0000876437-22-000013 | 10-K | XBRL Viewer

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 634,983	$ 446,093	$ 673,763
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and other amortization	66,014	57,812	48,784
Deferred tax expense	5,188	27,475	11,096
Loss on debt extinguishment	36,914	26,736	0
Net realized investment (gains) losses	(6,582)	(13,752)	(5,306)
Change in certain assets and liabilities:
Accrued investment income	(1,905)	(292)	(1,704)
Reinsurance recoverable on loss reserves	28,137	(73,401)	11,687
Reinsurance recoverable on paid losses	(35,606)	852	1,427
Premiums receivable	(496)	(457)	(497)
Deferred insurance policy acquisition costs	(110)	(3,030)	(643)
Profit commission receivable	(19,245)	4,586	4,945
Loss reserves	2,985	325,203	(118,685)
Unearned premiums	(45,409)	(93,203)	(29,683)
Return premium accrual	7,200	(500)	(11,500)
Current income taxes	5,429	6,271	1,057
Other, net	18,820	21,916	24,791
Net cash provided by operating activities	696,317	732,309	609,532
Cash flows from investing activities:
Purchases of investments	(1,531,129)	(2,636,972)	(1,394,126)
Proceeds from sales of investments	473,904	836,851	229,796
Proceeds from maturity of fixed income securities	900,591	1,030,926	748,165
Net decrease in payables for securities	0	0	(307)
Additions to property and equipment	(4,115)	(3,311)	(5,636)
Net cash used in investing activities	(160,749)	(772,506)	(422,108)
Cash flows from financing activities:
Proceeds from issuance of senior notes	0	640,250	0
Purchase of senior notes	0	(179,735)	0
Payment of original issue discount - senior notes	0	(2,969)	0
Purchase of convertible junior subordinated debentures	(98,610)	(36,392)	0
Payment of original issue discount- convertible junior subordinated debentures	0	(15,049)	0
Cash portion of loss on debt extinguishment	(36,914)	(25,266)	0
Repurchase of common stock	(290,818)	(119,997)	(125,766)
Dividends paid	(94,219)	(82,061)	(41,914)
Payment of debt issuance costs	0	(2,020)	0
Payment of withholding taxes related to share-based compensation net share settlement	(6,729)	(8,940)	(5,726)
Net cash provided by (used in) financing activities	(527,290)	167,821	(173,406)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	8,278	127,624	14,018
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year	296,680	169,056	155,038
Cash and cash equivalents and restricted cash and cash equivalents at end of year	$ 304,958	$ 296,680	$ 169,056

Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Pension and Supplemental Executive Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Company Service Cost	$ 7,569	$ 7,342	$ 8,345
Interest Cost	11,276	13,036	15,705
Expected Return on Assets	(20,657)	(22,139)	(19,466)
Other Adjustments	0	0	0
Subtotal	(1,812)	(1,761)	4,584
Amortization of Net Transition Obligation/(Asset)	0	0	0
Amortization of Net Prior Service Cost/(Credit)	(239)	(247)	(281)
Amortization of Net Losses/(Gains)	5,490	6,578	8,412
Total Amortization	5,251	6,331	8,131
Net Periodic Benefit Cost	3,439	4,570	12,715
Cost of settlements	6,012	10,369	1,933
Total Expense for Year	9,451	14,939	14,648
Other Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Company Service Cost	1,508	1,263	1,345
Interest Cost	648	832	1,130
Expected Return on Assets	(8,863)	(7,407)	(5,785)
Other Adjustments	0	0	0
Subtotal	(6,707)	(5,312)	(3,310)
Amortization of Net Transition Obligation/(Asset)	0	0	0
Amortization of Net Prior Service Cost/(Credit)	213	51	(34)
Amortization of Net Losses/(Gains)	(1,697)	(783)	0
Total Amortization	(1,484)	(732)	(34)
Net Periodic Benefit Cost	(8,191)	(6,044)	(3,344)
Cost of settlements	0	0	0
Total Expense for Year	$ (8,191)	$ (6,044)	$ (3,344)

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions		2 Months Ended	3 Months Ended	6 Months Ended		12 Months Ended
	Jan. 25, 2022	Feb. 18, 2022	Mar. 31, 2020	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2019	Jan. 01, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Retained earnings				$ 3,250,691				$ 2,642,096
Shares repurchased during period (in shares)			9.6	19.0		8.7
Shares repurchased, weighted average price per share (in dollars per share)			$ 12.47	$ 15.30		$ 13.13
Remaining authorized repurchase amount				$ 500,000
Common stock, dividends, per share, cash paid (in dollars per share)				$ 0.08	$ 0.06
Cash dividends				$ 53,600	$ 41,100
Cumulative Effect, Period of Adoption, Adjustment
Class of Stock [Line Items]
Retained earnings							$ 68,300
Additional Paid in Capital							$ 68,300
Subsequent Event
Class of Stock [Line Items]
Shares repurchased during period (in shares)		4.9
Shares repurchased, weighted average price per share (in dollars per share)		$ 15.50
Common stock, dividends, per share, declared (in dollars per share)	$ 0.08

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common stock	Paid-in capital	Paid-in capital Cumulative Effect, Period of Adoption, Adjustment	Paid-in capital Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury stock	Accumulated other comprehensive income (loss)	Retained earnings	Retained earnings Cumulative Effect, Period of Adoption, Adjustment	Retained earnings Cumulative Effect, Period of Adoption, Adjusted Balance
Balance, beginning of year at Dec. 31, 2018		$ 371,353	$ 1,862,536		$ 1,862,536	$ (175,059)	$ (124,214)	$ 1,647,275		$ 1,647,275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reacquisition of convertible junior subordinated debentures-equity component			0
Reissuance of treasury stock, net under share-based compensation plans			(11,715)			5,989
Equity compensation			18,898
Purchases of common stock						(114,126)
Other comprehensive (loss) income	$ 196,922						196,922
Net income	673,763							673,763
Cash dividends								(42,388)
Balance, end of year at Dec. 31, 2019	4,309,234	371,353	1,869,719		1,869,719	(283,196)	72,708	2,278,650		2,278,650
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reacquisition of convertible junior subordinated debentures-equity component			(2,673)
Reissuance of treasury stock, net under share-based compensation plans			(18,807)			9,867
Equity compensation			13,803
Purchases of common stock						(119,997)
Other comprehensive (loss) income	144,113						144,113
Net income	446,093							446,093
Cash dividends								(82,647)
Balance, end of year at Dec. 31, 2020	$ 4,698,986	371,353	1,862,042	$ (68,289)	$ 1,793,753	(393,326)	216,821	2,642,096	$ 68,289	$ 2,710,385
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2020-06 [Member]
Reissuance of treasury stock, net under share-based compensation plans			(15,956)			8,879
Equity compensation			17,109
Purchases of common stock						(290,818)
Other comprehensive (loss) income	$ (97,124)						(97,124)
Net income	634,983							634,983
Cash dividends								(94,677)
Balance, end of year at Dec. 31, 2021	$ 4,861,382	$ 371,353	$ 1,794,906			$ (675,265)	$ 119,697	$ 3,250,691
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2020-06 [Member]

Statutory Information - Statutory financial information of insurance subsidiaries (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statutory Capital [Abstract]
Statutory net income	$ 290,000	$ 65,201	$ 305,857
Statutory policyholders' surplus	1,217,000	1,339,509	1,619,069
Contingency reserve	$ 4,126,604	$ 3,585,864	$ 3,021,055

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT


SCHEDULE II - Condensed Financial Information of Registrant Condensed Balance Sheets Parent Company Only
	December 31,
(In thousands)	2021		2020
ASSETS
Fixed income, available-for-sale, at fair value (amortized cost, 2021 – $550,324 ; 2020 – $773,881)	$	538,872	$	773,995
Cash and cash equivalents	124,164		73,000
Investment in subsidiaries, at equity in net assets	4,964,954		4,740,074
Accounts receivable - affiliates	2,130		1,450

Income taxes - current and deferred	242,427		219,059
Accrued investment income	2,642		3,760

Total assets	$	5,875,189	$	5,811,338

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Senior notes	$	881,508	$	879,379
Convertible junior subordinated debentures	110,204		208,814


Accrued interest	20,501		23,004
Other liabilities	1,594		1,155
Total liabilities	1,013,807		1,112,352

Shareholders’ equity:
Common stock (one dollar par value, shares authorized 1,000,000; shares issued 2021 - 371,353; 2020 - 371,353; shares outstanding 2021 - 320,336; 2020 - 338,573)	371,353		371,353
Paid-in capital	1,794,906		1,862,042
Treasury stock at cost (shares 2021 - 51,017; 2020 - 32,779)	(675,265)		(393,326)
Accumulated other comprehensive income, net of tax	119,697		216,821
Retained earnings	3,250,691		2,642,096
Total shareholders’ equity	4,861,382		4,698,986
Total liabilities and shareholders’ equity	$	5,875,189	$	5,811,338

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,
(In thousands)	2021		2020		2019
Revenues:
Investment income, net of expenses	$	3,850	$	7,090	$	7,695
Net realized investment gains (losses)	490		1,454		(311)

Total revenues	4,340		8,544		7,384

Expenses:
Operating expenses	1,644		719		793
Interest expense	68,359		65,472		61,593
Loss on debt extinguishment	36,914		35,033		—
Total expenses	106,917		101,224		62,386
Loss before tax	(102,577)		(92,680)		(55,002)
(Benefit from) provision for income taxes	(21,240)		(18,431)		(12,263)
Equity in net income of subsidiaries	716,320		520,342		716,502
Net income	634,983		446,093		673,763
Other comprehensive income (loss), net of tax	(97,124)		144,113		196,922
Comprehensive income	$	537,859	$	590,206	$	870,685

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,
(In thousands)	2021		2020		2019
Cash flows from operating activities:
Net income	$	634,983	$	446,093	$	673,763
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(716,320)		(520,342)		(716,502)
Dividends received from subsidiaries	400,000		221,024		154,413
Deferred tax (benefit) expense	(21,551)		(18,252)		(10,416)
Loss on debt extinguishment	36,914		35,033		—
Other	29,799		19,088		21,104
Change in certain assets and liabilities:
Accounts receivable - affiliates	(680)		972		(735)
Income taxes receivable	(306)		—		1
Accrued investment income	1,118		(1,262)		(478)
Accrued interest	(2,503)		5,076		(2)
Net cash provided by operating activities	361,454		187,430		121,148
Cash flows from investing activities:


Purchases of investments	(339,384)		(1,131,060)		(117,663)
Proceeds from sales of investments	556,384		812,188		160,040
Net cash provided by (used in) investing activities	217,000		(318,872)		42,377
Cash flows from financing activities:
Proceeds from issuance of senior notes	—		640,250		—
Purchase of senior notes	—		(179,735)		—

Payment of original issue discount - senior notes	—		(2,969)		—
Purchase of convertible junior subordinated debentures	(98,610)		(36,392)		—
Payment of original issue discount - convertible junior subordinated debentures	—		(15,049)		—
Cash portion of loss on debt extinguishment	(36,914)		(25,266)		—
Repurchase of common stock	(290,818)		(119,997)		(125,766)
Dividends paid	(94,219)		(82,061)		(41,914)
Payment of debt issuance costs	—		(2,020)		—
Payment of withholding taxes related to share-based compensation net share settlement	(6,729)		(8,940)		(5,726)
Net cash provided by (used in) financing activities	(527,290)		167,821		(173,406)
Net increase (decrease) in cash and cash equivalents	51,164		36,379		(9,881)
Cash and cash equivalents at beginning of year	73,000		36,621		46,502
Cash and cash equivalents at end of year	$	124,164	$	73,000	$	36,621

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 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 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. The maximum dividend that could be paid is reduced by dividends paid in the twelve months preceding the dividend payment date.

The payment of dividends from our insurance subsidiaries is the principal source of cash inflow for MGIC Investment Corporation, our holding company, other than investment income and raising capital in the public markets. The payment of dividends by our insurance subsidiaries is restricted by insurance regulation as discussed above. MGIC is the principal source of dividend-paying capacity and paid a total of $400 million, $390 million and $280 million in dividends in cash and fixed income securities to our holding company during 2021, 2020 and 2019, respectively. No contributions were made to our insurance subsidiaries in 2021, 2020 or 2019.

Note CThe senior notes and convertible junior subordinated debentures ("9% Debentures"), discussed in Note 7 – “Debt” to our consolidated financial statements, are obligations of MGIC Investment Corporation, our holding company, and not of its subsidiaries.

Fair Value Measurements - Unobservable Input Reconciliation (Details) - Real Estate Acquired - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 1,092	$ 7,252
Purchases	4,836	8,609
Sales	(4,806)	(15,429)
Included in earnings and reported as losses incurred, net	385	660
Balance at end of period	$ 1,507	$ 1,092

Benefit Plans - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Pension and Supplemental Executive Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Net Actuarial (Gain)/Loss	$ 84,045	$ 98,899
Net Prior Service Cost/(Credit)	(747)	(988)
Net Transition Obligation/(Asset)	0	0
Total at Year End	83,298	97,911	$ 98,589
Other Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Net Actuarial (Gain)/Loss	(47,352)	(30,565)
Net Prior Service Cost/(Credit)	2,461	2,673
Net Transition Obligation/(Asset)	0	0
Total at Year End	$ (44,891)	$ (27,892)	$ (15,281)

Statutory Information - Surplus contributions and dividends of insurance subsidiaries (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Dividends paid to the parent company	$ 400,000	$ 390,000	$ 280,000
Dividend to parent, distribution of investment in subsidiary	$ 8,900
Dividend to parent, distribution of interest in 9% Debentures		$ 139,500

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of Recent Accounting and Reporting Developments

Table 2.1 shows the relevant new amendments to accounting standards, which are not yet effective or adopted.

Standard / Interpretation

Table

2.1

Amended Standards

Effective date

ASC 944

Long-Duration Contracts

•

ASU 2018-12 - Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

January 1, 2022

Share-based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Summary of restricted stock or restricted stock unit activity

Table 15.1 summarizes restricted stock or restricted stock unit (collectively called “restricted stock”) activity during 2021.


Restricted stock
Table	15.1
		Weighted Average Grant Date Fair Market Value		Shares
Restricted stock outstanding at December 31, 2020		$	13.57	4,139,243
Granted (1)		12.83		1,370,542
Vested		14.97		(1,330,129)
Forfeited		13.87		(33,568)
Restricted stock outstanding at December 31, 2021		$	12.88	4,146,088

(1) Approximately 71% of the shares granted in 2021 are subject to performance conditions under which the target number of shares granted may vest up to 200%.

Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Components of Other Comprehensive Income (Loss) [Abstract]
Net unrealized investment (losses) gains on securities without an allowance for credit losses	$ (154,555)	$ 169,135	$ 220,139
Income tax benefit (expense)	32,456	(35,519)	(46,229)
Net of taxes	(122,099)	133,616	173,910
Net changes in benefit plan assets and obligations	31,613	13,288	29,129
Income tax benefit (expense)	(6,638)	(2,791)	(6,117)
Net of taxes	24,975	10,497	23,012
Total other comprehensive income (loss)	(122,942)	182,423	249,268
Total income tax benefit (expense)	25,818	(38,310)	(52,346)
Other comprehensive income (loss), net of tax	(97,124)	144,113	196,922
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract]
Total reclassifications	801,777	559,263	847,977
Income tax benefit (expense)	(166,794)	(113,170)	(174,214)
Net income	634,983	446,093	673,763
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of year	4,698,986	4,309,234
Balance, end of year	4,861,382	4,698,986	4,309,234
Accumulated other comprehensive income (loss)
Components of Other Comprehensive Income (Loss) [Abstract]
Other comprehensive income (loss), net of tax	(97,124)	144,113	196,922
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of year	216,821	72,708	(124,214)
Other comprehensive income (loss) before reclassifications	(96,590)	142,448	193,400
Less: Amounts reclassified from AOCL	534	(1,665)	(3,522)
Balance, end of year	119,697	216,821	72,708
Net unrealized gains and losses on available-for-sale securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of year	272,137	138,521	(35,389)
Other comprehensive income (loss) before reclassifications	(113,839)	144,566	176,784
Less: Amounts reclassified from AOCL	8,260	10,950	2,874
Balance, end of year	150,038	272,137	138,521
Net benefit plan assets and obligations recognized in shareholders' equity
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of year	(55,316)	(65,813)	(88,825)
Other comprehensive income (loss) before reclassifications	17,249	(2,118)	16,616
Less: Amounts reclassified from AOCL	(7,726)	(12,615)	(6,396)
Balance, end of year	(30,341)	(55,316)	(65,813)
Reclassification from Accumulated Other Comprehensive Income
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract]
Total reclassifications	676	(2,106)	(4,460)
Income tax benefit (expense)	(142)	441	938
Net income	534	(1,665)	(3,522)
Reclassification from Accumulated Other Comprehensive Income \| Net unrealized gains and losses on available-for-sale securities
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract]
Total reclassifications	10,455	13,862	3,637
Income tax benefit (expense)	(2,195)	(2,912)	(763)
Net income	8,260	10,950	2,874
Reclassification from Accumulated Other Comprehensive Income \| Net benefit plan assets and obligations recognized in shareholders' equity
Amounts Reclassified From Accumulated Other Comprehensive Income [Abstract]
Total reclassifications	(9,779)	(15,968)	(8,097)
Income tax benefit (expense)	2,053	3,353	1,701
Net income	$ (7,726)	$ (12,615)	$ (6,396)

Benefit Plans - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Benefit Plans - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Minimum percentages of gain loss consider for amortization (in hundredths)	10.00%
Minimum value of outstanding noncallable bonds used in hypothetical cash flow bond matching exercise	$ 50.0
Future earnings period used in determining the expected average rate of earnings	20 years
Discretionary profit sharing contribution as a percentage of participant's eligible compensation (in hundredths)	5.00%
Matching contribution rate on employees' contributions (in hundredths)	100.00%
Employee contributions subject to employer match (in hundredths)	4.00%
Profit sharing and 401(k) savings plan expenses	$ 8.0	$ 8.0	$ 7.4
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Lump sum pension plan benefit payments	$ 27.6	$ 27.5
Pension Plan \| Equity securities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	40.00%
Other Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Minimum percentage return should exceed growth in consumer price index annually (in hundredths)	5.75%
Maximum investment in international mutual funds (in hundredths)	30.00%
Percent of international mutual funds equity allocation in emerging markets (in hundredths)	2.00%
Percent of international mutual funds equity allocation in companies primarily based in Europe and the Pacific Basin (in hundredths)	18.00%
Other Postretirement Benefit Plan \| Equity securities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	100.00%

Litigation and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Litigation and Contingencies


NOTE 17						Litigation and Contingencies

Before paying an insurance claim, generally we review the loan and servicing files to determine the appropriateness of the claim amount. When reviewing the files, we may determine that we have the right to rescind coverage or deny a claim on the loan (both referred to as “rescissions”). In addition, our insurance policies generally provide that we can reduce a claim if the servicer did not comply with its obligations under our insurance policy (such reduction referred to as a "curtailment"). In recent years, an immaterial percentage of claims received in a quarter have been resolved by rescissions. In 2021 and 2020, curtailments reduced our average claim paid by approximately 4.4% and 3.6%, respectively. The COVID-19-related foreclosure moratoriums and forbearance plans have decreased our claims paid activity beginning in the second quarter of 2020. It is difficult to predict the level of curtailments once the foreclosure moratoriums and forbearance plans end. Our loss reserving methodology incorporates our estimates of future rescissions, curtailments, and reversals of rescissions and curtailments. A variance between ultimate actual rescission, curtailment, and reversal rates and our estimates, as a result of the outcome of litigation, settlements or other factors, could materially affect our losses.

When the insured disputes our right to rescind coverage or curtail claims, we generally engage in discussions in an attempt to settle the dispute. If we are unable to reach a settlement, the outcome of a dispute ultimately may be determined by legal proceedings. Under ASC 450-20, until a loss associated with settlement discussions or legal proceedings becomes probable and can be reasonably estimated, we consider our claim payment or rescission resolved for financial reporting purposes and do not accrue an estimated loss. When we determine that a loss is probable and can be reasonably estimated, we record our best estimate of our probable loss, including recording a probable loss of $6.3 million in 2021. In those cases, until settlement negotiations or legal proceedings are concluded (including the receipt of any necessary GSE approvals), it is possible that we will record an additional loss. We are currently involved in discussions and/or proceedings with respect to our claims paying practices. Although it is possible that, if not resolved by negotiation, we will not prevail on all matters, we are unable to make a reasonable estimate or range of estimates of the potential liability. We estimate the maximum exposure where a loss is reasonably possible to be approximately $27 million more than the amount of probable loss we have recorded. This estimate of maximum exposure is based on currently available information; is subject to significant judgment, numerous assumptions and known and unknown uncertainties; will include an amount for matters for which we have recorded a probable loss until such matters are concluded; will include different matters from time to time; and does not include interest or consequential or exemplary damages.

Mortgage insurers, including MGIC, have in the past been involved in litigation and regulatory actions related to alleged violations of the anti-referral fee provisions of the Real Estate Settlement Procedures Act ("RESPA") and the notice provisions of the Fair Credit Reporting Act ("FCRA"). While these proceedings in the aggregate did not result in material liability for MGIC, there can be no assurance that the outcome of future proceedings, if any, under these laws would not have a material adverse effect on us. To the extent that we are construed to make independent credit decisions in connection with our

contract underwriting activities, we also could be subject to increased regulatory requirements under the Equal Credit Opportunity Act , FCRA, and other laws. Under relevant laws, examination may also be made of whether a mortgage insurer’s underwriting decisions have a disparate impact on persons belonging to a protected class in violation of the law.

Through a non-insurance subsidiary, we 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. The related contract underwriting remedy expense for each of the years ended December 31, 2021, 2020, and 2019, was immaterial to our consolidated financial statements.

In addition to the matters described above, we are involved in other disputes and 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 disputes and legal proceedings will not have a material adverse effect on our financial position or results of operations.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Net deferred tax assets and liabilities

Net deferred tax liabilities included on the Consolidated Balance Sheet at December 31, 2021 and 2020 as a component of Other liabilities are as follows:


Deferred tax assets and liabilities
Table	12.1
(In thousands)		2021		2020
Total deferred tax assets		$	32,331	$	38,443
Total deferred tax liabilities		(71,743)		(98,485)
Net deferred tax liability		$	(39,412)	$	(60,042)

Components of the net deferred tax asset (liability)

Table 12.2 includes the components of the net deferred tax liability as of December 31, 2021 and 2020.


Deferred tax components
Table	12.2
(In thousands)		2021		2020
Unearned premium reserves		$	19,116	$	23,163
Benefit plans		(21,360)		(13,977)
Loss reserves		4,034		3,542
Unrealized appreciation in investments		(39,883)		(72,341)
Deferred Policy Acquisition Cost		(4,551)		(4,528)
Deferred compensation		6,118		6,776

Other, net		(2,886)		(2,677)
Net deferred tax liability		$	(39,412)	$	(60,042)

Components of the provision for (benefit from) income taxes

Table 12.3 summarizes the components of the provision for income taxes:


Provision for (benefit from) income taxes
Table	12.3
(In thousands)		2021		2020		2019
Current Federal		$	161,055	$	85,574	$	162,911
Deferred Federal		4,392		28,244		11,860
Other		1,347		(648)		(557)
Provision for income taxes		$	166,794	$	113,170	$	174,214

Reconciliation of federal statutory income tax rate

Table 12.4 reconciles the federal statutory income tax rate to our effective tax provision rate.


Effective tax rate reconciliation
Table	12.4
		2021		2020		2019
Federal statutory income tax rate		21.0	%	21.0	%	21.0	%


Tax exempt municipal bond interest		(0.6)	%	(0.9)	%	(0.6)	%
Other, net		0.4	%	0.1	%	0.1	%
Effective tax rate		20.8	%	20.2	%	20.5	%

Reinsurance (Tables)

12 Months Ended

Dec. 31, 2021

Reinsurance Disclosures [Abstract]

Effect of reinsurance agreements on premiums earned and losses incurred

Table 9.1 below shows the effect of all reinsurance agreements on premiums earned and losses incurred as reflected in the consolidated statements of operations.


Reinsurance
Table	9.1
		Years ended December 31,
(In thousands)		2021		2020		2019
Premiums earned:
Direct		$	1,167,592	$	1,199,824	$	1,155,240
Assumed		9,858		10,848		5,085
Ceded		(163,031)		(188,729)		(129,337)
Net premiums earned		1,014,419		1,021,943		1,030,988

Losses incurred:
Direct		74,496		442,194		130,100
Assumed		(57)		555		(125)
Ceded		(9,862)		(77,975)		(11,400)
Net losses incurred		$	64,577	$	364,774	$	118,575

Schedule of Quota Share Reinsurance Agreements

Table 9.2 below provides additional detail regarding our QSR transactions in effect during 2021.


Reinsurance
Table	9.2

Quota Share Contract		Policy Year	Quota Share %	Annual Loss Ratio to Exhaust Profit Commission (1)	Contractual Termination Date
2015 QSR		Prior to 2017	15.0%	68.0%	December 31, 2031
2017 QSR (2)		2017	30.0%	60.0%	December 31, 2028
2018 QSR (2)		2018	30.0%	62.0%	December 31, 2029
2019 QSR		2019	30.0%	62.0%	December 31, 2030
2020 QSR		2020	12.5%	62.0%	December 31, 2031
2020 QSR and 2021 QSR		2020 - 2021	17.5%	62.0%	December 31, 2032
2021 QSR		2021	12.5%	57.5%	December 31, 2032
2022 QSR		2022	15.0%	57.5%	December 31, 2033
Credit Union QSR (3)		2020-2025	65.0%	50.0%	December 31, 2039

(1) We will receive a profit commission provided the annual loss ratio on policies covered under the transaction remains below this ratio.

(2) 2017 and 2018 QSR Transactions were terminated effective December 31, 2021.

(3) Eligible credit union business written before April 1, 2020 was covered by our 2019 and prior QSR Transactions.

Table 9.3 provides additional detail regarding optional termination dates and optional reductions to our quota share percentage which can, in each case be elected by us for a fee. The optional reduction to the quota share percentage would give us an option to reduce our quota share percentage from the original percentage as shown in table 9.2 to the percentage showed in 9.3.

Reinsurance

Table

9.3

Quota Share Contract

Optional Termination Date (1)

Optional Quota Share % Reduction Date (2)

Quota Share % Reduction

2015 QSR

June 30, 2021

2019 QSR

December 31, 2021

July 1, 2020

25% or 20%

2020 QSR

December 31, 2022

July 1, 2021

10.5% or 8%

2020 QSR and 2021 QSR, 2020 Policy year

December 31, 2022

July 1, 2021

14.5% or 12%

2020 QSR and 2021 QSR, 2021 Policy year

December 31, 2023

July 1, 2022

14.5% or 12%

2021 QSR

December 31, 2023

July 1, 2022

10.5% or 8%

2022 QSR

December 31, 2024

July 1, 2023

12.5% or 10%

(1) We can elect early termination of the QSR transaction beginning on this date, and bi-annually thereafter.

(2) We can elect to reduce the quota share percentage beginning on this date, and bi-annually thereafter.

Quota share reinsurance agreements on premiums earned and losses incurred

Table 9.4 provides a summary of our QSR Transactions, excluding captive agreements, for 2021, 2020, and 2019.


Quota share reinsurance
Table	9.4
		Years ended December 31,
(In thousands)		2021		2020		2019
Ceded premiums written and earned, net of profit commission		$	118,537	$	167,930	$	111,550
Ceded losses incurred		9,862		78,012		11,395
Ceding commissions (1)		53,460		48,077		48,793
Profit commission		153,759		72,452		139,179

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

Reinsurance retention policy

Table 9.5 provides a summary of our Home Re Transactions as of December 31, 2021, December 31, 2020 and December 31, 2019.


Excess of Loss Reinsurance
Table 9.5
($ in thousands)	Home Re 2021-2, Ltd.	Home Re 2021-1, Ltd.	Home Re 2020-1, Ltd.	Home Re 2019-1, Ltd.	Home Re 2018-1, Ltd.
Issue Date	August 3, 2021	February 2, 2021	October 29, 2020	May 25, 2019	October 30, 2018
Policy Inforce Dates	January 1, 2021 - May 28, 2021	August 1, 2020 - December 31, 2020	January 1, 2020 - July 31, 2020	January 1, 2018 - March 31, 2019	July 1, 2016 - December 31, 2017
Optional Call Date (1)	July 25, 2028	January 25, 2028	October 25, 2027	May 25, 2026	October 25, 2025
Legal Maturity	12.5 years	12.5 years	10 years	10 years	10 years
Initial First Layer Retention	190,159	211,159	275,283	185,730	168,691
Initial Excess of Loss Reinsurance Coverage	398,429	398,848	412,917	315,739	318,636
2021
Remaining First Layer Retention	190,159	211,142	275,204	183,917	165,365
Remaining Excess of Loss Reinsurance Coverage	398,429	387,830	234,312	208,146	218,343
2020
Remaining First Layer Retention	—	—	275,283	184,514	166,005
Remaining Excess of Loss Reinsurance Coverage	—	—	412,917	208,146	218,343
2019
Remaining First Layer Retention	—	—	—	185,636	167,779
Remaining Excess of Loss Reinsurance Coverage	—	—	—	271,021	260,957

(1)We have the right to terminate the Home Re Transactions under certain circumstances and on any payment date on or after the respective Optional Call date.

Schedule of total assets of Home Re Entities

Table 9.6 presents the total assets of the Home Re Entities as of December 31, 2021 , December 31, 2020 and December 31, 2019.


Home Re Entities total assets
Table	9.6

(In thousands)
Home Re Entity		Total VIE Assets
December 31, 2021
Home Re 2018-1 Ltd.		$	218,343
Home Re 2019-1 Ltd.		208,146
Home Re 2020-1 Ltd.		251,387
Home Re 2021-1 Ltd.		398,848
Home Re 2021-2 Ltd.		398,429

December 31, 2020
Home Re 2018-01 Ltd.		$	218,343
Home Re 2019-01 Ltd.		208,146
Home Re 2020-01 Ltd.		412,917

December 31, 2019
Home Re 2018-01 Ltd.		$	269,451
Home Re 2019-01 Ltd.		283,150

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Statutory Information - Narrative (Details)	12 Months Ended
Statutory Information - Narrative (Details)	Dec. 31, 2021 USD ($) jurisdiction	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Statutory capital requirements [Abstract]
Number of jurisdictions with risk-to-capital requirements \| jurisdiction	16
Maximum permitted risk-to-capital ratio commonly applied	25 to 1
Risk to capital ratio at end of period	9.5 to 1
Risk to capital ratio	9.5
Amount of policyholders position above or below required MPP	$ 3,400,000,000
Amount of required MPP	$ 1,900,000,000
Risk to capital ratio of combined insurance operations at end of period	9.5 to 1
Risk-to-capital ratio on combined insurance operations	9.5
Increase in contingency reserve	$ 534,000,000
Statutory net income	290,000,000	$ 65,201,000	$ 305,857,000
Statutory policyholders' surplus	$ 1,217,000,000	$ 1,339,509,000	$ 1,619,069,000
Insurance Subsidiaries
Statutory capital requirements [Abstract]
Percentage of statutory policyholders surplus used to determine maximum allowable dividends	10.00%
Adjusted statutory net income measurement period	3 years
Adjusted statutory net income dividend payment measurement period	2 years
Maximum
Statutory capital requirements [Abstract]
Risk to capital ratio	25

Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Significant Accounting Policies


NOTE 3						Significant Accounting Policies

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

Restricted cash and cash equivalents consists of cash and money market funds held in trusts for the benefit of contractual counterparties under reinsurance agreements or for other contractual restrictions.

FAIR VALUE MEASUREMENTS

We carry certain financial instruments at fair value and disclose the fair value of all financial instruments. Our financial instruments carried at fair value are predominantly measured on a recurring basis. Financial instruments measured on a nonrecurring basis are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment).

The fair value of an asset or liability is defined as the price that would be received upon a sale of an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Fair value is based on quoted market prices or inputs, where available. If prices or quotes are not available, fair value is based on valuation models or other valuation techniques that consider relevant transaction characteristics (such as maturity) and use as inputs observable or unobservable market parameters including yield curves, interest rates, volatilities, equity or debt prices, and credit curves. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, as described below.

For the years ended December 31, 2021, 2020, and 2019, we did not elect to measure any financial instruments acquired, or issued, such as our outstanding debt obligations, at fair value for which the primary basis of accounting is not fair value.

Valuation process

We use independent pricing sources to determine the fair value of a substantial majority of our financial instruments, which primarily consist of assets in our investment portfolio, but also includes cash and cash equivalents and restricted cash and cash equivalents. A variety of inputs are used; in approximate order of priority, they are: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications.

Market indicators, industry, and economic events are also considered. The inputs listed above are evaluated using a multidimensional pricing model. This model combines all inputs to arrive at a value assigned to each security. Quality controls are performed by the independent pricing sources throughout this process, which include reviewing tolerance reports, trading information, data changes, and directional moves compared to market moves.

On a quarterly basis, we perform quality controls over values received from the pricing sources which also include reviewing tolerance reports, data changes, and directional moves compared

to market moves. We have not made any adjustments to the prices obtained from the independent pricing sources.

Valuation hierarchy

A three-level valuation hierarchy has been established under GAAP for disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of a financial instrument as of the measurement date. To determine the fair value of securities available-for-sale in Level 1 and Level 2 of the fair value hierarchy, independent pricing sources, as described below, 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.

The three levels are defined as follows:


è	Level 1	Quoted prices for identical instruments in active markets that we can access. Financial assets using Level 1 inputs primarily include U.S. Treasury securities, money market funds, treasury bills, and certain equity securities.
è	Level 2	Quoted prices for similar instruments in active markets that we can access; 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 instrument. The observable inputs are used in valuation models to calculate the fair value of the instruments. Financial assets using Level 2 inputs primarily include obligations of U.S. government corporations and agencies, corporate bonds, mortgage-backed securities, asset-backed securities, most municipal bonds, and commercial paper. The independent pricing sources used for our Level 2 investments vary by type of investment. See Note 6 - "Fair Value Measurements" for further information.
è	Level 3	Valuations derived from valuation techniques in which one or more significant inputs or value drivers are unobservable or, from par values due to restrictions on certain securities that require them to be redeemed or sold only to the security issuer at par value. The inputs used to derive the fair value of Level 3 securities reflect our own assumptions about the assumptions a market participant would use in pricing an asset or liability. 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.

INVESTMENTS

Fixed income securities. Our fixed income securities are classified as available-for-sale and are reported at fair value. The related unrealized investment 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 on fixed income securities are reported in income based upon specific identification of securities sold as well as any credit allowance (2021 and 2020), and any "other than temporary" impairments ("OTTI") (2019).

Equity securities. Equity securities are reported at fair value, except for certain securities that are carried at cost. Equity securities carried at cost are reported as Other invested assets. Realized investment gains and losses on equity securities are reported in income based upon specific identification of securities sold, as well as any change in fair value of equity securities.

Other invested assets. Other invested assets are carried at cost. These assets represent our investment in Federal Home Loan Bank of Chicago ("FHLB") stock, which due to restrictions, is required to be redeemed or sold only to the security issuer at par value.

We report accrued investment income separately from securities. Accrued investment income is written off through net realized investment gains (losses) if, and at the time, the issuer of the security defaults or is expected to default on payments.

Unrealized losses and allowance for credit losses

Each quarter we determine whether securities in an unrealized loss position are impaired by considering several factors including, but not limited to:


è			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 of its amortized cost basis;
è			the present value of the discounted cash flows we expect to collect compared to the amortized cost basis of the security;
è			failure of the issuer to make scheduled interest or principal payments;
è			a change in rating to below investment grade; and
è			adverse conditions specifically related to the security, an industry, or a geographic area.

Based on our evaluation, we will record a realized loss on an impaired security if we intend to sell, if it is more likely than not that we will be required to sell it prior to recovery of its amortized cost basis, or if the present value of the discounted cash flows we expect to collect is less than the amortized cost basis of the security.

When a security is considered to be impaired, but when a sale is not intended or is not likely, the loss is separated into the portion that represents the credit loss and the portion that is due to other factors. An allowance for credit losses is recorded, subject to reversal, for the credit loss portion in the statement of operations within realized investment gains and losses, while the loss due to other factors is recognized in accumulated other comprehensive 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 is less than the cost basis of the security.

For 2019, our evaluation of whether a decline in fair values was other-than-temporary also included reviewing the extent and duration of the decline. Based on our evaluation, if the fair value of a security was below its amortized cost at the time of our intent to sell, the security was classified as other-than-temporarily impaired and the full amount of the impairment was recognized as a loss in the statement of operations. Otherwise, when a security was considered to be other-than-temporarily impaired, the loss was separated into the portion of the loss that represented the credit loss and the portion that was due to other factors. The credit loss portion was recognized as a loss in the statement of operations, while the loss due to other factors was recognized in accumulated other comprehensive loss, net of taxes. A credit loss was 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 was less than the cost basis of the security. If the security was determined to be other-than-temporary-impaired the security was classified as other-than-temporarily impaired and the full amount of the impairment was recognized as a loss in the statement of operations.

HOME OFFICE AND EQUIPMENT

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

Home office and equipment is shown net of accumulated depreciation of $55.4 million, $51.2 million and $43.0 million as of December 31, 2021, 2020 and 2019, respectively. Depreciation expense for the years ended December 31, 2021, 2020 and 2019 was $5.6 million, $6.3 million and $6.5 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.

LOSS RESERVES

Loss reserves include case reserves, incurred but not reported ("IBNR") reserves, and loss adjustment expense ("LAE") reserves.

Case reserves and LAE reserves are established when notices of delinquency on insured mortgage loans are received. Such loans are referred to as being in our delinquency inventory. For reporting purposes, we consider a loan delinquent when it is two or more payments past due and has not become current or resulted in a claim payment. Even though the accounting

standard, 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 case reserves for future claims on insured loans that are not currently delinquent.

Case reserves are established by estimating the number of loans in our delinquency inventory 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 case reserve estimates are primarily established based upon historical experience, including rescissions of policies, curtailments of claims, 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.

IBNR reserves are established for delinquencies estimated to have occurred prior to the close of an accounting period, but have not yet been reported to us. Consistent with reserves for reported delinquencies, IBNR reserves are also established using estimated claim rates and claim severities.

LAE reserves are established for the estimated costs of settling claims, including legal and other expenses, and general expenses of administering the claims settlement process.

Our loss reserve estimates are also affected by any agreements we enter into regarding our claims paying practices, such as the settlement agreements discussed in Note 17 – “Litigation and Contingencies” to our consolidated financial statements.

Loss reserves are ceded to reinsurers under our reinsurance agreements. (See Note 8 – “Loss Reserves” and Note 9 – “Reinsurance.”)

PREMIUM DEFICIENCY RESERVE

After our loss reserves are established, we perform premium deficiency tests using our best estimate of future premium, losses and LAE paid. Premium deficiency reserves are established, if necessary, when the present value of expected future losses and LAE paid exceeds the present value of expected future premium and already established reserves.

REVENUE RECOGNITION

We write policies which are guaranteed renewable at the insured's option on a monthly, single, or annual premium basis. We have no ability to re-underwrite or reprice these policies. Premiums written on monthly premium policies are earned as coverage is provided. Premiums written on single premium policies and annual premium policies are initially deferred as unearned premium reserve. Premiums written on annual premium policies are earned on a monthly pro rata basis. Premiums written on policies covering more than one year are amortized over the estimated policy life based on historical experience, which includes the anticipated incurred loss pattern. 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. When a policy is cancelled due to rescission, all previously collected premium is returned and when a policy is

cancelled because a claim is paid, premium collected since the date of delinquency is returned.

The liability associated with our estimate of premium to be returned is accrued for separately and included in "Other liabilities" on our consolidated balance sheets. Changes in this liability, and the actual return of premiums for all periods, affects premiums written and earned.

We assess whether a credit loss allowance is required for our premium receivable. We consider collectability trends and industry development, among other things. Any estimated credit loss would be immediately recognized.

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 consolidated financial statements and the tax bases of these items. The estimated tax effects are computed at the enacted federal statutory income tax rate. Changes in tax laws, rates, regulations, and policies or the final determination of tax audits or examinations, could materially affect our estimates and can be significant to our operating results. We evaluate the realizability of the deferred tax assets based on the weight of all available positive and negative evidence. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized.

The recognition of a tax position is determined using a two-step approach. The first step applies a more-likely-than-not threshold for recognition and derecognition. The second step measures the tax position as the greatest amount of benefit that is cumulatively greater than 50% likely to be realized. When evaluating a tax position for recognition and measurement, we presume that the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. We recognize interest accrued and penalties related to unrecognized tax benefits in our provision for income taxes.

Federal tax law permits mortgage guaranty insurance companies to deduct from taxable income, subject to certain limitations, the amounts added to contingency loss reserves that are recorded for regulatory purposes. The amounts we deduct must generally be included in taxable income in the tenth subsequent year. The deduction is allowed only to the extent that we purchase and hold U.S. government non-interest-bearing tax and loss bonds in an amount equal to the tax benefit attributable to the deduction. We account for these purchases as a payment of current federal income tax. (See "Note 12 - Income Taxes.")

BENEFIT PLANS

year with an employer contribution and interest. The employer contribution is a percentage of eligible earnings based on the participant’s age on January 1, 2019. 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 11 – “Benefit Plans.”)

REINSURANCE

We cede insurance risk through the use of quota share reinsurance transactions and aggregate excess of loss reinsurance transactions. Premiums and losses incurred are ceded pursuant to the terms of our quota share reinsurance transactions. Reinsurance premiums ceded under our excess of loss transactions are composed of coverage, initial expense and supplemental premiums. The coverage premiums are generally calculated as the difference between the amount of interest payable by the Home Re Entity on the remaining reinsurance coverage levels, and the investment income collected on the collateral assets held in the reinsurance trust account and used to collateralize the Home Re Entity's reinsurance obligation to MGIC.

Loss reserves are reported before taking credit for amounts ceded under reinsurance transactions. Ceded loss reserves are reflected as "Reinsurance recoverable on loss reserves." Amounts due from reinsurers on paid claims are reflected as “Reinsurance recoverable on paid losses.” Ceded premiums payable, net of ceding commission and profit commission are included in “Other liabilities.” Profit commissions are included with “Premiums written – Ceded” and ceding commissions are included with “Other underwriting and operating expenses, net.” We remain liable for all insurance ceded. (See Note 9 – “Reinsurance.”)

We assess the credit risk associated with our reinsurance recoverable. Effective January 1, 2020 if an estimated credit loss is expected to occur over the remaining life of reinsurance recoverable, it is immediately recorded to income. In assessing whether a credit allowance should be established, we consider several factors including, but not limited to, the credit ratings of individual reinsurers, investor reports for our excess of loss transactions, collateral held in trust accounts in which MGIC is the sole beneficiary, and aging of outstanding reinsurance recoverable balances.

Assumed reinsurance is based on information received from the ceding company.

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. Awards under our plans generally vest over periods ranging from one to three years, although awards to our non-employee

directors vest immediately. (See Note 15 – “Share-based Compensation Plans.”)

EARNINGS PER SHARE

Basic earnings per share ("EPS") is calculated by dividing net income by the weighted average number of shares of common stock outstanding. The computation of basic EPS includes as "participating securities" an immaterial number of unvested share-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, under the "two-class" method. Our participating securities are composed of vested restricted stock and restricted stock units ("RSUs") with non-forfeitable rights to dividends. 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 our unvested restricted stock units result in the issuance of common stock. Under the if-converted method, diluted EPS reflects the potential dilution that could occur if our 9% Debentures are converted to 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. For purposes of calculating basic and diluted EPS, vested restricted stock and RSUs are considered outstanding.

RELATED PARTY TRANSACTIONS

In 2021, MGIC distributed to the holding company, as a dividend, its investment in MGIC Credit Assurance Corporation. In 2020 MGIC Reinsurance Corporation of Wisconsin, a subsidiary of MGIC, merged with MGIC. There were no related party transactions during 2019.

RECENT ACCOUNTING AND REPORTING DEVELOPMENTS

Accounting standards effective in 2021, or early adopted, and relevant to our financial statements

Simplifying the Accounting for Income Taxes: ASU 2019-12

Effective January 1, 2021, we adopted FASB guidance on a prospective basis which simplifies Accounting for Income Taxes (Topic 740) by removing certain exceptions to Topic 740. The adoption of this guidance did not have a material impact on our consolidated financial statements.

Clarification of Accounting for Equity Securities: ASU 2020-01

Effective January 1, 2021, we adopted ASU 2020-01, which clarifies certain interactions of accounting for equity securities under Topic 321, accounting for equity securities under the equity method of accounting in Topic 323, and accounting for certain forward contracts and purchased options in Topic 815. The amendment clarifies the consideration of observable transactions before applying or discounting the equity method of accounting. The adoption of this guidance did not have a material impact on our consolidated financial statements.

Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs: ASU 2020-08

Effective January 1, 2021, we adopted Accounting Standards Update No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. FASB standard 2017-08 shortened the amortization period for certain purchased callable debt securities held at a premium by requiring that an entity amortize the premium associated with those callable debt securities within the scope of paragraph 310-20-25-33 to the earliest call date and clarified the FASB’s intent that an entity should reevaluate whether a callable debt security that has multiple call dates is within the scope of paragraph 310-20-35-33 for each reporting period. This guidance clarified that the issuer of a callable debt security should use the next call date versus the earliest call date in amortizing premium. The adoption of this guidance did not have a material impact on our consolidated financial statements.

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity: ASU 2020-06

Effective January 1, 2021, we adopted ASU 2020-06 using a modified retrospective basis. ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. It also includes amendments to EPS guidance. The updated guidance reduced the number of accounting models for convertible debt instruments and convertible preferred stock, and eliminated the cash conversion feature within ASU 470. As a result of these changes, more convertible instruments will be reported as a single unit on the balance sheet. We previously accounted for our 9% Debentures under the cash conversion feature, which required us to account for the conversion features of our 9% Debentures within Paid-in Capital. The adoption of this guidance resulted in a $68.3 million cumulative effect adjustment to our 2021 beginning Retained Earnings and Paid-in Capital to reflect the 9% Debentures as if we had always accounted for them as a liability in their entirety.

The updated guidance also includes updates to the EPS calculation. It requires an entity to use the if-converted method, assume share settlement when settlement can be in cash or in shares, use an average market price for the period if the number of shares is based on an entity’s share price, and use the weighted average shares from each quarter to calculate the year to date weighted average shares. The guidance also includes improvements to the disclosures for convertible instruments and EPS. The adoption of this guidance did not have a material impact on our consolidated financial statement disclosures.

Reference Rate Reform: ASU 2020-04

In March 2020, the FASB issued ASU 2020-04 to provide temporary optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. It provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This standard may be elected and applied prospectively over time from March 12, 2020 through December 31, 2022 as reference rate reform activities occur. The adoption of, and future elections under, this standard are not expected to have a material impact on our consolidated financial statements as the standard will ease, if warranted, the requirements for accounting for the future effects of reference rate reform. We continue to monitor the impact the discontinuance of LIBOR or other reference rates will have on our contracts and other transactions.

Prospective Accounting Standards

Table 2.1 shows the relevant new amendments to accounting standards, which are not yet effective or adopted.

Standard / Interpretation

Table

2.1

Amended Standards

Effective date

ASC 944

Long-Duration Contracts

•

ASU 2018-12 - Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

January 1, 2022

Targeted Improvements for Long Duration Contracts: ASU 2018-12

In August 2018, the FASB issued guidance which simplifies the amortization of deferred acquisition costs. It also provides updates to the recognition, measurement, presentation and disclosure requirements for long duration contracts, which generally do not apply to mortgage insurance. The updated guidance requires deferred acquisition costs to be amortized on a constant level basis over the expected term of the related contracts, versus in proportion to premium, gross profits, or gross margins. In November 2020, FASB issued ASU 2020-11 deferring the effective date, so that it applies for annual periods beginning after December 15, 2022, including interim periods within those annual periods. We are currently evaluating the impacts the adoption of this guidance will have on our consolidated financial statements, but do not expect it to have a material impact.

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets
Fixed income, available-for-sale	$ 6,587,581	$ 6,661,596
Cash and cash equivalents	284,690	287,953
Accrued investment income	51,902	49,997
Total assets	398,429	412,917	$ 283,150
Liabilities:
Senior notes	881,508	879,379
Convertible junior subordinated debentures	110,204	208,814
Other liabilities	191,702	244,711
Total liabilities	2,463,626	2,655,540
Shareholders’ equity:
Common stock (one dollar par value, shares authorized 1,000,000; shares issued 2021 - 371,353; 2020 - 371,353; shares outstanding 2021 - 320,336; 2020 - 338,573)	371,353	371,353
Paid-in capital	1,794,906	1,862,042
Treasury stock at cost (shares 2021 - 51,017; 2020 - 32,779)	(675,265)	(393,326)
Accumulated other comprehensive income, net of tax	119,697	216,821
Retained earnings	3,250,691	2,642,096
Total shareholders' equity	4,861,382	4,698,986	4,309,234
Total liabilities and shareholders' equity	7,325,008	7,354,526
Parenthetical information [Abstract]
Fixed income, amortized cost	$ 6,397,658	$ 6,317,164
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	371,353,000	371,353,000
Common stock, shares outstanding (in shares)	320,336,000	338,573,000
Treasury stock, shares at cost (in shares)	51,017,000	32,779,000
Revenues:
Investment income, net of expenses	$ 156,438	$ 154,396	167,045
Net realized investment gains (losses)	6,582	13,752	5,306
Total revenues	1,185,675	1,199,146	1,213,977
Expenses:
Interest expense	71,360	59,595	52,656
Loss on debt extinguishment	36,914	26,736	0
Total losses and expenses	383,898	639,883	366,000
Income before tax	801,777	559,263	847,977
Provision for income taxes	166,794	113,170	174,214
Net income	634,983	446,093	673,763
Other comprehensive income (loss), net of tax	(97,124)	144,113	196,922
Comprehensive income	537,859	590,206	870,685
Cash flows from operating activities:
Net income	634,983	446,093	673,763
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred Federal	4,392	28,244	11,860
Loss on debt extinguishment	36,914	26,736	0
Change in certain assets and liabilities:
Accrued investment income	(1,905)	(292)	(1,704)
Net cash provided by operating activities	696,317	732,309	609,532
Cash flows from investing activities:
Purchases of investments	(1,531,129)	(2,636,972)	(1,394,126)
Proceeds from sales of investments	473,904	836,851	229,796
Net cash used in investing activities	(160,749)	(772,506)	(422,108)
Cash flows from financing activities:
Proceeds from issuance of senior notes	0	640,250	0
Purchase of senior notes	0	(179,735)	0
Payment of original issue discount - senior notes	0	(2,969)	0
Purchase of convertible junior subordinated debentures	(98,610)	(36,392)	0
Payment of original issue discount- convertible junior subordinated debentures	0	(15,049)	0
Cash portion of loss on debt extinguishment	(36,914)	(25,266)	0
Repurchase of common stock	(290,818)	(119,997)	(125,766)
Dividends paid	(94,219)	(82,061)	(41,914)
Payment of debt issuance costs	0	(2,020)	0
Payment of withholding taxes related to share-based compensation net share settlement	(6,729)	(8,940)	(5,726)
Net cash provided by (used in) financing activities	(527,290)	167,821	(173,406)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	8,278	127,624	14,018
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year	296,680	169,056	155,038
Cash and cash equivalents and restricted cash and cash equivalents at end of year	304,958	296,680	169,056
Parent Company
Assets
Fixed income, available-for-sale	538,872	773,995
Cash and cash equivalents	124,164	73,000
Investment in subsidiaries, at equity in net assets	4,964,954	4,740,074
Accounts receivable - affiliates	2,130	1,450
Income taxes - current and deferred	242,427	219,059
Accrued investment income	2,642	3,760
Total assets	5,875,189	5,811,338
Liabilities:
Senior notes	881,508	879,379
Convertible junior subordinated debentures	110,204	208,814
Accrued interest	20,501	23,004
Other liabilities	1,594	1,155
Total liabilities	1,013,807	1,112,352
Shareholders’ equity:
Common stock (one dollar par value, shares authorized 1,000,000; shares issued 2021 - 371,353; 2020 - 371,353; shares outstanding 2021 - 320,336; 2020 - 338,573)	371,353	371,353
Paid-in capital	1,794,906	1,862,042
Treasury stock at cost (shares 2021 - 51,017; 2020 - 32,779)	(675,265)	(393,326)
Accumulated other comprehensive income, net of tax	119,697	216,821
Retained earnings	3,250,691	2,642,096
Total shareholders' equity	4,861,382	4,698,986
Total liabilities and shareholders' equity	5,875,189	5,811,338
Parenthetical information [Abstract]
Fixed income, amortized cost	$ 550,324	$ 773,881
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	371,353,000	371,353,000
Common stock, shares outstanding (in shares)	320,336,000	338,573,000
Treasury stock, shares at cost (in shares)	51,017,000	32,779,000
Revenues:
Investment income, net of expenses	$ 3,850	$ 7,090	7,695
Net realized investment gains (losses)	490	1,454	(311)
Total revenues	4,340	8,544	7,384
Expenses:
Operating expenses	1,644	719	793
Interest expense	68,359	65,472	61,593
Loss on debt extinguishment	36,914	35,033	0
Total losses and expenses	106,917	101,224	62,386
Income before tax	(102,577)	(92,680)	(55,002)
Provision for income taxes	(21,240)	(18,431)	(12,263)
Equity in net income of subsidiaries	716,320	520,342	716,502
Net income	634,983	446,093	673,763
Other comprehensive income (loss), net of tax	(97,124)	144,113	196,922
Comprehensive income	537,859	590,206	870,685
Cash flows from operating activities:
Net income	634,983	446,093	673,763
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(716,320)	(520,342)	(716,502)
Dividends received from subsidiaries	400,000	221,024	154,413
Deferred Federal	(21,551)	(18,252)	(10,416)
Loss on debt extinguishment	36,914	35,033	0
Other	29,799	19,088	21,104
Change in certain assets and liabilities:
Accounts receivable - affiliates	(680)	972	(735)
Income taxes receivable	(306)	0	1
Accrued investment income	1,118	(1,262)	(478)
Accrued interest	(2,503)	5,076	(2)
Net cash provided by operating activities	361,454	187,430	121,148
Cash flows from investing activities:
Purchases of investments	(339,384)	(1,131,060)	(117,663)
Proceeds from sales of investments	556,384	812,188	160,040
Net cash used in investing activities	217,000	(318,872)	42,377
Cash flows from financing activities:
Proceeds from issuance of senior notes	0	640,250	0
Purchase of senior notes	0	(179,735)	0
Payment of original issue discount - senior notes	0	(2,969)	0
Purchase of convertible junior subordinated debentures	(98,610)	(36,392)	0
Payment of original issue discount- convertible junior subordinated debentures	0	(15,049)	0
Cash portion of loss on debt extinguishment	(36,914)	(25,266)	0
Repurchase of common stock	(290,818)	(119,997)	(125,766)
Dividends paid	(94,219)	(82,061)	(41,914)
Payment of debt issuance costs	0	(2,020)	0
Payment of withholding taxes related to share-based compensation net share settlement	(6,729)	(8,940)	(5,726)
Net cash provided by (used in) financing activities	(527,290)	167,821	(173,406)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	51,164	36,379	(9,881)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year	73,000	36,621	46,502
Cash and cash equivalents and restricted cash and cash equivalents at end of year	$ 124,164	$ 73,000	$ 36,621

Investments, Investment Income By Category (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment income	$ 160,598	$ 159,608	$ 171,347
Investment expenses	(4,160)	(5,212)	(4,302)
Net investment income	156,438	154,396	167,045
Fixed income securities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment income	160,030	157,065	165,523
Equity securities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment income	471	620	406
Cash equivalents
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment income	75	1,648	4,444
Other
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment income	$ 22	$ 275	$ 974

SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Thousands	Dec. 31, 2021 USD ($)
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	$ 6,413,496
Fair Value	6,603,649
Amount at which shown in the balance sheet	6,603,649
Fixed income
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	6,397,658
Fair Value	6,587,581
Amount at which shown in the balance sheet	6,587,581
Fixed income \| U.S. Treasury securities and obligations of U.S. government corporations and agencies
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	133,990
Fair Value	133,407
Amount at which shown in the balance sheet	133,407
Fixed income \| Obligations of U.S. states and political subdivisions
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	2,408,688
Fair Value	2,534,653
Amount at which shown in the balance sheet	2,534,653
Fixed income \| Foreign government debt
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	13,749
Fair Value	13,650
Amount at which shown in the balance sheet	13,650
Fixed income \| Public utilities
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	251,110
Fair Value	250,835
Amount at which shown in the balance sheet	250,835
Fixed income \| ABS
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	150,888
Fair Value	150,710
Amount at which shown in the balance sheet	150,710
Fixed income \| Collateralized loan obligations
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	360,436
Fair Value	360,939
Amount at which shown in the balance sheet	360,939
Fixed income \| Mortgage-backed
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	625,321
Fair Value	628,240
Amount at which shown in the balance sheet	628,240
Fixed income \| All other corporate bonds
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	2,453,476
Fair Value	2,515,147
Amount at which shown in the balance sheet	2,515,147
Equity Securities
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	15,838
Fair Value	16,068
Amount at which shown in the balance sheet	16,068
Equity Securities \| Industrial, miscellaneous and all other
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items]
Amortized Cost	15,838
Fair Value	16,068
Amount at which shown in the balance sheet	$ 16,068

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 634,983	$ 446,093	$ 673,763
Other comprehensive income (loss), net of tax:
Change in unrealized investment gains and losses	(122,099)	133,616	173,910
Benefit plans adjustment	24,975	10,497	23,012
Other comprehensive income (loss), net of tax	(97,124)	144,113	196,922
Comprehensive income	$ 537,859	$ 590,206	$ 870,685

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=123570139&loc=d3e3602-108585

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
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+ Details

Loss Reserves (Tables)

12 Months Ended

Dec. 31, 2021

Insurance Loss Reserves [Abstract]

Reconciliation of beginning and ending loss reserves

Table 8.1 provides a reconciliation of beginning and ending loss reserves as of and for the past three years:


Development of loss reserves
Table	8.1
(In thousands)		2021		2020		2019
Reserve at beginning of year		$	880,537	$	555,334	$	674,019
Less reinsurance recoverable		95,042		21,641		33,328
Net reserve at beginning of year		785,495		533,693		640,691

Losses incurred:
Losses and LAE incurred in respect of delinquent notices received in:
Current year		124,592		345,170		189,581
Prior years (1)		(60,015)		19,604		(71,006)
Total losses incurred		64,577		364,774		118,575

Losses paid:
Losses and LAE paid in respect of delinquent notices received in:
Current year		664		3,069		4,018
Prior years		68,769		109,923		235,551
Reinsurance terminations (2)		(35,978)		(20)		(13,996)
Total losses paid		33,455		112,972		225,573
Net reserve at end of year		816,617		785,495		533,693
Plus reinsurance recoverables		66,905		95,042		21,641
Reserve at end of year		$	883,522	$	880,537	$	555,334

(1)A positive number for prior year loss development indicates a deficiency of prior year reserves. A negative number for prior year loss development indicates a redundancy of prior year loss reserves. See the following table for more information about prior year loss development.

(2)In a termination, amounts for any incurred but unpaid losses are paid to us. As a result, the amount due from the reinsurers is reclassified from reinsurance recoverable on loss reserves to reinsurance recoverable on paid losses, resulting in no impact on losses incurred. (See Note 9 - "Reinsurance")

Prior year development of the reserves

The prior year development of the reserves in 2021, 2020 and 2019 is reflected in the table 8.2 below.


Reserve development on previously received delinquencies
Table	8.2
(In thousands)		2021		2020		2019
(Decrease) in estimated claim rate on primary delinquencies		$	(82,904)	$	(2,536)	$	(111,848)
Increase (decrease)in estimated claim severity on primary delinquencies		310		13,535		(434)
Change in estimates related to pool reserves, LAE reserves, reinsurance and other		22,579		8,605		41,276
Total prior year loss development (1)		$	(60,015)	$	19,604	$	(71,006)

(1)A positive number for prior year loss development indicates a deficiency of prior year loss reserves. A negative number for prior year loss development indicates a redundancy of prior year loss reserves.

Rollforward of delinquent inventory roll-forward

A roll-forward of our primary delinquency inventory for the years ended December 31, 2021, 2020, and 2019 appears in table 8.3 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 transfers of servicing between loan servicers.


Primary delinquency inventory roll-forward
Table	8.3
		2021	2020	2019
Beginning delinquent inventory		57,710	30,028	32,898
New Notices		42,432	106,099	54,239
Cures		(64,896)	(76,107)	(52,035)
Paid claims		(1,223)	(2,245)	(4,267)
Rescissions and denials		(38)	(65)	(168)
Other items removed from inventory		(695)	—	(639)
Ending delinquent inventory		33,290	57,710	30,028

Aging of the primary default inventory

The number of consecutive months that a borrower has been delinquent is shown in table 8.4 below.


Primary delinquency inventory - consecutive months delinquent
Table	8.4
		December 31,
		2021		2020		2019
3 months or less		7,586		11,542		9,447
4 - 11 months		7,990		34,620		9,664
12 months or more (1)		17,714		11,548		10,917
Total		33,290		57,710		30,028

3 months or less		23	%	20	%	32	%
4 - 11 months		24	%	60	%	32	%
12 months or more		53	%	20	%	36	%
Total		100	%	100	%	100	%

Primary claims received inventory included in ending delinquent inventory		211		159		538

(1)Approximately 20%, 31%, and 36% of the delinquent inventory that has been delinquent for 12 consecutive months or more has been delinquent for at least 36 consecutive months as of December 31, 2021, 2020 and 2019, respectively.

Loss Reserves - Reconciliation of Changes in Loss Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loss Reserve [Roll Forward]
Reserve at beginning of year	$ 880,537	$ 555,334	$ 674,019
Less reinsurance recoverable	66,905	95,042	21,641	$ 33,328
Net reserve at beginning of year	816,617	785,495	533,693	$ 640,691
Losses incurred: [Abstract]
Current year	124,592	345,170	189,581
Prior years	(60,015)	19,604	(71,006)
Total losses incurred	64,577	364,774	118,575
Losses paid [Abstract]
Current year	664	3,069	4,018
Prior years	68,769	109,923	235,551
Reinsurance terminations	(35,978)	(20)	(13,996)
Total losses paid	33,455	112,972	225,573
Reserve at end of year	$ 883,522	$ 880,537	$ 555,334

SCHEDULE IV - REINSURANCE

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]

SCHEDULE IV - REINSURANCE


SCHEDULE IV — Reinsurance Mortgage Insurance Premiums Earned Years Ended December 31, 2021, 2020 and 2019

(Dollars in thousands)	Gross Amount		Ceded to Other Companies		Assumed From Other Companies		Net Amount		Percentage of Amount Assumed to Net
Years ended December 31,
2021	$	1,167,592	$	163,031	$	9,858	$	1,014,419	1.0	%
2020	1,199,824		188,729		10,848		1,021,943		1.1	%
2019	1,155,240		129,337		5,085		1,030,988		0.5	%

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases


NOTE 16						Leases

We lease data processing equipment and autos under operating leases that expire during the next four years. Generally, rental payments are fixed.

Table 16.1 shows minimum the future operating lease payments as of December 31, 2021.


Minimum future operating lease payments
Table	16.1
(In thousands)		Amount
2022		$	771
2023		416
2024		211
2025		45
2026 and thereafter		—
Total		$	1,443

Total lease expense under operating leases was $1.3 million in 2021, $1.9 million in 2020, and $2.1 million in 2019.

Litigation and Contingencies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Average paid claim reduction due to curtailments (in hundredths)	4.40%	3.60%
Probable loss contingency accrual	$ 6.3
Maximum exposure to loss	$ 27.0

Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) Payment	Dec. 31, 2019 USD ($)	Jan. 01, 2021 USD ($)	Dec. 31, 2020 USD ($)
Significant Accounting Policies [Line Items]
Minimum number of payments past due to be in default \| Payment	2
Maximum age for qualified employees for both medical and dental benefits	65 years
Related party transaction amount		$ 0
Retained earnings	$ 3,250,691,000			$ 2,642,096,000
Cumulative Effect, Period of Adoption, Adjustment
Significant Accounting Policies [Line Items]
Retained earnings			$ 68,300,000
Additional Paid in Capital			$ 68,300,000
Minimum
Significant Accounting Policies [Line Items]
Award vesting period	1 year
Maximum
Significant Accounting Policies [Line Items]
Award vesting period	3 years

Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Components of net periodic benefit cost

The following tables 11.1, 11.2, and 11.3 provide the components of aggregate annual net periodic benefit cost for each of the years ended December 31, 2021, 2020, and 2019 and 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 as of December 31, 2021 and 2020.


Components of net periodic benefit cost
Table	11.1
		Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2019		12/31/2021		12/31/2020		12/31/2019
1. Company Service Cost		$	7,569	$	7,342	$	8,345	$	1,508	$	1,263	$	1,345
2. Interest Cost		11,276		13,036		15,705		648		832		1,130
3. Expected Return on Assets		(20,657)		(22,139)		(19,466)		(8,863)		(7,407)		(5,785)
4. Other Adjustments		—		—		—		—		—		—
Subtotal		(1,812)		(1,761)		4,584		(6,707)		(5,312)		(3,310)
5. Amortization of:
a. Net Transition Obligation/(Asset)		—		—		—		—		—		—
b. Net Prior Service Cost/(Credit)		(239)		(247)		(281)		213		51		(34)
c. Net Losses/(Gains)		5,490		6,578		8,412		(1,697)		(783)		—
Total Amortization		5,251		6,331		8,131		(1,484)		(732)		(34)
6. Net Periodic Benefit Cost		3,439		4,570		12,715		(8,191)		(6,044)		(3,344)
7. Cost of settlements		6,012		10,369		1,933		—		—		—
8. Total Expense for Year		$	9,451	$	14,939	$	14,648	$	(8,191)	$	(6,044)	$	(3,344)

Development of funded status


Development of funded status
Table	11.2
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
Actuarial Value of Benefit Obligations
1. Measurement Date		12/31/2021		12/31/2020		12/31/2021		12/31/2020
2. Accumulated Benefit Obligation		$	390,747	$	423,305	$	25,635	$	28,714

Funded Status/Asset (Liability) on the Consolidated Balance Sheet
1. Projected Benefit Obligation		$	(391,698)	$	(423,713)	$	(25,635)	$	(28,714)
2. Plan Assets at Fair Value		391,555		411,245		140,839		119,024
3. Funded Status - Overfunded/Asset		N/A		N/A		$	115,204	$	90,310
4. Funded Status - Underfunded/Liability		(143)		(12,468)		N/A		N/A


Accumulated other comprehensive (income) loss
Table	11.3
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. Net Actuarial (Gain)/Loss		$	84,045	$	98,899	$	(47,352)	$	(30,565)
2. Net Prior Service Cost/(Credit)		(747)		(988)		2,461		2,673
3. Net Transition Obligation/(Asset)		—		—		—		—
4. Total at Year End		$	83,298	$	97,911	$	(44,891)	$	(27,892)

Change in projected benefit obligation

Table 11.4 shows the changes in the projected benefit obligation for 2021 and 2020.


Change in projected benefit / accumulated benefit
Table	11.4
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. Benefit Obligation at Beginning of Year		$	423,713	$	413,350	$	28,714	$	27,496
2. Company Service Cost		7,569		7,342		1,508		1,263
3. Interest Cost		11,276		13,036		648		832
4. Plan Participants' Contributions		—		—		456		425
5. Net Actuarial (Gain)/Loss		(10,018)		36,196		(3,574)		660
6. Benefit Payments from Fund (1)		(40,482)		(40,260)		(1,963)		(1,975)
7. Benefit Payments Directly by Company		(362)		(5,953)		—		—
8. Plan Amendments		2		2		—		—
9. Other Adjustment		—		—		(154)		13
10. Settlement (Gain)/Loss		—		—		—		—
11. Benefit Obligation at End of Year		$	391,698	$	423,713	$	25,635	$	28,714

(1)Includes lump sum payments of $27.6 million and $27.5 million in 2021 and 2020, respectively, from our pension plan to eligible participants, which were former employees with vested benefits.

Changes in fair value of plan assets and other comprehensive income (loss)

Tables 11.5 and 11.6 shows the changes in the fair value of the net assets available for plan benefits, and changes in other comprehensive income (loss) during 2021 and 2020.


Change in plan assets
Table	11.5
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. Fair Value of Plan Assets at Beginning of Year		$	411,245	$	402,691	$	119,024	$	99,590
2. Company Contributions		7,162		12,453		—		—
3. Plan Participants' Contributions		—		—		456		425
4. Benefit Payments from Fund		(40,482)		(40,260)		(1,963)		(1,975)
5. Benefit Payments paid directly by Company		(362)		(5,953)		—		—
6. Actual Return on Assets		13,992		42,314		23,773		21,409
7. Other Adjustment		—		—		(451)		(425)
8. Fair Value of Plan Assets at End of Year		$	391,555	$	411,245	$	140,839	$	119,024

Change in accumulated other comprehensive income (loss) ("AOCI")
Table	11.6
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. AOCI in Prior Year		$	97,911	$	98,589	$	(27,892)	$	(15,281)
2. Increase/(Decrease) in AOCI
a. Recognized during year - Prior Service (Cost)/Credit		239		247		(213)		(51)
b. Recognized during year - Net Actuarial (Losses)/Gains		(11,502)		(16,948)		1,697		782
c. Occurring during year - Prior Service Cost		2		2		—		—
d. Occurring during year - Net Actuarial Losses/(Gains)		(3,352)		16,021		(18,483)		(13,342)


3. AOCI in Current Year		$	83,298	$	97,911	$	(44,891)	$	(27,892)

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.


Actuarial assumptions
Table	11.7
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
		12/31/2021		12/31/2020		12/31/2021		12/31/2020
Weighted-Average Assumptions Used to Determine
Benefit Obligations at year end
1. Discount Rate		3.05	%	2.75	%	2.85	%	2.35	%
2. Rate of Compensation Increase		3.00	%	3.00	%	N/A		N/A
3. Cash balance interest crediting rate		2.80	%	2.50	%	N/A		N/A

Weighted-Average Assumptions Used to Determine
Net Periodic Benefit Cost for Year
1. Discount Rate		2.80	%	3.30	%	2.35	%	3.20	%
2. Expected Long-term Return on Plan Assets		5.25	%	5.75	%	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		6.50	%	6.00	%
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		2028		2024

Year-end asset allocations of the plans

The year-end asset allocations of the plans are shown in table 11.8 below.


Plan assets
Table	11.8
		Pension Plan				Other Postretirement Benefits
		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. Equity Securities		21	%	21	%	100	%	100	%
2. Debt Securities		79	%	79	%	—	%	—	%
3. Total		100	%	100	%	100	%	100	%

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

Schedule of investment allocation strategies

The equity investments use combinations of mutual funds, ETFs, and pooled equity account structures focused on the following strategies:

Strategy

Objective

Investment types

Return seeking growth

Funded ratio improvement over the long term

●

Global quality growth

●

Global low volatility

Return seeking bridge

Downside protection in the event of a declining equity market

●

Enduring asset

●

Durable company

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

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 objectives 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	%

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

Tables 11.12 and 11.13 show the current and estimated future contributions and benefit payments.


Company contributions
Table	11.12
		Pension and Supplemental Executive Retirement Plans		Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2021
Company Contributions for the Year Ending:
1. Current		$	7,162	$	—
2. Current + 1		6,500		—


Benefits payments - total
Table	11.13
		Pension and Supplemental Executive Retirement Plans		Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2021
Actual Benefit Payments for the Year Ending:
1. Current		$	40,844	$	1,963
Expected Benefit Payments for the Year Ending:
2. Current + 1		28,806		1,713
3. Current + 2		29,023		1,888
4. Current + 3		28,247		2,000
5. Current + 4		28,320		2,148
6. Current + 5		28,815		2,108
7. Current + 6 - 10		131,716		9,854

Pension Plan

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

Schedule of fair value of plan assets

Tables 11.9a and 11.9b set forth by level, within the fair value hierarchy, the pension plan assets and related accrued investment income at fair value as of December 31, 2021 and 2020. There were no securities that used Level 3 inputs.


Pension plan assets at fair value as of December 31, 2021
Table	11.9a
(In thousands)		Level 1		Level 2		Total
Domestic Mutual Funds		$	4,071	$	—	$	4,071
Corporate Bonds		—		221,033		221,033
U.S. Government Securities		32,947		—		32,947
Municipal Bonds		—		20,093		20,093
Foreign Bonds		—		34,103		34,103
Pooled Equity Accounts		—		79,308		79,308
Total Assets at fair value		$	37,018	$	354,537	$	391,555


Pension plan assets at fair value as of December 31, 2020
Table	11.9b
(In thousands)		Level 1		Level 2		Total
Domestic Mutual Funds		$	4,842	$	—	$	4,842
Corporate Bonds		—		231,190		231,190
U.S. Government Securities		26,407		—		26,407
Municipal Bonds		—		32,891		32,891
Foreign Bonds		—		33,368		33,368
Pooled Equity Accounts		—		82,547		82,547
Total Assets at fair value		$	31,249	$	379,996	$	411,245

Other Postretirement Benefit Plan

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

Schedule of fair value of plan assets

Tables 11.10a and 11.10b set forth the other postretirement benefits plan assets at fair value as of December 31, 2021 and 2020. All are Level 1 assets.


Other postretirement benefits plan assets at fair value as of December 31, 2021
Table	11.10a
(In thousands)		Level 1
Domestic Mutual Funds		$	112,770
International Mutual Funds		28,069
Total Assets at fair value		$	140,839


Other postretirement benefits plan assets at fair value as of December 31, 2020
Table	11.10b
(In thousands)		Level 1
Domestic Mutual Funds		$	91,454
International Mutual Funds		27,570
Total Assets at fair value		$	119,024

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - SUPPLEMENTARY NOTES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Dividends paid to the parent company	$ 400,000,000	$ 390,000,000	$ 280,000,000
Insurance Subsidiaries
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Percentage of statutory policyholders surplus used to determine maximum allowable dividends	10.00%
Adjusted statutory net income measurement period	3 years
Adjusted statutory net income dividend payment measurement period	2 years
Proceeds from contribution from parent	$ 0	$ 0	$ 0
Convertible Junior Subordinated Debentures, at 9% per annum, Due 2063
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Stated interest rate (in hundredths)	9.00%

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes


NOTE 12						Income Taxes

Net deferred tax liabilities included on the Consolidated Balance Sheet at December 31, 2021 and 2020 as a component of Other liabilities are as follows:


Deferred tax assets and liabilities
Table	12.1
(In thousands)		2021		2020
Total deferred tax assets		$	32,331	$	38,443
Total deferred tax liabilities		(71,743)		(98,485)
Net deferred tax liability		$	(39,412)	$	(60,042)

Table 12.2 includes the components of the net deferred tax liability as of December 31, 2021 and 2020.


Deferred tax components
Table	12.2
(In thousands)		2021		2020
Unearned premium reserves		$	19,116	$	23,163
Benefit plans		(21,360)		(13,977)
Loss reserves		4,034		3,542
Unrealized appreciation in investments		(39,883)		(72,341)
Deferred Policy Acquisition Cost		(4,551)		(4,528)
Deferred compensation		6,118		6,776

Other, net		(2,886)		(2,677)
Net deferred tax liability		$	(39,412)	$	(60,042)

We believe that all gross deferred tax assets at December 31, 2020 and 2021 are fully realizable and no valuation allowance has been established.

Table 12.3 summarizes the components of the provision for income taxes:


Provision for (benefit from) income taxes
Table	12.3
(In thousands)		2021		2020		2019
Current Federal		$	161,055	$	85,574	$	162,911
Deferred Federal		4,392		28,244		11,860
Other		1,347		(648)		(557)
Provision for income taxes		$	166,794	$	113,170	$	174,214

Current federal income tax payments were $155.3 million, $79.6 million, and $158.3 million in 2021, 2020 and 2019, respectively. At December 31, 2021 we owned $426.3 million of tax and loss bonds.

Table 12.4 reconciles the federal statutory income tax rate to our effective tax provision rate.


Effective tax rate reconciliation
Table	12.4
		2021		2020		2019
Federal statutory income tax rate		21.0	%	21.0	%	21.0	%


Tax exempt municipal bond interest		(0.6)	%	(0.9)	%	(0.6)	%
Other, net		0.4	%	0.1	%	0.1	%
Effective tax rate		20.8	%	20.2	%	20.5	%

We have not recorded any uncertain tax positions during 2020 and 2021 and have no unrecognized tax benefits at December 31, 2020 and December 31, 2021. We recognize interest accrued and penalties related to unrecognized tax benefits in income taxes. The statute of limitations related to the consolidated federal income tax return is closed for all years prior to 2018.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Reinsurance - Summary of Reinsurance Agreements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Premiums Earned, Net [Abstract]
Premiums earned, direct	$ 1,167,592	$ 1,199,824	$ 1,155,240
Premiums earned, assumed	9,858	10,848	5,085
Premiums earned, ceded	(163,031)	(188,729)	(129,337)
Net Amount	1,014,419	1,021,943	1,030,988
Policyholder Benefits and Claims Incurred, Net [Abstract]
Losses incurred, direct	74,496	442,194	130,100
Losses incurred, assumed	(57)	555	(125)
Losses incurred, ceded	(9,862)	(77,975)	(11,400)
Net losses incurred	$ 64,577	$ 364,774	$ 118,575

Basis of Presentation

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation


NOTE 2						Basis of Presentation

BASIS OF PRESENTATION

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), as codified in the Accounting Standards Codification ("ASC"). Our consolidated financial statements include the accounts of MGIC Investment Corporation and its majority-owned subsidiaries. Intercompany transactions and balances have been eliminated. 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

The COVID-19 pandemic had a material impact on our 2020 financial results. While uncertain, the impact of the COVID-19 pandemic on the Company’s future financial results, business, liquidity and/or financial condition may also be material. The magnitude of the impact will be influenced by various factors, including the length and severity of the pandemic in the United States, efforts to reduce the transmission of COVID-19, the level of unemployment, and the impact of government initiatives and actions taken by Fannie Mae and Freddie Mac (the "GSEs") (including mortgage forbearance and modification programs) to mitigate the economic harm caused by COVID-19.

SUBSEQUENT EVENTS

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

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

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]

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


SCHEDULE I — Summary of investments - Other than investments in related parties - December 31, 2021
(In thousands) Type of Investment	Amortized Cost		Fair Value		Amount at which shown in the balance sheet
Fixed income:
Bonds:
United States government and government agencies and authorities	$	133,990	$	133,407	$	133,407
States, municipalities and political subdivisions	2,408,688		2,534,653		2,534,653

Foreign governments	13,749		13,650		13,650
Public utilities	251,110		250,835		250,835
Asset-backed securities	150,888		150,710		150,710
Collateralized loan obligations	360,436		360,939		360,939
Mortgage-backed	625,321		628,240		628,240
All other corporate bonds	2,453,476		2,515,147		2,515,147

Total fixed income	6,397,658		6,587,581		6,587,581

Equity securities:
Common stocks:
Industrial, miscellaneous and all other	15,838		16,068		16,068
Total equity securities	15,838		16,068		16,068

Total investments	$	6,413,496	$	6,603,649	$	6,603,649

Debt (Details)	1 Months Ended		12 Months Ended
Debt (Details)	Feb. 28, 2022 USD ($)	Aug. 31, 2020 USD ($)	Dec. 31, 2021 USD ($) Period $ / shares shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Loss on debt extinguishment			$ 36,914,000	$ 26,736,000	$ 0
Early repayment of debt			0	179,735,000	0
FHLBC advances			$ 155,000,000
FHLBC fixed interest rate			1.91%
Collateral pledged to principal balance of FHLB advance (as a percent)			102.00%
Interest paid			$ 71,700,000	54,300,000	$ 50,800,000
Senior Notes \| 5.75% Senior Notes due 2023
Debt Instrument [Line Items]
Stated interest rate (in hundredths)			5.75%
Extinguishment of debt				182,700,000
Loss on debt extinguishment				16,500,000
Debt instrument, face amount			$ 242,300,000
Early repayment of debt				197,800,000
Redemption price, percentage (in hundredths)			100.00%
Ownership percentage threshold for declaration of due and payable			25.00%
Senior Notes \| 5.75% Senior Notes due 2023 \| US Treasury (UST) Interest Rate
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
Senior Notes \| 5.25% Senior Notes due 2028
Debt Instrument [Line Items]
Stated interest rate (in hundredths)		5.25%	5.25%
Debt instrument, face amount		$ 650,000,000	$ 650,000,000
Proceeds from issuance of debt		640,300,000
Debt issuance costs		$ 2,000,000
Ownership percentage threshold for declaration of due and payable			25.00%
Senior Notes \| 5.25% Senior Notes due 2028 \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price, percentage (in hundredths)			102.625%
Senior Notes \| 5.25% Senior Notes due 2028 \| Debt Instrument, Redemption, Period One \| US Treasury (UST) Interest Rate
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
Senior Notes \| 5.25% Senior Notes due 2028 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price, percentage (in hundredths)			102.625%
Senior Notes \| 5.25% Senior Notes due 2028 \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price, percentage (in hundredths)			101.313%
Senior Notes \| 5.25% Senior Notes due 2028 \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price, percentage (in hundredths)			100.00%
Convertible Junior Subordinated Debentures, at 9% per annum, Due 2063
Debt Instrument [Line Items]
Stated interest rate (in hundredths)			9.00%
Extinguishment of debt			$ 98,600,000	48,100,000
Repayments of long-term debt			135,500,000	61,600,000
Loss on debt extinguishment			$ 36,900,000	$ 10,200,000
Reduction in potentially dilutive shares due to debt extinguishment \| shares			7,500,000	3,600,000
Reacquisition of convertible junior subordinated debentures-equity component				$ 2,700,000
Redemption price, percentage (in hundredths)			100.00%
Conversion rate (in shares per $1,000 note) \| shares			76.5496
Principal amount of notes used in determining conversion rate			$ 1,000
Conversion price (in dollars per share) \| $ / shares			$ 13.06
Period preceding election to convert			5 days
Closing sale price of our common stock for consideration of redemption (in dollars per share) \| $ / shares			$ 16.98
Minimum number of trading days			20 days
Maximum number of trading days			30 days
Minimum number of consecutive interest periods for which interest payments may be deferred \| Period			1
Maximum period for which interest payments may be deferred without giving rise to an event of default			10 years
Period in which reasonable commercial efforts must begin, maximum			1 day
Net proceeds cap (in hundredths)			2.00%
Maximum number of shares of common stock issuable under the Alternative Payment Mechanism (in shares) \| shares			10,000,000
Maximum percentage of aggregate principal amount of the debentures (in hundredths)			25.00%
Anniversary payment release of the start of the interest deferral to the Alternative Payment Mechanism in lieu of the final maturity of the debentures			10 years
Convertible Junior Subordinated Debentures, at 9% per annum, Due 2063 \| Subsequent Event
Debt Instrument [Line Items]
Extinguishment of debt	$ 42,000,000
Repayments of long-term debt	$ 57,300,000

Investments (Tables)

12 Months Ended

Dec. 31, 2021

Investments [Abstract]

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

Our fixed income securities consisted of the following as of December 31, 2021 and 2020:


Details of fixed income investment securities by category as of December 31, 2021
Table	5.1a
(In thousands)		Amortized Cost		Allowance for Expected Credit Loss		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	133,990	$	—	$	285	$	(868)	$	133,407
Obligations of U.S. states and political subdivisions		2,408,688		—		133,361		(7,396)		2,534,653
Corporate debt securities		2,704,586		—		75,172		(13,776)		2,765,982
ABS		150,888		—		830		(1,008)		150,710
RMBS		309,991		—		2,397		(3,278)		309,110
CMBS		315,330		—		5,736		(1,936)		319,130
CLOs		360,436		—		609		(106)		360,939
Foreign government debt		13,749		—		—		(99)		13,650

Total fixed income securities		$	6,397,658	$	—	$	218,390	$	(28,467)	$	6,587,581


Details of fixed income investment securities by category as of December 31, 2020
Table	5.1b
(In thousands)		Amortized Cost		Allowance for Expected Credit Loss		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	264,531	$	—	$	1,164	$	(2)	$	265,693
Obligations of U.S. states and political subdivisions		2,083,568		—		166,557		(256)		2,249,869
Corporate debt securities		2,690,860		—		155,156		(1,728)		2,844,288
ABS		203,807		(49)		2,946		(18)		206,686
RMBS		425,532		—		6,472		(838)		431,166
CMBS		312,572		—		16,055		(1,125)		327,502
CLOs		310,616		—		566		(692)		310,490
Foreign government debt		4,485		—		224		—		4,709
Commercial paper		21,193		—		—		—		21,193
Total fixed income securities		$	6,317,164	$	(49)	$	349,140	$	(4,659)	$	6,661,596

Amortized cost and fair values of debt securities by contractual maturity

Table 5.2 compares the amortized cost and fair values of fixed income securities, by contractual maturity, as of December 31, 2021. Actual 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 mortgage and asset-backed securities provide for periodic payments throughout their lives, they are listed in separate categories.


Fixed income securities maturity schedule
Table	5.2
		December 31, 2021
(In thousands)		Amortized Cost		Fair Value
Due in one year or less		$	338,988	$	341,604
Due after one year through five years		1,751,297		1,795,249
Due after five years through ten years		1,745,569		1,824,307
Due after ten years		1,425,159		1,486,532
		5,261,013		5,447,692

ABS		150,888		150,710
RMBS		309,991		309,110
CMBS		315,330		319,130
CLOs		360,436		360,939
Total as of December 31, 2021		$	6,397,658	$	6,587,581

Cost and fair value of investments in equity securities

The cost and fair value of investments in equity securities as of December 31, 2021 and December 31, 2020 are shown in tables 5.3a and 5.3b below.

Details of equity investment securities as of December 31, 2021

Table

5.3a

(In thousands)

Cost

Gross gains

Gross losses

Fair Value

Equity securities

15,838

264

(34)

16,068

Details of equity investment securities as of December 31, 2020

Table

5.3b

(In thousands)

Cost

Gross gains

Gross losses

Fair Value

Equity securities

17,522

695

(2)

18,215

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

Tables 5.4a and 5.4b below summarize, for all available-for-sale investments in an unrealized loss position as of December 31, 2021 and 2020, the aggregate fair value and gross unrealized losses by the length of time those securities have been continuously in an unrealized loss position. Gross unrealized losses on our available-for-sale investments amounted to $28.5 million and $4.7 million as of December 31, 2021 and 2020, respectively. The fair value amounts reported in tables 5.4a and 5.4b below are estimated using the process described in Note 6 - "Fair Value Measurements" to these consolidated financial statements.


Unrealized loss aging for securities by type and length of time as of December 31, 2021
Table	5.4a
		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	91,154	$	(790)	$	2,616	$	(78)	$	93,770	$	(868)
Obligations of U.S. states and political subdivisions		452,021		(7,189)		15,540		(207)		467,561		(7,396)
Corporate debt securities		865,085		(13,260)		10,997		(516)		876,082		(13,776)
ABS		100,064		(998)		1,552		(10)		101,616		(1,008)
RMBS		180,586		(2,548)		31,641		(730)		212,227		(3,278)
CMBS		89,889		(1,887)		1,511		(49)		91,400		(1,936)
CLOs		177,663		(71)		21,973		(35)		199,636		(106)
Foreign government debt		13,649		(99)		—		—		13,649		(99)
Total		$	1,970,111	$	(26,842)	$	85,830	$	(1,625)	$	2,055,941	$	(28,467)


Unrealized loss aging for securities by type and length of time as of December 31, 2020
Table	5.4b
		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	2,690	$	(2)	$	—	$	—	$	2,690	$	(2)
Obligations of U.S. states and political subdivisions		31,416		(256)		—		—		31,416		(256)
Corporate debt securities		44,968		(1,728)		—		—		44,968		(1,728)
ABS		14,929		(18)		—		—		14,929		(18)
RMBS		98,409		(773)		3,566		(65)		101,975		(838)
CMBS		13,212		(789)		2,799		(336)		16,011		(1,125)
CLOs		95,287		(261)		73,904		(431)		169,191		(692)

Total		$	300,911	$	(3,827)	$	80,269	$	(832)	$	381,180	$	(4,659)

Net investment income

The source of net investment income is shown in table 5.5 below.


Net investment income
Table	5.5
(In thousands)		2021		2020		2019
Fixed income securities		$	160,030	$	157,065	$	165,523
Equity securities		471		620		406
Cash equivalents		75		1,648		4,444
Other		22		275		974
Investment income		160,598		159,608		171,347
Investment expenses		(4,160)		(5,212)		(4,302)
Net investment income		$	156,438	$	154,396	$	167,045

Change in unrealized gains (losses) of investments

The change in unrealized gains (losses) of investments is shown in table 5.6 below.


Change in unrealized gains (losses)
Table	5.6
(In thousands)		2021		2020		2019
Fixed income securities		$	(154,555)	$	169,135	$	220,139

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	$ 6,587,581	$ 6,661,596
Equity securities, at fair value (cost, 2021 - $15,838; 2020 - $17,522)	16,068	18,215
Cash Equivalents	254,230	288,941
Real estate acquired	1,507	1,092
Total assets	6,859,386	6,969,844
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	254,230	275,668
Real estate acquired	0	0
Total assets	372,451	443,222
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0	13,273
Real estate acquired	0	0
Total assets	6,485,428	6,525,530
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents	0	0
Real estate acquired	1,507	1,092
Total assets	1,507	1,092
Total fixed income securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	6,587,581	6,661,596
Total fixed income securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	102,153	149,339
Total fixed income securities \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	6,485,428	6,512,257
Total fixed income securities \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
U.S. Treasury securities and obligations of U.S. government corporations and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	133,407	265,693
U.S. Treasury securities and obligations of U.S. government corporations and agencies \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	102,153	149,339
U.S. Treasury securities and obligations of U.S. government corporations and agencies \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	31,254	116,354
U.S. Treasury securities and obligations of U.S. government corporations and agencies \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
Obligations of U.S. states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	2,534,653	2,249,869
Obligations of U.S. states and political subdivisions \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
Obligations of U.S. states and political subdivisions \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	2,534,653	2,249,869
Obligations of U.S. states and political subdivisions \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	2,765,982	2,844,288
Corporate debt securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
Corporate debt securities \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	2,765,982	2,844,288
Corporate debt securities \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
ABS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	150,710	206,686
ABS \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
ABS \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	150,710	206,686
ABS \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
RMBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	309,110	431,166
RMBS \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
RMBS \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	309,110	431,166
RMBS \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
CMBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	319,130	327,502
CMBS \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
CMBS \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	319,130	327,502
CMBS \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
CLOs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	360,939	310,490
CLOs \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
CLOs \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	360,939	310,490
CLOs \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
Foreign government debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	13,650	4,709
Foreign government debt \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
Foreign government debt \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	13,650	4,709
Foreign government debt \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale		21,193
Commercial paper \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale		0
Commercial paper \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale		21,193
Commercial paper \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed income, available-for-sale		0
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities, at fair value (cost, 2021 - $15,838; 2020 - $17,522)	16,068	18,215
Equity securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities, at fair value (cost, 2021 - $15,838; 2020 - $17,522)	16,068	18,215
Equity securities \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities, at fair value (cost, 2021 - $15,838; 2020 - $17,522)	0	0
Equity securities \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities, at fair value (cost, 2021 - $15,838; 2020 - $17,522)	$ 0	$ 0

Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt


NOTE 7						Debt

DEBT OBLIGATIONS

Table 7.1 shows the carrying value of our long-term debt obligations as of December 31, 2021 and 2020.


Long-term debt obligations
Table	7.1
		December 31,
(In millions)		2021		2020
FHLB Advance - 1.91%, due February 2023		$	155.0	$	155.0
5.75% Notes, due August 2023 (par value: $242.3 million)		241.3		240.6
5.25% Notes, due August 2028 (par value: $650 million)		640.2		638.8
9% Debentures, due April 2063		110.2		208.8
Long-term debt, carrying value		$	1,146.7	$	1,243.2

The 5.75% Senior Notes (“5.75% Notes”), 5.25% Senior Notes ("5.25% Notes") and 9% Convertible Junior Subordinated Debentures (“9% Debentures”) are obligations of our holding company, MGIC Investment Corporation. The Federal Home Loan Bank Advance (“FHLB Advance”) is an obligation of MGIC.

2021 Transactions

In December 2021, we repurchased $98.6 million in aggregate principal amount of our 9% Debentures at a purchase price of $135.5 million, plus accrued interest. The repurchase of 9% Debentures resulted in a $36.9 million loss on debt extinguishment on our consolidated statement of operations and a reduction in our potentially dilutive shares by approximately 7.5 million shares.

2020 Transactions

In August 2020, we issued $650 million aggregate principal amount of 5.25% Notes, which are due in 2028 and received net proceeds, after the deduction of underwriting fees, of $640.3 million. In addition to underwriting fees, we incurred approximately $2.0 million of other expenses associated with the issuance of these notes.

We repurchased $182.7 million in aggregate principal amount of our 5.75% notes at a purchase price of $197.8 million, plus accrued interest, using proceeds from the 5.25% Notes issuance. The excess of the purchase price over the carrying value, plus the write-off of unamortized issuance costs on the par value, is reflected as a loss on debt extinguishment of $16.5 million on our consolidated statement of operations.

We repurchased $48.1 million in aggregate principal amount of our 9% Debentures at a purchase price of $61.6 million, plus accrued interest, using proceeds from the 5.25% Notes issuance. The repurchase of 9% Debentures resulted in a $10.2 million loss on debt extinguishment on our consolidated statement of operations; a reduction in our shareholders' equity of $2.7 million related to the reacquisition of the equity component of the 9% Debentures; and a reduction in our potentially dilutive shares by approximately 3.6 million shares.

FHLB Advance

MGIC borrowed $155.0 million in the form of a fixed rate advance from the Federal Home Loan Bank of Chicago ("Advance"). Interest on the Advance is payable monthly at an annual rate, fixed for the term of the Advance, of 1.91%. The principal of the Advance matures on February 10, 2023. MGIC may prepay the Advance at any time. Such prepayment would be below par if interest rates have risen after the Advance was originated, or above par if interest rates have declined. The Advance is secured by eligible collateral whose market value must be maintained at 102% of the principal balance of the Advance. MGIC provided eligible collateral from its investment portfolio.

5.75% Notes

Interest on the 5.75% Notes is payable semi-annually on February 15 and August 15 of each year. We have the option to redeem these notes, in whole or in part, at any time or from time to time prior to maturity at a redemption price equal to the greater of (i) 100% of the aggregate principal amount of the notes to be redeemed and (ii) the make-whole amount, which is the sum of the present values of the remaining scheduled payments of principal and interest discounted at the treasury rate defined in the notes plus 50 basis points and accrued interest.

The 5.75% Notes have covenants and events of default customary for securities of this nature, and further provide that the trustee or holders of at least 25% in aggregate principal amount of the outstanding 5.75% Notes may declare them immediately due and payable upon the occurrence of certain events of default after the expiration of the applicable grace period. In addition, in the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization relating to the Company or any of its significant subsidiaries, the 5.75% Notes will become due and payable immediately. This description is not intended to be complete in all respects and is qualified in its entirety by the terms of the 5.75% Notes, including their covenants and events of default. We were in compliance with all covenants as of December 31, 2021.

5.25% Notes

Interest on the 5.25% Notes is payable semi-annually on February 15 and August 15. Prior to August 15, 2023, we may redeem the 5.25% Notes at an amount equal to the sum of (a) the greater of: (i) the sum of the principal amount and the make-whole amount; and (ii) 102.625% of principal; and (b) accrued and unpaid interest. The make-whole amount is the excess of: (1) the present value of the remaining principal, premium and interest payments that would be payable with respect to the note if such note were redeemed on August 15, 2023 (at 102.625% of principal), computed using a discount rate equal to the treasury rate specified in the notes, plus 50 basis points, over (2) the outstanding principal amount of such note.

On and after August 15, 2023, we may redeem the notes at 102.625% of principal; on or after August 15, 2024, we may redeem the notes at 101.313% of principal; and on or after August 15, 2025, we may redeem the notes at 100% of principal; in each case, plus accrued and unpaid interest.

The 5.25% Notes have covenants and events of default customary for securities of this nature, and further provide that the trustee or holders of at least 25% in aggregate principal amount of the outstanding 5.25% Notes may declare them immediately due and payable upon the occurrence of certain events of default after the expiration of the applicable grace period. In addition, in the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization relating to the Company or any of its significant subsidiaries, the 5.25% Notes will become due and payable immediately. This description is not intended to be complete in all respects and is qualified in its entirety by the terms of the 5.25% Notes, including their covenants and events of default. We were in compliance with all covenants as of December 31, 2021.

9% Debentures

The 9% Debentures are currently convertible, at the holder's option, at a conversion rate, which is subject to adjustment, of 76.5496 common shares per $1,000 principal amount of the 9% Debentures at any time prior to the maturity date. This represents a conversion price of approximately $13.06 per share. If a holder elects to convert their 9% Debentures, deferred interest, if any, owed on the 9% 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.

The 9% Debentures include a feature that allows us, at our option, to make a cash payment to converting holders in lieu of issuing shares of common stock upon conversion of the 9% Debentures. We may redeem the 9% 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 9% Debentures being redeemed, plus any accrued and unpaid interest, if the closing sale price of our common stock exceeds $16.98 (adjusted pro rata for changes in the conversion price) for at least 20 of the 30 trading days preceding notice of the redemption.

Interest on the 9% 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 10 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 9% 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 9% 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.

This description is not intended to be complete in all respects and is qualified in its entirety by the terms of the 9% Debentures, including their covenants and events of default. We were in compliance with all covenants at December 31, 2021. The 9% Debentures rank junior to all of our existing and future senior indebtedness.

In February 2022, we repurchased $42.0 million aggregate principal amount of our 9% Debentures at purchase prices of $57.3 million, plus accrued interest.

INTEREST PAYMENTS

Interest payments were $71.7 million during 2021, $54.3 million during 2020 and $50.8 million during 2019.

- 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

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+ Details

Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other Comprehensive Income (Loss)


NOTE 10						Other Comprehensive Income (Loss)

The pretax components of our other comprehensive income (loss) and related income tax (expense) benefit for the years ended December 31, 2021, 2020 and 2019 are included in table 10.1 below.


Components of other comprehensive income (loss)
Table	10.1
(In thousands)		2021		2020		2019
Net unrealized investment (losses) gains on securities without an allowance for credit losses		$	(154,555)	$	169,135	$	220,139
Income tax benefit (expense)		32,456		(35,519)		(46,229)
Net of taxes		(122,099)		133,616		173,910

Net changes in benefit plan assets and obligations		31,613		13,288		29,129
Income tax benefit (expense)		(6,638)		(2,791)		(6,117)
Net of taxes		24,975		10,497		23,012





Total other comprehensive income (loss)		(122,942)		182,423		249,268
Total income tax benefit (expense)		25,818		(38,310)		(52,346)
Total other comprehensive income (loss), net of tax		$	(97,124)	$	144,113	$	196,922

The pretax and related income tax benefit (expense) components of the amounts reclassified from our accumulated other comprehensive income (loss) ( "AOCI", "AOCL") to our consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019 are included in table 10.2 below.


Reclassifications from Accumulated Other Comprehensive Income (Loss)
Table	10.2
(In thousands)		2021		2020		2019
Reclassification adjustment for net realized (losses) gains included in net income (1)		$	10,455	$	13,862	$	3,637
Income tax benefit (expense)		(2,195)		(2,912)		(763)
Net of taxes		8,260		10,950		2,874

Reclassification adjustment related to benefit plan assets and obligations (2)		(9,779)		(15,968)		(8,097)
Income tax benefit (expense)		2,053		3,353		1,701
Net of taxes		(7,726)		(12,615)		(6,396)





Total reclassifications		676		(2,106)		(4,460)
Income tax benefit (expense)		(142)		441		938
Total reclassifications, net of tax		$	534	$	(1,665)	$	(3,522)

(1)(Decreases) increases Net realized investment gains on the consolidated statements of operations.

(2)Decreases (increases) Other underwriting and operating expenses, net on the consolidated statements of operations.

A roll-forward of AOCI (AOCL) for the years ended December 31, 2021, 2020, and 2019, including amounts reclassified from AOCI (AOCL), is included in table 10.3 below.


Roll-forward of Accumulated Other Comprehensive Income (Loss)
Table	10.3
(In thousands)		Net unrealized gains and losses on available-for-sale securities		Net benefit plan assets and obligations recognized in shareholders' equity		Total AOCL
Balance, December 31, 2018, net of tax		$	(35,389)	$	(88,825)	$	(124,214)
Other comprehensive income (loss) before reclassifications		176,784		16,616		193,400
Less: Amounts reclassified from AOCL		2,874		(6,396)		(3,522)
Balance, December 31, 2019, net of tax		138,521		(65,813)		72,708
Other comprehensive income (loss) before reclassifications		144,566		(2,118)		142,448
Less: Amounts reclassified from AOCL		10,950		(12,615)		(1,665)
Balance, December 31, 2020, net of tax		272,137		(55,316)		216,821
Other comprehensive income (loss) before reclassifications		(113,839)		17,249		(96,590)
Less: Amounts reclassified from AOCL		8,260		(7,726)		534
Balance, December 31, 2021, net of tax		$	150,038	$	(30,341)	$	119,697

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of presentation

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

Fair value measurements

Valuation process

On a quarterly basis, we perform quality controls over values received from the pricing sources which also include reviewing tolerance reports, data changes, and directional moves compared

to market moves. We have not made any adjustments to the prices obtained from the independent pricing sources.

Valuation hierarchy

The three levels are defined as follows:


è	Level 1	Quoted prices for identical instruments in active markets that we can access. Financial assets using Level 1 inputs primarily include U.S. Treasury securities, money market funds, treasury bills, and certain equity securities.
è	Level 2	Quoted prices for similar instruments in active markets that we can access; 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 instrument. The observable inputs are used in valuation models to calculate the fair value of the instruments. Financial assets using Level 2 inputs primarily include obligations of U.S. government corporations and agencies, corporate bonds, mortgage-backed securities, asset-backed securities, most municipal bonds, and commercial paper. The independent pricing sources used for our Level 2 investments vary by type of investment. See Note 6 - "Fair Value Measurements" for further information.
è	Level 3	Valuations derived from valuation techniques in which one or more significant inputs or value drivers are unobservable or, from par values due to restrictions on certain securities that require them to be redeemed or sold only to the security issuer at par value. The inputs used to derive the fair value of Level 3 securities reflect our own assumptions about the assumptions a market participant would use in pricing an asset or liability. 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.

Investments

Unrealized losses and allowance for credit losses

Each quarter we determine whether securities in an unrealized loss position are impaired by considering several factors including, but not limited to:


è			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 of its amortized cost basis;
è			the present value of the discounted cash flows we expect to collect compared to the amortized cost basis of the security;
è			failure of the issuer to make scheduled interest or principal payments;
è			a change in rating to below investment grade; and
è			adverse conditions specifically related to the security, an industry, or a geographic area.

original yield, expected to be collected from the security is less than the cost basis of the security.For 2019, our evaluation of whether a decline in fair values was other-than-temporary also included reviewing the extent and duration of the decline. Based on our evaluation, if the fair value of a security was below its amortized cost at the time of our intent to sell, the security was classified as other-than-temporarily impaired and the full amount of the impairment was recognized as a loss in the statement of operations. Otherwise, when a security was considered to be other-than-temporarily impaired, the loss was separated into the portion of the loss that represented the credit loss and the portion that was due to other factors. The credit loss portion was recognized as a loss in the statement of operations, while the loss due to other factors was recognized in accumulated other comprehensive loss, net of taxes. A credit loss was 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 was less than the cost basis of the security. If the security was determined to be other-than-temporary-impaired the security was classified as other-than-temporarily impaired and the full amount of the impairment was recognized as a loss in the statement of operations.

Home office and equipment

Deferred Insurance Policy Acquisition Costs

Loss Reserves

Loss reserves include case reserves, incurred but not reported ("IBNR") reserves, and loss adjustment expense ("LAE") reserves.

LAE reserves are established for the estimated costs of settling claims, including legal and other expenses, and general expenses of administering the claims settlement process.

Loss reserves are ceded to reinsurers under our reinsurance agreements.

Premium Deficiency Reserve

Revenue Recognition

cancelled because a claim is paid, premium collected since the date of delinquency is returned.

Income Taxes

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, utilizing a cash balance formula. Under the cash balance formula, participants’ accounts are credited each year with an employer contribution and interest. The employer contribution is a percentage of eligible earnings based on the participant’s age on January 1, 2019. 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.

Reinsurance

Assumed reinsurance is based on information received from the ceding company.

Share-Based Compensation

Earnings per Share

Investments

12 Months Ended

Dec. 31, 2021

Investments [Abstract]

Investments


NOTE 5						Investments

FIXED INCOME SECURITIES

Our fixed income securities consisted of the following as of December 31, 2021 and 2020:


Details of fixed income investment securities by category as of December 31, 2021
Table	5.1a
(In thousands)		Amortized Cost		Allowance for Expected Credit Loss		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	133,990	$	—	$	285	$	(868)	$	133,407
Obligations of U.S. states and political subdivisions		2,408,688		—		133,361		(7,396)		2,534,653
Corporate debt securities		2,704,586		—		75,172		(13,776)		2,765,982
ABS		150,888		—		830		(1,008)		150,710
RMBS		309,991		—		2,397		(3,278)		309,110
CMBS		315,330		—		5,736		(1,936)		319,130
CLOs		360,436		—		609		(106)		360,939
Foreign government debt		13,749		—		—		(99)		13,650

Total fixed income securities		$	6,397,658	$	—	$	218,390	$	(28,467)	$	6,587,581


Details of fixed income investment securities by category as of December 31, 2020
Table	5.1b
(In thousands)		Amortized Cost		Allowance for Expected Credit Loss		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	264,531	$	—	$	1,164	$	(2)	$	265,693
Obligations of U.S. states and political subdivisions		2,083,568		—		166,557		(256)		2,249,869
Corporate debt securities		2,690,860		—		155,156		(1,728)		2,844,288
ABS		203,807		(49)		2,946		(18)		206,686
RMBS		425,532		—		6,472		(838)		431,166
CMBS		312,572		—		16,055		(1,125)		327,502
CLOs		310,616		—		566		(692)		310,490
Foreign government debt		4,485		—		224		—		4,709
Commercial paper		21,193		—		—		—		21,193
Total fixed income securities		$	6,317,164	$	(49)	$	349,140	$	(4,659)	$	6,661,596

The decrease in gross unrealized gains and the increase in gross unrealized losses in our fixed income securities from December 31, 2020 to December 31, 2021 were principally related to an increase in market yields which may include increased risk-free interest rates or wider credit spreads since the time of initial purchase.

We had $13.4 million and $14.1 million of investments at fair value on deposit with various states as of December 31, 2021 and 2020, respectively, due to regulatory requirements of those states' insurance departments. In connection with our insurance and reinsurance activities within insurance subsidiaries of MGIC, we are required to maintain assets in trusts for the benefit of contractual counterparties. The fair value of the investments and restricted cash and cash equivalents on deposit in these trusts was $189.8 million and $165.9 million at December 31, 2021 and 2020, respectively.


Fixed income securities maturity schedule
Table	5.2
		December 31, 2021
(In thousands)		Amortized Cost		Fair Value
Due in one year or less		$	338,988	$	341,604
Due after one year through five years		1,751,297		1,795,249
Due after five years through ten years		1,745,569		1,824,307
Due after ten years		1,425,159		1,486,532
		5,261,013		5,447,692

ABS		150,888		150,710
RMBS		309,991		309,110
CMBS		315,330		319,130
CLOs		360,436		360,939
Total as of December 31, 2021		$	6,397,658	$	6,587,581

Proceeds from sales of fixed income securities classified as available-for-sale were $471.8 million, $803.4 million, and $228.1 million during the years ended December 31, 2021, 2020, and 2019, respectively. Gross gains of $9.0 million, $21.3 million, and $7.1 million and gross losses of $1.9 million, $8.8 million, and $3.5 million were realized on those sales during the years ended December 31, 2021, 2020, and 2019, respectively.

We recorded no realized losses for the year ended December 31, 2021 related to our intent to sell certain securities. We recorded $0.3 million of realized losses for the year ended December 31, 2020 related to our intent to sell certain securities. We also recorded a credit allowance of $49 thousand for the year ended December 31, 2020.

EQUITY SECURITIES

The cost and fair value of investments in equity securities as of December 31, 2021 and December 31, 2020 are shown in tables 5.3a and 5.3b below.

Details of equity investment securities as of December 31, 2021

Table

5.3a

(In thousands)

Cost

Gross gains

Gross losses

Fair Value

Equity securities

15,838

264

(34)

16,068

Details of equity investment securities as of December 31, 2020

Table

5.3b

(In thousands)

Cost

Gross gains

Gross losses

Fair Value

Equity securities

17,522

695

(2)

18,215

Proceeds from the sale of equity securities were $2.6 million, $25.7 million, and $1.7 million during the years ended December 31, 2021 2020, and 2019, respectively. Gross gains of $6.0 thousand, $1.8 million, and $1.6 million were realized on those sales during the year ended December 31, 2021, 2020, and 2019, respectively. Gross losses of $2.3 thousand, $0.4 million, and zero were realized on those sales during the year ended December 31, 2021, 2020, and 2019, respectively. For the year ended December 31, 2021, 2020, and 2019 we recognized $0.5 million in net losses, $0.6 million and $0.2 million of net gains on equity securities still held as of December 31, 2021, 2020, and 2019, respectively, which are reported in Net realized investment gains (losses) on our consolidated statements of operations.

OTHER INVESTED ASSETS

Other invested assets represents our investment in Federal Home Loan Bank ("FHLB") stock that is carried at cost, which due to its nature approximates fair value. Ownership of FHLB stock provides access to a secured lending facility, and our current FHLB Advance amount is secured by eligible collateral whose fair value is maintained at a minimum of 102% of the outstanding principal balance of the FHLB Advance. As of December 31, 2021, that collateral consisted of fixed income securities included in our total investment portfolio, and cash and cash equivalents, with a total fair value of $167.2 million.

UNREALIZED INVESTMENT LOSSES


Unrealized loss aging for securities by type and length of time as of December 31, 2021
Table	5.4a
		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	91,154	$	(790)	$	2,616	$	(78)	$	93,770	$	(868)
Obligations of U.S. states and political subdivisions		452,021		(7,189)		15,540		(207)		467,561		(7,396)
Corporate debt securities		865,085		(13,260)		10,997		(516)		876,082		(13,776)
ABS		100,064		(998)		1,552		(10)		101,616		(1,008)
RMBS		180,586		(2,548)		31,641		(730)		212,227		(3,278)
CMBS		89,889		(1,887)		1,511		(49)		91,400		(1,936)
CLOs		177,663		(71)		21,973		(35)		199,636		(106)
Foreign government debt		13,649		(99)		—		—		13,649		(99)
Total		$	1,970,111	$	(26,842)	$	85,830	$	(1,625)	$	2,055,941	$	(28,467)


Unrealized loss aging for securities by type and length of time as of December 31, 2020
Table	5.4b
		Less Than 12 Months				12 Months or Greater				Total
(In thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	2,690	$	(2)	$	—	$	—	$	2,690	$	(2)
Obligations of U.S. states and political subdivisions		31,416		(256)		—		—		31,416		(256)
Corporate debt securities		44,968		(1,728)		—		—		44,968		(1,728)
ABS		14,929		(18)		—		—		14,929		(18)
RMBS		98,409		(773)		3,566		(65)		101,975		(838)
CMBS		13,212		(789)		2,799		(336)		16,011		(1,125)
CLOs		95,287		(261)		73,904		(431)		169,191		(692)

Total		$	300,911	$	(3,827)	$	80,269	$	(832)	$	381,180	$	(4,659)

Based on current facts and circumstances, we believe the unrealized losses as of December 31, 2021 presented in table 5.4a above are not indicative of the ultimate collectability of the current amortized cost of the securities and that the securities are not impaired. The gross unrealized losses in all categories of our investments were caused by changes in market yields, between the time of purchase and the respective fair value measurement date. We also rely upon estimates of several credit and non-credit factors in our review and evaluation of individual investments to determine whether a credit impairment exists.

The unrealized losses in all categories of our investments as of December 31, 2020 were primarily attributable to widening credit spreads over risk free rates, as a result of economic and market uncertainties arising from the COVID-19 pandemic, which included demand shocks in multiple sectors that originated in 2020.

There were 610 and 109 securities in an unrealized loss position as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the fair value as a percent of amortized cost of the securities in an unrealized loss position was 99% and approximately 15% of the securities in an unrealized loss position were backed by the U.S. Government. As of December 31, 2020, the fair value as a percent of amortized cost of the securities in an unrealized loss position was 99% and approximately 27% of the securities in an unrealized loss position were backed by the U.S. Government. All of the securities in an unrealized loss position are current with respect to their interest obligations.

The source of net investment income is shown in table 5.5 below.


Net investment income
Table	5.5
(In thousands)		2021		2020		2019
Fixed income securities		$	160,030	$	157,065	$	165,523
Equity securities		471		620		406
Cash equivalents		75		1,648		4,444
Other		22		275		974
Investment income		160,598		159,608		171,347
Investment expenses		(4,160)		(5,212)		(4,302)
Net investment income		$	156,438	$	154,396	$	167,045

The change in unrealized gains (losses) of investments is shown in table 5.6 below.


Change in unrealized gains (losses)
Table	5.6
(In thousands)		2021		2020		2019
Fixed income securities		$	(154,555)	$	169,135	$	220,139

Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements


NOTE 6						Fair Value Measurements

Recurring fair value measurements

The following describes the valuation methodologies generally used by the independent pricing sources, or by us, to measure financial instruments at fair value, including the general classification of such financial instruments pursuant to the valuation hierarchy.

•Fixed income securities:

U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies: Securities with valuations derived from quoted prices for identical instruments in active markets that we can access are categorized in Level 1 of the fair value hierarchy. Securities valued by surveying the dealer community, obtaining relevant trade data, benchmark quotes and spreads and incorporating this information in the valuation process are categorized as Level 2 of the fair value hierarchy.

Corporate Debt Bonds are valued by surveying the dealer community, obtaining relevant trade data, benchmark quotes and spreads and incorporating this information into the valuation process. These securities are generally categorized in Level 2 of the fair value hierarchy.

Obligations of U.S. States & Political Subdivisions are valued by tracking, capturing, and analyzing quotes for active issues and trades reported via the Municipal Securities Rulemaking Board records. Daily briefings and reviews of current economic conditions, trading levels, spread relationships, and the slope of the yield curve provide further data for evaluation. These securities are generally categorized in Level 2 of the fair value hierarchy.

Residential Mortgage-Backed Securities ("RMBS") are valued by monitoring interest rate movements, and other pertinent data daily. Incoming market data is enriched to derive spread, yield and/or price data as appropriate, enabling known data points to be extrapolated for valuation application across a range of related securities. These securities are generally categorized in Level 2 of the fair value hierarchy.

Commercial Mortgage-Backed Securities ("CMBS") are valued using techniques that reflect market participants’ assumptions and maximize the use of relevant observable inputs including quoted prices for similar assets, benchmark yield curves and market corroborated inputs. Evaluation uses regular reviews of the inputs for securities covered, including executed trades, broker quotes, credit information, collateral attributes and/or cash flow waterfall as applicable. These securities are generally categorized in Level 2 of the fair value hierarchy.

Asset-Backed Securities ("ABS") are valued using spreads and other information solicited from market buy-and-sell-side sources, including primary and secondary dealers, portfolio managers, and research analysts. Cash flows are generated for each tranche, benchmark yields are determined, and deal collateral performance and tranche level attributes including trade activity, bids, and offers are applied, resulting in tranche specific prices. These securities are generally categorized in Level 2 of the fair value hierarchy.

Collateralized loan obligations ("CLOs") are valued by evaluating manager rating, seniority in the capital structure, assumptions about prepayment, default and recovery and their impact on cash flow generation. Loan level net asset values are determined and aggregated for tranches and as a final step prices are checked against available recent trade activity. These securities are generally categorized in Level 2 of the fair value hierarchy.

Foreign government debt is valued by surveying the dealer community, obtaining relevant trade data, benchmark quotes and spreads and incorporating this information into the valuation process. These securities are generally categorized in Level 2 of the fair value hierarchy.

Commercial Paper, which has an original maturity greater than 90 days, is valued using market data for comparable instruments of similar maturity and average yields. These securities are categorized in Level 2 of the fair value hierarchy.

•Equity securities: Consist of actively traded, exchange-listed equity securities, including exchange traded funds (“ETFs”) and Bond Mutual Funds, with valuations derived from quoted prices for identical assets in active markets that we can access. These securities are valued in Level 1 of the fair value hierarchy.

•Cash Equivalents: Consists of money market funds and treasury bills with valuations derived from quoted prices for identical assets in active markets that we can access. These securities are valued in level 1 of the fair value hierarchy. Instruments in this category valued using market data for comparable instruments are classified as level 2 in the fair value hierarchy.

•Real estate acquired is valued at 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. These securities are categorized in level 3 of the fair value hierarchy.

Assets measured at fair value included those listed, by hierarchy level, in the following tables as of December 31, 2021 and 2020. The fair value of the assets is estimated using the process described above, and more fully in Note 3 - "Signific ant Accounting Policies" to the consolidated financial statements in this Form 10-K.


Assets carried at fair value by hierarchy level as of December 31, 2021
Table	6.1a
(In thousands)		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	133,407	$	102,153	$	31,254	$	—
Obligations of U.S. states and political subdivisions		2,534,653		—		2,534,653		—
Corporate debt securities		2,765,982		—		2,765,982		—
ABS		150,710		—		150,710		—
RMBS		309,110		—		309,110		—
CMBS		319,130		—		319,130		—
CLOs		360,939		—		360,939		—
Foreign government debt		13,650		—		13,650		—

Total fixed income securities		6,587,581		102,153		6,485,428		—
Equity securities		16,068		16,068		—		—
Cash Equivalents		254,230		254,230		—		—
Real estate acquired (1)		1,507		—		—		1,507
Total		$	6,859,386	$	372,451	$	6,485,428	$	1,507


Assets carried at fair value by hierarchy level as of December 31, 2020
Table	6.1b
(In thousands)		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	265,693	$	149,339	$	116,354	$	—
Obligations of U.S. states and political subdivisions		2,249,869		—		2,249,869		—
Corporate debt securities		2,844,288		—		2,844,288		—
ABS		206,686		—		206,686		—
RMBS		431,166		—		431,166		—
CMBS		327,502		—		327,502		—
CLOs		310,490		—		310,490		—
Foreign government debt		4,709		—		4,709		—
Commercial paper		21,193		—		21,193		—
Total fixed income securities		6,661,596		149,339		6,512,257		—
Equity securities		18,215		18,215		—		—
Cash Equivalents		288,941		275,668		13,273		—
Real estate acquired (1)		1,092		—		—		1,092
Total		$	6,969,844	$	443,222	$	6,525,530	$	1,092

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

Certain financial instruments, including insurance contracts, are excluded from fair value disclosure requirements. The carrying values of cash and cash equivalents (Level 1) and accrued investment income (Level 2) approximated their fair values. Additional fair value disclosures related to our investment portfolio are included in Note 5 - "Investments ."

RECONCILIATIONS OF LEVEL 3 ASSETS

For assets measured at fair value using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances for the years ended December 31, 2021 and 2020 is shown in table 6.2 below. There were no losses included in earnings for the years ended December 31, 2021 and 2020 attributable to the change in unrealized losses on assets still held at the end of each applicable year.


Fair value roll-forward for financial instruments classified as Level 3 for the year ended December 31,
Table	6.2
		Real Estate Acquired
(In thousands)			2021		2020
Beginning balance			$	1,092	$	7,252
Purchases			4,836		8,609
Sales			(4,806)		(15,429)
Included in earnings and reported as losses incurred, net			385		660
Ending balance			$	1,507	$	1,092

FINANCIAL LIABILITIES NOT CARRIED AT FAIR VALUE

Other invested assets represents our investment in FHLB stock that is carried at cost, which due to restrictions that require it to be redeemed or sold only to the security issuer at par value, approximates fair value. The fair value of other invested assets is categorized as Level 2.

Financial liabilities include our outstanding debt obligations. The fair values of our 5.75% and 5.25% Notes and 9% Debentures were based on observable market prices. The fair value of the FHLB Advance was estimated using cash flows discounted at current incremental borrowing rates for similar borrowing arrangements. In all cases they are categorized as Level 2. See Note 7 - "Debt" for a description of the financial liabilities in table 6.3.

Table 6.3 compares the carrying value and fair value of our financial assets and liabilities disclosed, but not carried, at fair value as of December 31, 2021 and 2020.


Financial liabilities not carried at fair value
Table	6.3
		December 31, 2021				December 31, 2020
(In thousands)		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Other invested assets		$	3,100	$	3,100	$	3,100	$	3,100
Financial liabilities
FHLB Advance		$	155,000	$	157,585	$	155,000	$	160,865
5.75% Notes		241,255		256,213		240,597		261,752
5.25% Notes		640,253		686,875		638,782		696,449
9% Debentures		110,204		151,000		208,814		273,569
Total financial liabilities		$	1,146,712	$	1,251,673	$	1,243,193	$	1,392,635

The 5.75% Notes, 5.25% Notes, and 9% Debentures are obligations of our holding company, MGIC Investment Corporation.

- 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

Benefit Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	$ 391,555	$ 411,245
Pension Plan \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	37,018	31,249
Pension Plan \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	354,537	379,996
Pension Plan \| Domestic Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	4,071	4,842
Pension Plan \| Domestic Mutual Funds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	4,071	4,842
Pension Plan \| Domestic Mutual Funds \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0	0
Pension Plan \| Corporate Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	221,033	231,190
Pension Plan \| Corporate Bonds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0	0
Pension Plan \| Corporate Bonds \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	221,033	231,190
Pension Plan \| U.S. Government Securities
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	32,947	26,407
Pension Plan \| U.S. Government Securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	32,947	26,407
Pension Plan \| U.S. Government Securities \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0	0
Pension Plan \| Municipal Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	20,093	32,891
Pension Plan \| Municipal Bonds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0	0
Pension Plan \| Municipal Bonds \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	20,093	32,891
Pension Plan \| Foreign Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	34,103	33,368
Pension Plan \| Foreign Bonds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0	0
Pension Plan \| Foreign Bonds \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	34,103	33,368
Pension Plan \| Pooled Equity Accounts
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	79,308	82,547
Pension Plan \| Pooled Equity Accounts \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0	0
Pension Plan \| Pooled Equity Accounts \| Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	79,308	82,547
Other Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	140,839	119,024	$ 99,590
Other Postretirement Benefit Plan \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	140,839	119,024
Other Postretirement Benefit Plan \| Domestic Mutual Funds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	112,770	91,454
Other Postretirement Benefit Plan \| International Mutual Funds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	$ 28,069	$ 27,570

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Investment portfolio:
Fixed income, available-for-sale, at fair value (amortized cost, 2021 - $6,397,658; 2020 - $6,317,164)	$ 6,587,581	$ 6,661,596
Equity securities, at fair value (cost, 2021 - $15,838; 2020 - $17,522)	16,068	18,215
Other invested assets, at cost	3,100	3,100
Total investment portfolio	6,606,749	6,682,911
Cash and cash equivalents	284,690	287,953
Restricted cash and cash equivalents	20,268	8,727
Accrued investment income	51,902	49,997
Reinsurance recoverable on loss reserves	66,905	95,042
Reinsurance recoverable on paid losses	36,275	669
Premiums receivable	56,540	56,044
Home office and equipment, net	45,614	47,144
Deferred insurance policy acquisition costs	21,671	21,561
Other assets	134,394	104,478
Total assets	398,429	412,917
Liabilities:
Loss reserves	883,522	880,537
Unearned premiums	241,690	287,099
Federal Home Loan Bank Advance	155,000	155,000
Senior notes	881,508	879,379
Convertible junior subordinated debentures	110,204	208,814
Other liabilities	191,702	244,711
Total liabilities	2,463,626	2,655,540
Contingencies
Shareholders' equity:
Common stock (one dollar par value, shares authorized 1,000,000; shares issued 2021 - 371,353; 2020 - 371,353; shares outstanding 2021 - 320,336; 2020 - 338,573)	371,353	371,353
Paid-in capital	1,794,906	1,862,042
Treasury stock at cost (shares 2021 - 51,017; 2020 - 32,779)	(675,265)	(393,326)
Accumulated other comprehensive income, net of tax	119,697	216,821
Retained earnings	3,250,691	2,642,096
Total shareholders' equity	4,861,382	4,698,986
Total liabilities and shareholders' equity	$ 7,325,008	$ 7,354,526

Benefit Plans - Additional Disclosures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Other Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Company Contributions	$ 0	$ 0
Current plus 1	0
Actual Benefit Payments for the Year Ending: Current	1,963
Expected Benefit Payments for the Year Ending: Current plus 1	1,713
Expected Benefit Payments for the Year Ending: Current plus 2	1,888
Expected Benefit Payments for the Year Ending: Current plus 3	2,000
Expected Benefit Payments for the Year Ending: Current plus 4	2,148
Expected Benefit Payments for the Year Ending: Current plus 5	2,108
Expected Benefit Payments for the Year Ending: Current plus 6 - 10	$ 9,854
Other Postretirement Benefit Plan \| Equity securities \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	70.00%
Other Postretirement Benefit Plan \| Equity securities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	100.00%
Other Postretirement Benefit Plan \| Real Estate \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	0.00%
Other Postretirement Benefit Plan \| Real Estate \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	15.00%
Other Postretirement Benefit Plan \| Commodities \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	0.00%
Other Postretirement Benefit Plan \| Commodities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	10.00%
Other Postretirement Benefit Plan \| Fixed Income/Cash \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	0.00%
Other Postretirement Benefit Plan \| Fixed Income/Cash \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Target asset allocations (in hundredths)	10.00%
Pension and Supplemental Executive Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Company Contributions	$ 7,162	$ 12,453
Current plus 1	6,500
Actual Benefit Payments for the Year Ending: Current	40,844
Expected Benefit Payments for the Year Ending: Current plus 1	28,806
Expected Benefit Payments for the Year Ending: Current plus 2	29,023
Expected Benefit Payments for the Year Ending: Current plus 3	28,247
Expected Benefit Payments for the Year Ending: Current plus 4	28,320
Expected Benefit Payments for the Year Ending: Current plus 5	28,815
Expected Benefit Payments for the Year Ending: Current plus 6 - 10	$ 131,716

Debt - Summary of Obligations (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 1,146.7	$ 1,243.2
Federal Home Loan Bank Advances (FHLB)
Debt Instrument [Line Items]
Long-term debt, carrying value	155.0	155.0
Senior Notes \| 5.75% Senior Notes due 2023
Debt Instrument [Line Items]
Long-term debt, carrying value	241.3	240.6
Senior Notes \| 5.25% Senior Notes due 2028
Debt Instrument [Line Items]
Long-term debt, carrying value	640.2	638.8
Convertible Junior Subordinated Debentures, at 9% per annum, Due 2063
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 110.2	$ 208.8

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Loss Reserves - Narrative (Details) $ in Thousands	12 Months Ended
Loss Reserves - Narrative (Details) $ in Thousands	Dec. 31, 2021 USD ($) Payment loan	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($) loan
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Minimum number of payments past due to be in default \| Payment	2
Change in loss reserves (+/-)	$ 2,985	$ 325,203	$ (118,685)
Prior years	(60,015)	19,604	$ (71,006)
Premium refund liability, expected claim payments	$ 37,000	$ 30,000
Other items removed from inventory \| loan	695	0	639
Prior years	$ 68,769	$ 109,923	$ 235,551
Pool insurance notice inventory (in number of loans) \| loan	498	680	653
Settlements for commutations of coverage, pools of nonperforming loans
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Prior years	$ 13,800		$ 30,000
$1,000 Increase/Decrease In Average Severity Reserve Factor
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Change in loss reserves (+/-)	16,000
One Percentage Point Increase/Decrease In Average Claim Rate Reserve Factor
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Change in loss reserves (+/-)	19,000
Probable Loss On Litigation Claims Paying Practices
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Prior years	$ 6,300

Reinsurance - Narrative (Details) - USD ($) $ in Thousands						3 Months Ended	12 Months Ended
Reinsurance - Narrative (Details) - USD ($) $ in Thousands	Aug. 03, 2021	Feb. 02, 2021	Oct. 29, 2020	May 25, 2019	Oct. 30, 2018	Dec. 31, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Effects of Reinsurance [Line Items]
Reinsurance recoverable on paid losses						$ 36,275			$ 36,275	$ 669
Reinsurance recoverable on loss reserves						66,905			66,905	95,042	$ 21,641	$ 33,328
Debt issued to cover insurance, term	12 years 6 months	12 years 6 months	10 years	10 years	10 years
Remaining Excess of Loss Reinsurance Coverage	$ 398,429	$ 398,848	$ 412,917	$ 315,739	$ 318,636	$ 218,343			218,343	218,343	260,957
Ceded premiums earned									$ 163,031	188,729	129,337
Percent of total trust assets invested in cash or direct U.S. federal government obligations									99.50%
Quota Share Reinsurance Agreements
Effects of Reinsurance [Line Items]
Ceding commission, percentage									20.00%
Annual loss ratio cap						300.00%			300.00%
Lifetime loss ratio cap						200.00%			200.00%
Threshold for private mortgage insurer eligibility requirements for termination election									90.00%
Contingent termination fee									$ 0
Reinsurance recoverable on loss reserves						$ 66,900			$ 66,900	95,000
Credit Union QSR
Effects of Reinsurance [Line Items]
Quota Share %									65.00%
Annual loss ratio									50.00%
Threshold for private mortgage insurer eligibility requirements for termination election									80.00%
Excess of Loss Reinsurance Agreements, Home Re Entities
Effects of Reinsurance [Line Items]
Ceded premiums earned									$ 44,500	$ 20,800	$ 17,600
Excess of Loss Reinsurance Agreements, Home Re Entities \| Minimum
Effects of Reinsurance [Line Items]
Amortization period excess of loss reinsurance coverage									10 years
Excess of Loss Reinsurance Agreements, Home Re Entities \| Maximum
Effects of Reinsurance [Line Items]
Amortization period excess of loss reinsurance coverage									12 years 6 months
Quota Share Reinsurance Agreement, 2023 \| Forecast
Effects of Reinsurance [Line Items]
Quota Share %							15.00%	15.00%
Annual loss ratio								62.00%
Quota Share Reinsurance Agreements, 2017 & 2018
Effects of Reinsurance [Line Items]
Contingent termination fee						5,000
Reinsurance recoverable on paid losses						$ 36,000			$ 36,000

Reinsurance - Home Re Entities Total Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Effects of Reinsurance [Line Items]
Total Home Re Assets	$ 398,429	$ 412,917	$ 283,150

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Fixed income, amortized cost	$ 6,397,658	$ 6,317,164
Equity securities, cost	$ 15,838	$ 17,522
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	371,353,000	371,353,000
Common stock, shares outstanding (in shares)	320,336,000	338,573,000
Treasury stock, shares at cost (in shares)	51,017,000	32,779,000

Benefit Plans - Change in Accumulated Other Comprehensive Income (AOCI) and Expected Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Pension and Supplemental Executive Retirement Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI in Prior Year	$ 97,911	$ 98,589
Recognized during year - Prior Service (Cost)/Credit	239	247
Recognized during year - Net Actuarial (Losses)/Gains	(11,502)	(16,948)
Occurring during year - Prior Service Cost	2	2
Occurring during year - Net Actuarial Losses/(Gains)	(3,352)	16,021
AOCI in Current Year	83,298	97,911
Other Postretirement Benefit Plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI in Prior Year	(27,892)	(15,281)
Recognized during year - Prior Service (Cost)/Credit	(213)	(51)
Recognized during year - Net Actuarial (Losses)/Gains	1,697	782
Occurring during year - Prior Service Cost	0	0
Occurring during year - Net Actuarial Losses/(Gains)	(18,483)	(13,342)
AOCI in Current Year	$ (44,891)	$ (27,892)

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Premiums written:
Direct	$ 1,123,117	$ 1,106,632	$ 1,124,196
Assumed	8,924	10,837	6,446
Ceded	(163,031)	(188,727)	(129,334)
Net premiums written	969,010	928,742	1,001,308
Decrease (increase) in unearned premiums	45,409	93,201	29,680
Net Amount	1,014,419	1,021,943	1,030,988
Investment income, net of expenses	156,438	154,396	167,045
Net realized investment gains (losses)	6,582	13,752	5,306
Other revenue	8,236	9,055	10,638
Total revenues	1,185,675	1,199,146	1,213,977
Losses and expenses:
Losses incurred, net	64,577	364,774	118,575
Amortization of deferred policy acquisition costs	12,602	12,380	12,001
Other underwriting and operating expenses, net	198,445	176,398	182,768
Loss on debt extinguishment	36,914	26,736	0
Interest expense	71,360	59,595	52,656
Total losses and expenses	383,898	639,883	366,000
Income before tax	801,777	559,263	847,977
Provision for income taxes	166,794	113,170	174,214
Net income	$ 634,983	$ 446,093	$ 673,763
Earnings per share:
Basic (in dollars per share)	$ 1.90	$ 1.31	$ 1.91
Diluted (in dollars per share)	$ 1.85	$ 1.29	$ 1.85
Weighted average common shares outstanding - basic (in shares)	334,330	339,953	352,827
Weighted average common shares outstanding - diluted (in shares)	351,308	359,293	373,924

Benefit Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Benefit Plans


NOTE 11						Benefit Plans

We have a non-contributory defined benefit pension plan covering substantially all employees, as well as a supplemental executive retirement plan. We also offer both medical and dental benefits for retired domestic employees, their eligible spouses and dependents under a postretirement benefit plan. The following tables 11.1, 11.2, and 11.3 provide the components of aggregate annual net periodic benefit cost for each of the years ended December 31, 2021, 2020, and 2019 and 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 as of December 31, 2021 and 2020.


Components of net periodic benefit cost
Table	11.1
		Pension and Supplemental Executive Retirement Plans						Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2019		12/31/2021		12/31/2020		12/31/2019
1. Company Service Cost		$	7,569	$	7,342	$	8,345	$	1,508	$	1,263	$	1,345
2. Interest Cost		11,276		13,036		15,705		648		832		1,130
3. Expected Return on Assets		(20,657)		(22,139)		(19,466)		(8,863)		(7,407)		(5,785)
4. Other Adjustments		—		—		—		—		—		—
Subtotal		(1,812)		(1,761)		4,584		(6,707)		(5,312)		(3,310)
5. Amortization of:
a. Net Transition Obligation/(Asset)		—		—		—		—		—		—
b. Net Prior Service Cost/(Credit)		(239)		(247)		(281)		213		51		(34)
c. Net Losses/(Gains)		5,490		6,578		8,412		(1,697)		(783)		—
Total Amortization		5,251		6,331		8,131		(1,484)		(732)		(34)
6. Net Periodic Benefit Cost		3,439		4,570		12,715		(8,191)		(6,044)		(3,344)
7. Cost of settlements		6,012		10,369		1,933		—		—		—
8. Total Expense for Year		$	9,451	$	14,939	$	14,648	$	(8,191)	$	(6,044)	$	(3,344)


Development of funded status
Table	11.2
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
Actuarial Value of Benefit Obligations
1. Measurement Date		12/31/2021		12/31/2020		12/31/2021		12/31/2020
2. Accumulated Benefit Obligation		$	390,747	$	423,305	$	25,635	$	28,714

Funded Status/Asset (Liability) on the Consolidated Balance Sheet
1. Projected Benefit Obligation		$	(391,698)	$	(423,713)	$	(25,635)	$	(28,714)
2. Plan Assets at Fair Value		391,555		411,245		140,839		119,024
3. Funded Status - Overfunded/Asset		N/A		N/A		$	115,204	$	90,310
4. Funded Status - Underfunded/Liability		(143)		(12,468)		N/A		N/A


Accumulated other comprehensive (income) loss
Table	11.3
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. Net Actuarial (Gain)/Loss		$	84,045	$	98,899	$	(47,352)	$	(30,565)
2. Net Prior Service Cost/(Credit)		(747)		(988)		2,461		2,673
3. Net Transition Obligation/(Asset)		—		—		—		—
4. Total at Year End		$	83,298	$	97,911	$	(44,891)	$	(27,892)

The amortization of gains and losses resulting from differences in actual experience 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.

Table 11.4 shows the changes in the projected benefit obligation for 2021 and 2020.


Change in projected benefit / accumulated benefit
Table	11.4
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. Benefit Obligation at Beginning of Year		$	423,713	$	413,350	$	28,714	$	27,496
2. Company Service Cost		7,569		7,342		1,508		1,263
3. Interest Cost		11,276		13,036		648		832
4. Plan Participants' Contributions		—		—		456		425
5. Net Actuarial (Gain)/Loss		(10,018)		36,196		(3,574)		660
6. Benefit Payments from Fund (1)		(40,482)		(40,260)		(1,963)		(1,975)
7. Benefit Payments Directly by Company		(362)		(5,953)		—		—
8. Plan Amendments		2		2		—		—
9. Other Adjustment		—		—		(154)		13
10. Settlement (Gain)/Loss		—		—		—		—
11. Benefit Obligation at End of Year		$	391,698	$	423,713	$	25,635	$	28,714

(1)Includes lump sum payments of $27.6 million and $27.5 million in 2021 and 2020, respectively, from our pension plan to eligible participants, which were former employees with vested benefits.

The actuarial gain for 2021 for the pension and supplemental executive retirement plans was primarily due to an increase in the discount rate used to calculate the obligation. The actuarial loss for 2020 for the pension and supplemental executive retirement plans was primarily due to a decrease in the discount rate used to calculate the obligation. The actuarial gain for 2021 for other postretirement plans was primarily due to an increase in the discount rate used to calculate the obligation. The actuarial loss for 2020 for the postretirement benefits plan was primarily due to the decrease in the discount rate used to calculate the obligation. Table 11.7 below includes the actuarial assumptions used to calculate the benefit obligations of our plans for 2021 and 2020.

Tables 11.5 and 11.6 shows the changes in the fair value of the net assets available for plan benefits, and changes in other comprehensive income (loss) during 2021 and 2020.


Change in plan assets
Table	11.5
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. Fair Value of Plan Assets at Beginning of Year		$	411,245	$	402,691	$	119,024	$	99,590
2. Company Contributions		7,162		12,453		—		—
3. Plan Participants' Contributions		—		—		456		425
4. Benefit Payments from Fund		(40,482)		(40,260)		(1,963)		(1,975)
5. Benefit Payments paid directly by Company		(362)		(5,953)		—		—
6. Actual Return on Assets		13,992		42,314		23,773		21,409
7. Other Adjustment		—		—		(451)		(425)
8. Fair Value of Plan Assets at End of Year		$	391,555	$	411,245	$	140,839	$	119,024

Change in accumulated other comprehensive income (loss) ("AOCI")
Table	11.6
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. AOCI in Prior Year		$	97,911	$	98,589	$	(27,892)	$	(15,281)
2. Increase/(Decrease) in AOCI
a. Recognized during year - Prior Service (Cost)/Credit		239		247		(213)		(51)
b. Recognized during year - Net Actuarial (Losses)/Gains		(11,502)		(16,948)		1,697		782
c. Occurring during year - Prior Service Cost		2		2		—		—
d. Occurring during year - Net Actuarial Losses/(Gains)		(3,352)		16,021		(18,483)		(13,342)


3. AOCI in Current Year		$	83,298	$	97,911	$	(44,891)	$	(27,892)

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


Actuarial assumptions
Table	11.7
		Pension and Supplemental Executive Retirement Plans				Other Postretirement Benefits
		12/31/2021		12/31/2020		12/31/2021		12/31/2020
Weighted-Average Assumptions Used to Determine
Benefit Obligations at year end
1. Discount Rate		3.05	%	2.75	%	2.85	%	2.35	%
2. Rate of Compensation Increase		3.00	%	3.00	%	N/A		N/A
3. Cash balance interest crediting rate		2.80	%	2.50	%	N/A		N/A

Weighted-Average Assumptions Used to Determine
Net Periodic Benefit Cost for Year
1. Discount Rate		2.80	%	3.30	%	2.35	%	3.20	%
2. Expected Long-term Return on Plan Assets		5.25	%	5.75	%	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		6.50	%	6.00	%
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		2028		2024

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 shown in table 11.8 below.


Plan assets
Table	11.8
		Pension Plan				Other Postretirement Benefits
		12/31/2021		12/31/2020		12/31/2021		12/31/2020
1. Equity Securities		21	%	21	%	100	%	100	%
2. Debt Securities		79	%	79	%	—	%	—	%
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:


è	Level 1	Quoted prices for identical instruments in active markets that we can access. Financial assets using Level 1 inputs include equity securities, mutual funds, money market funds, certain U.S. Treasury securities and exchange traded funds ("ETFs").
è	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 instrument. The observable inputs are used in valuation models to calculate the fair value of the instruments. Financial assets using 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 used. 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 used 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.


Pension plan assets at fair value as of December 31, 2021
Table	11.9a
(In thousands)		Level 1		Level 2		Total
Domestic Mutual Funds		$	4,071	$	—	$	4,071
Corporate Bonds		—		221,033		221,033
U.S. Government Securities		32,947		—		32,947
Municipal Bonds		—		20,093		20,093
Foreign Bonds		—		34,103		34,103
Pooled Equity Accounts		—		79,308		79,308
Total Assets at fair value		$	37,018	$	354,537	$	391,555


Pension plan assets at fair value as of December 31, 2020
Table	11.9b
(In thousands)		Level 1		Level 2		Total
Domestic Mutual Funds		$	4,842	$	—	$	4,842
Corporate Bonds		—		231,190		231,190
U.S. Government Securities		26,407		—		26,407
Municipal Bonds		—		32,891		32,891
Foreign Bonds		—		33,368		33,368
Pooled Equity Accounts		—		82,547		82,547
Total Assets at fair value		$	31,249	$	379,996	$	411,245

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

The equity investments use combinations of mutual funds, ETFs, and pooled equity account structures focused on the following strategies:

Strategy

Objective

Investment types

Return seeking growth

Funded ratio improvement over the long term

●

Global quality growth

●

Global low volatility

Return seeking bridge

Downside protection in the event of a declining equity market

●

Enduring asset

●

Durable company

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 agency, corporate, mortgage-backed, asset-backed, and 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.

Tables 11.10a and 11.10b set forth the other postretirement benefits plan assets at fair value as of December 31, 2021 and 2020. All are Level 1 assets.


Other postretirement benefits plan assets at fair value as of December 31, 2021
Table	11.10a
(In thousands)		Level 1
Domestic Mutual Funds		$	112,770
International Mutual Funds		28,069
Total Assets at fair value		$	140,839


Other postretirement benefits plan assets at fair value as of December 31, 2020
Table	11.10b
(In thousands)		Level 1
Domestic Mutual Funds		$	91,454
International Mutual Funds		27,570
Total Assets at fair value		$	119,024

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

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

è Achieve competitive investment results


	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 mutual funds is limited to a maximum of 30% of the equity range. The allocation as of December 31, 2021 included 2% that was primarily invested in equity securities of emerging market countries and another 18% was invested in securities of companies primarily based in Europe and the Pacific Basin.

Tables 11.12 and 11.13 show the current and estimated future contributions and benefit payments.


Company contributions
Table	11.12
		Pension and Supplemental Executive Retirement Plans		Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2021
Company Contributions for the Year Ending:
1. Current		$	7,162	$	—
2. Current + 1		6,500		—


Benefits payments - total
Table	11.13
		Pension and Supplemental Executive Retirement Plans		Other Postretirement Benefits
(In thousands)		12/31/2021		12/31/2021
Actual Benefit Payments for the Year Ending:
1. Current		$	40,844	$	1,963
Expected Benefit Payments for the Year Ending:
2. Current + 1		28,806		1,713
3. Current + 2		29,023		1,888
4. Current + 3		28,247		2,000
5. Current + 4		28,320		2,148
6. Current + 5		28,815		2,108
7. Current + 6 - 10		131,716		9,854

PROFIT SHARING AND 401(K)

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 to the plan of up to 5% of each participant's eligible compensation. We provide a matching 401(k) savings contribution for employees of 100% up to the first 4% contributed. We recognized expenses related to these plans of $8.0 million in 2021 and 2020 respectively, and $7.4 million in 2019.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Nature of Business (Details) $ in Billions	Dec. 31, 2021 USD ($)
Nature of Business [Abstract]
Direct domestic primary insurance in force	$ 274.4
Direct domestic primary risk in force	$ 69.3

Shareholders' Equity

6 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Shareholders' Equity


NOTE 13						Shareholders' Equity

CHANGE IN ACCOUNTING POLICY

As of January 1, 2021, we adopted the updated guidance for "Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The application of this guidance resulted in a $68.3 million cumulative effect adjustment to our 2021 beginning retained earnings and paid in capital to reflect the 9% Debenture as if we had always accounted for the debt as a liability in its entirety.

SHARE REPURCHASE PROGRAMS

Repurchases may be made from time to time on the open market (including through 10b5-1 plans) or through privately negotiated transactions. In the last half of 2021 we repurchased approximately 19.0 million shares of our common stock at a weighted average cost per share of $15.30, which included commissions. We may repurchase up to an additional $500 million of our common stock through the end of 2023 under a share repurchase program approved by our Board of Directors in October 2021. In 2022, through February 18, we repurchased approximately 4.9 million shares of our common stock at a weighted average cost per share of $15.50, which included commissions.

Prior to the COVID-19 pandemic, In the first quarter of 2020, we repurchased approximately 9.6 million shares of our common stock at a weighted average cost per share of $12.47, which included commissions.

During 2019, we repurchased approximately 8.7 million shares of our common stock at a weighted average cost per share of $13.13, which included commissions.

CASH DIVIDENDS

In the first and second quarters of 2021, we paid quarterly cash dividends of $0.06 per share to shareholders which totaled $41.1 million. In the third and fourth quarters of 2021, we paid quarterly cash dividends of $0.08 per share which totaled $53.6 million. On January 25, 2022, the Board of Directors declared a quarterly cash dividend to holders of the company's common stock of $0.08 per share payable on March 2, 2022, to shareholders of record at the close of business on February 16, 2022.

- 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

Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of debt

Table 7.1 shows the carrying value of our long-term debt obligations as of December 31, 2021 and 2020.


Long-term debt obligations
Table	7.1
		December 31,
(In millions)		2021		2020
FHLB Advance - 1.91%, due February 2023		$	155.0	$	155.0
5.75% Notes, due August 2023 (par value: $242.3 million)		241.3		240.6
5.25% Notes, due August 2028 (par value: $650 million)		640.2		638.8
9% Debentures, due April 2063		110.2		208.8
Long-term debt, carrying value		$	1,146.7	$	1,243.2

Statutory Information (Tables)

12 Months Ended

Dec. 31, 2021

Statutory Capital [Abstract]

Summary of amounts disclosed under statutory accounting practices

The statutory net income, policyholders’ surplus, and contingency reserve liability of our insurance subsidiaries, which agrees to amounts utilized in our risk-to-capital calculations, are shown in table 14.1.


Statutory financial information of insurance subsidiaries
Table	14.1
		As of and for the Years Ended December 31,
(In thousands)		2021		2020		2019
Statutory net income		$	295,811	$	65,201	$	305,857
Statutory policyholders' surplus		1,220,714		1,339,509		1,619,069
Contingency reserve		4,126,604		3,585,864		3,021,055

For the years ended December 31, 2021, 2020, and 2019 there were no surplus contributions made to MGIC or distributions from other insurance subsidiaries to us. Dividends paid by MGIC are shown in table 14.2 below.


Surplus contributions and dividends of insurance subsidiaries
Table	14.2
		Years Ended December 31,
(In thousands)		2021		2020	2019

Dividends paid by MGIC to the parent company (1)		$	400,000	390,000	280,000

(1) Dividends paid in cash and/or investment securities. Also in 2021 MGIC distributed to the holding company, as a dividend, its investment in MGIC Credit Assurance Corporation at an amount of $8.9 million. In 2020, MGIC distributed to the holding company, as a dividend, its ownership in the 9% Debentures held at an amortized cost of $139.5 million.

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

Benefit Plans - Change in Plan Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Pension and Supplemental Executive Retirement Plans
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair Value of Plan Assets at Beginning of Year	$ 411,245	$ 402,691
Company Contributions	7,162	12,453
Plan Participants' Contributions	0	0
Benefit Payments from the Fund	(40,482)	(40,260)
Benefit Payments paid directly by Company	(362)	(5,953)
Actual Return on Assets	13,992	42,314
Other Adjustments	0	0
Fair Value of Plan Assets at End of Year	391,555	411,245
Other Postretirement Benefit Plan
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair Value of Plan Assets at Beginning of Year	119,024	99,590
Company Contributions	0	0
Plan Participants' Contributions	456	425
Benefit Payments from the Fund	(1,963)	(1,975)
Benefit Payments paid directly by Company	0	0
Actual Return on Assets	23,773	21,409
Other Adjustments	(451)	(425)
Fair Value of Plan Assets at End of Year	$ 140,839	$ 119,024

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net deferred tax assets and liabilities [Abstract]
Total deferred tax assets	$ 32,331	$ 38,443
Total deferred tax liabilities	(71,743)	(98,485)
Net deferred tax liability	(39,412)	(60,042)
Components of net deferred tax asset [Abstract]
Unearned premium reserves	19,116	23,163
Benefit plans	(21,360)	(13,977)
Loss reserves	4,034	3,542
Unrealized appreciation in investments	(39,883)	(72,341)
Deferred Policy Acquisition Cost	(4,551)	(4,528)
Deferred compensation	6,118	6,776
Other, net	(2,886)	(2,677)
Components of provisions for (benefit from) income taxes [Abstract]
Current Federal	161,055	85,574	$ 162,911
Deferred Federal	4,392	28,244	11,860
Other	1,347	(648)	(557)
Provision for income taxes	$ 166,794	$ 113,170	$ 174,214
Reconciliation of effective income tax rate [Abstract]
Federal statutory income tax rate (in hundredths)	21.00%	21.00%	21.00%
Tax exempt municipal bond interest (in hundredths)	(0.60%)	(0.90%)	(0.60%)
Other, net (in hundredths)	0.40%	0.10%	0.10%
Effective income tax provision rate (in hundredths)	20.80%	20.20%	20.50%
Income taxes paid	$ 155,300	$ 79,600	$ 158,300
Amount of tax and loss bonds held	426,300
Unrecognized tax benefits	$ 0	$ 0

Significant Accounting Policies - Home Office and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Significant Accounting Policies [Line Items]
Accumulated depreciation of home office and equipment	$ 55.4	$ 51.2	$ 43.0
Depreciation expense of home office and equipment	$ 5.6	$ 6.3	$ 6.5
Minimum
Significant Accounting Policies [Line Items]
Estimated useful life	3 years
Maximum
Significant Accounting Policies [Line Items]
Estimated useful life	45 years

Benefit Plans - Actuarial Assumptions and Year-End Asset Allocations (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Pension and Supplemental Executive Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Discount Rate Used to Determine Benefit Obligation(in hundredths)	3.05%	2.75%
Rate of Compensation Increase Used to Determine Benefit Obligation (in hundredths)	3.00%	3.00%
Cash Balance Interest Crediting Rate Used to Determine Benefit Obligation (in hundredths)	2.80%	2.50%
Discount Rate Used to Determine Net Periodic Benefit Cost (in hundredths)	2.80%	3.30%
Expected Long-term Return on Plan Assets Used to Determine Net Periodic Benefit Cost (in hundredths)	5.25%	5.75%
Rate of Compensation Increase Used to Determine Net Periodic Benefit Cost (in hundredths)	3.00%	3.00%
Other Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Discount Rate Used to Determine Benefit Obligation(in hundredths)	2.85%	2.35%
Discount Rate Used to Determine Net Periodic Benefit Cost (in hundredths)	2.35%	3.20%
Expected Long-term Return on Plan Assets Used to Determine Net Periodic Benefit Cost (in hundredths)	7.50%	7.50%
Health Care Cost Trend Rate Assumed for Next Year (in hundredths)	6.50%	6.00%
Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate) (in hundredths)	5.00%	5.00%
Weighted-average asset allocations of plans (in hundredths)	100.00%	100.00%
Other Postretirement Benefit Plan \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations of plans (in hundredths)	100.00%	100.00%
Other Postretirement Benefit Plan \| Total fixed income securities
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations of plans (in hundredths)	0.00%	0.00%
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations of plans (in hundredths)	100.00%	100.00%
Pension Plan \| Equity securities
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations of plans (in hundredths)	21.00%	21.00%
Pension Plan \| Total fixed income securities
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations of plans (in hundredths)	79.00%	79.00%

Investments, Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Available-for-Sale Securities \| Fixed income
Gain (Loss) on Securities [Line Items]
Change in unrealized gains (losses)	$ (154,555)	$ 169,135	$ 220,139

Statutory Information

12 Months Ended

Dec. 31, 2021

Statutory Capital [Abstract]

Insurance Disclosure


NOTE 14						Statutory Information

STATUTORY ACCOUNTING PRINCIPLES

The statutory financial statements of our insurance companies are presented on the basis of accounting principles prescribed, or practices permitted, by the Office of the Commissioner of Insurance of the State of Wisconsin (the "OCI"), which has adopted the National Association of Insurance Commissioners ("NAIC") Statements of Statutory Accounting Principles ("SSAP") as the basis of its statutory accounting principles. In converting from statutory to GAAP, typical adjustments include deferral of policy acquisition costs, the inclusion of net unrealized holding gains or losses in shareholders' equity relating to fixed income securities, and the inclusion of statutory non-admitted assets.

In addition to the typical adjustments from statutory to GAAP, mortgage insurance companies are required to maintain contingency loss reserves equal to 50% of premiums earned under SSAP and principles prescribed by the OCI. 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 premiums earned in a calendar year. For the year ended 2021, MGIC did not withdraw amounts from its contingency reserve. 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.

As a mortgage guaranty insurer, we are eligible for a tax deduction, subject to certain limitations, under Section 832(e) of the IRC for amounts required by state law or regulation to be set aside in statutory contingency reserves. The deduction is allowed only to the extent that we purchase tax and loss bonds (“T&L Bonds”) in an amount equal to the tax benefit derived from deducting any portion of our statutory contingency reserves. Under statutory accounting practices, purchases of T&L Bonds are accounted for as investments. Under GAAP, purchases of T&L Bonds are accounted for as a payment of current taxes.


Statutory financial information of insurance subsidiaries
Table	14.1
		As of and for the Years Ended December 31,
(In thousands)		2021		2020		2019
Statutory net income		$	295,811	$	65,201	$	305,857
Statutory policyholders' surplus		1,220,714		1,339,509		1,619,069
Contingency reserve		4,126,604		3,585,864		3,021,055


Surplus contributions and dividends of insurance subsidiaries
Table	14.2
		Years Ended December 31,
(In thousands)		2021		2020	2019

Dividends paid by MGIC to the parent company (1)		$	400,000	390,000	280,000

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 RIF (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"). MGIC's “policyholder position” includes its net worth or surplus, and its contingency loss reserve.

At December 31, 2021, MGIC’s risk-to-capital ratio was 9.5 to 1, below the maximum allowed by the jurisdictions with State Capital Requirements and its policyholder position was $3.4 billion above the required MPP of $1.9 billion. The calculation of our risk-to-capital ratio and MPP reflect credit for the risk ceded under our reinsurance transactions. 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 not allowed an agreed level of credit under either the State Capital Requirements or the financial requirements of the PMIERs, MGIC may terminate the reinsurance agreements, 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, 2021, the risk-to-capital ratio of our combined insurance operations (which includes a reinsurance affiliate) was 9.5 to 1.

The NAIC has previously announced plans to revise the State Capital Requirements that are provided for in its Mortgage Guaranty Insurance Model Act. In December 2019, a working group of state regulators released an exposure draft of a revised Mortgage Guaranty Insurance Model Act and a risk-based capital framework to establish capital requirements for mortgage insurers, although no date has been established by which the NAIC must propose revisions to the capital requirements and

certain items have not yet been completely addressed by the framework, including the treatment of ceded risk and minimum capital floors.

DIVIDEND RESTRICTIONS

MGIC is subject to statutory regulations as to payment of dividends. The maximum amount of dividends that MGIC may pay in any twelve-month period without regulatory approval by 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. The maximum dividend that could be paid is reduced by dividends paid in the twelve months preceding the dividend payment date. Before making any dividend payments in 2022, we will notify the OCI to ensure it does not object.

The OCI recognizes only statutory accounting principles prescribed, or practices permitted, by the State of Wisconsin for determining and reporting the financial condition and results of operations of an insurance company. The OCI has adopted certain prescribed accounting practices that differ from those found in other states. Specifically, Wisconsin domiciled companies record changes in the contingency loss reserves through the income statement as a change in underwriting deduction. As a result, in periods in which MGIC is increasing contingency loss reserves, statutory net income is reduced. For the year ended December 31, 2021, MGIC’s increase in contingency loss reserves was $534 million and statutory net income was $290 million. As of December 31, 2021, MGIC's statutory policyholders' surplus was $1,217 million.

Loss Reserves - Prior Year Loss Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior years	$ (60,015)	$ 19,604	$ (71,006)
(Decrease) in estimated claim rate on primary delinquencies
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior years	(82,904)	(2,536)	(111,848)
Increase (decrease)in estimated claim severity on primary delinquencies
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior years	310	13,535	(434)
Change in estimates related to pool reserves, LAE reserves, reinsurance and other
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior years	$ 22,579	$ 8,605	$ 41,276

Share-based Compensation Plans

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based Compensation Plans


NOTE 15						Share-based Compensation Plans

We have an omnibus incentive plan that was adopted on April 23, 2020. When the 2020 plan was adopted, no further awards could be made under our previous 2015 plan. The purpose of the 2020 plan is to motivate and incentivize 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. 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. The 2020 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 April 23, 2030 under the 2020 plan. The vesting provisions of options, restricted stock and restricted stock units are determined at the time of grant. At December 31, 2021, 8.8 million shares were available for future grant under the 2020 plan.

The compensation cost that has been charged against income for share-based plans was $17.1 million, $13.8 million, and $18.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. The related income tax benefit recognized for share-based plans was $1.8 million, $1.7 million, and $2.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. Table 15.1 summarizes restricted stock or restricted stock unit (collectively called “restricted stock”) activity during 2021.


Restricted stock
Table	15.1
		Weighted Average Grant Date Fair Market Value		Shares
Restricted stock outstanding at December 31, 2020		$	13.57	4,139,243
Granted (1)		12.83		1,370,542
Vested		14.97		(1,330,129)
Forfeited		13.87		(33,568)
Restricted stock outstanding at December 31, 2021		$	12.88	4,146,088

(1) Approximately 71% of the shares granted in 2021 are subject to performance conditions under which the target number of shares granted may vest up to 200%.

At December 31, 2021, the 4.1 million shares of restricted stock outstanding consisted of 3.1 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 2020 and 2019 was $13.62 and $11.92, 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 or previous trading day if the Exchange is closed on the date of grant. The total fair value of restricted stock vested during 2021, 2020 and 2019 was $15.1 million, $20.4 million, and $13.7 million, respectively.As of December 31, 2021, there was $38.1 million of total unrecognized compensation cost related to non-vested share-based compensation agreements granted under the plans. Of this total, $32.6 million of unrecognized compensation costs relate to performance shares and $5.5 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.

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Basic earnings per share [Abstract]
Net income	$ 634,983	$ 446,093	$ 673,763
Weighted average common shares outstanding - basic (in shares)	334,330	339,953	352,827
Basic earnings per share (in dollars per share)	$ 1.90	$ 1.31	$ 1.91
Diluted earnings per share [Abstract]
Net income	$ 634,983	$ 446,093	$ 673,763
Diluted income available to common shareholders	$ 649,326	$ 463,097	$ 692,027
Weighted-average shares - basic (in shares)	334,330	339,953	352,827
Effect of dilutive securities [Abstract]
Weighted-average shares - diluted (in shares)	351,308	359,293	373,924
Diluted income per share (in dollars per share)	$ 1.85	$ 1.29	$ 1.85
Federal statutory income tax rate (in hundredths)	21.00%	21.00%	21.00%
9% Convertible Junior Subordinated Debentures due 2063
Diluted earnings per share [Abstract]
Dilutive securities	$ 14,343	$ 17,004	$ 18,264
Effect of dilutive securities [Abstract]
Dilutive securities (in shares)	15,196	17,751	19,028
Stated interest rate (in hundredths)	9.00%	9.00%	9.00%
Unvested Restricted Stock Units
Effect of dilutive securities [Abstract]
Dilutive securities - Share based compensation (in shares)	1,782	1,589	2,069

Loss Reserves

12 Months Ended

Dec. 31, 2021

Insurance Loss Reserves [Abstract]

Loss Reserves


NOTE 8						Loss Reserves

As described in Note 3 – “Summary of Significant Accounting Policies – Loss Reserves,” We establish case reserves and loss adjustment expenses ("LAE") reserves on delinquent loans that were reported to us as two or more payments past due and have not become current or resulted in a claim payment. Such loans are referred to as being in our delinquency inventory. Case reserves are established by estimating the number of loans in our delinquency inventory 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.

IBNR reserves are established for estimated losses from delinquencies we estimate have occurred prior to the close of an accounting period, but have not yet been reported to us. IBNR reserves are also established using estimated claim rates and claim severities

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; exposure on insured loans; the amount of time between delinquency and claim filing (all else being equal, the longer the period between delinquency and claim filing, the greater the severity); and curtailments and rescissions. 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 and the continued impact of the COVID-19 pandemic, leading to a reduction in borrowers’ income and thus their ability to make mortgage payments, the impact of past and future government initiatives and actions taken by the GSEs (including mortgage forbearance programs and foreclosure moratoriums), 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. Loss reserves in future periods will also be dependent on the number of loans reported to us as delinquent.

Changes to our estimates could result in a material impact to our consolidated results of operations and financial position, even in a stable economic environment. Given the uncertainty surrounding the long-term impact of COVID-19, it is difficult to predict the ultimate effect of the COVID-19 related delinquencies and forbearances on our loss incidence.

In considering the potential sensitivity of the factors underlying our estimate of loss reserves, it is possible that even a relatively small change in our estimated claim rate or claim severity could have a material impact on loss reserves and, correspondingly, on our consolidated results of operations even in a stable economic

environment. For example, as of December 31, 2021, assuming all other factors remain constant, a $1,000 increase/decrease in the average severity reserve factor would change the loss reserve amount by approximately +/- $16 million. A one percentage point increase/decrease in the average claim rate reserve factor would change the loss reserve amount by approximately +/- $19 million.

The “Losses incurred” section of table 8.1 below shows losses incurred on delinquencies that occurred in the current year and in prior years. The amount of losses incurred relating to delinquencies that occurred in the current year represents the estimated amount to be ultimately paid on such delinquencies. The amount of losses incurred relating to delinquencies that occurred in prior years represents the difference between the actual claim rate and claim severity associated with those delinquencies resolved in the current year compared to the estimated claim rate and claim severity at the prior year-end, as well as a re-estimation of amounts to be ultimately paid on delinquencies continuing from the end of the prior year. This re-estimation of the claim rate and claim severity is the result of our review of current trends in the delinquency inventory, such as percentages of delinquencies that have resulted in a claim, the amount of the claims relative to the average loan exposure, changes in the relative level of delinquencies by geography and changes in average loan exposure.

Losses incurred on delinquencies that occurred in the current year decreased in 2021 compared to 2020 due to a decrease in new delinquency notices reported. New delinquency notices and IBNR reserve estimates increased in 2020 due to the impact of the COVID-19 pandemic.

In 2021, we experienced favorable loss development of $60.0 million on previously received delinquencies primarily due to the decrease in the claim rate on pre-COVID-19 and peak COVID-19 delinquencies (those delinquencies for which notices were received in the second and third quarter of 2020). This was offset by the recognition of a probable loss of $6.3 million related to litigation of our claims paying practices and adverse development on LAE reserves and reinsurance. For the year ended December 31, 2020 we experienced adverse loss development of $19.6 million on previously received delinquencies primarily related to claim severity and adjustments to LAE reserves.

The “Losses paid” section of table 8.1 below shows the amount of losses paid on delinquencies that occurred in the current year and losses paid on delinquencies that occurred in prior years. In light of the uncertainty caused by the COVID-19 pandemic, specifically the foreclosure moratoriums and forbearance plans, the average time it takes to receive a claim has increased.

Table 8.1 provides a reconciliation of beginning and ending loss reserves as of and for the past three years:


Development of loss reserves
Table	8.1
(In thousands)		2021		2020		2019
Reserve at beginning of year		$	880,537	$	555,334	$	674,019
Less reinsurance recoverable		95,042		21,641		33,328
Net reserve at beginning of year		785,495		533,693		640,691

Losses incurred:
Losses and LAE incurred in respect of delinquent notices received in:
Current year		124,592		345,170		189,581
Prior years (1)		(60,015)		19,604		(71,006)
Total losses incurred		64,577		364,774		118,575

Losses paid:
Losses and LAE paid in respect of delinquent notices received in:
Current year		664		3,069		4,018
Prior years		68,769		109,923		235,551
Reinsurance terminations (2)		(35,978)		(20)		(13,996)
Total losses paid		33,455		112,972		225,573
Net reserve at end of year		816,617		785,495		533,693
Plus reinsurance recoverables		66,905		95,042		21,641
Reserve at end of year		$	883,522	$	880,537	$	555,334

The prior year development of the reserves in 2021, 2020 and 2019 is reflected in the table 8.2 below.


Reserve development on previously received delinquencies
Table	8.2
(In thousands)		2021		2020		2019
(Decrease) in estimated claim rate on primary delinquencies		$	(82,904)	$	(2,536)	$	(111,848)
Increase (decrease)in estimated claim severity on primary delinquencies		310		13,535		(434)
Change in estimates related to pool reserves, LAE reserves, reinsurance and other		22,579		8,605		41,276
Total prior year loss development (1)		$	(60,015)	$	19,604	$	(71,006)

DELINQUENCY INVENTORY


Primary delinquency inventory roll-forward
Table	8.3
		2021	2020	2019
Beginning delinquent inventory		57,710	30,028	32,898
New Notices		42,432	106,099	54,239
Cures		(64,896)	(76,107)	(52,035)
Paid claims		(1,223)	(2,245)	(4,267)
Rescissions and denials		(38)	(65)	(168)
Other items removed from inventory		(695)	—	(639)
Ending delinquent inventory		33,290	57,710	30,028

During 2021 and 2019, our losses paid included amounts paid upon commutation of coverage on pools of non-performing loans ("NPLs"). As a result of these payments 695 items were removed from the delinquency inventory with an amount paid of $13.8 million in 2021. During 2019, 639 items were removed from delinquency inventory with an amount paid of $30.0 million.

COVID-19 Activity

Our delinquency notices increased beginning in the second quarter of 2020 because of the impacts of the COVID-19 pandemic, including the high level of unemployment and economic uncertainty resulting from measures to reduce the transmission of COVID-19. Starting in the third quarter of 2020, we experienced an increase in cures associated with our COVID-19 new delinquency notices. Government initiatives and actions taken by the GSEs provide for payment forbearance on mortgages to borrowers experiencing hardship during the COVID-19 pandemic. These forbearance plans generally allow for mortgage payments to be suspended for up to 18 months: an initial forbearance period of up to six months; if requested by the borrower, an extension of up to six months; and, for loans in a COVID-19 forbearance plan as of February 28, 2021, an additional extension up to six months, subject to certain limits.

Historically as a delinquency ages it is more likely to result in a claim. The number of consecutive months that a borrower has been delinquent is shown in table 8.4 below.


Primary delinquency inventory - consecutive months delinquent
Table	8.4
		December 31,
		2021		2020		2019
3 months or less		7,586		11,542		9,447
4 - 11 months		7,990		34,620		9,664
12 months or more (1)		17,714		11,548		10,917
Total		33,290		57,710		30,028

3 months or less		23	%	20	%	32	%
4 - 11 months		24	%	60	%	32	%
12 months or more		53	%	20	%	36	%
Total		100	%	100	%	100	%

Primary claims received inventory included in ending delinquent inventory		211		159		538

The increase in loans in the delinquency inventory that are 12 months or more consecutive months delinquent compared to December 31, 2020 is primarily due to the number of new delinquency notices received in the second quarter of 2020 resulting from the impacts of the COVID-19 pandemic. This was partially offset by an increase in cures in the second half of 2020 and throughout 2021.

POOL INSURANCE DEFAULT INVENTORY

Pool insurance default inventory was 498 at December 31, 2021, 680 at December 31, 2020, and 653 at December 31, 2019.

PREMIUM REFUNDS

Our estimate of premiums to be refunded on expected claim payments is accrued for separately in "Other liabilities" on our consolidated balance sheets and approximated $37 million and $30 million at December 31, 2021 and 2020, respectively.

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lessee, operating lease, liability, maturity

Table 16.1 shows minimum the future operating lease payments as of December 31, 2021.


Minimum future operating lease payments
Table	16.1
(In thousands)		Amount
2022		$	771
2023		416
2024		211
2025		45
2026 and thereafter		—
Total		$	1,443

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Calculation of earnings (loss) per share

Table 4.1 reconciles basic and diluted EPS amounts:


Earnings per share
Table	4.1
		Years Ended December 31,
(In thousands, except per share data)		2021		2020		2019
Basic earnings per share:
Net income		$	634,983	$	446,093	$	673,763
Weighted average common shares outstanding - basic		334,330		339,953		352,827
Basic earnings per share		$	1.90	$	1.31	$	1.91
Diluted earnings per share:
Net income		$	634,983	$	446,093	$	673,763
Interest expense, net of tax (1):
9% Debentures		14,343		17,004		18,264
Diluted income available to common shareholders		$	649,326	$	463,097	$	692,027
Weighted-average shares - basic		334,330		339,953		352,827
Effect of dilutive securities:
Unvested restricted stock units		1,782		1,589		2,069
9% Debentures		15,196		17,751		19,028
Weighted average common shares outstanding - diluted		351,308		359,293		373,924
Diluted income per share		$	1.85	$	1.29	$	1.85

(1) Interest expense for the years ended December 31, 2021, 2020 and 2019 has been tax effected at a rate of 21%.

Reinsurance - Quota Share Agreement Terms (Details)	12 Months Ended
Reinsurance - Quota Share Agreement Terms (Details)	Dec. 31, 2021
2015 QSR
Effects of Reinsurance [Line Items]
Quota Share %	15.00%
Annual Loss Ratio to Exhaust Profit Commission	68.00%
2017 QSR (2)
Effects of Reinsurance [Line Items]
Quota Share %	30.00%
Annual Loss Ratio to Exhaust Profit Commission	60.00%
2018 QSR (2)
Effects of Reinsurance [Line Items]
Quota Share %	30.00%
Annual Loss Ratio to Exhaust Profit Commission	62.00%
2019 QSR
Effects of Reinsurance [Line Items]
Quota Share %	30.00%
Annual Loss Ratio to Exhaust Profit Commission	62.00%
Cede rate, option 1	25.00%
Cede rate, option 2	20.00%
2020 QSR
Effects of Reinsurance [Line Items]
Quota Share %	12.50%
Annual Loss Ratio to Exhaust Profit Commission	62.00%
Cede rate, option 1	10.50%
Cede rate, option 2	8.00%
2020 QSR, Two Year
Effects of Reinsurance [Line Items]
Quota Share %	17.50%
Annual Loss Ratio to Exhaust Profit Commission	62.00%
Cede rate, option 1	14.50%
Cede rate, option 2	12.00%
2021 QSR
Effects of Reinsurance [Line Items]
Quota Share %	12.50%
Annual Loss Ratio to Exhaust Profit Commission	57.50%
Cede rate, option 1	10.50%
Cede rate, option 2	8.00%
2022 QSR
Effects of Reinsurance [Line Items]
Quota Share %	15.00%
Annual Loss Ratio to Exhaust Profit Commission	57.50%
Cede rate, option 1	12.50%
Cede rate, option 2	10.00%
Credit Union QSR
Effects of Reinsurance [Line Items]
Quota Share %	65.00%
Annual Loss Ratio to Exhaust Profit Commission	50.00%

Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2021

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other comprehensive income

The pretax components of our other comprehensive income (loss) and related income tax (expense) benefit for the years ended December 31, 2021, 2020 and 2019 are included in table 10.1 below.


Components of other comprehensive income (loss)
Table	10.1
(In thousands)		2021		2020		2019
Net unrealized investment (losses) gains on securities without an allowance for credit losses		$	(154,555)	$	169,135	$	220,139
Income tax benefit (expense)		32,456		(35,519)		(46,229)
Net of taxes		(122,099)		133,616		173,910

Net changes in benefit plan assets and obligations		31,613		13,288		29,129
Income tax benefit (expense)		(6,638)		(2,791)		(6,117)
Net of taxes		24,975		10,497		23,012





Total other comprehensive income (loss)		(122,942)		182,423		249,268
Total income tax benefit (expense)		25,818		(38,310)		(52,346)
Total other comprehensive income (loss), net of tax		$	(97,124)	$	144,113	$	196,922

Reclassification out of accumulated other comprehensive income


Reclassifications from Accumulated Other Comprehensive Income (Loss)
Table	10.2
(In thousands)		2021		2020		2019
Reclassification adjustment for net realized (losses) gains included in net income (1)		$	10,455	$	13,862	$	3,637
Income tax benefit (expense)		(2,195)		(2,912)		(763)
Net of taxes		8,260		10,950		2,874

Reclassification adjustment related to benefit plan assets and obligations (2)		(9,779)		(15,968)		(8,097)
Income tax benefit (expense)		2,053		3,353		1,701
Net of taxes		(7,726)		(12,615)		(6,396)





Total reclassifications		676		(2,106)		(4,460)
Income tax benefit (expense)		(142)		441		938
Total reclassifications, net of tax		$	534	$	(1,665)	$	(3,522)

(1)(Decreases) increases Net realized investment gains on the consolidated statements of operations.

(2)Decreases (increases) Other underwriting and operating expenses, net on the consolidated statements of operations.

Accumulated other comprehensive income (loss)

A roll-forward of AOCI (AOCL) for the years ended December 31, 2021, 2020, and 2019, including amounts reclassified from AOCI (AOCL), is included in table 10.3 below.


Roll-forward of Accumulated Other Comprehensive Income (Loss)
Table	10.3
(In thousands)		Net unrealized gains and losses on available-for-sale securities		Net benefit plan assets and obligations recognized in shareholders' equity		Total AOCL
Balance, December 31, 2018, net of tax		$	(35,389)	$	(88,825)	$	(124,214)
Other comprehensive income (loss) before reclassifications		176,784		16,616		193,400
Less: Amounts reclassified from AOCL		2,874		(6,396)		(3,522)
Balance, December 31, 2019, net of tax		138,521		(65,813)		72,708
Other comprehensive income (loss) before reclassifications		144,566		(2,118)		142,448
Less: Amounts reclassified from AOCL		10,950		(12,615)		(1,665)
Balance, December 31, 2020, net of tax		272,137		(55,316)		216,821
Other comprehensive income (loss) before reclassifications		(113,839)		17,249		(96,590)
Less: Amounts reclassified from AOCL		8,260		(7,726)		534
Balance, December 31, 2021, net of tax		$	150,038	$	(30,341)	$	119,697

Reinsurance - Excess of Loss Reinsurance (Details) - USD ($) $ in Thousands						12 Months Ended
	Aug. 03, 2021	Feb. 02, 2021	Oct. 29, 2020	May 25, 2019	Oct. 30, 2018	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Effects of Reinsurance [Line Items]
Debt issued to cover insurance, term	12 years 6 months	12 years 6 months	10 years	10 years	10 years
Initial First Layer Retention	$ 190,159	$ 211,159	$ 275,283	$ 185,730	$ 168,691
Remaining First Layer Retention						$ 165,365	$ 166,005	$ 167,779
Remaining Excess of Loss Reinsurance Coverage	$ 398,429	$ 398,848	$ 412,917	$ 315,739	$ 318,636	$ 218,343	$ 218,343	$ 260,957

Earnings per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings per Share


NOTE 4						Earnings Per Share

Table 4.1 reconciles basic and diluted EPS amounts:


Earnings per share
Table	4.1
		Years Ended December 31,
(In thousands, except per share data)		2021		2020		2019
Basic earnings per share:
Net income		$	634,983	$	446,093	$	673,763
Weighted average common shares outstanding - basic		334,330		339,953		352,827
Basic earnings per share		$	1.90	$	1.31	$	1.91
Diluted earnings per share:
Net income		$	634,983	$	446,093	$	673,763
Interest expense, net of tax (1):
9% Debentures		14,343		17,004		18,264
Diluted income available to common shareholders		$	649,326	$	463,097	$	692,027
Weighted-average shares - basic		334,330		339,953		352,827
Effect of dilutive securities:
Unvested restricted stock units		1,782		1,589		2,069
9% Debentures		15,196		17,751		19,028
Weighted average common shares outstanding - diluted		351,308		359,293		373,924
Diluted income per share		$	1.85	$	1.29	$	1.85

(1) Interest expense for the years ended December 31, 2021, 2020 and 2019 has been tax effected at a rate of 21%.

For the years ended December 31, 2021, 2020, and 2019, all of our then outstanding 9% Debentures are reflected in diluted earnings per share using the “if-converted” method. Under this method, if dilutive, the common stock related to the outstanding 9% Debentures is assumed issued as of the beginning of the reporting period and the related interest expense, net of tax, is added back to earnings in calculating diluted EPS.

Benefit Plans - Change in Project Benefit/Accumulated Benefit Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Pension and Supplemental Executive Retirement Plans
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit Obligation at Beginning of Year	$ 423,713	$ 413,350
Company Service Cost	7,569	7,342	$ 8,345
Interest Cost	11,276	13,036	15,705
Plan Participants' Contributions	0	0
Net Actuarial (Gain)/Loss	(10,018)	36,196
Benefit Payments from the Fund	(40,482)	(40,260)
Benefit Payments Directly by Company	(362)	(5,953)
Plan Amendments	2	2
Other Adjustment	0	0
Settlement (Gain)Loss	0	0
Benefit Obligation at End of Year	391,698	423,713	413,350
Other Postretirement Benefit Plan
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit Obligation at Beginning of Year	28,714	27,496
Company Service Cost	1,508	1,263	1,345
Interest Cost	648	832	1,130
Plan Participants' Contributions	456	425
Net Actuarial (Gain)/Loss	(3,574)	660
Benefit Payments from the Fund	(1,963)	(1,975)
Benefit Payments Directly by Company	0	0
Plan Amendments	0	0
Other Adjustment	(154)	13
Settlement (Gain)Loss	0	0
Benefit Obligation at End of Year	$ 25,635	$ 28,714	$ 27,496

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair value measurements for items measured at fair value


Assets carried at fair value by hierarchy level as of December 31, 2021
Table	6.1a
(In thousands)		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	133,407	$	102,153	$	31,254	$	—
Obligations of U.S. states and political subdivisions		2,534,653		—		2,534,653		—
Corporate debt securities		2,765,982		—		2,765,982		—
ABS		150,710		—		150,710		—
RMBS		309,110		—		309,110		—
CMBS		319,130		—		319,130		—
CLOs		360,939		—		360,939		—
Foreign government debt		13,650		—		13,650		—

Total fixed income securities		6,587,581		102,153		6,485,428		—
Equity securities		16,068		16,068		—		—
Cash Equivalents		254,230		254,230		—		—
Real estate acquired (1)		1,507		—		—		1,507
Total		$	6,859,386	$	372,451	$	6,485,428	$	1,507


Assets carried at fair value by hierarchy level as of December 31, 2020
Table	6.1b
(In thousands)		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	265,693	$	149,339	$	116,354	$	—
Obligations of U.S. states and political subdivisions		2,249,869		—		2,249,869		—
Corporate debt securities		2,844,288		—		2,844,288		—
ABS		206,686		—		206,686		—
RMBS		431,166		—		431,166		—
CMBS		327,502		—		327,502		—
CLOs		310,490		—		310,490		—
Foreign government debt		4,709		—		4,709		—
Commercial paper		21,193		—		21,193		—
Total fixed income securities		6,661,596		149,339		6,512,257		—
Equity securities		18,215		18,215		—		—
Cash Equivalents		288,941		275,668		13,273		—
Real estate acquired (1)		1,092		—		—		1,092
Total		$	6,969,844	$	443,222	$	6,525,530	$	1,092

(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)


Fair value roll-forward for financial instruments classified as Level 3 for the year ended December 31,
Table	6.2
		Real Estate Acquired
(In thousands)			2021		2020
Beginning balance			$	1,092	$	7,252
Purchases			4,836		8,609
Sales			(4,806)		(15,429)
Included in earnings and reported as losses incurred, net			385		660
Ending balance			$	1,507	$	1,092

Schedule of carrying value and fair value of financial liabilities measured on a recurring basis

Table 6.3 compares the carrying value and fair value of our financial assets and liabilities disclosed, but not carried, at fair value as of December 31, 2021 and 2020.


Financial liabilities not carried at fair value
Table	6.3
		December 31, 2021				December 31, 2020
(In thousands)		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Other invested assets		$	3,100	$	3,100	$	3,100	$	3,100
Financial liabilities
FHLB Advance		$	155,000	$	157,585	$	155,000	$	160,865
5.75% Notes		241,255		256,213		240,597		261,752
5.25% Notes		640,253		686,875		638,782		696,449
9% Debentures		110,204		151,000		208,814		273,569
Total financial liabilities		$	1,146,712	$	1,251,673	$	1,243,193	$	1,392,635

Investments (Details)	12 Months Ended
Investments (Details)	Dec. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($) security	Dec. 31, 2019 USD ($)
Debt Securities, Available-for-sale [Line Items]
Total at end of period	$ 6,397,658,000	$ 6,317,164,000
Total at end of period	6,587,581,000	6,661,596,000
Assets held by insurance regulatory requirements	13,400,000	14,100,000
Assets held in trust for the benefit of contractual counterparties	$ 189,800,000	165,900,000
Collateral pledged to principal balance of FHLB advance (as a percent)	102.00%
Collateral pledged for FHLB advance	$ 167,200,000
Maturities, Amortized Cost [Abstract]
Due in one year or less	338,988,000
Due after one year through five years	1,751,297,000
Due after five years through ten years	1,745,569,000
Due after ten years	1,425,159,000
Total debt securities with single maturity date	5,261,013,000
Total at end of period	6,397,658,000	6,317,164,000
Maturities, Fair Value [Abstract]
Due in one year or less	341,604,000
Due after one year through five years	1,795,249,000
Due after five years through ten years	1,824,307,000
Due after ten years	1,486,532,000
Total debt securities with single maturity date	5,447,692,000
Total at end of period	6,587,581,000	6,661,596,000
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Equity securities, cost	15,838,000	17,522,000
Equity securities, at fair value (cost, 2021 - $15,838; 2020 - $17,522)	16,068,000	18,215,000
Continuous Unrealized Loss Portion, Unrealized Loses [Abstract]
Less than 12 months	1,970,111,000	300,911,000
12 months or greater	85,830,000	80,269,000
Total	2,055,941,000	381,180,000
Less than 12 months	(26,842,000)	(3,827,000)
12 months or greater	(1,625,000)	(832,000)
Total	$ (28,467,000)	$ (4,659,000)
Number of securities in unrealized loss position \| security	610	109
For securities in an unrealized loss position, percentage of fair value to amortized cost (in hundredths)	99.00%	99.00%
For securities in an unrealized loss position, percentage backed by the U.S. Government (in hundredths)	15.00%	27.00%
Total fixed income securities
Debt Securities, Available-for-sale [Line Items]
Total at end of period	$ 6,397,658,000	$ 6,317,164,000
Allowance for Expected Credit Loss	0	(49,000)
Gross Unrealized Gains	218,390,000	349,140,000
Gross Unrealized Losses	(28,467,000)	(4,659,000)
Total at end of period	6,587,581,000	6,661,596,000
Maturities, Amortized Cost [Abstract]
Total at end of period	6,397,658,000	6,317,164,000
Maturities, Fair Value [Abstract]
Total at end of period	6,587,581,000	6,661,596,000
Proceeds from sale of fixed income securities available for sale	471,800,000	803,400,000	$ 228,100,000
Gross realized gains on sale of fixed income securities	9,000,000	21,300,000	7,100,000
Gross realized losses on sale of fixed income securities	1,900,000	8,800,000	3,500,000
Realized losses on fixed income securities related to our intent to sell	0	300,000
Increase in credit allowance for the period		49,000
U.S. Treasury securities and obligations of U.S. government corporations and agencies
Debt Securities, Available-for-sale [Line Items]
Total at end of period	133,990,000	264,531,000
Allowance for Expected Credit Loss	0	0
Gross Unrealized Gains	285,000	1,164,000
Gross Unrealized Losses	(868,000)	(2,000)
Total at end of period	133,407,000	265,693,000
Maturities, Amortized Cost [Abstract]
Total at end of period	133,990,000	264,531,000
Maturities, Fair Value [Abstract]
Total at end of period	133,407,000	265,693,000
Continuous Unrealized Loss Portion, Unrealized Loses [Abstract]
Less than 12 months	91,154,000	2,690,000
12 months or greater	2,616,000	0
Total	93,770,000	2,690,000
Less than 12 months	(790,000)	(2,000)
12 months or greater	(78,000)	0
Total	(868,000)	(2,000)
Obligations of U.S. states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Total at end of period	2,408,688,000	2,083,568,000
Allowance for Expected Credit Loss	0	0
Gross Unrealized Gains	133,361,000	166,557,000
Gross Unrealized Losses	(7,396,000)	(256,000)
Total at end of period	2,534,653,000	2,249,869,000
Maturities, Amortized Cost [Abstract]
Total at end of period	2,408,688,000	2,083,568,000
Maturities, Fair Value [Abstract]
Total at end of period	2,534,653,000	2,249,869,000
Continuous Unrealized Loss Portion, Unrealized Loses [Abstract]
Less than 12 months	452,021,000	31,416,000
12 months or greater	15,540,000	0
Total	467,561,000	31,416,000
Less than 12 months	(7,189,000)	(256,000)
12 months or greater	(207,000)	0
Total	(7,396,000)	(256,000)
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Total at end of period	2,704,586,000	2,690,860,000
Allowance for Expected Credit Loss	0	0
Gross Unrealized Gains	75,172,000	155,156,000
Gross Unrealized Losses	(13,776,000)	(1,728,000)
Total at end of period	2,765,982,000	2,844,288,000
Maturities, Amortized Cost [Abstract]
Total at end of period	2,704,586,000	2,690,860,000
Maturities, Fair Value [Abstract]
Total at end of period	2,765,982,000	2,844,288,000
Continuous Unrealized Loss Portion, Unrealized Loses [Abstract]
Less than 12 months	865,085,000	44,968,000
12 months or greater	10,997,000	0
Total	876,082,000	44,968,000
Less than 12 months	(13,260,000)	(1,728,000)
12 months or greater	(516,000)	0
Total	(13,776,000)	(1,728,000)
ABS
Debt Securities, Available-for-sale [Line Items]
Total at end of period	150,888,000	203,807,000
Allowance for Expected Credit Loss	0	(49,000)
Gross Unrealized Gains	830,000	2,946,000
Gross Unrealized Losses	(1,008,000)	(18,000)
Total at end of period	150,710,000	206,686,000
Maturities, Amortized Cost [Abstract]
Debt securities without single maturity date	150,888,000
Total at end of period	150,888,000	203,807,000
Maturities, Fair Value [Abstract]
Debt securities without single maturity date	150,710,000
Total at end of period	150,710,000	206,686,000
Continuous Unrealized Loss Portion, Unrealized Loses [Abstract]
Less than 12 months	100,064,000	14,929,000
12 months or greater	1,552,000	0
Total	101,616,000	14,929,000
Less than 12 months	(998,000)	(18,000)
12 months or greater	(10,000)	0
Total	(1,008,000)	(18,000)
RMBS
Debt Securities, Available-for-sale [Line Items]
Total at end of period	309,991,000	425,532,000
Allowance for Expected Credit Loss	0	0
Gross Unrealized Gains	2,397,000	6,472,000
Gross Unrealized Losses	(3,278,000)	(838,000)
Total at end of period	309,110,000	431,166,000
Maturities, Amortized Cost [Abstract]
Debt securities without single maturity date	309,991,000
Total at end of period	309,991,000	425,532,000
Maturities, Fair Value [Abstract]
Debt securities without single maturity date	309,110,000
Total at end of period	309,110,000	431,166,000
Continuous Unrealized Loss Portion, Unrealized Loses [Abstract]
Less than 12 months	180,586,000	98,409,000
12 months or greater	31,641,000	3,566,000
Total	212,227,000	101,975,000
Less than 12 months	(2,548,000)	(773,000)
12 months or greater	(730,000)	(65,000)
Total	(3,278,000)	(838,000)
CMBS
Debt Securities, Available-for-sale [Line Items]
Total at end of period	315,330,000	312,572,000
Allowance for Expected Credit Loss	0	0
Gross Unrealized Gains	5,736,000	16,055,000
Gross Unrealized Losses	(1,936,000)	(1,125,000)
Total at end of period	319,130,000	327,502,000
Maturities, Amortized Cost [Abstract]
Debt securities without single maturity date	315,330,000
Total at end of period	315,330,000	312,572,000
Maturities, Fair Value [Abstract]
Debt securities without single maturity date	319,130,000
Total at end of period	319,130,000	327,502,000
Continuous Unrealized Loss Portion, Unrealized Loses [Abstract]
Less than 12 months	89,889,000	13,212,000
12 months or greater	1,511,000	2,799,000
Total	91,400,000	16,011,000
Less than 12 months	(1,887,000)	(789,000)
12 months or greater	(49,000)	(336,000)
Total	(1,936,000)	(1,125,000)
CLOs
Debt Securities, Available-for-sale [Line Items]
Total at end of period	360,436,000	310,616,000
Allowance for Expected Credit Loss	0	0
Gross Unrealized Gains	609,000	566,000
Gross Unrealized Losses	(106,000)	(692,000)
Total at end of period	360,939,000	310,490,000
Maturities, Amortized Cost [Abstract]
Debt securities without single maturity date	360,436,000
Total at end of period	360,436,000	310,616,000
Maturities, Fair Value [Abstract]
Debt securities without single maturity date	360,939,000
Total at end of period	360,939,000	310,490,000
Continuous Unrealized Loss Portion, Unrealized Loses [Abstract]
Less than 12 months	177,663,000	95,287,000
12 months or greater	21,973,000	73,904,000
Total	199,636,000	169,191,000
Less than 12 months	(71,000)	(261,000)
12 months or greater	(35,000)	(431,000)
Total	(106,000)	(692,000)
Foreign government debt
Debt Securities, Available-for-sale [Line Items]
Total at end of period	13,749,000	4,485,000
Allowance for Expected Credit Loss	0	0
Gross Unrealized Gains	0	224,000
Gross Unrealized Losses	(99,000)	0
Total at end of period	13,650,000	4,709,000
Maturities, Amortized Cost [Abstract]
Total at end of period	13,749,000	4,485,000
Maturities, Fair Value [Abstract]
Total at end of period	13,650,000	4,709,000
Continuous Unrealized Loss Portion, Unrealized Loses [Abstract]
Less than 12 months	13,649,000
12 months or greater	0
Total	13,649,000
Less than 12 months	(99,000)
12 months or greater	0
Total	(99,000)
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Total at end of period		21,193,000
Allowance for Expected Credit Loss		0
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Total at end of period		21,193,000
Maturities, Amortized Cost [Abstract]
Total at end of period		21,193,000
Maturities, Fair Value [Abstract]
Total at end of period		21,193,000
Equity securities
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Equity securities, cost	15,838,000	17,522,000
Gross gains	264,000	695,000
Gross losses	(34,000)	(2,000)
Equity securities, at fair value (cost, 2021 - $15,838; 2020 - $17,522)	16,068,000	18,215,000
Proceeds from sale of equity securities	2,600,000	25,700,000	1,700,000
Gross realized gains on equity securities	6,000	1,800,000	1,600,000
Gross realized losses on equity securities	2,300	400,000	0
Recognized net gains (losses) on equity securities still held	$ (500,000)	$ 600,000	$ 200,000

SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]
Gross Amount	$ 1,167,592	$ 1,199,824	$ 1,155,240
Ceded to Other Companies	163,031	188,729	129,337
Assumed From Other Companies	9,858	10,848	5,085
Net Amount	$ 1,014,419	$ 1,021,943	$ 1,030,988
Percentage of Amount Assumed to Net	1.00%	1.10%	0.50%

Fair Value Measurements - Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Aug. 31, 2020	Dec. 31, 2019
Senior Notes \| 5.75% Senior Notes due 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (in hundredths)	5.75%
Senior Notes \| 5.25% Senior Notes due 2028
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (in hundredths)	5.25%		5.25%
9% Convertible Junior Subordinated Debentures due 2063
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (in hundredths)	9.00%	9.00%		9.00%
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other invested assets	$ 3,100	$ 3,100
FHLB Advance	155,000	155,000
9% Debentures	110,204	208,814
Total financial liabilities	1,146,712	1,243,193
Carrying Value \| Senior Notes \| 5.75% Senior Notes due 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	241,255	240,597
Carrying Value \| Senior Notes \| 5.25% Senior Notes due 2028
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	640,253	638,782
Fair Value \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other invested assets	3,100	3,100
FHLB Advance	157,585	160,865
9% Debentures	151,000	273,569
Total financial liabilities	1,251,673	1,392,635
Fair Value \| Significant Other Observable Inputs (Level 2) \| Senior Notes \| 5.75% Senior Notes due 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	256,213	261,752
Fair Value \| Significant Other Observable Inputs (Level 2) \| Senior Notes \| 5.25% Senior Notes due 2028
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	$ 686,875	$ 696,449

Loss Reserves - Default Inventory Reconciliation (Details) - loan	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Primary Default Inventory [Roll Forward]
Beginning delinquent inventory	57,710	30,028	32,898
New Notices	42,432	106,099	54,239
Cures	(64,896)	(76,107)	(52,035)
Paid claims	(1,223)	(2,245)	(4,267)
Rescissions and denials	(38)	(65)	(168)
Other items removed from inventory	(695)	0	(639)
Ending delinquent inventory	33,290	57,710	30,028

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Remaining term of operating leases (in years)	4 years
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2022	$ 771
2023	416
2024	211
2025	45
2025 and thereafter	0
Total	1,443
Operating lease, expense	$ 1,300	$ 1,900	$ 2,100

Reinsurance - Quota Share Reinsurance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Effects of Reinsurance [Line Items]
Ceded losses incurred	$ 9,862	$ 77,975	$ 11,400
Quota Share Reinsurance Agreements
Effects of Reinsurance [Line Items]
Ceded premiums written and earned, net of profit commission	118,537	167,930	111,550
Ceded losses incurred	9,862	78,012	11,395
Ceding commisisons	53,460	48,077	48,793
Profit commission	$ 153,759	$ 72,452	$ 139,179

Loss Reserves - Aging of Primary Default Inventory (Details) - loan	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Aging of the Primary Default Inventory [Abstract]
3 months or less	7,586	11,542	9,447
4 - 11 months	7,990	34,620	9,664
12 months or more	17,714	11,548	10,917
Total primary default inventory	33,290	57,710	30,028	32,898
3 months or less (in hundredths)	23.00%	20.00%	32.00%
4 - 11 months (in hundredths)	24.00%	60.00%	32.00%
12 months or more (in hundredths)	53.00%	20.00%	36.00%
Total primary default inventory (in hundredths)	100.00%	100.00%	100.00%
Primary claims received inventory included in ending default inventory	211	159	538
Percent of inventory in default for more than 36 consecutive months	20.00%	31.00%	36.00%

Nature of Business

12 Months Ended

Dec. 31, 2021

Nature of Business [Abstract]

Nature of Business


NOTE 1						Nature of Business

MGIC Investment Corporation is a holding company which, through Mortgage Guaranty Insurance Corporation ("MGIC"), 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. Primary mortgage insurance provides mortgage default protection on individual loans and covers a percentage of the unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure or sale approved by us, of the underlying property. MGIC Assurance Corporation ("MAC") and MGIC Indemnity Corporation ("MIC"), insurance subsidiaries of MGIC, provide insurance for certain mortgages under Fannie Mae and Freddie Mac (the "GSEs") credit risk transfer programs.

Through certain non-insurance subsidiaries, we also provide certain services for the mortgage finance industry, such as contract underwriting.

At December 31, 2021, our direct primary insurance in force ("IIF") was $274.4 billion, which represents the principal balance in our records of all mortgage loans that we insure, and our direct primary risk in force ("RIF") was $69.3 billion, which represents the IIF multiplied by the insurance coverage percentage.

The substantial majority of our NIW has been for loans purchased by the GSEs. The current private mortgage insurer eligibility requirements ("PMIERs") of the GSEs include financial requirements, as well as business, quality control and certain transactional approval requirements. The financial requirements of the PMIERs require a mortgage insurer’s "Available Assets" (generally only the most liquid assets of an insurer) to equal or exceed its "Minimum Required Assets" (which are based on an insurer's book of risk in force, calculated from tables of factors with several risk dimensions). Based on our application of the PMIERs, as of December 31, 2021, MGIC’s Available Assets are in excess of its Minimum Required Assets; and MGIC is in compliance with the PMIERs and eligible to insure loans purchased by the GSEs.

Benefit Plans - Development of Funded Status (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Pension and Supplemental Executive Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	$ 390,747	$ 423,305
Projected Benefit Obligation	(391,698)	(423,713)	$ (413,350)
Plan Assets at Fair Value	391,555	411,245	402,691
Funded Status - Overfunded/(Underfunded)	(143)	(12,468)
Other Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	25,635	28,714
Projected Benefit Obligation	(25,635)	(28,714)	(27,496)
Plan Assets at Fair Value	140,839	119,024	$ 99,590
Funded Status - Overfunded/(Underfunded)	$ 115,204	$ 90,310

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

Share-based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 17.1	$ 13.8	$ 18.9
Income tax benefit from compensation cost	$ 1.8	$ 1.7	$ 2.7
Shares [Roll Forward]
Restricted stock outstanding at end of period (in shares)	4,100,000
Restricted Stock/Restricted Stock Units
Weighted average grant date fair market value [Abstract]
Restricted stock outstanding at end of period (in dollars per share)	$ 13.57
Granted (in dollars per share)	12.83	$ 13.62	$ 11.92
Vested (in dollars per share)	14.97
Forfeited (in dollars per share)	13.87
Restricted stock outstanding at end of period (in dollars per share)	$ 12.88	$ 13.57
Shares [Roll Forward]
Restricted stock outstanding at beginning of period (in shares)	4,139,243
Granted (in shares)	1,370,542
Vested (in shares)	(1,330,129)
Forfeited (in shares)	(33,568)
Restricted stock outstanding at end of period (in shares)	4,146,088	4,139,243
Additional disclosures [Abstract]
Total fair value of restricted stock vested	$ 15.1	$ 20.4	$ 13.7
Unrecognized compensation cost	$ 38.1
RSUs subject to performance conditions
Shares [Roll Forward]
Restricted stock outstanding at end of period (in shares)	3,100,000
Additional disclosures [Abstract]
Share-based compensation arrangement, percent granted subject to performance conditions	71.00%
Share-based compensation arrangement, maximum vesting percent of shares granted	200.00%
Unrecognized compensation cost	$ 32.6
RSUs subject only to service conditions
Shares [Roll Forward]
Restricted stock outstanding at end of period (in shares)	1,000,000
Additional disclosures [Abstract]
Unrecognized compensation cost	$ 5.5
Weighted-average period for recognition of compensation cost	1 year 8 months 12 days
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants (in shares)	8,800,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years

Reinsurance

12 Months Ended

Dec. 31, 2021

Reinsurance Disclosures [Abstract]

Reinsurance


NOTE 9						Reinsurance

Our consolidated financial statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with, in the case of quota share reinsurance, the related earned premiums) we have underwritten to other insurance companies who agree to share these risks. The purpose of ceded reinsurance is to protect us, at a cost, against losses arising from our mortgage guaranty policies covered by the agreement and to manage our capital requirements under PMIERs. Reinsurance is currently placed on a quota share and excess of loss basis but we also have immaterial captive reinsurance agreements that were in effect through December 31, 2020.

Table 9.1 below shows the effect of all reinsurance agreements on premiums earned and losses incurred as reflected in the consolidated statements of operations.


Reinsurance
Table	9.1
		Years ended December 31,
(In thousands)		2021		2020		2019
Premiums earned:
Direct		$	1,167,592	$	1,199,824	$	1,155,240
Assumed		9,858		10,848		5,085
Ceded		(163,031)		(188,729)		(129,337)
Net premiums earned		1,014,419		1,021,943		1,030,988

Losses incurred:
Direct		74,496		442,194		130,100
Assumed		(57)		555		(125)
Ceded		(9,862)		(77,975)		(11,400)
Net losses incurred		$	64,577	$	364,774	$	118,575

QUOTA SHARE REINSURANCE

We have entered into quota share reinsurance ("QSR") transactions with panels of third-party reinsurers to cede a fixed quota share percentage of premiums earned and received and losses incurred on insurance covered by the transactions. We receive the benefit of a ceding commission equal to 20% of premiums ceded before profit commission. We also receive the benefit of a profit commission through a reduction of premiums we cede. The profit commission varies inversely with the level of losses on a “dollar for dollar” basis and can be eliminated at annual loss ratios higher than we have experienced on our QSR transactions.

Each of our QSR transactions typically have annual loss ratio caps of 300% and lifetime loss ratios of 200%.

Table 9.2 below provides additional detail regarding our QSR transactions in effect during 2021.


Reinsurance
Table	9.2

Quota Share Contract		Policy Year	Quota Share %	Annual Loss Ratio to Exhaust Profit Commission (1)	Contractual Termination Date
2015 QSR		Prior to 2017	15.0%	68.0%	December 31, 2031
2017 QSR (2)		2017	30.0%	60.0%	December 31, 2028
2018 QSR (2)		2018	30.0%	62.0%	December 31, 2029
2019 QSR		2019	30.0%	62.0%	December 31, 2030
2020 QSR		2020	12.5%	62.0%	December 31, 2031
2020 QSR and 2021 QSR		2020 - 2021	17.5%	62.0%	December 31, 2032
2021 QSR		2021	12.5%	57.5%	December 31, 2032
2022 QSR		2022	15.0%	57.5%	December 31, 2033
Credit Union QSR (3)		2020-2025	65.0%	50.0%	December 31, 2039

(1) We will receive a profit commission provided the annual loss ratio on policies covered under the transaction remains below this ratio.

(2) 2017 and 2018 QSR Transactions were terminated effective December 31, 2021.

(3) Eligible credit union business written before April 1, 2020 was covered by our 2019 and prior QSR Transactions.

We have executed an agreement with a group of unaffiliated reinsurers for a reinsurance transaction with an effective date of January 1, 2022 with a similar structure to our existing QSR transactions that will cover most of our NIW in 2022 (with an additional 15.0% quota share) and 2023 (with a 15% quota share). Generally, we will receive an annual profit commission provided the annual loss ratio on the loans covered under the transaction remain below 62.0%.

We can elect to terminate the QSR Transactions under specified scenarios without penalty upon prior written notice, including if we will receive less than 90% (80% for the Credit Union QSR Transaction ) of the full credit amount under the PMIERs, full financial statement credit or full credit under applicable regulatory capital requirements for the risk ceded in any required calculation period. Early termination of the QSR agreements can also be elected by us for a fee, or under specified scenarios for no fee upon prior written notice.

Reinsurance

Table

9.3

Quota Share Contract

Optional Termination Date (1)

Optional Quota Share % Reduction Date (2)

Quota Share % Reduction

2015 QSR

June 30, 2021

2019 QSR

December 31, 2021

July 1, 2020

25% or 20%

2020 QSR

December 31, 2022

July 1, 2021

10.5% or 8%

2020 QSR and 2021 QSR, 2020 Policy year

December 31, 2022

July 1, 2021

14.5% or 12%

2020 QSR and 2021 QSR, 2021 Policy year

December 31, 2023

July 1, 2022

14.5% or 12%

2021 QSR

December 31, 2023

July 1, 2022

10.5% or 8%

2022 QSR

December 31, 2024

July 1, 2023

12.5% or 10%

(1) We can elect early termination of the QSR transaction beginning on this date, and bi-annually thereafter.

(2) We can elect to reduce the quota share percentage beginning on this date, and bi-annually thereafter.

Table 9.4 provides a summary of our QSR Transactions, excluding captive agreements, for 2021, 2020, and 2019.


Quota share reinsurance
Table	9.4
		Years ended December 31,
(In thousands)		2021		2020		2019
Ceded premiums written and earned, net of profit commission		$	118,537	$	167,930	$	111,550
Ceded losses incurred		9,862		78,012		11,395
Ceding commissions (1)		53,460		48,077		48,793
Profit commission		153,759		72,452		139,179

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

We incurred an early termination fee of $5 million for the termination of our 2017 and 2018 QSR Transactions effective December 31, 2021. The reinsurance recoverable on paid losses as of December 31, 2021 includes $36 million due from the reinsurers participating in the 2017 and 2018 QSR Transactions for loss and LAE reserves incurred at the time of termination.

Ceded premiums written and earned, net of profit commission, increased in 2020 due to the decrease in profit commission. The decrease in profit commission was a result of higher ceded losses incurred, primarily due to an increase in the delinquency inventory due to the impacts of the COVID-19 pandemic.

Under the terms of our QSR Transactions currently in effect, ceded premiums, ceding commissions, profit commission, and ceded loss paid and LAE paid are settled net on a quarterly basis. The ceded premiums due after deducting the related ceding commission and profit commission is reported within "Other liabilities" on the consolidated balance sheets. The reinsurance recoverable on loss reserves related to our QSR Transactions was $66.9 million as of December 31, 2021 and $95.0 million as of December 31, 2020. The reinsurance recoverable balance is secured by funds on deposit from the reinsurers, the minimum amount of which is based on the greater of 1) a reinsurer's funding requirements under PMIERs or 2) ceded reserves and unpaid losses. Each of the reinsurers under our quota share reinsurance agreements described above has an insurer financial strength rating of A- or better (or a comparable rating) by Standard and Poor's Rating Services, A.M. Best, Moody's, or a combination of the three. An allowance for credit losses was not required for 2021.

EXCESS OF LOSS REINSURANCE

We have aggregate excess of loss reinsurance transactions (“Home Re Transactions”) with unaffiliated special purpose insurers (“Home Re Entities”). For the reinsurance coverage periods, we retain the first layer of the respective aggregate losses paid, and a Home Re special purpose entity will then provide second layer coverage up to the outstanding reinsurance coverage amount. We retain losses paid in excess of the outstanding reinsurance coverage amount. Subject to certain conditions, the reinsurance coverage decreases over a period of either 10 or 12.5 years, depending on the transaction, as the underlying covered mortgages amortize or are repaid, or mortgage insurance losses are paid.

The Home Re entities financed the coverages by issuing mortgage insurance-linked notes (“ILNs”) to unaffiliated investors in an aggregate amount equal to the initial reinsurance coverage amounts. Each ILN is non-recourse to any assets of MGIC or affiliates. The proceeds of the ILNs, which were deposited into reinsurance trusts for the benefit of MGIC, will be the source of reinsurance claim payments to MGIC and principal repayments on the ILNs.

When a “Trigger Event” is in effect, payment of principal on the related notes will be suspended and the reinsurance coverage available to MGIC under the transactions will not be reduced by such principal payments. As of December 31, 2021 a "Trigger Event" has occurred on our Home Re 2018-1 and Home Re 2019-1 ILN transactions because the reinsured principal balance of loans that were reported 60 or more days delinquent exceeded a percentage of the total reinsured principal balance of loans specified under each transaction. A "Trigger Event" has also occurred on the Home Re 2021-2 ILN transactions because the credit enhancement of the most senior tranche is less than the target credit enhancement.

Table 9.5 provides a summary of our Home Re Transactions as of December 31, 2021, December 31, 2020 and December 31, 2019.


Excess of Loss Reinsurance
Table 9.5
($ in thousands)	Home Re 2021-2, Ltd.	Home Re 2021-1, Ltd.	Home Re 2020-1, Ltd.	Home Re 2019-1, Ltd.	Home Re 2018-1, Ltd.
Issue Date	August 3, 2021	February 2, 2021	October 29, 2020	May 25, 2019	October 30, 2018
Policy Inforce Dates	January 1, 2021 - May 28, 2021	August 1, 2020 - December 31, 2020	January 1, 2020 - July 31, 2020	January 1, 2018 - March 31, 2019	July 1, 2016 - December 31, 2017
Optional Call Date (1)	July 25, 2028	January 25, 2028	October 25, 2027	May 25, 2026	October 25, 2025
Legal Maturity	12.5 years	12.5 years	10 years	10 years	10 years
Initial First Layer Retention	190,159	211,159	275,283	185,730	168,691
Initial Excess of Loss Reinsurance Coverage	398,429	398,848	412,917	315,739	318,636
2021
Remaining First Layer Retention	190,159	211,142	275,204	183,917	165,365
Remaining Excess of Loss Reinsurance Coverage	398,429	387,830	234,312	208,146	218,343
2020
Remaining First Layer Retention	—	—	275,283	184,514	166,005
Remaining Excess of Loss Reinsurance Coverage	—	—	412,917	208,146	218,343
2019
Remaining First Layer Retention	—	—	—	185,636	167,779
Remaining Excess of Loss Reinsurance Coverage	—	—	—	271,021	260,957

(1)We have the right to terminate the Home Re Transactions under certain circumstances and on any payment date on or after the respective Optional Call date.

The reinsurance premiums ceded to each Home Re Entity are composed of coverage, initial expense and supplemental premiums. The coverage premiums are generally calculated as the difference between the amount of interest payable by the Home Re Entity on the remaining reinsurance coverage levels, and the investment income collected on the collateral assets held in reinsurance trust account and used to collateralize the Home Re Entity's reinsurance obligation to MGIC. The amount of monthly reinsurance coverage premium ceded will fluctuate due to changes in the reference rate and changes in money market rates that affect investment income collected on the assets in the reinsurance trust. The Home Re 2021-2 Transactions references SOFR, while the remaining Home Re Transactions reference the one-month LIBOR. As a result, we concluded that each Home Re Transaction contains an embedded derivative that is accounted for separately as a freestanding derivative. The fair values of the derivatives at December 31, 2021 and December 31, 2020, were not material to our consolidated balance sheet, and the change in fair values during the years ended December 31, 2021, December 31, 2020 and December 31, 2019 were not material to our consolidated statements of operations. Total ceded premiums under the Home Re transaction were $44.5 million, $20.8 million, and $17.6 million for the years ended December 31, 2021, December 31, 2020 and December 31, 2019.

At the time the Home Re Transactions were entered into, we concluded that each Home Re Entity is a variable interest entity (“VIE”). A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make sufficient decisions relating to the entity’s operations through voting rights or do not substantively participate in gains and losses of the entity. Given that MGIC (1) does not have the unilateral power to direct the activities that most significantly affect each Home Re Entity’s economic performance and (2) does not have the obligation to absorb losses or the right to receive benefits of each Home Re Entity that could be significant to the Home Re Entity, consolidation of the Home Re Entities is not required.

We are required to disclose our maximum exposure to loss, which we consider to be an amount that we could be required to record in our statements of operations, as a result of our involvement with the VIEs under our Home Re Transactions. As of December 31, 2021, December 31, 2020 and December 31, 2019, we did not have material exposure to the VIEs as we have no investment in the VIEs and had no reinsurance claim payments due from the VIEs under our reinsurance transactions. We are unable to determine the timing or extent of claims from losses that are ceded under the reinsurance transactions. The VIE assets are deposited in reinsurance trusts for the benefit of MGIC that will be the source of reinsurance claim payments to MGIC. The purpose of the reinsurance trusts is to provide security to MGIC for the obligations of the VIEs under the reinsurance transactions. The trustee of the reinsurance trusts, a recognized provider of corporate trust services, has established segregated accounts within the reinsurance trusts for the benefit of MGIC, pursuant to the trust agreements. The trust agreements are governed by, and construed in accordance with, the laws of the State of New York. If the trustee of the reinsurance trusts failed to distribute claim payments to us as provided in the reinsurance trusts, we would incur a loss related to our losses ceded under the reinsurance transactions and deemed unrecoverable. We are also unable to determine the impact such possible failure by the trustee to perform pursuant to the

reinsurance trust agreements may have on our consolidated financial statements. As a result, we are unable to quantify our maximum exposure to loss related to our involvement with the VIEs. MGIC has certain termination rights under the reinsurance transactions should its claims not be paid. We consider our exposure to loss from our reinsurance transactions with the VIEs to be remote.

Table 9.6 presents the total assets of the Home Re Entities as of December 31, 2021 , December 31, 2020 and December 31, 2019.


Home Re Entities total assets
Table	9.6

(In thousands)
Home Re Entity		Total VIE Assets
December 31, 2021
Home Re 2018-1 Ltd.		$	218,343
Home Re 2019-1 Ltd.		208,146
Home Re 2020-1 Ltd.		251,387
Home Re 2021-1 Ltd.		398,848
Home Re 2021-2 Ltd.		398,429

December 31, 2020
Home Re 2018-01 Ltd.		$	218,343
Home Re 2019-01 Ltd.		208,146
Home Re 2020-01 Ltd.		412,917

December 31, 2019
Home Re 2018-01 Ltd.		$	269,451
Home Re 2019-01 Ltd.		283,150

The reinsurance trust agreements provide that the trust assets may generally only be invested in certain money market funds that (i) invest at least 99.5% of their total assets in cash or direct U.S. federal government obligations, such as U.S. Treasury bills, as well as other short-term securities backed by the full faith and credit of the U.S. federal government or issued by an agency of the U.S. federal government, (ii) have a principal stability fund rating of “AAAm” by S&P or a money market fund rating of “Aaa-mf” by Moody’s as of the Closing Date and thereafter maintain any rating with either S&P or Moody’s, and (iii) are permitted investments under the applicable credit for reinsurance laws and applicable PMIERs credit for reinsurance requirements.

The total calculated PMIERs credit for risk ceded under our Home Re Transactions is generally based on the PMIERs requirement of the covered policies and the attachment and detachment points of the coverage, all of which fluctuate over time. (see Note 1 - "Nature of Business" and Note 2 - "Basis of Presentation" ).