| Fair Value of Financial Instruments |
6. Fair Value of Financial Instruments For discussion of our valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 6 of Notes to Consolidated Financial Statements in our 2025 Form 10-K. The following tables include a list of assets and liabilities that are measured at fair value by hierarchy level as of the dates indicated.
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Assets and liabilities carried at fair value by hierarchy level |
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June 30, 2026 |
|
(In thousands) |
|
Level I |
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|
Level II |
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|
Level III |
|
|
Total |
|
Investments |
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|
|
|
|
|
|
|
|
|
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Fixed maturities available for sale |
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|
|
|
|
|
|
|
|
|
|
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U.S. government and agency securities |
|
$ |
277,604 |
|
|
$ |
1,234 |
|
|
$ |
— |
|
|
$ |
278,838 |
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State and municipal obligations |
|
|
— |
|
|
|
215,590 |
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|
|
— |
|
|
|
215,590 |
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Corporate bonds and notes |
|
|
— |
|
|
|
3,077,524 |
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|
|
— |
|
|
|
3,077,524 |
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RMBS |
|
|
— |
|
|
|
1,327,021 |
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|
|
— |
|
|
|
1,327,021 |
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CMBS |
|
|
— |
|
|
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336,999 |
|
|
|
— |
|
|
|
336,999 |
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CLO |
|
|
— |
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|
|
502,490 |
|
|
|
— |
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|
502,490 |
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Other ABS |
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|
— |
|
|
|
485,783 |
|
|
|
— |
|
|
|
485,783 |
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Mortgage insurance-linked notes (1) |
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|
— |
|
|
|
1,429 |
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|
|
— |
|
|
|
1,429 |
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Other |
|
|
— |
|
|
|
1,119 |
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|
|
— |
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|
|
1,119 |
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Total fixed maturities available for sale |
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|
277,604 |
|
|
|
5,949,189 |
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|
|
— |
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|
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6,226,793 |
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|
|
|
|
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|
|
|
|
|
|
|
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Fixed maturities trading securities |
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|
|
|
|
|
|
|
|
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State and municipal obligations |
|
|
— |
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|
|
25,684 |
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|
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— |
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|
25,684 |
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Corporate bonds and notes |
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— |
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|
15,207 |
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|
|
— |
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|
15,207 |
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CMBS |
|
|
— |
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|
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4,060 |
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|
|
— |
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|
4,060 |
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Total fixed maturities trading securities |
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— |
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44,951 |
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— |
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44,951 |
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|
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|
|
|
|
|
|
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Equity securities |
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|
22,074 |
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|
6,291 |
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4,046 |
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32,411 |
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|
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|
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Other invested assets (2) (3) |
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49,199 |
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— |
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|
7,100 |
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|
56,299 |
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|
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|
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Short-term investments |
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|
|
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|
|
|
|
|
|
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U.S. government and agency securities |
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|
20,943 |
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|
1,115 |
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|
— |
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|
22,058 |
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State and municipal obligations |
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— |
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|
12,841 |
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|
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— |
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|
12,841 |
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Money market instruments |
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|
460,910 |
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— |
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|
— |
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|
460,910 |
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Corporate bonds and notes |
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— |
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|
70,581 |
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|
|
— |
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|
70,581 |
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Other ABS |
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— |
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|
11,019 |
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— |
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|
11,019 |
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Other investments (4) |
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|
482 |
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|
45,009 |
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— |
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|
45,491 |
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Total short-term investments |
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482,335 |
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140,565 |
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— |
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|
622,900 |
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Total investments at fair value (3) |
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|
831,212 |
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6,140,996 |
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|
11,146 |
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6,983,354 |
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Other |
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Loaned securities and securities sold under repurchase agreements (5) |
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Corporate bonds and notes |
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— |
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70,939 |
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— |
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|
70,939 |
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RMBS |
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|
— |
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|
3,428 |
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|
|
— |
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|
|
3,428 |
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CLO |
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|
— |
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|
2,471 |
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|
— |
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|
2,471 |
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Equity securities |
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|
28,518 |
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|
|
— |
|
|
|
— |
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|
28,518 |
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Total assets at fair value (3) |
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$ |
859,730 |
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$ |
6,217,834 |
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$ |
11,146 |
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$ |
7,088,710 |
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Liabilities |
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|
|
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|
|
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Derivative liabilities |
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$ |
— |
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|
$ |
— |
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$ |
119 |
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$ |
119 |
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Total liabilities at fair value |
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$ |
— |
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|
$ |
— |
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$ |
119 |
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$ |
119 |
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(1)Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Mortgage XOL Program. See Note 8 for more information. (2)Consists primarily of Lloyd’s overseas deposits, which are deposits held to provide security for the payment of policyholder claims in certain overseas jurisdictions. See Note 7 for additional information about our Lloyd’s overseas deposits. (3)Does not include other invested assets of $3 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (4)Primarily consists of commercial paper. (5)Securities loaned to third-party borrowers under securities lending agreements or sold under repurchase agreements are classified as other assets on our condensed consolidated balance sheets. See Note 7 for more information on our securities lending and repurchase agreements.
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Assets and liabilities carried at fair value by hierarchy level |
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December 31, 2025 |
|
(In thousands) |
|
Level I |
|
|
Level II |
|
|
Level III |
|
|
Total |
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Investments |
|
|
|
|
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|
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Fixed maturities available for sale |
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|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
|
$ |
115,189 |
|
|
$ |
1,524 |
|
|
$ |
— |
|
|
$ |
116,713 |
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State and municipal obligations |
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|
— |
|
|
|
167,126 |
|
|
|
— |
|
|
|
167,126 |
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Corporate bonds and notes |
|
|
— |
|
|
|
1,957,005 |
|
|
|
— |
|
|
|
1,957,005 |
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RMBS |
|
|
— |
|
|
|
884,258 |
|
|
|
— |
|
|
|
884,258 |
|
CMBS |
|
|
— |
|
|
|
241,444 |
|
|
|
— |
|
|
|
241,444 |
|
CLO |
|
|
— |
|
|
|
376,847 |
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|
|
— |
|
|
|
376,847 |
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Other ABS |
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|
— |
|
|
|
481,718 |
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|
|
— |
|
|
|
481,718 |
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Mortgage insurance-linked notes (1) |
|
|
— |
|
|
|
45,689 |
|
|
|
— |
|
|
|
45,689 |
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Other |
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|
— |
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|
1,116 |
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|
— |
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|
1,116 |
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Total fixed maturities available for sale |
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|
115,189 |
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|
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4,156,727 |
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— |
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|
4,271,916 |
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|
|
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|
|
|
|
|
|
|
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Fixed maturities trading securities |
|
|
|
|
|
|
|
|
|
|
|
|
State and municipal obligations |
|
|
— |
|
|
|
35,912 |
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|
|
— |
|
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|
35,912 |
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Corporate bonds and notes |
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|
— |
|
|
|
24,791 |
|
|
|
— |
|
|
|
24,791 |
|
CMBS |
|
|
— |
|
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|
4,958 |
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|
|
— |
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|
4,958 |
|
Total fixed maturities trading securities |
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|
— |
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65,661 |
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|
|
— |
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|
65,661 |
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|
|
|
|
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|
|
|
|
|
|
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Equity securities |
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|
29,630 |
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|
|
2,956 |
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|
4,046 |
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|
36,632 |
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|
|
|
|
|
|
|
|
|
|
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Other invested assets (2) (3) |
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|
— |
|
|
|
— |
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|
7,089 |
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|
7,089 |
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|
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|
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Short-term investments |
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|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
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|
354,905 |
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|
74,817 |
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|
|
— |
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|
|
429,722 |
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Money market instruments |
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|
219,384 |
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|
|
— |
|
|
|
— |
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|
|
219,384 |
|
Corporate bonds and notes |
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|
— |
|
|
|
11,729 |
|
|
|
— |
|
|
|
11,729 |
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Other ABS |
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|
— |
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|
|
2,447 |
|
|
|
— |
|
|
|
2,447 |
|
Other investments (4) |
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|
— |
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|
|
939,711 |
|
|
|
— |
|
|
|
939,711 |
|
Total short-term investments |
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|
574,289 |
|
|
|
1,028,704 |
|
|
|
— |
|
|
|
1,602,993 |
|
Total investments at fair value (3) |
|
|
719,108 |
|
|
|
5,254,048 |
|
|
|
11,135 |
|
|
|
5,984,291 |
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|
|
|
|
|
|
|
|
|
|
|
|
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Other |
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|
|
|
|
|
|
|
|
|
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|
Loaned securities (5) |
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|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
|
|
64,830 |
|
|
|
— |
|
|
|
— |
|
|
|
64,830 |
|
Corporate bonds and notes |
|
|
— |
|
|
|
54,155 |
|
|
|
— |
|
|
|
54,155 |
|
Equity securities |
|
|
22,893 |
|
|
|
— |
|
|
|
— |
|
|
|
22,893 |
|
Total assets at fair value (3) |
|
$ |
806,831 |
|
|
$ |
5,308,203 |
|
|
$ |
11,135 |
|
|
$ |
6,126,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
478 |
|
|
$ |
478 |
|
Total liabilities at fair value |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
478 |
|
|
$ |
478 |
|
(1)Includes mortgage insurance-linked notes purchased by Radian Group in connection with the Mortgage XOL Program. See Note 8 for more information. (2)Consists primarily of interests in private debt and equity investments. (3)Does not include other invested assets of $3 million that are primarily invested in limited partnership investments valued using the net asset value as a practical expedient. (4)Consists of commercial paper. (5)Securities loaned to third-party borrowers under securities lending agreements are classified as other assets on our condensed consolidated balance sheets. See Note 7 for more information on our securities lending agreements. Other Fair Value Disclosure The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our condensed consolidated balance sheets are as follows as of the dates indicated.
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Financial instruments not carried at fair value |
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|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
(In thousands) |
|
Carrying
Amount |
|
|
Estimated
Fair Value |
|
|
Carrying
Amount |
|
|
Estimated
Fair Value |
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Company-owned life insurance |
|
$ |
104,103 |
|
|
$ |
104,103 |
|
|
$ |
102,323 |
|
|
$ |
102,323 |
|
Short-term borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term senior notes |
|
|
449,156 |
|
|
|
449,523 |
|
|
|
— |
|
|
|
— |
|
Short-term FHLB advances |
|
|
85,952 |
|
|
|
85,961 |
|
|
|
33,320 |
|
|
|
33,339 |
|
Long-term borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term senior notes |
|
|
620,095 |
|
|
|
645,188 |
|
|
|
1,067,908 |
|
|
|
1,107,215 |
|
Revolving credit facility |
|
|
75,000 |
|
|
|
75,000 |
|
|
|
— |
|
|
|
— |
|
Long-term FHLB advances |
|
|
1,800 |
|
|
|
1,802 |
|
|
|
7,887 |
|
|
|
7,905 |
|
The fair value of our company-owned life insurance is estimated based on the cash surrender value less applicable surrender charges. These assets are categorized in Level II of the fair value hierarchy and are included in other assets on our condensed consolidated balance sheets. See Note 9 for further information on our company-owned life insurance. The fair value of our senior notes is estimated based on quoted market prices. The fair value of our FHLB advances is estimated based on current market rates and contractual cash flows, including any fees that may be required to be paid to the FHLB. The carrying amount of borrowings under our revolving credit facility approximates fair value due to the floating rate nature of that debt. These liabilities are all categorized in Level II of the fair value hierarchy. See Note 12 for further information about our borrowings and financing activities.
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