1
Amount of policyholders position above or below required MPP		673,000,000
Amount of required MPP		1,000,000,000
Other Insurance Subsidiaries [Member]
Related Party Transaction [Line Items]
Surplus contributions made to subsidiary by the parent company		$ 0	$ 0	$ 0

Leases (Details) (USD $)	12 Months Ended
Leases (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Leases [Abstract]
Remaining term of operating leases (in years)	7 years
Total rental expense under operating leases	$ 2,800,000	$ 4,600,000	$ 4,800,000
Minimum future operating lease payments [Abstract]
2015	1,041,000
2016	1,000,000
2017	467,000
2018	231,000
2019 and thereafter	497,000
Total	$ 3,236,000

Litigation and Contingencies (Details) (USD $)	6 Months Ended	12 Months Ended						36 Months Ended
Litigation and Contingencies (Details) (USD $)	Jun. 30, 2009	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011
Class action complaint under RESPA [Abstract]
Civil penalty			$ 2,650,000
Period of existing captive reinsurance agreement		10 years	10 years
Curtailments [Abstract]
Average paid claim reduction due to curtailments (in hundredths)		6.70%	5.80%
Number of days after claim paid within which objection must be received for review		90 days
Claims resolved by rescissions [Abstract]
Mitigation of paid losses by rescission of policies		97,000,000	135,000,000	300,000,000				3,000,000,000
Percentage of claims received in a quarter resolved by rescission, lower range limit (in hundredths)		5.00%
Percentage of claims received in a quarter resolved by rescission, upper range limit (in hundredths)	28.00%
Statute of limitations to bring legal proceedings disputing right to rescind coverage		3 years
Statute of limitations to bring legal proceedings after notice of rescission		2 years
Mitigation of incurred losses by rescission of policies		0	0	0	0	200,000,000	2,500,000,000
Reduction in estimated rescissions				200,000,000
Maximum exposure above estimate provision for claims paying practices		626,000,000
Exposure from rescission practices (in hundredths)		60.00%
Maximum exposure associated with other discussions and legal proceedings		16,000,000
Other Legal Proceedings [Abstract]
Underwriting remedy expense		4,000,000	5,000,000	27,000,000
Class Action Complaint Under RESPA [Member] \| Pending Litigation [Member]
Class action complaint under RESPA [Abstract]
Number of lawsuits		12
Number of cases dismissed prior to February 2015		7
Number of cases dismissed or expected to be dismissed		5
Countrywide Dispute [Member] \| Pending Litigation [Member]
Claims resolved by rescissions [Abstract]
Amount of damages sought		$ 700,000,000
Lawsuits Alleging Improper Recording and Foreclosure Activities by MERS [Member] \| Pending Litigation [Member]
Lawsuits alleging improper recording and foreclosure activities by MERS [Abstract]
Number of lawsuits naming non-insurance subsidiary as defendant		8
Number of lawsuits naming subsidiary as defendant that were dismissed		7

SCHEDULE I-SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	$ 4,605,517
Fair Value	4,612,669
Amount at which shown in the balance sheet	4,612,669
Equity Securities, Common Stocks [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	3,003
Fair Value	3,055
Amount at which shown in the balance sheet	3,055
Equity Securities, Common Stocks [Member] \| Industrial, Miscellaneous, and All Others [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	3,003
Fair Value	3,055
Amount at which shown in the balance sheet	3,055
Fixed Maturities, Bonds [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	4,602,514
Fair Value	4,609,614
Amount at which shown in the balance sheet	4,609,614
Fixed Maturities, Bonds [Member] \| US Government and Government Agencies and Authorities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	349,153
Fair Value	346,775
Amount at which shown in the balance sheet	346,775
Fixed Maturities, Bonds [Member] \| States, Municipalities and Political Subdivisions [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	844,942
Fair Value	855,142
Amount at which shown in the balance sheet	855,142
Fixed Maturities, Bonds [Member] \| Foreign Governments [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	35,630
Fair Value	39,170
Amount at which shown in the balance sheet	39,170
Fixed Maturities, Bonds [Member] \| Public Utilities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	214,179
Fair Value	215,048
Amount at which shown in the balance sheet	215,048
Fixed Maturities, Bonds [Member] \| Asset-Backed Securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	286,260
Fair Value	286,655
Amount at which shown in the balance sheet	286,655
Fixed Maturities, Bonds [Member] \| Collateralized Loan Obligations [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	61,340
Fair Value	60,076
Amount at which shown in the balance sheet	60,076
Fixed Maturities, Bonds [Member] \| Mortgage Backed Securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	606,198
Fair Value	596,515
Amount at which shown in the balance sheet	596,515
Fixed Maturities, Bonds [Member] \| All Other Corporate Bonds [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Amortized Cost	2,204,812
Fair Value	2,210,233
Amount at which shown in the balance sheet	$ 2,210,233